Resale price higher than direct???

Discussion in 'Purchasing DVC' started by sndral, Sep 18, 2013.

  1. sndral

    sndral DIS Veteran

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    In my search for DVC resale listings I ran across this one which has me shaking my head:
    AKV Dec. use yr. 160 $166.50 ppt.
    AKV direct price is $150 minus $10 per point incentive (in the 160 & up category) minus $1000 developers credit which nets $133.75 ppt.
    The contract listing details state that it has 320 - 2012 points, which I assume must be banked 2011 + current 2012 pts., but don't those 2011 pts. have to be used by 12/1/13 - which is not likely @ this late stage in the year. Even valuing those 320 points @ $14 (David's going cost to rent rate) you have $4480, minus the $26640 asking price is still $138.50 ppt. - so $5 per point higher than Disney would sell them to you.
    Even if somehow I really wanted those 320 extra points, I could rent them for $4480, pay Disney for 160 points ($20,400) and spend $24,880 v. the $26,640 asking price for these points.
    Am I missing something here?
     
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  3. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    Well, Disney sells points at a higher price than resale. Why can't resale sell at a higher price than Disney? :goodvibes

    It's all in the marketing and perceived value. :thumbsup2

    :earsboy: Bill
     
  4. JimMIA

    JimMIA A little Miami humor...

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    Yes...the difference between listing price and selling price. Just because someone asks a certain price doesn't mean they are going to get it.

    I would expect AKV to sell at a little less than HALF what that seller is asking.
     
  5. rock_doctor

    rock_doctor DIS Veteran

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    Yep, the amount they still owe on the loan they got to buy the points initially... They probably need this amount to cover the note, fees and so on. Too bad no way they are going to break even on that one...
     
  6. sndral

    sndral DIS Veteran

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    Oh, it would never occurr to me to waste my time on that listing if the goal was to invite offers for bargaining. I just assumed the seller wasn't being realistic or was hoping to walk away w/out owing money but the price is even higher than what should be owed @ 90% financing plus 10% commission. I suppose if they fell behind in MF and payments w/ fees you might dig yourself into a $26,000+ hole. AKV was selling direct for $120 in 2011, and from $125-140 in 2012.
    W/ 320 pts. on the books (some of which if not all are set to expire) the seller doesn't strike me as very sophisticated otherwise they would have rented the points I would think.
     
  7. Minniesgal

    Minniesgal DIS Veteran

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    Maybe for sold out resorts that could be true but for a resort Disney is currently selling?
     
  8. Minniesgal

    Minniesgal DIS Veteran

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    Reads to me like a forced reluctant seller. Divorce maybe?

    Also David's don't rent distressed points so I'm not sure those 2011 points have much value it is too late to buy them in time to rent them.
     
  9. rock_doctor

    rock_doctor DIS Veteran

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  10. jerseyduke

    jerseyduke DIS Veteran

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    Totally sounds like a divorce!

    Reminded me in a Gas station in my town....there is an ordinance saying that you can not be just a auto repair shop, you must sell Gas (don't ask me, I didn't write it)...so they sell gas...at double the price of the place right next to them, because they have no interest in selling it.
     
  11. DMKEDM

    DMKEDM DIS Veteran

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    Looks to me like a typo! Just bizarre to think there's any rational (or even irrational) reason for listing a resale at a price higher than Disney's direct price!
     
  12. timmac

    timmac DIS Veteran

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    It could also be someone who (foolishly) believes that they have a natural right to make a hefty profit on this transaction. They probably financed for the maximum amount possible, not too long ago, still owe most of it, and need to sell because they can't afford it. But, while they're at it, they not only "need to sell it for X" because that's what they owe, but it should actually be worth more than that in their mind. Though not the norm, it happens occasionally on eBay/craigslist and the like for electronics, cars, and other items, where the seller is just a little clueless. I have some family members who periodically ask for help listing stuff on craigslist... when I tell them what the typical selling price looks like, they always insist on listing it much higher because "that's what it's worth, since that's what they paid for it"... they have yet to sell anything that I'm aware of. That's my guess as to what it going on here.
     
  13. agie65

    agie65 New Disney Fan DVC Gold

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    Don't tell me you saw that listing at fidelity. They usually have many distress contracts and seller in a deep hole so is the asking price. I don't even bother looking at it, because you can not negotiate them down to realistic market price. I just saw a BWV listed for 155/pp go figure how much it really worth.
     

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