Buying a stripped contract. How to price it?

[wbl2745]

I've been considering purchasing more points on the resale market to add to the points we purchased from DVC. I'm wondering how to price a contract that has stripped not only of this year's points, but next year's too. In principle I would not like to purchase something that I couldn't get any value out of for two years, but in general, people must be buying these contracts.

What are your thoughts on a purchasing a stripped contract?

 

[Dean]

The proper way to do it is to look at the value of the points not present. A good rough guide is $11-12 a point for any points missing that are full function plus a lessor amount for any restricted points that one can use of $5-7/pt. Don't forget to adjust for any dues you pay or don't comparatively as well. That puts a difference of as much as $20 per point between a fully loaded and fully stripped contract assuming the normal dues reimbursement situation. Since the contracts don't sell for that difference that means that a fully loaded contract is generally a much better deal than a stripped contract.

 

[mustinjourney]

For this year's points -- I'd value the points at what you'd have to pay at David's rental...which I think is around $15 a point. For next year's points, I'd do $15 minus the maintenance fees...so around $8-$10 depending on resort.

With that said, the general public does not appear to be discounting the contracts that much. Rather, it seems that most only seem to discount about $5-$10.

 

[CarolMN]

I'd only buy a stripped contract if it were otherwise exactly what I wanted regarding the resort, use year and number of points. I'd offer only what I thought it was worth, knowing that the seller would probably refuse (or maybe counter). IMO, the stripped contracts are almost always overpriced from a buyer's point of view.

I'd go in willing to walk away. There are lots of contracts out there.

 

[Dean]

I'd only buy a stripped contract if it were otherwise exactly what I wanted regarding the resort, use year and number of points. I'd offer only what I thought it was worth, knowing that the seller would probably refuse (or maybe counter). IMO, the stripped contracts are almost always overpriced from a buyer's point of view.

I'd go in willing to walk away. There are lots of contracts out there.

If, and only if, one can get a stripped contract at a comparable price it would generally be better to buy a stripped contract. It allows one to go in planning for personal usage rather than planning around the contract itself. But, as noted, the price for a stripped contract is consistently more when looked at overall compared to a loaded contract even when adjusted for dues and for limitations on the available points. There are other factors however including UY, home resort and contract size. As long as one looks at the overall parameters, including the price, they should have the information available to make a reasonable decision if they've done enough investigation prior.

 

[_auroraborealis_]

Stripped contracts are the Craigslist IKEA sofas of the timeshare world.

"Slightly used, please pay full price anyway!"

 

[wbl2745]

Thanks to everyone's comments! You've confirmed that a stripped contract would have to be at a significant discount to a loaded contract. Personally, I'm not really enthusiastic about purchasing something that I can't use for a year or even two.

 

[Dean]

Thanks to everyone's comments! You've confirmed that a stripped contract would have to be at a significant discount to a loaded contract. Personally, I'm not really enthusiastic about purchasing something that I can't use for a year or even two.

IMO the lead time is not a significant issue if the price is reasonable given it takes planning to use DVC anyway.

 

[juncker]

Buy loaded contracts. Sell stripped ones.