Buying Sold-out Properties from Disney

[Thumper's Tara]

Hi there! This is only my second post to the boards, but I have been reading the threads for months (since my trip in March).

I have a question regarding buying into sold out resorts from Disney...does anyone know what the cost of buying these resorts are? Is it the same as buying into SSR? I have been crunching numbers and I want to be somewhat accurate as to my costs.

In March, I was able to spend 6 nights in a BWV Grand Villa (won it from work) and I can't wait to be able to do something like this again. I have been doing a lot of research and I am pretty sure that I want to own either at BWV or WLV. Not sure yet. I am planning a "research" mission to try out SSR and WLV.

Anyway...that is my question! I am sure I will have more, but that is a start.

thanks,
Tara

 

[Pinmaniac]

I believe the current cost is $92 per point with no discounts or incentives.

 

[TammyNC]

Your best bet for any sold out resort is purchasing through a re-seller such as the The Timeshare Store. DVC typically doesnt sell sold out resorts to 1st time buyers. When they do purchase back these contracts they will sell as add-ons to current owners who are on a waitlist. At this time, SSR is selling through DVC which will last til 2054. All other resorts are under contract til 2042.

Good luck in your decision!
Jimmy(jimmytammy)

 

[JimMIA]

This thread will give you some insight on how long it is taking to get points at sold-out resorts directly from Disney: http://www.disboards.com/showthread.php?t=735842

You can get contracts anywhere from Disney. Whether that is financially beneficial to you will depend on which resort you want to buy, and several other factors. Don't forget that, with resale, you usually have to pay closing costs and you have to price your offer high enough to clear ROFR. You need to add the closing costs to the purchase price and then divide by the number of points to get an apples to apples comparison to buying from Disney at $92.

You will probably save money buying resale at most sold-out resorts, and you might save a LOT, but you have to do the math on each contract to see.

 

[Thumper's Tara]

Wow. I really thought that Disney would offer the resale cheaper because of the less years. I guess I will need to rethink this a bit now. I had thought to finance through Disney, but I am not sure that will work now. I don't think that I am willing to pay $14 more a point for that option!

As for buying resale, I like that option, but I don't have that kind of money to plunk down right now.

Thanks for all the replies. I guess I need to do some more number crunching and more thinking.

 

[JimMIA]

Disney maintains the prices on sold-out resorts - both purchased direct and via resale - at high levels to make the new resort more attractive. They not only set their own prices, but they effectively support the price levels of resale through their ROFR activity.

Just recently (June 5th for non-members), Disney raised their SSR prices and sold-out prices $3. We haven't really seen wholesale evidence of this yet, but I'm sure a month from now the ROFR prices will have climbed a similar amount. I believe they leave a lag between their prices and ROFR so that people with contracts in the ROFR process don't get unfairly penalized.

Incidentally, if you do decide to buy direct from Disney, you will have to purchase 150 points or more. With resale, you can occasionally get contracts smaller than 150. One good aspect for you, though, is that buying direct you will have access to Disney financing.

You don't have to buy everything you need at one time. You can buy a 150 point contract anywhere, and then add on in small increments. Very small contracts are rare on the resale market, but once you own DVC, you can buy any number of points you want from Disney with a minimum purchase of 25, and they will finance any purchase over 50 points.

 

[tjkraz]

I don't think that I am willing to pay $14 more a point for that option!

Resale prices can be deceiving. Typically the buyer (you) is required to pay the closing costs and maintenance fees on any current year points available.

Resales at BWV or VWL are running in the $80 range right now. Closing costs are about $400, so on a 150-pt contract, add roughly $3 per point plus another $4 for maintenance. That takes you to $88+ per point for resale vs. a flat $92 with no additional fees if you buy direct.

As Jim said, DVC has a lot of control over the marketplace via ROFR, and I think they keep prices comparable on purpose. They make more money on points at SSR than they do re-selling an older resort, so they WANT SSR to be just as attractive to most buyers.

