Buying Resale Question

[MickeyBabe]

We are looking into buying resale very soon.

After reading the thread about how much paid per point and several other threads, I have a question.

Considering this is bought and sold like a "property" should we make and offer or pay the asking price?


To those of you who bought resale, please vote in the poll as to what you did.


Thanks bunches.

~ MBabe

 

[Deep-Thots]

Woo hoo! I was the first to vote in the poll!

Whether you should pay asking price depends, to a large extent, on the desirability of the contract (which might, in turn, be dependent upon your own personal views or the market's view of the property) and you own level of patience/ability to deal with rejection.

Given current circumstances (and this is based on what I perceive to be the market's take on things, so I could very well be wrong!!), I think you'd have more leeway with VB, HH, and possibly OKW contracts. You'll have less wiggle room with VWL and BCV (i.e., you're pretty much going to have to pay asking price or even above, or risk DVD pulling ROFR on you). And BWV falls somewhere in the middle of all of them.

Good luck!

 

[rayelias]

We JUST purchased a resale and got my membership card in the mail yesterday!

It was our intention NOT to finance and pay cash. So, we've been saving up for about 2 years. It's just my DF(iance) and I, and we figured that, based on our vacation habits and our budget, anywhere between 80-100 points was good for us. Buying direct from Disney requires a 150 point purchase, and the going rate is $95 a point (I believe). So, resale was our only option.

Now, let me tell you, if you're looking for a smaller contract (under 150 points), and they have one you're comfortable with, grab it. They don't come around too often on the terms you might like. The only way to get a smaller contract is if someone sells their add-on. Once you're a member, you can purchase add-ons directly from Disney for as little as 25 points (50 financed).

We chose OKW, basically because they seem to have the least expensive annual dues (or close to it). We wanted a WDW resort, due to the 11 month ressie window. We thought about VB or HH, since they're much cheaper per point, but we would never use those resorts, and we thought the longer window was more important to us. We've never even been inside any of the resorts. We stayed on site for the first time a couple months ago and the differnce staying at a REAL nice property outside WDW and the moderate resort we stayed at was tangible. No contest, Disney wins - you get to experience the magic 24 hours a day.

We called The Timeshare Store (we HIGHLY recommend - EXCELLENT transaction) and told them what we were looking for (80-100 points with none borrowed, preferably OKW) and told them to call when something was available. We were lucky to get a call within a week. We purchased at $73/point - 100 points. We didn't negotiate. I figured, if I go too low, DVC will pick it up through ROFR, and what was I going to save - maybe $200? Over the life of the contract, it's nothing, and if I lost it over a couple hundred bucks, I'd be kicking myself!

I never thought of it as an investment, BUT (and this flies in the face of logic, if you ask me), the price for points has increased considerably since the beginning. One would presume, that the shorter the life of the contract, the less it's worth. Go figure. Fortunately, so long as Disney keeps the price artificially inflated (through ROFR), so they can sell the new resorts, we should be safe. There HAS to be a point, somewhere down the road, that the existing contracts get less valuable, since there will be limited time left on the contracts. But, you also have to figure, the price to "rent" at any Disney resort, say 15 years from now, is going to be much more. The cost for us will remain the same, so take that into the equation.

Anyhow, LONG story short... if you're paying (after closing costs) under the $85/point ($95/point minus the incentive), I'd just bite the bullet and pay it. If I were buying 500 points, I might try and knock off a buck or two. But, everything in perspective. In the long run, and if you can afford 500 points, what's a thousand dollars over 26 years (or whatever's left on the contract)?

 

[Skip Wiley]

When we purchased our BWV resale back in June the asking price was $74, we made an offer of $70 with instructions to offer the full price if necessary. I'm not sure if the broker works for the seller or the buyer in these cases, and the broker could have easily just told us the seller wouldn't budge, but in our case the seller took the offer and we got the contract for $70. It was a $800 savings, I guess not a lot of money but still something.

 

[Deep-Thots]

When we purchased our BWV resale back in June the asking price was $74, we made an offer of $70 with instructions to offer the full price if necessary.

