Buying Resale - My First Time Share- have ?'s

[MotherOf2Princesses]

I just started the process of buying, got the contract today.

Here is the resale deal I am purchasing;
Saratoga 150 pts @ $82 per point $12,300, with 150 points banked .
October use year, 300 points available on 10/08.
No dues till 2009

1. Is this a good deal to you?
It's similar to what I get with the Disney bonus points offer but less per point, and dues are lower than AKL.
2. What exactly can I use towards a tax write off? Any closing cost?
3. If I have the reservation early Nov. and want to vacation in mid January what am I likely to get 2 1/2 months out, unit size and resort?

Thank You!

 

[Rileygirl]

I am a newbie at DVC, so I cant offer much advice.

However, I did use Donald#1's thread of ROFR a lot to figure out what the going rate is for our resell. I think (and I could be wrong) but there are contracts for Saratoga Springs going for the mid to high seventies per point i.e. anywhere from 74-79.

I am sure some vets will come in and give you a better advice though.

Good luck!

 

[chalee94]

1. Is this a good deal to you?
It's similar to what I get with the Disney bonus points offer but less per point, and dues are lower than AKL.

if you're happy staying at SSR on a regular basis, it's probably worth pursuing. for a loaded contract (i.e. one having a full set of banked pts available), it seems reasonable. you might be able to negotiate a couple of dollars off, but you'd risk losing the contract. here is a link to the most recent ROFR results:

the ROFR thread.

2. What exactly can I use towards a tax write off? Any closing cost?

if you finance it, you may be able to deduct the interest, depending on your situation and how the loan is structured. you can also deduct the actual property tax component of annual dues (which is fairly small.)

nothing for closing costs, though.

3. If I have the reservation early Nov. and want to vacation in mid January what am I likely to get 2 1/2 months out, unit size and resort?

maybe something at SSR or OKW, but frankly, i wouldn't count on availability on short notice...

 

[fers31]

Not a good deal. On the resale market the prices have been going for almost $10 less per point. See this link: http://disboards.com/showthread.php?t=1710667

 

[MotherOf2Princesses]

Not a good deal. On the resale market the prices have been going for almost $10 less per point. See this link: http://disboards.com/showthread.php?t=1710667

I checked out that link. And I might be wrong but it seems that those that are going for less than $80 have no points for '08 and some have none for '09. And some that are in the low 70's are bigger point packages.
I saw very few that had banked points and were packages less than 200 points that went for less than $80.

Am I wrong? Does it make a difference if you are buying a bigger sum or if there are no current points available with what you are buying.

Please tell me I have not signed the contract.

 

[chalee94]

Not a good deal. On the resale market the prices have been going for almost $10 less per point. See this link: http://disboards.com/showthread.php?t=1710667

i don't think you're comparing apples to apples. the SSR resales that have been going in the mid-$70s have typically been completely stripped contracts or required at least partial payment of 2008 maint fees.

this one is the most interesting comparison, but it is missing almost all of the 2007 points and the buyer paid all the 2008 annual dues:

<<Mouse511---------- 150 SSR (Oct) $74, 19 banked '07 pts, all '08 pts, buyer pays closing and '08 mf (sub 7/31, passed 8/9) non-members,TSS>>

looks like she's on the border to me. although if she has the time and patience, offering $79-80 might be worth a shot...

 

[chalee94]

Am I wrong? Does it make a difference if you are buying a bigger sum or if there are no current points available with what you are buying.

smaller contracts (under 100 pts but especially in the 25-50 pt range) command a premium, as those resales are the only way nonmembers can get access as you can't get those smaller contracts by buying direct.

larger contracts are less in demand, and will go for slightly cheaper than 150ish pt contracts from what i've seen.

in the example i quoted, they paid $74 per point BUT also paid $4.21 in 2008 dues that you are not responsible for...making their total outlay over $78 per pt (and not "$10 less.") valuing the extra banked pts in your contract is a little tougher but $3-4 for pts that are available immediately doesn't strike me as unreasonable...(considering you aren't paying dues on your 2007 AND 2008 pts, those actually look really cheap to me.)

if you like SSR (and IMO that is an important "if"), $82 seems like a fair deal. if you're willing to take the risk that you'd have to start over looking for another contract and are concerned about not being able to use the pts in january, then maybe offer a couple of bucks less per pt (and save maybe $300-400? not much over the long term...)