If you said you wanted to buy points at OKW, VB or HHI, then resale is absolutely the way to go. But, with today's pricing, I think you can still get a reasonable deal on BCV, BWV or VWL by purchasing direct from DVC.

 

[T.E. Yeary]

RESALE PURCHASES

Yes, you can save money! Some save a little, some save alot. It all depends on the individual package you want. You always have the option of submitting an offer. The seller can say yes, no, or counter offer. Everything is negotiable, including closing costs and maintenance fees. The money you save on your DVC Resale purchase can be used to lavish on your family, when you take your first "magical" trip home.

It is a good feeling for those that do choose to purchase through the Resale market that they are helping a fellow DVC member. We never know when any of us will be faced with the decision to sell. It is a welcome relief to those that they are able to pass on their treasure to someone who loves Disney as much as they did at the time of their purchase.

 

[TammyAlphabet]

Resale prices can be deceiving. Typically the buyer (you) is required to pay the closing costs and maintenance fees on any current year points available.

Resales at BWV or VWL are running in the $80 range right now. Closing costs are about $400, so on a 150-pt contract, add roughly $3 per point plus another $4 for maintenance. That takes you to $88+ per point for resale vs. a flat $92 with no additional fees if you buy direct.

As Jim said, DVC has a lot of control over the marketplace via ROFR, and I think they keep prices comparable on purpose. They make more money on points at SSR than they do re-selling an older resort, so they WANT SSR to be just as attractive to most buyers.

If you said you wanted to buy points at OKW, VB or HHI, then resale is absolutely the way to go. But, with today's pricing, I think you can still get a reasonable deal on BCV, BWV or VWL by purchasing direct from DVC.

I completely agree, that is why I bought 150 points from Disney this year at BWV's. I also got something that few of the resales on the TTS website have..all 2004 points!

 

[Thumper's Tara]

I guess I understand where Disney is coming from...just because I understand it, doesn't mean I have to like it.

however, one of the things that I like about buying direct is I don't have to worry about ROFR. I would be extremely irritated to go through the whole process and lose out to ROFR. ON the other hand, saving money is a big incentive. On the other is the whole Disney financing. I don't know. I desperately want to do this. It might just have to wait a little longer though. More research is definitely in order!

Thanks for all the advice. Keep it coming if anyone has anymore...

ta ta,
Tara

 

[JimMIA]

I guess I understand where Disney is coming from...just because I understand it, doesn't mean I have to like it.

however, one of the things that I like about buying direct is I don't have to worry about ROFR. I would be extremely irritated to go through the whole process and lose out to ROFR. ON the other hand, saving money is a big incentive. On the other is the whole Disney financing. I don't know. I desperately want to do this. It might just have to wait a little longer though. More research is definitely in order!

Thanks for all the advice. Keep it coming if anyone has anymore...

ta ta,
Tara

Well...ROFR is one of those "eye of the beholder" things! When you are a buyer, you learn to hate it. But once you're in, and you see the prices of your home resort moving upward in response to ROFR, you don't feel quite the same way.

If you decide on resale, forget about squeezing every last nickle out of the seller -- BE SURE you offer enough to clear ROFR. That is really the key number; if you don't pass ROFR, nothing else about the contract matters, because you lost it.

A lot of time, resale purchasing become a quest to save every penny, and the truth is you're often talking peanuts. A $2 difference in per point price -- that might make the difference in passing ROFR -- is only $300 on a 150 point contract. Do you want to lose a perfect contract for $300? Naw. I've seen a LOT of people submit offers which caused me to ask, "What were they thinking?" And then they get dissappointed when Disney snatches up their underpriced contract.

Beca's ROFR thread is must reading. Here's the link http://www.disboards.com/showthread.php?t=720134 Go to the last page or two for the latest info on what's passed, what's been ROFR'd, and what's in the mill.