Ahh, the good old days, when BWV resales could be purchased for a mere $70 ppt. hard to believe that was only six months ago, isn't it?

 

[dizplanner]

You didn't have a choice that matched our situation, so I selected Make offer, but was rejected.

What really happened was the seller was asking $75, I offered $73 and they countered with $74 which I took. This was in Nov for VWL. So my offer was not accepted, but I also did not pay the asking price and I did get the contract.

 

[Laurabearz]

We offered 2 or 3 dollars under the asking price for all 3 of our fully loaded resale contracts. They were asking 67 pp for our OKW and we got it for 64, they pay maintence on the banked points, we pay for the current points. And a similar deal for our fully loaded BWV contract.... but the numbers were 68 and 65.

This was way way back in 2002

 

[bongo59]

When we purchased our BWV resale back in June the asking price was $74, we made an offer of $70 with instructions to offer the full price if necessary. I'm not sure if the broker works for the seller or the buyer in these cases, and the broker could have easily just told us the seller wouldn't budge, but in our case the seller took the offer and we got the contract for $70. It was a $800 savings, I guess not a lot of money but still something.

they work for the seller..........and they get a 12% commission.........never give that type of leverage to a broker with an interest be ita timeshare or anyother financial instrument. Just my two cents.

 

[bongo59]

the SSR resale now below 80 a point are a steal........you still have the 50 yr term and Disney backing up its ROFR bigtime at about 77 a point...........so if you offer 77-79 your a lock to get it because disney has so much SSR inventory now they are very unlikely to buy it back unless it is 75 or below.............we bought our resale at SSR this way............we real felt we stole it

 

[Beca]

Our first contract, the seller was asking $74, and we offered $72. They took it, and we passed ROFR. Our next contract (VWL) was this past Oct, when Disney was buying back a LOT of properties. The seller was asking $70, and we did not feel that would go thru, so we offered $73 (I think)...we passed. Things have really changed in six months!!!



Beca

 

[greenban]

We lurked too long before buying........ sigh

In August of 2004 we resaled our first contract, 400 at OKW with 240 (2003) banked - 0 (2004) borrowed no MF for banked points. They were asking 68, our broker at TTS (Jason, GREAT guy!) suggested 65, but with ROFRing just heating up I offerred 66 per point and we passed.

In November of 2004 Jason called me with a heads-up (pre-listing!) of a 300 pointer at BWV with all 2003 points banked, all 2004 available and none borrowed from 2005 for 78 per point, no MFs!. I asked if we should offer 76, and he said, no jump on it now, so we did. This sale took 1 month longer than normal (I was forewarned) since the sellers lived in England!

Then in December we did a 130 point SSR add-on direct from Disney. When I factored in the 10/point incentive, free APs, 12 extra years and ease of just a single phone call and the use of my Credit Card, I thought 89 pp was a good enough deal. Plus (without warning) my guide significantly sweatened the deal (I believe because the new DVC-AP discount was about to be announced - or else I just got lucky ), effectively knocking another $600.00 of the deal. Plus I got a DVC backback and a SSR Litho WAAAAHOOOOO!

-Tony

My future might hold some WVL points. But I'm gonna wait for the perfect ressie, or perhaps the monorail DVC!

 

[JimC]

We made an offer and it was accepted. You can negotitate price, who pays closing costs, and maintenance fee responsibility. What will work depends on the contract and what Disney is doing.

 

[crisi]

We offered the asking price and it was rejected!

I think it will depend on the property and number of points. More room to move on a larger contract - a small contract will go at a little bit of a premium.

 

[twotoohappy]

I've bought from resale and then add-ons through disney 3 times. I saved about $600- by buying resale (price per point and adding on closing costs) first finding a non-stripped contract and then the long wait of ROFR and and then waiting to close before you can use your points, it was too much of a hassle for me. I liked going right through Disney because as soon as you sign the "ears" and date the "palm trees" you can make a reservation. Just FYI, if you wanted a DVC resort that wasn't SSR the price is still 89- , but you still have to buy 150pts unless you're adding on, but you don't have to pay closing costs. I just added on 100 VWL in Nov. and got 4 free park tickets to boot They even banked my 2003 Dec. use year points. (They don't always do that, but if you do buy directly from Disney, as soon as your deposit is taken, call and bank your points. My points would have expired the end of that month, but they made an exception because I just purchased from them. ) Good luck in your decision!

