2 resale questions

[mouseclick1]

We currently own 100 HH points (bought through Disney), and are looking at a resale add-on.

Questions:
1. On a 5000 resale purchase, does anyone know what we would pay approximately in closing costs / any additional fees?

2. If we make this purchase, we will have 2 different contract numbers. If we were to book a week, would we have to book, say, 3 nights from contract A and 4 nights from contract B? Or could we pool those points and book 1 week altogether, even if the points from each contract need to be combined to finish off the reservation? For example, can 3 points left over from contract A be combined with 30 points from contract B for a night's stay?

Thanks for any help you can give us!

 

[luckytso]

I can answer some of your questions:

First off, I assume you don't mean 5000 points you are purchasing

If both contracts have the same use year and the same home resort, then you can combine the points to make the ressie at the 11-month window. If they have different home resorts, then you can not combine the points until the 7-month window when there is availability.

However, if they have different use year, then you cannot combine points for any particular night. You need to have sufficient points to make each night's ressie in each contract.

I hope this will help. Good luck. It is always exciting to buy more points

 

[mouseclick1]

Oops, that was supposed to be $5000 ($5040 to be exact), not 5000 points!! (Don't I wish!)

The resale has the same home resort (HH) and use year as our original contract. There is no way I would try juggling 2 different use years!

Thanks for helping out!

 

[Dean]

Closing costs should be around $400-450. You can use both sets of points at the 11 month window. The question is whether they will treat this as one contract or 2. If they treat it as 2, you may have loose points but they will normally transfer them from one contract to another if that is needed to finish up your reservation. The main issue is whether you will have 1 reservation or 2 but if they are linked, it shouldn't matter. Let us know, I'd like to know if they end up treating it as one contract or 2 but I suspect it will be 2.

 

[Richyams]

I hear that they are very easy about combining points the way you want to. As long as the points are from the same resort, you shouldn't have much problem combining them for the last night.

 

[luckytso]

I have 200 BCV points in 2 contracts under the same use year. When I make reservations, MS takes the point without differentiating which one is which. On my point statement, I can see how the points are taken. The only thing, that I believe is different between 1 or 2 contracts, in this case, is when you bank points and borrow points. You have to tell them which contract to bank or borrow and how many points. However, the banking rule is based on your total points in the membership, so it is really no big deal.

Are you sure this is a better deal than buying from Disney directly? With the closing cost on a small contract, depending on your use year, you may be better off buying directly (Disney is offering $10 MB which would reduce the cost per point to $70 with no additional cost). Just a thought.

 

[schucrew]

As long as your resale has the same use year and home resort as your original contract, I believe the resale willbe assigned the same contract number as your original contract, with an extension (.001). That is what happened to us when we bought a resale with the same use year and home resort. It does make it easier when making reservations - you don't have to keep track of which contract you are using. or worry about combining points for one night.

 

[Cap]

When I purchased a resale that had the same use year as my other points, DVC put them under my same contract number. I don't know if this is automatic, or if my resale broker asked them to do it. You might ask Member Accounting about this.

Regarding closing costs, the first rule to remember is that everything is negotiable. While the closing costs might normally exsist, that doesn't necessarily mean you have to pay them. You might negotiate with the seller to pay the contract transfer fee, or part of the closing costs. You might elect to not have title insurance for a $5000 contract - effectively self insuring if you are convinced that the seller is reputable.

My closing costs about a year ago were $425.

 

[mouseclick1]

Thanks everyone. I actually would prefer to go through Disney, but our use year at HH is sold out. So, other than being put on a waiting list for who knows how long, resale is our only choice.

 

[Richyams]

(Disney is offering $10 MB which would reduce the cost per point to $70 with no additional cost).

This is such a false statement. This bothers me so mucch each and every time I see it.

THERE IS A COST!!!!!!

You are giving up your first year's alotment of points.

There may be no closing costs, but if you get a resale wth all points intact, you can't compareit to buying from Disnet using MB. Ifyou have banked points, you need o adjust for them.

30 points may include $12 per point in cosing costs, but at least you have your first year's points.

 

[buzz5985]

I am currently in the process of buying a resale at HH - $62/Point, 150 points, December use year. 37 Banked points from 2001. I will receive all 150 points in 2002.

The seller originally wanted me to pay the 2002 maintenance fees ($522). But thanks to the excellent advice from this board, that explained to me the difference between use year, and maintenance fee year, I countered with not paying the the maintenance fee for 2002, and the seller agreed. I explained that if I had to pay closing costs and maintenance fees I was looking at $70/point , and would not be using the resorts during 2002.