 

[Rileygirl]

Again, I am an absolute newbie -- but I just wanted to mention this.

When I first started looking at resell, about a month ago, I did a ton of research, and watched contracts come and go for about 3 weeks, because we were not certain if we would buy dvc, and if we did, how much and where. I kept up to date with Donalds#1 lists (which are a HUGE help, thanks so much Donald#!!!!!).

I lurked on this board, and read about which resell agents would be good to use if we did buy. Ok- we decided on BVC, because that is where I REALLY want to stay most of the time, and from reading these boards, buying where you want to stay is good advice, if you are a 'planner', and will book ressies at the between the 11th and 7 month.

Well, BVC contracts really go quickly, especially if they are not stripped. I thought it would take a while to find the right contract, and be ready to make an offer right away.

The broker I was working with (**** and Jaki), I told them what I wanted, and I thought it was a difficult request - a 250 -270pt contract that was loaded with points, hopefully some banked, and a good price point. They did not have any listed, but in one day, found me a 270pt contract, 196 banked points, all 08 pts, and all 09 pts,, seller eats the 07 pts, we split mfs on the 08 pts, and I pay closing costs -- and we got it at 89 a point. So, loaded contract, plus 331 (196+135[half of the 08 pts)] for free, at a price point that is generally 6 dollars less then what is the asking price on most broker websites for BVC loaded contracts!!!!

So, my point is, if you dont ask, you wont know. I would talk to your broker, tell them how many points you want, that you want a loaded contract, and you want to pay around 76 per point,, or something like that. You also want to negotiate on any MF's owing on banked or current MF's. Frankly, the market is absolutely flooded with SSR contracts, I think you can pretty much get anything you want for a steal of a deal, just dont go so low you get ROFR. Just look at the TTS page -- there has got to be 50 of them.

Again, I am just basing this on my experience, its very limited, and based only on my one pending DVC purchase (which I will cry very hard if it gets squashed in ROFR)

My two cents, which may not be worth a nickel.

Edited to add, on another board, a contract for SSR got through at 69 a pt, and another has just gone to Disney for RORF at 63 a point!! stripped contracts I think, but still!!!!

 

[MotherOf2Princesses]

if you like SSR (and IMO that is an important "if"), $82 seems like a fair deal.

Saratoga would not be my first choice. I would prefer AK or BC. I have never stayed at Saratoga. I don't think I would be disappointed if I stayed there.

I choose Saratoga because of the experation year. I would buy AKV but I did not want the higher dues.
At 7 months out I am hoping I can get an occasional reservation at AK or BC in a 1 or 2 bedroom.

 

[Belle & Ariel]

We recently bought at BWV. At first we considered OKW and SSR because they had so many loaded contracts at low prices. We decided between the 2 we much preferred OKW because of the resort appearance, the 2 beds in a studio instead of bed/sofa sleeper, low MF's, and OKW has much lower point structure. Have you considered buying an extended contract there instead of SSR?
I wanted to feel assured of getting Boardwalk most times we go and did not want to go into it worrying about spending all that money and not getting the resort I wanted, so I spent a little more to get BWV. Actually, we spent $82 there for 150 pts and got all 2007 and 2008. Most similar contracts at SSR ran much less. There is so much for sale there, I would guess prices would go down as they have.
If you do buy SSR, your contract sounds high to me. There are so many listings you are in a buyer's market. I would make a lower offer and if it is not accepted, try another contract there. Jaki and **** at **********.com could probably find several to choose from.

 

[dmarino508461361]

I just started the process of buying, got the contract today.