 

[TheRustyScupper]

1) We have bought from DVC and on Resale.
2) Are results we EXCELLENT
. . . negotiated HARD with DVC
. . . bargained the $52 seling price down to $52.
. . . negotiatred with Reseller
. . . bargained a $64 selling price down to $59

 

[FamilyGuy]

We offered the asking price and it was rejected!

I think it will depend on the property and number of points. More room to move on a larger contract - a small contract will go at a little bit of a premium.

I am confused as to what happened here - did the seller more than likely received a simultaneous offer for more than the asking price?

Or are you saying that Disney picked up the points via ROFR?

Or did the seller just not like you as a buyer (just kidding).......

To comment on the original question, when I contacted The Timeshare Store, I was informed that I can make an offer on any re-sale, just keep in mind Disney's ROFR. I did not ask about pricing drops or discounts, I was informed as a matter of fact that I can make an offer.

I was told that at about $70 per point (it was a 150 point contract), Disney would excersise ROFR. Now I am not knowledgable enough to know if they would actually do that, but it is a very interesting concept, that they (DVC) can control the pricing. In the long run it helps us (the owners) though, because it keeps the re-sale values from dropping too low in any given market.

 

[Skip Wiley]

they work for the seller..........and they get a 12% commission.........never give that type of leverage to a broker with an interest be ita timeshare or anyother financial instrument. Just my two cents.

I would agree, but in this case the only thing I couldn't afford to lose was the contract, DW would have kicked my DA if I lost it over $4 a point. So I figured why not give it a shot, offer $70 but tell the broker to go to the full price of $74 and take a chance that he'll be honest. In the end it worked out great, I saved a few $$$, DW was happy, and the broker turned out to be a nice guy. Ahhhh, the Disney magic.

 

[Deep-Thots]

DW would have kicked my DA if I lost it over $4 a point.

DA!!!!!

ROFLM"DA"O!!!!!

 

[Bill Blum]

So at this point, is $70 per point at Old Key West about the best I can expect to do on an offer, having a reasonable chance at it being accepted? Can I go lower?

I'm totally new to this, have pretty much decided I want to purchase re-sale.. Don't really care about the extra years at SSR. Also, I guess everyone agrees that the Timeshare Store is a good broker to use?

Looking to buy soon and take a trip "home" this summer!!!!!

 

[rayelias]

So at this point, is $70 per point at Old Key West about the best I can expect to do on an offer, having a reasonable chance at it being accepted? Can I go lower?

I'm totally new to this, have pretty much decided I want to purchase re-sale.. Don't really care about the extra years at SSR. Also, I guess everyone agrees that the Timeshare Store is a good broker to use?

Looking to buy soon and take a trip "home" this summer!!!!!

You might want to check some of the threads here about others' experience with recent ROFR. DON'T TAKE MY WORD FOR IT... but, I would think that anything under $70/point (at OKW), unless there is a good deal of borrowed points, is pretty low and DVC would pick it up. I recently paid $73 at OKW and passed. I've read others have lost out to ROFR there in the $70 range, but don't know all the details.

You can offer whatever you like. From the seller's standpoint, they really don't care if you're the buyer or if DVC is the buyer, so long as they get what they're looking for.

IMHO, if there's a contract you're comfortable with, and a price you're comfortable with, grab it. If you're able to pick it up for $70, you're getting a real good deal, since I, and many others have paid more. When I make a purchase, I buy on VALUE, not price. Consider this... if the seller were asking $78 and you made an offer of $75 and got it, you might think you got a great deal. But, not if it's worth $70 - just because you "negotiated" $3 off! I think you're getting a very good value at $70, if you can get it. Just my 2 cents, though. Penny wise and pound foolish.

Good luck to you!