Buying DVC through a private party

[jel0511]

Well, my DVC resale search just got a little brighter. Thanks to a member on this site, I've found a pretty good re-sale on Ebay. The person selling the item is an individual, so this would be a private transaction. How does one close this type of transaction. Do we just contact the closing company ourselves and have then handle the transaction for us? And if that is the proper procedure, which is the closing company of choice for those who've does this type of transaction. Going through one of the resalers seems like an easier proposition, but this is a VERY good contract for us, so if possible I'd like to snatch this one up. I'd appreciate any advice you can give!!

 

[RobDoc]

IMO, the one who stands to gain from a private sale is the seller. Once you have submitted an offer, the seller still has to send the offer to DVC to pass ROFR. If the accepted price is too good, DVC will simply purhcase the contract (unless you are allowed to raise your offer). The seller benefits by not having to pay a broker commission, but the buyer may not save any money once ROFR is exercised and will still have the inconvenience of having to handle all of the final details themselves.

You can contact Timeshare Closing Services for info about handling the closing details, but Disney still controls the sale until it has been released thru ROFR and it cannot be sold without going thru ROFR.

Just make sure you do the math before getting too far along in the process.

Good luck!

 

[jel0511]

Thanks Doc, do you happen to have the contact information for Timeshare Closing Services? I googled it, but I'm not sure if the website that came up is the same one you're talking about. The seller I'm working with is asking $74 per point for a BW resale, so I'm not worried about that price getting snapped up by DVC on ROFR. Also, how is a private sale presented to DVC for ROFR? I'm beginning that it might be easier just to wait for one of the resalers to have a contract that meets my needs, but this one does, and I really don't want to pass and wait maybe a month or more for another perfect one to come around. Again, I appreciate any advice you could give!

 

[RobDoc]

Here is prior thread that may help.

http://www.disboards.com/showthread.php?s=&threadid=441354&

It doesn't sound like you're getting much of a bargain, but if you're happy with the contract that's great.

Enjoy!

 

[jel0511]

Thanks Doc, that thread was most useful!! Now, to wait to hear from the seller, I emailed them this morning!

 

[Dean]

I disagree somewhat with Doc though his warning is accurate. I think one can save some buying resale and can get a much cheaper closing. Timeshare transfers will do the closing for about half what most companies charge. It's $250, $200 if it's a bidshare auction and this includes $50 allowance for recording fees. They will do a deed for $100 and act as escrow for $100 if you don't want them to do the entire closing. Plus a seller is likely to take some less since they aren't having to pay a broker. It is true you could get below the ROFR price and negate the savings. And if one is informed, it's more likely for a buyer to be able to raise the price and resubmit for ROFR in a private sale because you can deal directly with the seller.

All the broker really does is get the buyer and seller together and send the materials to a closing agent. Usually one that's in house or provides a kickback. Then they pocket the commission. Simple as that.

I've actually done one purchase privately up until the deed and recording which I had a closing agent do. And I've sold one privately where we didn't use a closing agent at all.

 

[RobDoc]

Originally posted by Dean
I disagree somewhat with Doc though his warning is accurate. I think one can save some buying resale and can get a much cheaper closing.

What do you estimate the savings (for the buyer) to be in this case? ($74 per point, buyer has to do all the legwork and pay for closing). As the buyer, I'd rather let the broker handle all of those details any day- especially if I'm paying the same amount (or more as in this case) for the purchase itself.

Unless the buyer is sharing in the savings from the seller not using a broker, I can't see how the buyer benefits at all. In this case they are paying as much or more than they would thru a broker ...AND... has to gather all of the information for the closing. I just don't see how this arrangement is in the best interest of the buyer at all.

 

[jcanary]

When selling without a broker the seller should be willing to lower the price a little, I know I would. I agree that $72-74 a point is not really lower the price but the buyer may have some very popular use year need and number of points. If I were selling on my own I think I would come down to 70/point so that would be an approximate savings of 400 or so to the buyer.

 

[RuthnPaul]

jel0511,

Since this is an e-bay auction that doesn't end until August 20, it seems that you would be able to find something just as quickly through one of the resellers.

Something else to consider -- the CURRENT price is $11,100 for 150 points ($74 pp). This could get bid up considerably as the auction goes on. We just purchased a VWL contract on e-bay that was being offered by a realtor; we only bid once, about 10 seconds before bidding was to end and managed to snag it!

More to think about!!!

RuthM

 

[jel0511]

Originally posted by RuthnPaul
jel0511,

Since this is an e-bay auction that doesn't end until August 20, it seems that you would be able to find something just as quickly through one of the resellers.

Something else to consider -- the CURRENT price is $11,100 for 150 points ($74 pp). This could get bid up considerably as the auction goes on. We just purchased a VWL contract on e-bay that was being offered by a realtor; we only bid once, about 10 seconds before bidding was to end and managed to snag it!

More to think about!!!

RuthM

I know that. Also, what the seller did write up was rather vague, and I have asked a few questions to the seller (haven't heard back yet). I wasn't planning on offering $74 per point, if the seller wanted closing costs paid, and 2004 maintenance refunded, none of that was mentioned, hence my e-mail. I also asked if the seller would be willing to end the auction early if he/she got a satisficatory bid. I in noway shape or form was going to make a bid and just see what happened, and I appreciate all the advice here. I would prefer to get my resale through a reseller, but this one basically fit all of my needs, and since it would be a private transaction, I was trying to understand it better, since it seems like the seller didn't. There are two BWV resales listed on Ebay. This one, in which it just seems the seller thinks he/she can get money and then transfer the points to them, and another one which lists everything I'm talking about, maintenance fees and closing. I'll post the results when I hear back from the seller.

 

[Dean]

Originally posted by WebmasterDoc
What do you estimate the savings (for the buyer) to be in this case? ($74 per point, buyer has to do all the legwork and pay for closing). As the buyer, I'd rather let the broker handle all of those details any day- especially if I'm paying the same amount (or more as in this case) for the purchase itself.

Unless the buyer is sharing in the savings from the seller not using a broker, I can't see how the buyer benefits at all. In this case they are paying as much or more than they would thru a broker ...AND... has to gather all of the information for the closing. I just don't see how this arrangement is in the best interest of the buyer at all.

$74 pp is too much for MOST contracts. Maybe for SSR or a smaller contract at BWV, BCV or VWL that would be reasonable if it was loaded with points. My point was if the seller is willing to give a little it can be a win win both ways. But even at the same price as through a broker, one can save on closing costs by at least $200 to $250. That may not be a big deal on a $10-20K purchase but is a major savings on a 50 point contract. And in some cases one may be able to get seller financing.

 

[jel0511]

Just to clarify. This contract is a Feb use year 150 points, at BWV with all 2004 points in tact, as well as all 2005's. I've asked the seller to bank the 2004 points, since the deadline for that is tomorrow. Since this contract is exactly what I'm looking for, paying a couple $$$ premium isn't that big of a deal to me. We'll see what the seller has to say, as I'm not going to continue bidding for something that is already slightly overpriced.

 

[Scotch]

Does DVC charge a ownership transfer fee? If so, how much? Thanks.

 

[RuthnPaul]

$100 fee, I believe!

 

[Dean]

Originally posted by RuthnPaul
$100 fee, I believe!

Yes, and that's on top of closing costs.