Here is the resale deal I am purchasing;
Saratoga 150 pts @ $82 per point $12,300, with 150 points banked .
October use year, 300 points available on 10/08.
No dues till 2009

1. Is this a good deal to you?
It's similar to what I get with the Disney bonus points offer but less per point, and dues are lower than AKL.
2. What exactly can I use towards a tax write off? Any closing cost?
3. If I have the reservation early Nov. and want to vacation in mid January what am I likely to get 2 1/2 months out, unit size and resort?

Thank You!

1) I would say it is a great deal. 300 points without having to pay dues. If you bought something at $73 per point with no points until 2009 and then rented those same 300 points at $10 per point then it my opinion really paying $13,950 or $93 per point.
2) If you pay cash then no write off on purchase. Each year you will get a statement for annual dues and a portion of that is taxes. Take that to your accountant each year and they will take care of it for tax purposes.
3) I would say Old Key West or Saratoga Springs. But the closer you get to the reservtion the more likely there might be cancels at any of the resorts.

I know people like to say "own where you want to stay," however, that only matters when making a reservation more than 7 months in advance. If you make a reservation between 7 and 11 months you can only stay at one place and that is your home resort. Under 7 months it is all fair game and at that point only matters what you paid per point to buy and how much paying each year in annual dues. For those people making a reservation 7 months or less than Old Key West or Saratoga Springs are the best to own in my opinion.

 

[pickles]

I tell, you , you can stare at those listings and have your eyeballs fall out of your head and your head left spinning.
It finally gets to a point where you decide what works best for you..like where you buy, UY and whether you care if the contract has any available points or not. Then, weed out all the ones that don't fit. Then, just pick from the remaining ones that make you feel like you are getting a good deal

Like when I first read your deal you listed here, i thought " that sounds pretty good" , but when you put stuff under a microscope, then flaws may appear. If you feel like its a good deal and you are happy with it, and it fits your requirements, then go for it. If you haven't made an offer on it, then maybe try a little lower offer..or have them pay closing costs or something

I am still in the ROFR process, and while I have seen some other contracts competitive with mine I offered for, I feel "ok" with my choice, I am sure some could have negotiated a better deal, but one just learns to be happy and excited for what they got rather than second guessing

Good Luck!!

 

[Mouse511]

Hi - I can tell you that the above resale purchase used for your comparison is ours. When we bid on it - it was the lowest priced contract out there and it met every one of our needs - plus had 19 banked 07 points that added a little bonus for us.

Could we have negotiated the sellers to pay all or 1/2 of the 2008 MF ? Sure - would they have accepted ? Who knows ?

Would it have made our contract a little cheaper - yep - but did I want to risk Disney ROFR it over a few hundred bucks ?? Nope.

The total of about 78 per point after 08 MF made it a really good deal plus almost assured us it would pass ROFR PLUS it made the sales process super easy.

The sellers were getting exactly what they were asking - so they returned all the paperwork via priority mail - they didnt have time for Sellers remorse and we got the contract we really wanted.

The bottom line is - could you ask the sellers to negotiate ??? sure but it may delay your purchase or it may not ??

Do your research find a contract that meets your needs and go for it......if you ask everyone their opinion you are bound to get a different opinion from each person - if you think you are getting a good deal - thats all the matters - as long as you dont keep yourself up at night thinking about your purchase - you have done a good job.

As for my opinion - do I think that contract you are thinking about is a good deal ?? - Yep - I would have bid on it - if it met all of our needs !!!

 

[bookwormde]

I am pretty cheep but this seams like a better than average deal. You can take $4+ off for the maintenance fees being paid. They are not really “banked points” since it is not past October but it is close so I would figure another $4 per point over the maintenance credit so that takes it to $74 compared to the standard full contract. I would have tried to get it at $78 but again am cheap. If you can use the points in the next year you did OK.

Different time of year but I got my points loaded the end of may and got 5 days OKW 1br and successfully wait listed for 2 days in a studio at BCV for mid August.

bookwormde