Buying resales -- how do they set the price?

[redrosesix]

There seems to be a wide range of prices for DVC resales. I'm wondering who sets the price ie the broker or the seller, and how they decide how much they're worth?

Do you expect to pay more for a resort that has lower MFs? Are there resorts that are in such high demand that people are willing to pay a premium? Are there brokers who normally charge more per point than others?

And, how do things like no points available until 2011, or banked points, etc. affect the price and ROFR?

 

[chalee94]

There seems to be a wide range of prices for DVC resales. I'm wondering who sets the price ie the broker or the seller, and how they decide how much they're worth?

the seller chooses the selling price, but whether it sells is based on supply and demand.

Do you expect to pay more for a resort that has lower MFs?

nah. HH and VB are less expensive because they have lower demand: 1) they are not at wdw and you risk not being able to get a reservation at wdw at 7 months, 2) they are on the coast and hurricane damage is more of a risk (higher MFs and potential assessments) and 3) a small risk of being spun out of the DVC altogether.

Are there resorts that are in such high demand that people are willing to pay a premium?

yes. definitely. BCV has a lot higher demand than other properties - it is also pretty small so supply is also limited.

on the other hand, you have SSR which is not super close to a theme park and is very, very large. so even though it expires 12 years later than BCV, it can be bought more cheaply.

Are there brokers who normally charge more per point than others?

some brokers do charge higher commissions, and closing costs are often higher for larger contracts.

you should also notice that smaller contracts (usually 50 pts or less) will command a premium, as more cash buyers are competing to buy them. larger contracts can be had for less money per point.

And, how do things like no points available until 2011, or banked points, etc. affect the price and ROFR?

stripped contracts with no points till 2011 are worth less to both potential buyers and to disney when they consider ROFRing the contract. so yes, the number of points available will affect the price between two otherwise similar contracts.

 

[redrosesix]

the seller chooses the selling price, but whether it sells is based on supply and demand.

I was thinking that must be the case, since there doesn't seem to be any pattern even within the resales from the same broker. For example, I saw one 100 pt AKV contract with all of 2009 and 2010 points avail. at $89 per point, another one with only 2010 points for $90 per point. (both were at DVCresales.com)

 

[disneymiss]

I was thinking that must be the case, since there doesn't seem to be any pattern even within the resales from the same broker. For example, I saw one 100 pt AKV contract with all of 2009 and 2010 points avail. at $89 per point, another one with only 2010 points for $90 per point. (both were at DVCresales.com)

Just remember you can give a offer price if you would like, that is what I did with my resale and the seller was willing to give me the price I asked for it and they paid my closing cost.....so alot depends on how badly the seller needs money too, I think any how.... just a thought

good luck

 

[Deb & Bill]

The seller may base their selling price on their purchase price. They don't want to lose too much. And with AKV, well, that's only been selling about a year or so, so they have a lot to lose. But if they want to sell it more quickly, they lower the price.

We had a small point contract for sale for over a year. We actually had two offers for our asking price, but both backed out after ROFR and lost their deposit (we got half of it for our troubles). We've had a few more offers for the contract, but waaaayyyyyy less than we had for an asking price (more than $10 a point less). I'm not in a hurry to sell, so we turned those down. And we took it off the market for now. Maybe later on and we'll continue to use the points.

 

[redrosesix]

The seller may base their selling price on their purchase price. They don't want to lose too much. And with AKV, well, that's only been selling about a year or so, so they have a lot to lose. But if they want to sell it more quickly, they lower the price.

We had a small point contract for sale for over a year. We actually had two offers for our asking price, but both backed out after ROFR and lost their deposit (we got half of it for our troubles). We've had a few more offers for the contract, but waaaayyyyyy less than we had for an asking price (more than $10 a point less). I'm not in a hurry to sell, so we turned those down. And we took it off the market for now. Maybe later on and we'll continue to use the points.

I can't believe people would back out at that point -- and it happened twice? Maybe they were offering on more than one contract? I wouldn't bother offering if I wasn't intending to go ahead, money in my hand, etc.