Advice- purchasing resale

[Duck1]

I've decided to purchase resale (first time). I have done enough research to get a sense of the price per point ranges at the resort I want. I'm looking at purchasing 200 points. I have negotiated back and forth on a particular contract and at this point we are $8/ point apart, which is only $1600. Closing costs and mfs are not in dispute. There are no points left for 2016 and 2017 which isn't a big deal for me because the first trip I would take would be December of 2018 anyway. The seller's asking price is in the range but based on my research closer to high end. I've thought of just waiting as I know inventory is low and I may find a better deal later in the year. That said, in the grand scheme of things I'm thinking that $1600 is insignificant considering that I may enjoy decades of trips, God willing. Or am I overlooking something?? It would have been better obviously if it was loaded but how much of a discount should be applied generally when the contract is stripped? the resort is vgf and it's the uy I was looking for and that's why I'm wondering if I should just pull the trigger because the $1600 differential spread out over decades as I mentioned above seems meaningless. But I wanted the experts advice. Thanks in advance for any assistance!

 

[huskerfanatic7]

I would wait if time isn't a factor. new listings are showing up every day

 

[Dean]

I've decided to purchase resale (first time). I have done enough research to get a sense of the price per point ranges at the resort I want. I'm looking at purchasing 200 points. I have negotiated back and forth on a particular contract and at this point we are $8/ point apart, which is only $1600. Closing costs and mfs are not in dispute. There are no points left for 2016 and 2017 which isn't a big deal for me because the first trip I would take would be December of 2018 anyway. The seller's asking price is in the range but based on my research closer to high end. I've thought of just waiting as I know inventory is low and I may find a better deal later in the year. That said, in the grand scheme of things I'm thinking that $1600 is insignificant considering that I may enjoy decades of trips, God willing. Or am I overlooking something?? It would have been better obviously if it was loaded but how much of a discount should be applied generally when the contract is stripped? the resort is vgf and it's the uy I was looking for and that's why I'm wondering if I should just pull the trigger because the $1600 differential spread out over decades as I mentioned above seems meaningless. But I wanted the experts advice. Thanks in advance for any assistance!

IMO it depends on the home resort and how well the contract fits your needs otherwise. While you may not need the points not there, they have inherent value or in the case, lack thereof. Consider that for a Dec UY, you'd basically pay a whole years worth of dues on points you don't have. The inherent value between this and a fully loaded contract is somewhere in the $25-30 per point range including any dues you'd pay if you had the extra points. That's 2 years worth of points plus a years worth of banked points. IMO unless it's a perfect contract AND it's a difficult to get resort, I'd wait

 

[KAT4DISNEY]

I'd also wait since you have the time. There is still value to getting the current points or at least the upcoming points and usually the discounts won't go large enough to compensate for not getting them.

 

[miTnosnhoJ]

$1 or $2 per point is not a big deal. $8 per point if you have done your homework is a lot. I would wait. If I were going to pay that much over market, I would look for a loaded contract.

On the other hand, if you are targeting a hard to book resort...say BCV or VGF at a busy period (like Fall F&W or Christmas or Marathon) then I would target to close well before the 11 month booking window and work back from there.

 

[DVC Doctor]

I say go ahead and make the purchase as it is the location you want, the use year you want, the number of points you want, and the price is withing range of the price you want.

The only thing that can be better is to equal the above and throw in current or banked points.

VGF it is sorta a sellers market as that is a super nice and small resort where inventory sells fast and no guarantee that something better will come along.

Remember that it is not that you are $1,600 apart - you just are wondering if you can buy it for $1600 below market value and that may or may not happen.

 

[Duck1]

Thank you everyone for the advice. You have all made excellent points. I would like to use the points for a December 2018 trip and I know that I'll have to find something and close the deal before the end of the year, so I have a little time to play with but not much. It's not quite the amount of points I was looking for. I wanted a bit more but I thought I could just try to purchase the balance; another 25-50 direct.

 

[DVCcurious]

There are more fish in the sea for you to catch. There's more cows on the farm for you to milk. There's more horses in the field for you to ride.

If it's not the right deal then pull out and wait for the right deal. If you want a 11 month booking window for a Dec 2018 trip you need to close by January 2018. So you need to have an accepted offer by November or so. That's like 6 months away!

Wise men say only fools rush in

 

[KAT4DISNEY]

Thank you everyone for the advice. You have all made excellent points. I would like to use the points for a December 2018 trip and I know that I'll have to find something and close the deal before the end of the year, so I have a little time to play with but not much. It's not quite the amount of points I was looking for. I wanted a bit more but I thought I could just try to purchase the balance; another 25-50 direct.

Contracts come up for sale all the time. Since it really wasn't a perfect match then definitely wait and see what shows up. Stripped and not exactly what you were looking for is, well, not what you were looking for.

 

[Dean]

Thank you everyone for the advice. You have all made excellent points. I would like to use the points for a December 2018 trip and I know that I'll have to find something and close the deal before the end of the year, so I have a little time to play with but not much. It's not quite the amount of points I was looking for. I wanted a bit more but I thought I could just try to purchase the balance; another 25-50 direct.

If you truly need more to have a cushion, I'd move on and look for a loaded contract. 200 loaded might be worth a compromise but not a stripped contract that's overpriced anyway. Obviously assuming git's not a resort that's hard to find points for anyway which does alter the equation significantly but even then I'd likely move on. Or depending on home resort choices you might want to go a little smaller and then look for a second contract resale, possibly at a different home resort.

 

[Duck1]

Good advice. Thanks everyone. Perhaps I will wait and see what else comes up.

 

[thelionqueen]

I would wait. I thought I had found "almost" the perfect contract 4 times!! Low and behold, I too did my homework and found exactly what I wanted! I'd say it's not exactly what you want or what you want to pay...so be patient. I'd highly recommend calling Fidelity and telling them exactly what you want ...they'll find it!

 

[Duck1]

Thank you for the advice!!

 

[ELMC]

Normally I only buy fully loaded contracts, but we need more points for our personal use at BLT so I was willing to compromise a bit. The "perfect" contract came up and I purchased it, even though it was about $10 more per point than I wanted to spend. Two days after sending in the paperwork, a better contract came on the market with more banked points and a lower price. I'm 50% happy because I'm getting the contract size and UY that we need, and 50% upset that I paid too much. Basically, I'm no help at all to you. I guess you should figure out which 50% you identify with and go from there. Good luck!