How do I value my contract if I sell?

Discussion in 'Purchasing DVC' started by mjc2003, Aug 4, 2013.

  1. mjc2003

    mjc2003 DIS Veteran

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    I have a ...... contract, and am considering selling it because we are going to be taking 2 years off from Disney after our October trip. I have had great success with point transfers, so I'm considering buying a small contract of 50-100 points and doing a transfer if need be.

    Problem is.........we used our 2014 points for our October trip. So we would be selling it stripped, with no points coming until 2015.

    Question is, how do I value this?

    Also, if I want to buy only 50 points I might have to go direct, I'm fine with that. Should I make the purchase before I sell b/c I know the minimum buy ins are different for members for new purchasers?
     
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  3. CarolMN

    CarolMN DVC Co-Moderator Moderator

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    The DIS does not allow "For Sale" posts - or any post that has enough detail to be construed as such, even if that is not the intent of the poster.

    I edited the OP's post so that it asks a general question only.

    mjc2003 - I'd start with the ROFR threads. Many of the contracts listed as passing ROFR have been stripped. Right now, it doesn't seem like there is much of a discount applied for a stripped contract. It appears to be a sellers' market. If you plan to list with a broker, you can ask them for their thoughts as well. Good luck!
     
  4. Missyrose

    Missyrose DIS Veteran

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    The brokers know best how to price the contracts. Carol is right, with so few contracts on the market, you shouldn't have to drop your list price much (or at all) because of the stripped points. Lots of people have raved about selling through The Timeshare Store, I'd call them and let them guide you to the price.
     
  5. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    And any buyer putting an offer on your contract will probably drop their offer a bit because of the contract being stripped. But you don't have to accept their offer.
     
  6. CarolMN

    CarolMN DVC Co-Moderator Moderator

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    Some may offer less, but lately, there have been several reports of buyers offering full asking price to make sure they actually get the contract, even if it was stripped.

    That seems to be especially true if a small contract (50-200 points or so) is involved. I recall more than one poster that was disappointed because they didn't offer full price and lost the contract to someone else.
     
  7. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    A few months ago, there were posters on the DIS who suggested dropping the offer by $10 a point if the contract was stripped. Because that is what they could get if they rented out the points. But that is outrageous.
     
  8. LorieDisneyLover

    LorieDisneyLover DIS Veteran

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    What is the definition of a 'stripped' contract? At first, I thought it was a listing which doesn't have any points for the current use year.

    However, there are MANY listings on the four major brokers which don't have any points until 2015!!!

    They've been just sitting there and not being sold ... I think the prices are way too high for having to pay MF in 2014 and not getting any points/benefits until 2015.
     
  9. Missyrose

    Missyrose DIS Veteran

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    A stripped contract is one that doesn't have current, or sometimes the next, year's points. Because there have been fewer contracts on the resale market, stripped contracts weren't taking the same per-point hit that they had in previous years. Some had even hypothesized that brokers were suggesting people sell a transfer of points out of their contract before putting it up for sale.
     
  10. ELMC

    ELMC DIS Veteran

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    I'm confused. If you're taking two years off of Disney, and your contract doesn't have any points until 2015, doesn't that work out? Why then are you selling?
     
  11. mjc2003

    mjc2003 DIS Veteran

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    Fair question, honestly there are several variables. We stand to make more than we paid, so after getting about 30 nights and using up 1000 points, that's a pretty good deal. Also when I said 2 years before we return, it could be 3 because my wife might be spend a considerable portion of 2015 overseas. So our DVC could sit idle for 3 years realistically.

    I also have a friend with 1000+ points that is always happy to transfer us what we need for a fair price. So ideally I'd like 25-50 points just to keep some skin in the game and control my own reservations.

    There are some other factors, like my wife having to do a lot of work in Orlando this year (and probably next) and sadly our WDW trips are starting to feel like less of a vacation to her b/c it reminds her of being there for work. We are also in the middle of a huge backyard renovation and I wouldn't mind freeing up some cash to do some things that weren't originally in the plans.

    Nothing has been decided. I feel torn personally, but am trying to take any emotion out of the decision b/c by no means will selling preclude us from going back!
     
