Buying direct and selling resale?

[PrincessKL]

Hi everyone, I am here for some advice.

We have been thinking about buying DVC direct for a long time. Two years ago, we decided to try resale to see if we really like it and we did. My family really loves Grand Floridian and we have a little kid so staying near Magic Kingdom would be our preference. Given that price increases are coming, we are really considering buying 150 points at Grand Floridian and then selling our resale contract. We have enough savings and we would pay cash, but spending 30k just sounds a lot to us, so selling our current contract of 95 points would help out just in case any financial emergency happens. Also, we don't think we need so many points in total even though we do go to WDW once or twice a year. We are buying 150 points because we want the blue card benefits and being able to book at future resorts (I know the benefits are not guaranteed, but I guess we have FOMO). Also, it has been annoying with my resale points that I cannot borrow from next year and then book online. I have to call member service every time if I need to borrow points and they told me it's because my contract is not direct.

Another question of mine is, if we buy now, can we ask DVC reallocate our current room reservations in March to the new contract? I figured that we will have to make sure there is no reservations using our resale points so that we can sell it, but we are doing a big family trip in March and I don't want to lose the rooms.

 

[Nursemanit]

You can borrow and book online with resale. And without APs and the reduced discounts you will never make up for the price difference. You don’t have to worry about RR for 19 more years so why have FOMO now when you can stay at BW for less?

 

[PrincessKL]

You can borrow and book online with resale. And without APs and the reduced discounts you will never make up for the price difference. You don’t have to worry about RR for 19 more years so why have FOMO now when you can stay at BW for less?

I know normally you can borrow and book online with resale. But I have been experiencing this system glitch that just won't let me do it. There are discussion of such issue that other people reported on here if you search "Resale Owners Can’t Borrow Points Online". Sorry that I do not know how to link it without being considered as a spam.

Member Service specifically told me it's because my contract is resale and there is no way to fix it other than me calling them every time. I thought with the 50% borrow restriction being gone, this issue would go away for me, but it hasn't.

We actually really like RR too, so being able to stay there would be nice for us. Our other option would be wait for now and then buy at Poly2 later, but I am guessing that Poly2 would have expensive point chart like Poly1 and VGF and the direct price might be even more buy then. We also don't want DVC to raise the minimum points requirement for getting the blue card before we buy direct . I know it's probably less likely that this will happen any time soon though. But the minute they announce this, we will have to buy whatever they are selling then or we will just give up on DVC.

 

[RoseGold]

You can't sell a contract with anything pending. You could delay close for the end of the trip or cancel the trip. A March closing wouldn't be a huge delay, closing is a couple months out anyway. You could also list in a month or two, and closing wouldn't have to be delayed at all. A broker would know the timing on that.

The resale borrowing glitch online appears to be fixed now, since the borrowing rules changed. It has been working for me lately, and I always had that issue.

 

[pianomanzano]

If you decide to go through with this, the current incentives for 150 pts is $198/pt and they expire 12/3, after that it jumps $10/pt.

 

[sndral]

I would reach out to your guide (they’ve likely assigned one to you) & tell them the only thing stopping you from buying right now is that March reservation & ask whether they will allow you to use your new direct points to free up your resale points in your March reservation. Normally you can’t do it, but for a cash buyer in a lagging sales environment perhaps they’ll make it happen.

 

[supersnoop]

1. The "resale borrowing glitch" wasn't actually associated with resale contracts. Some direct owners experienced the same glitch.
2. I'd expect a simple "modify" to reallocate points after you purchase a new contract would work fine to keep your reservation.
3. Where do you currently own? If you already own 95 points at VGF and that's a good number of points for you, I'm having a hard time understanding why you'd want to exchange for more direct points than you need.

 

[PrincessKL]

1. The "resale borrowing glitch" wasn't actually associated with resale contracts. Some direct owners experienced the same glitch.
2. I'd expect a simple "modify" to reallocate points after you purchase a new contract would work fine to keep your reservation.
3. Where do you currently own? If you already own 95 points at VGF and that's a good number of points for you, I'm having a hard time understanding why you'd want to exchange for more direct points than you need.

I own at BLT. It doesn't seem to be enough points for how many nights that we wanted to stay, so I think 150 points would be a better number. But we don't need 245 points for now... To us, if we are going to get 150 points, we might as well buy it direct given that the price for VGF2 now is not too bad and we can get whatever benefits it comes with. Does this make sense?

It's good to know that you can modify the reservation to reallocate points. I was hoping someone with more than one contract can tell me that is how it works.

Do you know any current direct owners still experience the glitch? I tried to book a reservation after the 50% borrowing restriction was gone and it sill didn't work for me. But someone else above said the glitch is gone for them. So maybe that is a good thing.

 

[PrincessKL]

I would reach out to your guide (they’ve likely assigned one to you) & tell them the only thing stopping you from buying right now is that March reservation & ask whether they will allow you to use your new direct points to free up your resale points in your March reservation. Normally you can’t do it, but for a cash buyer in a lagging sales environment perhaps they’ll make it happen.

Thank you! I do have my guide's number and I thought about doing this. Just trying to learn some more about the process and determine if we really want to do this.

 

[PrincessKL]

You can't sell a contract with anything pending. You could delay close for the end of the trip or cancel the trip. A March closing wouldn't be a huge delay, closing is a couple months out anyway. You could also list in a month or two, and closing wouldn't have to be delayed at all. A broker would know the timing on that.

The resale borrowing glitch online appears to be fixed now, since the borrowing rules changed. It has been working for me lately, and I always had that issue.

Thank you for this. I tried to book a room after the borrowing rule was just changed, but I saw the same seven dwarfs message. Maybe it is fixed for me now too, that would be nice.