So the closing cost on all of this is around $400. So my ending price is around - $64.66/point. And the best part is in December (well I hope Disney accepts) I will have 187 points available.

 

[Dean]

Also, remember that with the MB one still pays at least 6 months dues on the points given up. It's no different that renting your points, you're just renting them back to Disney. I still think most people would be better of buying less points and not using the MB unless they specifically want VB at $15 pp MB.

 

[luckytso]

This is such a false statement. This bothers me so mucch each and every time I see it.

Richyams, now your statement is BOTHERING ME!!!

I have a December use year and I bought VB with MB of $15 in August. My net cost was $60 ($75-$15). The MB was applied to my 2001's points and I kept all my 2002's points and paid very little maintenence fee since it was pro-rated.

How can the above to be a FALSE statement?

If someone is buying directly from Disney next year, if the purchase date is before their use year's point allotment date, then the MB should apply to the previous year's points.

When you campare resale with Disney's price, you can't use a blanket statement to say that you are going to give up your current year's points, you need to figure out exactly which year's points you are giving up.

I hope this will clarify the MB thing. But I don't think anyone can come out to accuse someone else in such strong language without knowing all the facts. Richyams, I bet you never used a MB to buy any of your points.

 

[Richyams]

Richyams, I bet you never used a MB to buy any of your points.

Of course not, MB is always a bad deal.

You can't use a post MB price to compare to a resale unless all the current year points are used or you need to adjust the cost according to the difference in points.

If someone wants VB to stay at VB, its a good dea, but the only reason they have MB so high there is because VB has been such a brutal failure.

I agree with Dean, if you can't afford the number of points you are looking at without MB, you are probably better off buying less points.

To just say:

"Disney is offering $10 MB which would reduce the cost per point to $70 with no additional cost"

Is false, misleading and wrong. There is a cost, your first year's allotment of points. and $2-4 dues per point reducing the 'benefit' to $6-8....so you don't get $10 and there is a steep cost!

 

[luckytso]

richyams,

I gave up. I am using VB as an example, HH is the same thing. This has nothing to do where you want to stay. I am just talking about cost. However, if you want to shut your eyes to see what you are reading, that is your choice.

 

[doubletrouble_vb]

I have to agree about MB not being the best way to go...the numbers don't support. And since its a financial decision it is pretty black and white. At the same time if the person isn't going to be able to use points and doesn't want to go to the trouble of renting them...maybe its not so bad.

You would have to compare a resale without banked points to the Magical Beginnings price to make the argument that one is better than the other. Closing costs add about $3(ish) per point to the negotiated price...less for bigger contracts. VB with Magical Beginnings is $65. I ran over to www.dvc-resales.com and VB is listing in the low 60's (60, 61, 62) with and without banked points. I would buy a VB resale with banked points over direct purchase from Disney by dumping my banked points.

They also have a Beach Club resale at $70 per point...no banked points. This would be the perfect item to compare to Disney's MB for BCV...buying resale wouldn't save you anything here until the rates go up to $84.

 

[ClarabelleCow]

Let me get this straight, I have gathered on this board Wilderness Lodge Villas are still available, If I use Magical Beginnings, I can buy at $70.00 per point. I do not want my 2002 points so the timeshare would start (April 2003, for example) If I understand correctly, I would not pay maint/fees until January 2003?? Why would I be paying for points I didn't use(2002 points) Obviously I'm confused here!! HELP

 

[Dean]

There are a few WLV points remaining here and there. I'm not sure the MB for WLV is $10 per point. If you get the points and rent them back to DVC, you will pay some of the fees, usually about 6-7 months worth. That is the number of months remaining in the year you buy plus the number of months in the next year until the use year starts. You would pay a prorated amount for the rest of the year. With MB, you usually have to have at least 6 months remaining to use it. You had the use of the points, you just decided to rent them back to DVC.

 

[RobDoc]

You would pay dues on the prorated amount of days remaining in the calendar year for any sale directly thru DVC. If you bought on July 1- you'd owe 6 months of 2002 dues at the maximum- regardless of the use year.

If you were to buy from Disney on Dec 31- you would pay no annual dues for 2002- even though you would get the 2002 points. If you purchased on Oct 1, you would owe 3 months of prorated dues for this calendar year. Even with Magical Beginings, you will pay annual dues on the points you are renting back to DVC.

 

[sumessefui]

When we did our last addon at HH, I asked our guide about using MB. His advice was not to use it if we could afford to buy without it. He said that the points you give up have a value and that you are also paying fees on points you can't use. We felt the points were worth more to us than the MB savings.