I cannot believe the jump in resale costs!

Discussion in 'Purchasing DVC' started by Shelly888, Jul 6, 2013.

  1. Shelly888

    Shelly888 DIS Veteran

    Dec 27, 2007
    I haven't browsed in quite some time, clearly I missed the hike in prices. Wow! Good thing I'm not ready to buy yet! I am thinking this has been asked several times, but is the general consensus that prices will drop again in a year or two?
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  3. MoreTravels

    MoreTravels Mouseketeer

    May 7, 2012
    Many of these contracts will expire sooner than the others. If they are not sold / offered to extend before their expiration, they expire worthless.

    So the answer to your question is YES. They will not always stay this expensive when they have less years left.

    The question is, when? :confused3
  4. jerseyduke

    jerseyduke DIS Veteran

    Jan 19, 2013
    I think Disney got more aggressive with ROFR to set a new 'baseline' price for direct points, probably somewhat related to the VGF going on sale.

    Eventually it should be more of a buyer's market, but if waitlists are long, ROFR will be exercised more.

    Resale prices have spiked in the last 6 months though. I have noticed less out there. In January I was looking at VWL resale...now there is usually about half the listings I saw then.
  5. ELMC

    ELMC DIS Veteran

    Jul 4, 2011
    I think we are still a long ways away from the contract expiration date playing a significant role in pricing. The biggest factor that will influence pricing in the short term is when buyers change their mentality about what they are willing to pay. (Obviously supply plays an important role, but that is something beyond our control so talking about it is a bit moot). Typically the publicity of contracts going for less than market price has a cascading effect, leading to more and more buyers looking to push the envelope. Right now that is not a big motivator, with buyers instead focusing on passing ROFR and getting the contract they want regardless of cost. I attribute the latter position to the increase in direct prices, which has become the new basis for comparison.

    I will say that this is probably the correct approach for those who are looking for something specific or looking to own within a certain time frame. I have tried using my bargain hunter methods and have had six of eight contracts taken back since February. Now the two that I did get were great deals, but it's only a good deal if you manage to get the contract, which I failed to do 75% of the time.
  6. Nabas

    Nabas Mouseketeer

    May 5, 2013
    2011 and 2012 prices were unusually low. Just like all real estate, DVCs are making a rebound due to an improving economy which is bringing more buyers into the market.

    The increase in resale prices seems to have been triggered by a "free tickets" promotion for BWV direct sales along with a steep direct sale price increase that took effect on March 20. Both events generated a run on DVC points at the "Classic Resorts", with all resale prices being affected as a result.

    Like most real estate, the lowest prices usually are found in the late fall and early winter.

    Even today's "high" prices still don't match where they were in 2008.
  7. Deb & Bill

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

    Mar 20, 2000
    Actually current resale prices are still less than they were in 2006. We sold our BCV points for about $95 a point.
  8. DougEMG

    DougEMG DIS Veteran

    Aug 14, 2008
    Prices will drop the next time the US economy tanks. Will that happen in the next year or two? I would not bet on it.
  9. bighoo93

    bighoo93 Mouseketeer

    Dec 30, 2011
    I tend to agree with Doug, and here's why: the US economy is still in the tank. Unemployment remains at extremely high levels, as they have for the last 5 years or so. Job growth is anemic. Taking into account the number of people who have decided to give up looking for a job, the labor market participation rate is abysmal. Meanwhile, the number of people on food stamps is at an all time high. My point is, we aren't in a booming US economy right now, in fact, a pretty weak one. So while a further drop is possible, things are already not so hot. One wild card is the likely implementation of a law legalizing millions of currently illegal immigrants, which would flood the labor market. But I still think that's more likely to prolong the non-recovery rather than lead to a crash. Of course, this is all just guessing the future...

