Best Number of Points for Resale?

[2002]

I'm looking at purchasing some points and there are a lot of options when it comes to the number of points you buy per contract. My question... what is the most desirable (fastest and for the most money) point allotment for resale?

Does that make sense? If I have a choice what number is the best for resale down the road (if the need ever arises)?

Thanks for the help!

 

[Msmithmd]

Smaller contracts sell resale faster and for more money per point.

This is because the majority of DVC owners initially bought direct without even knowing a resale market existed. They therefore have reasonable sized contracts to start, and are looking to add on a few more points.

Contracts of 100 points or less sell for more than bigger contracts. But if you're buying resale now, you will also pay more to get them now.

I would advise you to ignore future sale, and buy the resort and number of points that you think you will need. And of course, I advise to buy resale unless you are only interested in the newest resort where a resale price differential doesn't exist yet.

If you're buying in focused on how you can sell out, I would strongly counsel you to not buy at all- and simply to rent points for DVC stays from other members. The biggest advantage to being a renter is that you essentially can get the eleven month booking advantage everywhere, so long as you can find a member looking to rent at your resort of interest.

My opinion (FWIW) is that DVC is way too expensive a proposition, if you're not fully planning on holding it for the full RTU time on the contract. Obviously lots of people change their minds and sell, but it is darn rare in the world of timeshares to come out ahead reselling your ownership.

The fact that some owners have done well reselling in recent years should not imply to you that that will continue in the future. Buy and hold: DVC is for vacations. The S+P 500 is for future resale value.

 

[paults]

I'm looking at purchasing some points and there are a lot of options when it comes to the number of points you buy per contract. My question... what is the most desirable (fastest and for the most money) point allotment for resale?

Does that make sense? If I have a choice what number is the best for resale down the road (if the need ever arises)?

Thanks for the help!

buy resale and small contracts . we have 2 (100) pt and 1 (150) 14 years owners and won't be hard to sell if we need to. If your going to Disney every year or maybe skip a year and want deluxe rooms DVC is good. DON'T buy thinking you'll make money when you sell. After 14 yrs of owning we got our monies worth so getting some back if we sell (not soon) we'll be happy. I just check on a room at GF resort in April for someone and at $700 + on a weekend I would not pay this

 

[disneynutz]

When Disney sells to a new buyer, they have a minimum requirement that seems to change depending how hungry they are to sell a certain resort.

160 points was the number for a long time. Once an owner, they lower the minimum to make more sales so the smaller resale contracts were purchased by existing owners.

As PP smaller contracts sell faster and for more money, we sold some AKV 50 point contracts in 1 day.

Bill

 

[skier_pete]

I would agree from my observation smaller contracts are better to resell. Really small contracts (<100 pts) fetch a premium over larger contracts, with <50 pt contracts being VERY popular.

I think if you were ever to buy direct, it would make sense to buy miminal contracts. On the re-sale market, it doesn't matter as much. If you buy a 50 pt contract you will pay a premium, and you get that back if you were to sell it, however the premium would cancel itself out. (You pay it to buy, you get it when you sell.)

Finally, I do think LARGER contracts (say above 300 pts) become a burden to sell. They also don't make a lot of sense to buy. If you want 400 pts, it is much smarter to by 2 or 3 smaller contracts in the 150 pt range, even if at the same resort and UY. Much more flexibilty with this!

 

[2002]

I appreciate the insight folks. Thanks!

 

[Dean]

I'm looking at purchasing some points and there are a lot of options when it comes to the number of points you buy per contract. My question... what is the most desirable (fastest and for the most money) point allotment for resale?

Does that make sense? If I have a choice what number is the best for resale down the road (if the need ever arises)?

Thanks for the help!

I'm going to give you a dissenting opinion. IMO it essentially never makes sense to buy small contracts of the same resort and same use year at the same time simply for the possible insurance of having to sell later unless there is little to no cost in doing so. If you think you're going to sell later, just buy less or don't buy at all. However, unless you find a single seller selling multiple contracts that you can buy as one, there is really no way to meet those requirements resale. Either you pay more retail for the option (and give up the fixed week option for GF) or you pay more with extra closings and a higher pp cost. On two 100 pt contracts you'd talking an extra 10-15% more or around $2000 additional. Now if you want to buy some now and some later or two different resorts it MAY be worth it for some but likely not for most. There is a size where one really should break it up if possible but it's not reasonable until one gets to 300 or more so that each contract can be at least 150 pts.

I'd say better just to buy a few less points say 150-170 instead of 200 in that example. IF one chooses to buy 2 resorts and are not already very experienced with DVC, you buy one then see how it goes for 1-3 yrs rather than 2 now.

 

[KAT4DISNEY]

I agree with Dean.

You'll pay higher costs up front on multiple small contracts so any small premium if you were to sell will be a wash - and I'd actually guess net less than a single larger contract.

Back when DVC did not charge closing costs we broke up a couple of contracts. With transfer fees for each contract they had higher actual costs to sell - and were pains compared to selling just one. It was relatively neutral because we hadn't paid more up front but if bought resale or today it wouldn't have been a positive to have split them.

 

[skier_pete]

I'm going to give you a dissenting opinion. IMO it essentially never makes sense to buy small contracts of the same resort and same use year at the same time simply for the possible insurance of having to sell later unless there is little to no cost in doing so. If you think you're going to sell later, just buy less or don't buy at all. However, unless you find a single seller selling multiple contracts that you can buy as one, there is really no way to meet those requirements resale. Either you pay more retail for the option (and give up the fixed week option for GF) or you pay more with extra closings and a higher pp cost. On two 100 pt contracts you'd talking an extra 10-15% more or around $2000 additional. Now if you want to buy some now and some later or two different resorts it MAY be worth it for some but likely not for most. There is a size where one really should break it up if possible but it's not reasonable until one gets to 300 or more so that each contract can be at least 150 pts.

I'd say better just to buy a few less points say 150-170 instead of 200 in that example. IF one chooses to buy 2 resorts and are not already very experienced with DVC, you buy one then see how it goes for 1-3 yrs rather than 2 now.

I agree with Dean.

You'll pay higher costs up front on multiple small contracts so any small premium if you were to sell will be a wash - and I'd actually guess net less than a single larger contract.

Back when DVC did not charge closing costs we broke up a couple of contracts. With transfer fees for each contract they had higher actual costs to sell - and were pains compared to selling just one. It was relatively neutral because we hadn't paid more up front but if bought resale or today it wouldn't have been a positive to have split them.

I agree with this though I probably didn't make it clear in my post. The small contracts do sell for more, but they cost more. Where I think smaller contracts are better is to go no larger than the 150-200 pt range, as you say.

 

[Dean]

I agree with this though I probably didn't make it clear in my post. The small contracts do sell for more, but they cost more. Where I think smaller contracts are better is to go no larger than the 150-200 pt range, as you say.

There's no way to know they will continue to sell for more, if there are changes in the system as is inevitable, it might be they will not or are even worth less. I do agree there is a size limit where one could have issues but even then one shouldn't buy to sell or shouldn't buy that much if they're not sure going in. Basically if it's an issue one likely shouldn't buy that much at one time regardless of the other numbers. Then it's just whether life happens which none of us can control completely. It really comes down to the actual numbers plus I do believe that one can often get other benefits by going smaller, either buying less now and adding later or getting more than one home resort (or both) and that can add value to the choice.

I'd say if one is buying going in expecting to sell, best not to buy or buy much less. Simply as insurance for future events and being forced to sell, it's dramatically more expensive than essentially any other type of insurance and never worth paying a lot more simply for the insurance alone.