Why would you buy from DVC with resale prices so good?

[Grumbo]

I am a complete novice to DVC and am wading through old posts and looking at resales the price seems so much better than buying direct from Disney.
I guess the months may be limited but all resorts seem available on resale.
I'm sure this may have been discussed before but I couldn't find it. Could someone enlighten me please?
Cheers,
Grumbo

 

[CK1]

Mostly, it's a matter of convenience. DVC will finance, there's no closing costs, it's just all soooo easy (too easy, sometimes!) And no waiting to see if ROFR is going to take your dream away.

It's kinda like retail shopping versus ebay... there are deals to be had, but some folks just don't want to bid and haggle and watch the clock to see if they "won", they would rather go, buy, pay, and enjoy, even if it costs them a tad more.

TIme is money, as the saying goes.

If we were looking for a large or initial contract, we would DEFINITELY go resale. We had planned to do a resale for our first add-on, back when BWV was "sold out". When we got word that BWV would have pts available this summer, though, we jumped on it. Again -- convenience was the key.

 

[Grumbo]

From what I've read closing is around $500 (roughly) depending on points purchased?
What is ROFR? I've seen it a few times but the anacronyms here are wild Is there a list of them somewhere?
The fact we like either BWV and the BV's makes us look at resales closer but we investigated a year ago and to be honest my head was swimming after researching it.
I'm getting that same feeling again now but we are in a position where we'll do this or we're going to move and buy a larger home.
Decisions decisions
Cheers,
Grumbo

 

[Granny]

Some advantages of buying from Disney instead of resale:

1. You can pick exactly how many points you want.

2. For a resort like SSR, you can determine your own use month that best fits your vacationing schedule.

3. Don't have to sweat through ROFR.

4. You don't have to pay closing costs.

5. You don't get contracts with points depleted (unless you choose to sell back as part of MB).

6. Easier financing.

7. Disney won't pull the rug out on a deal.


I'm sure there are other reasons, but the only reasons to buy resale, in my opinion, are....


1. Save money.

2. Buy at a resort that is sold out and not available thru Disney.

3. Save money.

 

[Granny]

Originally posted by Grumbo
What is ROFR?

After you have an offer accepted by a seller of a resale contract, Disney has the right to buy from that seller at that price and the buyer is out of luck. That is Disney's right of first refusal (ROFR) on any resale contract.

So any resale contract has to "clear" through Disney. If the deal is a really good one, Disney will swoop in and grab it and resell the points themselves.

 

[Grumbo]

If the deal is a really good one, Disney will swoop in and grab it and resell the points themselves.

Ahh OK ....
So does Disney actually have points they get this way for sale or do they keep them inhouse?
Cheers,
Grumbo

 

[zulaya]

ROFR is Right Of First Refusal. ALL resales have to be submitted to Disney before a resale buyer can actually buy.

If the price is not high enough, or if the buyer isn't paying closing closts, or any other things, Disney can snatch the resale out from under you.

You could lose 1-2 months from the initial offer to Disney exercising ROFR or not. Disney has 30 days to review a resale. Sometimes they review fast, but lately, it seems they are taking the full 30 days. Most likely because they are SO busy with SSR sales.

So if you make an offer on a resale, you need to make sure you offer a price that is above the floor of ROFR. Most WDW-DVC resort resales have not been taken by Disney if the prices are $71 or higher. Some $70 prices have been seen, but those could have been stressed contracts (ie no current points, or a lot of borrowing points).

Most people here, me included, will tell you to buy where you want to stay. If BWV is your yen, contact a reseller, let them know the size contract you are looking for and have them contact you when they get one that meets your needs. You can also surf the resellers websites too, but a lot of times the good contracts don't even make the websites if the agents have clients waiting for just the right contract.

 

[Maistre Gracey]

Hi, Grumbo. I would also like to say that if you decide to buy resale, the $500 closing can be substantial. In other words, if you bought a 150 point contract, esentially you have added $3.33 per point to the selling price. Of course, the larger the contract, the more points you can spread the closing costs over. On the other hand, if someone was looking for a small add-on, it could be huge.

Good luck!...

 

[Grumbo]

MG:
I'm aiming for around 200 - 225 points.....
What is the "norm" in closing costs? I may be right out in left field in my $500 comment and if so tell me as I am trying to learn
I never thought of it that way though adding to the price of the points for a comparison guide. Thanks.

zulaya:
Thanks that makes so much sense reading the way you've written that.
The value of points that are not included (as I've seen on some online sales pages) as they've been used already sure can make a big difference if you want to use them soon.
So is the Sarasota Springs Resort the ONLY thing you can buy direct from DVC now?
I have written to DVC but have not heard from them as of yet.
Cheers,
Grumbo

 

[Maistre Gracey]

Grumbo, I am far from a resale expert, but I think you are in the ballpark with your $500 figure.
There are a couple of folks here that are very knowledgeable about resales. Perhaps they will check in on this thread.