    Many factors influence the resale price of DVC. The macroeconomic environment is indisputably among the most significant, but far from the only one. And who knows, maybe the people leaving the labor market are deciding to spend their time at Disney instead of looking for a job...
  10. jimmytammy

    jimmytammy <font color=purple>Swivel, it's a hard habit to br

    May 27, 2002
    I think it is based on your point of view. We recently survived ROFR on a 150 pt BWV contract, $75 per point. This is roughly what we paid direct for VWL in 2001. So from our perspective, this was reasonable. We realize prices for BWV were around $10 less per pt. a few mos. ago, but we weren't ready or seriously considering buying then.

    I think we will continue to see prices up and down, and you have to buy when it feels right for you. Good luck as you look for what fits for you and your family:goodvibes
  11. DisneyDenis

    DisneyDenis Mouseketeer

    Nov 20, 2012
    What is your bargain hunting technique? I am interested to know.
  12. CraigD

    CraigD Earning My Ears

    Jul 6, 2013
    As a first time resale and DVC buyer. I lost out on 3 different contrcts within 4 days. I spoke to a guy at TSS in the AM, called back that afternono to pull the trigger, and gone. Prices have even gone up in the last couple weeks since we completed the contract by 1 or 2 dollars. However, the trade off of 150 dollars a point vs. 85 at some of the classic resorts is a significant difference.
  13. Missyrose

    Missyrose DIS Veteran

    Jan 18, 2009
    There are far fewer contracts on the market than there once were in the past few years (especially at BWV, BCV, BLT and VWL). So you've learned the first lesson of buying resale -- have a lightning-quick trigger finger. Know what you want to pay and when you see a contract, jump immediately. Waiting even just a few minutes can cost you a deal.
  14. DougEMG

    DougEMG DIS Veteran

    Aug 14, 2008
    Very good advice. :thumbsup2
  15. BeachLove

    BeachLove Mouseketeer

    Apr 23, 2012
    I just came on here to post the same thing. I'm looking for another BWV contract with feb use year.
  16. hapablap21

    hapablap21 Earning My Ears

    Jun 7, 2013
    I think, more than economic outlook, is the difference in economic picture now versus 4-5 years ago at any given point in time. The last few years have seen the people who bought in at the end of the RE bubble flooding the market with contracts that they can't afford. The people selling now most likely didn't buy in during the 06-07 timeframe. They probably bought after the collapse, and as such most likely aren't selling because they HAVE to. It looks like the "weak hands" have all sold (more or less), and now the contracts on the market are by and large discretionary sales rather than distressed ones. So there are less of them, and the ones out there aren't as motivated. Couple that with buyers who made it through the collapse ok and now have some cash that they can't find a good investment for, and prices start going up.
  17. Ljbadfan

    Ljbadfan disney fan

    Jul 13, 2012
    my parents just bought 50 more points on the cruise. they said on the cruise during our meeting Disney already has a price hike in the future ready to be set in place. so if you are going to buy now is the time. on our cruise if you bought 100 or more points they gave you a $1000 ship board credit.
  18. z28wiz

    z28wiz DIS Veteran DVC Gold

    Feb 6, 2003
    Which resort did they give you the inboard credits on? Was GFV one?

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  19. aclov

    aclov DIS Veteran

    Jan 31, 2006
    Me too!
  20. sndral

    sndral DIS Veteran

    Feb 3, 2008
    NOW is always the time according to sales people. Every sales person who has tried to sell me something thereby pocketing a commission for themselves had some 'reason' why I should buy right now.
    Price increases of direct sales, MF, ticket prices, cash room rates, etc. are baked in the Disney cake. Price increases or decreases in the resale market are less predictable, IMO.
  21. iluvthsgam

    iluvthsgam Mouseketeer DVC Gold

    Oct 3, 2009
    The gym across the street from me always has a "special" deal that is only available for "this" month - yet each month I don't sign up, I still get the e-mails with the "new" special deal for the next month and it's always the same. The right time to buy is when you are ready, not when the sales person tells you to.

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