A question about resales

[WolfpackFan]

When down at WDW last week, during the DVC presentations I asked the salesperson about resales. He was very negative about resales (I wonder why). Said that you really wouldn't save any money because if the price was too low that WDW would buy the points since they have first right of refusal and by the time you include closing costs, you really wouldn't save anything. But seems to me I see several postings out on the Timeshare websites for 150 points in the $9,000+ range rather than the current $12,000 that DVC is charging. Even if you add $500 closing costs, you're still well below what DVC is charging. My question is - how often does WDW take advantage of the first right of refusal? Has this happened to anyone here?

 

[goofyfamily41]

Wolfpackfan,

I went through the Timeshare Store for 150 points at OKW and figured I saved about $2,000. (bought for $9,500) You also get to choose your resort. Disney won't even look at buying it back unless the price is $62 or lower and I've seen many transactions in the high $50's posted on this board.
I'm very happy being a DVC member and saving a little money.

 

[Laurabearz]

I have bought 3 resales (so far lol) and once thru Disney. All we painless transactions.

Yes DIsney does have the ROFR over resales but from what has been posted here.... it is around 54-56 PP. I believe DEAN is our resident ROFR tester...

The important question you need to ask yourself is........ What DVC resort do you love the most.... and buy there. If it is BCV buy thru Disney.... If you LOVE VWL or OKW then you must buy resale.

I figure we saved over 12 PP on our resales, over what Disney was asking.... plus we got banked points with most of our Resales....

GOod luck!

 

[CarolMN]

You may or may not save a lot of money by purchasing resale. To me, the most important reason for going reasale is to get the right home resort for your family. The only resorts currently available for purchase directly from Disney are BCV, VB & HHI. The advice most often repeated on this Forum is to "Buy where you plan to stay the most". Don't let the DVC sales guide tell you the 11 month booking advantage doesn't matter - it does!

Good luck with your decision.

 

[RLevy29]

The 11 month window is important if you are able to make your reservations from 8-11 months in advance. If you are unable to do this, then it doesn't matter where you buy. Also, If you always want a Grand Villa then the 11 month window is important.
Keep in mind that with most resales you are also responsible for the dues for that year along with the closing costs. These items are negotiable with the seller. Disney prorates your dues according to your use year. (I think)
When we bought the going rate was $67 a point. Our resale was 150 points at OKW, use year of August with all 150 points from the year banked. We paid $58 a point. We did have to pay dues and closing costs (tax deductions) but we still felt as if we got a good deal. Good Luck!

 

[Shontell_Crawford]

The first thing to consider is the salesman you talk to at Disney is trying to make a living. If you buy a resale, he doesn't make a dime and therefore will never encourage you to buy any way but directly from him - which is understandable.
I have been reselling the DVC for over 5 years - I helped open the Timeshare Store and now have my own brokerage. Rest assured, we always go through the right of refusal process and Disney has bought some back....but, you should, and will always, save money when you go resale. Sellers are aware that they have to compete with Disney direct, even when closing costs are added. Disney tells me the current buy back is one number, while Dean has told me another lower number. So, just make an offer and see what happens. A penny saved is a penny earned.

Good luck in your process. Feel free to e-mail me with any questions I might assist with in the future.

Shontell

 

[Dean]

I'm not sure my contract has a lot of bearing in this situation. It was for a larger contract (330), there were no current points until Dec of this year and it was before the last price increase. I would agree that there is a lot more to this than just the cost. If you want a specific resort, buy there, the cost difference is not enough to drive this decision. If you want most WDW but want to try a different resorts, consider OKW. If I were a new potential owner, I'd never buy VB or HH unless I mainly wanted to stay there and even then off season is not that difficult. OTOH, buying OKW gives one a guaranteed WDW options (assuming you reserve at 11 months out) and you can switch to the other resorts at the 7 month window if needed. If you will need a 3 BR for WDW, OKW is also the way to go.

You will pay a premium for around 150 points for the same reasons you are looking at that size contract. If you can get a good contract that fits your needs and has current points for around $62 per point, you are doing good. At $65 per point, your savings is around $1800. The dues for OKW are also signficantly lower than the rest with VB being highest and BW next highest.

 

[Terry S]

From what I have seen, yes, you can get a re-sale cheaper, but that should not be your deciding factor. Heck you could get the All-Stars cheaper, but do you want to stay there most often? It is really important to buy where you plan to stay most often. If you think you might want to stay at BCV most often, buy through Disney. If you prefer, OKW, BWV, or WLV, buy re-sale at that location.

My husband and I really preferred the themeing, location and atmosphere at BC to any other resort on property so even though I knew about re-sales and could have bought one, we choose to buy through Disney only because they were the only ones selling BCV.

 

[EROS]

Wolfpack, we've purchased two separate BWV contracts at a savings of over $2,000 over purchase via Disney. We too first took the tour, and I also asked our guide about resales. She offered a very neutral answer,which I thought was more honest than a depreciating one .

Unless you have your heart set on BCV, I wouldn't hesitate to buy via resale.

Good Luck,

 

[Cap]

Resales are well worth while IF you are willing to invest some time in
- investigating available contracts,
- calculating the total bottom-line cost including any current calendar year dues and points banked, available in current year, or borrowed,
- negotiating the point price, closing costs, dues payment, etc.
- waiting a bit longer for the proposal to run through the broker, seller, Disney Right of First Refusal, and closing company.

I figure I invested about seven hours of my time on a resale purchase earlier this year versus a savings of about $1200, or about $170 per hour.

If you don't feel comfortable with the work you have to do, don't have the time, or want a very rapid purchase and availability of points, then buying direct from Disney may be right for you.

While almost all of the big resale brokers seem to be very polite, honest, and service oriented, remember that they are earning their commission / fee from the seller and thus will likely not tell you if your offer is a few dollars high per point, or that you could negotiate with the seller to pay some / all of the closing or current year dues. It's up to you to try for the best deal, and to accept that you may not succeed with your first or second attempt to purchase a resale.