Advice for purchasing resale direct from owner

[bunny]

What is the process involved with purchasing a resale directly from an owner versus using a timeshare company? I saw some listings on tug2.net but don't understand the process. Also what are the advantages for the buyer of purchasing from a company? If I could make a deal with a private owner, what is our next step? I don't need financing. Also what should I be looking for and what are generally the terms? Who should pay the closing costs and maintenace fees? Thanks for your help.

 

[RobDoc]

I know some will disagree with me, but IMO there is little or no benefit for the buyer to make a direct purchase. Because all offers must pass Disney's Right-of-First-Refusal (ROFR), there is basically a floor set by Disney on the price they will allow. The seller can benefit, since they won't have a commission and may even get a higher price by selling someplace like Ebay to an uninformed buyer- but the buyer will be governed by the ROFR process. Make too low an offer and DVC will take the offer, Either way, the seller gets his money, but the buyer is left with nothing when Disney takes the contract.

If you can find a direct purchase for $75 per point, you can most likely find the same deal thru a resale broker and will then have someone to walk you thru the process. Whenever Disney finally stops supporting resale prices thru ROFR, then there may be some true bargains by dealing directly with the seller. Without ROFR, the buyer may also be able to find lower pricing just as the seller benefits, but unitl that time, resale brokers are a wonderful resource to assist the buyer thru the process.

Good luck!

 

[T.E. Yeary]

Thanks Doc,

I really appreciate your response. I couldn't have said it better myself, but it sounds much better coming from someone like yourself.

Tom

 

[Disney Fanatic]

I first have to say I would of much preferred purchasing throught the Timeshare Store but I just couldn't find a contract with many banked points without them being sold quickly. Each time by the time I called in, they had been taken.

I found a contract listed on another board with many banked points and everything we wanted. Luckily it was NOT sold and I made a direct deal with the seller. I think it was just luck and timing!!!

I then contacted Timeshare Closing Services and they have been really great to deal with.

Again, I would have much preffered to deal with The Timeshare Store to help walk me through things but buying direct is not as difficult as it sounds.

If you have any questions you can PM me and I will help the best I can.

If we get this contract, any add on's we do we will definately use the Timeshare Store!!

 

[JimMIA]

...what are generally the terms? Who should pay the closing costs and maintenace fees? Thanks for your help.

In any resale EVERYthing is negotiable. However, the typical terms are the seller pays any commissions, the Disney ROFR fee, and the $200 transfer fee; the buyer pays closing costs and maintenance on any current year points which are available. The buyer does NOT pay maintenance on any prior-year or banked points, or on any current year points which have already been used. That's the standard deal, but there are dozens of possible variations.

I agree completely with Doc - the advantage in a direct sale is almost exclusively to the seller. The only advantage I can think of to the buyer is that you may be dealing with a seller you personally know, and feel comfortable with. But other than that, I don't see any advantage to the buyer.

The hurdle you have to clear is ROFR, and that precludes you from getting a great price because the seller didn't have to pay a commission.

Because of that, I would recommend that buyers look for the perfect contract for their families...regardless of whether it is direct or through one of the brokers. YOU will not save any money buying direct from the seller, so look for the best contract for you.

 

[vascubaguy]

and the $200 transfer fee;

Of course that $200 fee has now gone away (according to Tom at TTS).

 

[T.E. Yeary]

The fee has gone away according to the fax sent to TTS from DVD management. This information was relayed to the board by Tom "exactly" as stated in the fax.

I "must" be very careful in how the wording is translated so that it cannot come back to haunt me in some future posting or transaction.

Thanks,
Tom

 

[LoveMickey]

We just bought direct on a private sale.

ROFR took a long time, DVC took the entire 30 days, but we passed.

the only other slip up we had was that DVC would not record the deed until the entire maintenacne fee was paid by us. No big deal - we expected that they may want their dues, but we did not know that - and the seller did not know that either, at the time of closing.

 

[pasgt21]

I used TSS and it worked great for my first contract. I would suggest you call and ask for Jerry. Let him know exactly what your looking for and under what circumstances he can consider it sold. I did just this it and it wasnt very long until he called me and said he had what I was looking for. He has done this again and again. I have found him awsome to work with. If they know you are a serious buyer they will call you before it gets listed.

Just my experience with TSS all good

 

[Dean]

I think one can usually save about $3-5 per point resale if you go private, but it will depend on the specifics and also how you set up the resale through a broker. But in general I'd look for the contract and home resort that best fits your needs and then compare prices. If you find the right contract, get a FAIR price, limit your closing costs and make sure you don't pay for maint fees that the seller should have been responsible for; you should do OK regardless of how you proceed.

The other benefit you get with a private resale is that your chances of more flexibility are much higher. Say you get a really good price but you're afraid DVC will buy it back resale. Maybe you do a lease purchase where you give a refundable deposit of $5-8 per point with the stipulation that you do a test run. You stay prior to closing then close once it's done. Or if you're already a member, you transfer points prior to closing under the same type of arrangement. IF DVC takes it under ROFR you get the trip or points as compensation for your trouble, if not, you got your contract and the seller got their agreed upon price. Or maybe you want to do a trade of merchandise, maybe one timeshare for another but the possibilities are endless. BTW, I did do a permanent swap of another timeshare for a DVC contract.