Tom Yeary also occasionally posts whatever info he can on resales, and that is very, very helpful because Tom's people see a lot more deals than are posted on the ROFR thread.

 

[Thumper's Tara]

Well...ROFR is one of those "eye of the beholder" things! When you are a buyer, you learn to hate it. But once you're in, and you see the prices of your home resort moving upward in response to ROFR, you don't feel quite the same way.

If you decide on resale, forget about squeezing every last nickle out of the seller -- BE SURE you offer enough to clear ROFR. That is really the key number; if you don't pass ROFR, nothing else about the contract matters, because you lost it.
QUOTE]

I will like ROFR once I get my purchase - after that I won't care! Right now though, it is kind of scary.

If I decided on resale...I don't want to be too greedy - I just don't want to over pay either...especially because at the resorts that I want, I will have 12 less years. On the other hand, at that point, I will be 67 years old and may not care. Who knows!

I just wish that I could like SSR as much as I liked BWV. I guess I need to take a trip and do some research there. I was spoiled by my BWV stay that I don't think that anything will live up. There was something about looking out over the boardwalk and listening to all the sounds. I love the restuarant choices near by and the ability to ride the boat to Epcot. Okay, I am starting to get homesick...and I don't even have a home there yet.

-Tara

 

[ddave]

I will be 67 years old and may not care. Who knows!

-Tara

Well to our surprise, in a trip this past May, we met a man on the Monorail. He had just moved back to the area because he missed being at WDW. He said that he and his YOUNGER brother, 60, spent the day at one of the water parks on the new water roller coster. He said they went on it like 25 times that day.

So, you may not want to sell/buy yourself short.

 

[SleepyatDVC]

I completely agree, that is why I bought 150 points from Disney this year at BWV's. I also got something that few of the resales on the TTS website have..all 2004 points!

We went the resale route in the past because at that time it was the only way to get the sold out resorts in the past. ALSO, we were very lucky to find contracts LOADED with banked and all current and future points in tact. So, in our case, the almost extra 300 points over a direct buy from DVD was totally worth it. (2 - 150 pont contracts) We were able to pay in cash, so resale was an option for us.

Those extra points enabled us to spend 8 nights in an OKW GV and go multiple trips over 18 months. Disadvantage was that it got us spoiled and we got point withdrawal when the annual allotment was a lot less than what we had to work with the first 2 years! Lol!

I do think that loaded resale contracts are harder to find now a days than a few years ago. Maybe sellers are wising up to the fact that they can rent out some of the points before they sell to get back more $$? I even seem to recall some brokers doing point rentals? Don't know if they rent out their own points or on behalf of some sellers.

However, I think there are still sellers out there that won't bother with renting out and really didn't use their DVC as much as they thought they would and sell loaded or at least semi-loaded contracts. The KEY is to contact the brokers and let them know exactly what you are looking for. If you are only looking for loaded contracts, or only a particular resort, etc. I believe many and most PRIME contracts get snatched up before they even get to the website IF AT ALL!

That said, I essentially got a "loaded" SSR add-on directly through DVD. I have a Dec UY and basically got all 2004 and 2005 points (120 x 2) and an incentive 100 OKW 2004 points with no maintenance on the add-on for the rest of this year with a $5 discount off of $95.

I guess I am a sucker for loaded contracts no matter where I find them! The free AP's promotion did nothing for me. By altering the add-on promotions, DVD hopes that they will eventually find everyone's weak point and lure them into making an add-on! Genuis...

 

[jcf]

I got 375 points with Dec 04 use year in 1 day. They allowed me to bank 100% even though closing in August. 750 to use for 05. $89 point.

 

[marymrg]

I made an offer through The Timeshare Store(a few years ago) which included splitting closing costs and maintenance fees. The seller rejected the offer but then the agent (Jerry) found an almost identical package and the new seller said yes! It even came with banked points and a new year's worth of points within a few months of closing. So - you just never know until you make the offer. Good luck.