Buying resale from individual?

[luvgoing2disney]

A friend told me yesterday that they knew of a couple who was interested in selling their DVC membership and wanted to know if they could put us in contact with the sellers. I have no idea when they bought into the program or how much they may want for selling, or even their home resort. I've done a quick search on the forum to find out about this type of transaction and did not find what I was looking for, or maybe just did not know how to phrase the search.

A few questions...

Are these fairly transations common? What is involved? Do the same owner privileges apply to the new owners as the original ones?

ANY information or advice from you guys would very appreciated.

 

[Mickey'sApprentice]

A friend told me yesterday that they knew of a couple who was interested in selling their DVC membership and wanted to know if they could put us in contact with the sellers. I have no idea when they bought into the program or how much they may want for selling, or even their home resort. I've done a quick search on the forum to find out about this type of transaction and did not find what I was looking for, or maybe just did not know how to phrase the search.

A few questions...

Are these fairly transations common? What is involved? Do the same owner privileges apply to the new owners as the original ones?

ANY information or advice from you guys would very appreciated.

I'm not very familiar with these transactions, but have seen them mentioned a few times on the boards. I specifically remember someone trying to trade DVC for a car.

As for price, you will need to set the price to something that will pass ROFR. Disney has the "Right of First Refusal." You may love the thought of picking up a DVC for $30/pt. from someone, but Disney likes it too, and WILL take a good deal. Essentially, they get first dibs.

 

[chalee94]

Are these fairly transations common? What is involved? Do the same owner privileges apply to the new owners as the original ones?

it's a little unusual to buy directly from an individual. as stated, you would still have to submit the deal to disney to see if it passes ROFR.

it is very common for people to buy "used" contracts (or "resale" contracts) from other individuals by using a broker (like the timeshare store - there's a link above for their resale listings. even if you buy directly from an individual, you may want to use the timeshare store's closing services to verify information about the contract that you are buying (such as the number of pts actually remaining, and whether there are any liens or whatever against the contract).

resale buyers are (currently) treated exactly the same as direct buyers. it just takes a little longer to complete the process.

 

[Jason@dvcstore]

A friend told me yesterday that they knew of a couple who was interested in selling their DVC membership and wanted to know if they could put us in contact with the sellers. I have no idea when they bought into the program or how much they may want for selling, or even their home resort. I've done a quick search on the forum to find out about this type of transaction and did not find what I was looking for, or maybe just did not know how to phrase the search.

A few questions...

Are these fairly transations common? What is involved? Do the same owner privileges apply to the new owners as the original ones?

ANY information or advice from you guys would very appreciated.

Be advised that The Timeshare Store, Inc.® is more than happy to help out with these transactions. The seller typically simply pays a transaction fee vs. a commission since bringing their own buyer. Feel free to contact us or have the seller contact us at sales@dvcstore.com if you would like our assistance.

Thanks
Jason

 

[WilsonFlyer]

That's good information, Jason. I didn't know that.

To the OP:

An owner is an owner. We are all treated the same by DVC/Member Services. I'm not sure anyone ever sees how you came by your original purchase once the deed is done with the possible exceptions of the guides maybe.

 

[toyboy]

luvgoing2disney,
I was able to do exactly what you are asking for - I did a private purchase with another party and for me I had no issue. To make sure it goes smoothly, you need to act as if you are buying a real estate property (because that is essentially what it is).

You will either need a specialized broker or lawyer to draw up the sale contract. In my case, the seller and myself used the Timeshare Store to work up the contract and coordinate the paperwork with Disney. I would recommend this approach since they will reduce their price for this service and they are intimately aware of all of the processes and procedures needed to get through the Disney contract review and ROFR. As Mikey'sApprentice mentions, the only key is that the offer which is submitted must be "fair" as reviewed by Disney. If it is too low, then Disney may just buy the property back themselves. In that scenario, the seller is still able to sell the property for the contract price, but the buyer is left at ground zero needing to find another seller. To find out what is a "fair" cost per point at each resort, I would suggest looking on the Timeshare Store site and looking at the listings they currently have.

If everything goes through with the sale - you are definitely treated exactly like anyone else who bought directly through Disney or those that purchased through a broker in a typical resale. For me the process took about 2 months - it really isn't that long, but while you are in the middle of the process it seems to take forever...

 

[Dean]

Buying privately is not that difficult. One can get closing for as low as $275-300 after ROFR is done through a company or do it yourself for under $50.