  12. ELMC

    ELMC DIS Veteran

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    Thanks for clarifying. It makes perfect sense. I like your idea of having a small contract to be able to control your reservations, get the AP discounts (while they last) etc. One thing I would point out is that you might want to consider making your small contract a resale, otherwise the cost of direct points could wipe away a lot of your proceeds from your sale and work against some of the goals you have laid out. Just something to factor into the decision. Good luck!
     
  13. Sandisw

    Sandisw Moderator Moderator

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    If you decide you want to buy the small contract direct, I'd do so before you sell off the rest of your contracts.

    They do allow you to buy in for as little as 25 points (cash) or 50 points (financed) if you are a member.

    While I do know they have let new buyers in with smaller contracts, not sure if they would let you go as small as 25.

    If you have a Disney Visa, you can purchase for 6 months, 0% interest, which could be a nice benefit to cover the time between adding on those points and selling your other ones if that is what you decide to do.

    Good luck with your decision..
     
  14. mjc2003

    mjc2003 DIS Veteran

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    This is my biggest dilemma. I think with plenty of time on my hands, conceivably 24+ months, I should be able to find a small resale contract if I'm diligent. However, realistically I might not be super diligent and I can see a benefit to buying just 25 points direct before I sell. This way I'll get my small contract with no hassle (assuming points are available, I might have to wait a bit), pay for it outright and yes, I'll cut into my return by about 25% for only 25 points. But ultimately it's what we want, with no hassles, and that's worth something. And we will save in fee's on the points we don't carry for the next few years....so while it's not conventional wisdom, it just might be the best solution.

    Thank you Sandi, this is what I was thinking of doing. I don't have the Visa, I was considering getting one, maybe this is a good reason to if we opted for 50 points. Currently I'm leaning towards 25 though.
     
  15. Sandisw

    Sandisw Moderator Moderator

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    When I got my Disney Visa, I think I got a $100 GC too...which I used to put towards my first dues payment...LOL

    And, sometimes, convenience and ease, can outweigh cost savings, especially when you are talking such a small contract. Well, at least that is my opinion. YMMV
     
  16. Slakk

    Slakk House of Mouse Fan

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    I have slowly sold most of my points (had 600) - I am down to 150 and am probably selling them as well. When I originally went to sell I thought a fully loaded contract would be worth more - then I found out buyers don't seem to care so we stripped them and got the exact same price.

    We are going on a short vacation now just to play at BCV and use up points before we sell the final ones. It makes absolutely no sense but unless buyers put a value on a full contract it makes no sense to give them anything but a stripped.

    For a small contract that always holds a high value it is silly to not strip - from a SELLERS perspective
     
  17. ELMC

    ELMC DIS Veteran

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    Actually, you pretty much described the perfect reasons why you would want to buy direct in this case. Sure, direct is more money, and the value added to a direct purchase might not always be worth it to many. However, you have described extra value that you would receive for your money, and therefore it might make sense. I'd still recommend making an attempt at a small resale, but I wouldn't be married to the idea in your case. Good luck with everything! :)
     
  18. twinsouvenirs

    twinsouvenirs Mother of Dragons :)

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    we weren't even looking at stripped contracts-- that said, I did see plenty fly off the shelves. I think part of it is where you own.
     
  19. dbs1228

    dbs1228 DIS Veteran

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    I never got the point to buying a stripped contract especially no points until 2015! :confused3 If the price is real low - maybe but the contracts that are selling is amazing to me. :rolleyes1 We have bought resale several times and I would not even look at a stripped contract unless it was cheap. I would rather wait a year or 2 to see where prices are in 2014 - 2015 then outlay money for something I cannot use or rent out for 2 years! :coffee:

    People are buying them so if you want to sell give it a shot and good luck!
     
  20. lodge

    lodge DIS Veteran

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    Buying 25 points resale got a friend on the Owner's list and able to buy another small add on at VGF. They knew when VGF would start selling and ensured they were closed in time.
     
  21. Sandisw

    Sandisw Moderator Moderator

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    Yes, you can buy a small resale and become an owner. In this case, I was just saying if the OP decided he was going direct for it, buy it while still an owner and not after selling the other contracts.
     

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