 

[zurgswife]

Settlement depends on the value of the sale.

with the Timeshare Closing Services, Inc. ( a popular closing company)

$375 up to $2999
$400 $3000 to $6999
$425 $7000 to $9999
$450 $10000 to 11999
$475 $12,000 to 13999
$500 $14000 to 15999


That should help you with your estimate.

There is also a transfer fee I believe of $100

 

[disneycrazed139]

If you can take out a home equity loan or if you can pay cash for a resale, then definitely it makes more sense to go that way.

However, keep in mind that if these options are not available to you, Disney might actually make sense from a financial viewpoint. The reason is that Disney financing (although a very high rate) is still considerably lower than financing you might be able to get for a resale timeshare, where I found the rates to be around 11-13%. (Disney is currently 9.75 with direct debit.) It is also considered a mortgage and from what I hear, the interest may be tax deductible.

Anyway, if you get a deal from Disney on a new purchase (like the $10/point price break at SSR) and you factor in the higher interest rate for a personal loan (11-13% versus 9.75%) it's possible you will come out ahead with Disney, even though the timeshare purchase price is lower for the resale.

Just a thought.

 

[Caskbill]

Don't forget when comparing purchasing SSR direct from Disney versus buying a different resort resale, that the SSR contract is good until the year 2054 while all the other DVC resort contracts expire in 2042.

If you purchase SSR then you, or your family, get an extra 12 years of vacations compared to the other resorts.

Financially if you bought 250 points resale at $70/point plus $500 closing costs, that works out to $17,500 for 38 years vacations, or $460/year.

SSR at $74 with no closing, and 50 years, comes out to $370/year.

The above does not reflect variabilities of inflation or differences in maintenance fees, etc.

 

[tjkraz]

Originally posted by Grumbo
I have written to DVC but have not heard from them as of yet.

For what it's worth, if you have questions PLEASE pick up the phone and call DVC. With your first call you will be assigned to a Guide, who is your DVC friend forevermore.

I spoke to our guide (Byron) at least 4 times prior to deciding to move forward. Every time he was very professional and informative. If my experience is any indication, you will NEVER feel pressured to buy into DVC, nor will you be pressured to buy more points than you want.

Good luck with your decision.

 

[Grumbo]

The above does not reflect variabilities of inflation or differences in maintenance fees, etc

Thanks Caskbill:
It also doesn't take into account I'd be over 100 and probably on first name basis with the worms under my headstone

Is there anything available on the net other than tiny artist's conceptions of SSR that I can look at. As I say I wrote to DVC and have requested their package but if there is something out there I'd love to take a look.
The VBC is still our first choice (We looked at them and BW a couple of years ago and like the "location" as well as SAB) but this is early in our checking things out mode

Cheers,
Grumbo

 

[tjkraz]

Here are some posts that I bookmarked which may be of interest:

SSR Point Chart:
http://www.disboards.com/showthread.php?s=&threadid=416317

SSR Model Room Photos:
http://www.disboards.com/showthread.php?s=&threadid=420105

SSR Brochure:
http://www.disboards.com/showthread.php?s=&threadid=419920

Someone had also posted links to some small CGI video clips showing the propsed design for the resort. Can't find that post and the search function is disabled. There were probably 6 small (8-10 second) clips showing different aspects of the resort including building exteriors and interiors and the pool area.

Since the resort is still almost 8 months away from opening (and just one building at 5/1/04), it will probably be a few months before any actual exterior photos of significance are available.

 

[Grumbo]

Thanx tjkraz...
I appreciate everyone's assistance with this. Funny thinking back when you bought stuff or were looking to buy and couldn't research it first on the net. I DO remember it but this sure is much better.
Cheers,
Grumbo

 

[DrTomorrow]

Grumbo,

I just went through the whole thing; started looking two weeks ago, now I've made a down payment and I'm waiting for the BIG FedEx box!

We went through Disney because of the convenience, the costs were almost equal (equal enough not to make a difference to us) and because we really like to oh-so-close to DTD/PI location of SSR.

Note that we got the info pack last week, and there was no information on SSR that we hadn't already seen on-line (chart and brochure); and tjkraz posted the links to the Model Photos. Lots of useful stuff about DVC, though....

But if there's one thing I've learned, it's "Buy where you want to stay!"

Best of Luck!

 

[Terry S]

The reason we bought through Disney instead of resale was simple. We wanted BCV to be our "Home" resort and it was brand new and only being sold through Disney at the time.

 

[poohstx]

Originally posted by Caskbill

SSR at $74 with no closing, and 50 years, comes out to $370/year.

Caskbill - I thought the current cost for SSR was $89 - $10 = $79. I would love it if they were really $74.