Advice about possibly selling our membership

[tjkraz]

OK, so when we bought in 2013, we were in a position where we could afford the payments and didn't think we'd have issues down the road. Without getting into too much detail but for various health and home related reasons our situation has changed and we just can't afford the payments anymore so we are thinking of selling.

I don't know if anyone has mentioned this but one of the first things you need to consider is the resale value of your points vs. how much you still owe. Value varies greatly depending upon resort. If you look at the resale brokers' websites, their listings will give you a ballpark idea of what people are willing to pay.

The comment about "affording the payments" suggests that you took out a mortgage thru DVC. That mortgage needs to be settled before any transfer of ownership may occur. In other words, if you still owe $10k and agree to sell for $9k, you'll have to write a check for $1000 at closing to complete the transaction. Broker commission also needs to be factored-in.

If you've been paying down on the principle since 2013, you may be OK. But again, it depends upon many factors like the Home resort, size of initial down payment, if you've made extra principle payments, etc. Smaller, more sought-after resorts fetch higher sale prices than others.

Good luck.

 

[jekjones1558]

I found a couple of websites that provide a detailed breakdown of the DVC dues at each resort going back several years. Some of the sites cannot be posted here on the DIS but I just discovered that DVC News also has this information and links to it can be posted here. Start with this link to the 2016 dues breakdown: http://www.dvcnews.com/index.php/dvc-program/financial/2016-resort-budgets

That web page has a chart of the dues breakdown for 2016. Over on the left there are links to earlier years going back to 2009, though I don't see 2011 in the list of links. Scroll down or search within each page for "capital reserves" to find the amount per point for that budget line item for that year. I didn't check each chart to see if it includes all resorts and all budget line items.

Thanks for posting, LisaS!

 

[Dean]

When selling a membership contract, are you also able to deduct the maintenance fees or a portion of them that you paid each year while owning the contract. For example, if you paid $72 a pt, held the contract for 7 years, paying approximately $4 each year per pt for maintenance (not including yearly dues) and then sold at 110 per pt. You paid (let just say) a total of $28 for maintenance fees per pt over a period of 7 years. Are you able to determine your profit on $100 per pt and not $72. I thought I had read somewhere where the maintenance portion of the yearly dues could be used this way, but I may be incorrect......so I am asking.

Basically no other than possibly the capital reserve portion.

 

[VLee]

Thanks so much jekjones1558 and LisaS for this information. I appreciate it!