A deal that sounds too good to be true?

[rachaelg]

I'm a first-time buyer and have learned so much from this forum! Has anyone here every found a deal that seemed too good to be true? Have you ever been burned by a DVC purchase? I found a great deal on a contract at SSR, but I'm hesitant to move forward as a newbie and would love some input. What would you do?:

1. The contract is more points that I was initially looking for (100 instead of 70-80), but the price is also significantly lower than what I thought was a decent deal ($24 per point less).

2. The contract isn't listed with "the usual" brokerages, so I would have the option of working with the owners directly or paying $750 for a brokerage to facilitate the sale, prepare paperwork, etc.

3. As the buyer, I'm expected to pay closing and transfer fees, which are quoted at about $495, but I do have the option to choose who I work with on this. Is there someone you would recommend?

4. Are you noticing any red flags here? What red flags should I be looking for? Is this just a unicorn of a deal, or is it actually too good to be true and I should move on?

 

[hlhlaw07]

I'm a first-time buyer and have learned so much from this forum! Has anyone here every found a deal that seemed too good to be true? Have you ever been burned by a DVC purchase? I found a great deal on a contract at SSR, but I'm hesitant to move forward as a newbie and would love some input. What would you do?:

1. The contract is more points that I was initially looking for (100 instead of 70-80), but the price is also significantly lower than what I thought was a decent deal ($24 per point less).

2. The contract isn't listed with "the usual" brokerages, so I would have the option of working with the owners directly or paying $750 for a brokerage to facilitate the sale, prepare paperwork, etc.

3. As the buyer, I'm expected to pay closing and transfer fees, which are quoted at about $495, but I do have the option to choose who I work with on this. Is there someone you would recommend?

4. Are you noticing any red flags here? What red flags should I be looking for? Is this just a unicorn of a deal, or is it actually too good to be true and I should move on?

If you are a first timer resale buyer, or really even if you aren’t, I strongly recommend staying with the big reputable resale brokers.

 

[DisMomKY]

I’d be hesitant if it wasn’t with a typical broker. I’d pass up something if it wasn’t with one of the bigger (and trusted!) ones

 

[rachaelg]

I’d be hesitant if it wasn’t with a typical broker. I’d pass up something if it wasn’t with one of the bigger (and trusted!) ones

Is there any particular reason? What are the dangers of not going with the bigger trusted brokers?

 

[EM Lawrence]

You may want to read through this recent thread: https://www.disboards.com/threads/dvc-purchase-pending-reservation-not-disclosed.3800621/

 

[rachaelg]

Thank you, that is super helpful! I knew I could count on this community!

 

[DisMomKY]

Is there any particular reason? What are the dangers of not going with the bigger trusted brokers?

I’d be worried about getting what you think you are. Some will not having closing dates, full point detail and even list the wrong use month (like there is no January or May use months)

 

[macman123]

If you are going to do it, go through Escrow. Then the money is held by an independent third party who will only release it when the deal is done and property transferred.

Otherwise I would be cautious!

 

[cedricandsophie]

We have purchased and sold several times through a great broker who I can’t list here.
A few things
Make sure your deposit goes through a reputable, usually attorney, to keep in escrow until the sale is final. Our broker has used the same attorney Jeffrey Sweet for many years. Excellent service and he has returned our deposit quickly when Disney decided to take Right of first refusal (ROFR).
Make sure the deposit is a reasonable amount. Ours has always been $2000.

A sale price of $24 less than any other price you see is suspect to me. They may want to sell quickly but you need to check on banked or borrowed points, upcoming reservations, confirmed use year, etc. a reputable broker will have disclosed that in advance. And a really low price is likely to get Disney interested enough to exercise ROFR.

 

[MICKIMINI]

Is there any particular reason? What are the dangers of not going with the bigger trusted brokers?

Fraud. Don't do it.

 

[rachaelg]

Thanks, this is all very helpful information. I'm wondering if the use of a reputable attorney like Jeffrey Sweet would provide any extra protection and peace of mind.

 

[DisMomKY]

Thanks, this is all very helpful information. I'm wondering if the use of a reputable attorney like Jeffrey Sweet would provide any extra protection and peace of mind.

Is the broker recommending Sweet or would you have to choose someone on your own?

 

[MICKIMINI]

Jeffrey Sweet is the attorney I always use. I've bought and sold for decades. I'm not suggesting this purchase is a good idea, however he won't steer you wrong.

 

[rachaelg]

Is the broker recommending Sweet or would you have to choose someone on your own?

Yes, they are recommending Jeffrey Sweet, which makes me think twice, like maybe that is added protection?

 

[_auroraborealis_]

It's still going to have to go through ROFR, and if it is that much cheaper than anything else out there right now, you're likely to get it taken. Even now. Maybe especially now. If there are points, Disney taking it and holding helps them with availability.

 

[ljlaurajane]

I think I’ve seen the contract you are referring too. I was very tempted also, but I did some research on the company and found them listed under multiple names, with no BBB accreditation. I’m sure as others have mentioned about there would be ways to limit the risk, but personally I found it too risky and backed away from that particular deal. Would rather keep lowballing with the reputable brokers and hope to get something close to the price that one was listed at

 

[Deb & Bill]

Think of it this way, if you lost your $2K deposit in a deal gone wrong, would you be really upset? If so, stick with one of the more well known brokers.

 

[hlhlaw07]

It might be helpful to tell us which website you found the contract on (I understand if you don’t want to do that). Just include a link to the website to make sure it is not a banned site to talk about here on the boards. I only suggest that so maybe you can get input from someone who has actually gone the same route you are contemplating. Otherwise, you are pretty much going to get a lot of advice of stay away from non-reputable sites, which is really good advice when we are talking about the kind of money a DVC transaction usually entails. Just remember, an incredible deal that ends up being a scam, is really the worst kind of deal available.

 

[rachaelg]

Thanks! That's a good idea. I was under the impression that links weren't allowed. What causes some websites to be banned and others not? The website was buyatimeshare.com and then the agent who followed up with me was from timesharebrokerassociates.com Thanks all for your help!

 

[hlhlaw07]

Thanks! That's a good idea. I was under the impression that links weren't allowed. What causes some websites to be banned and others not? The website was buyatimeshare.com and then the agent who followed up with me was from timesharebrokerassociates.com Thanks all for your help!

Buyatimeshare.com doesn’t appear to be a banned website, but a quick little search does show that they are not a popular service for their customers. Most of the complaints come from sellers who had to pay to list the contract and then the company never sold them. I can’t find any buyer reviews or complaints, but maybe that is because they apparently don’t sell very many contracts. I think it is definitely a buyer beware scenario, and I don’t think I would deal with them. The one SSR contract I saw on their website is $80/pts. I don’t think it would take you very long to get close (in the $90s) with any of the well known DVC resellers.

But only you can decide how comfortable you are with the risk to realize those savings. The people who pay them money to sell all complain that once they paid their money they never hear from them again. Having Jeffrey Sweet as an escrow agent would mitigate some of that risk (as he is a reputable closing agent and I highly doubt he will walk with your deposit), but I don’t think the closing agent is the one that verifies points/the contract with Disney. so who actually knows what this contract actually looks like. The listing sure doesn’t tell you.

Just my .02.