Buying

[tvengineer]

I am looking at buying into the DVC. I have found a couple of contracts on some resale websites that I am interested in. One is somewhat attractive to me but it is being sold by an individual not a real estate agent. Should I use caution here or just stick with liscensed agent. Thanks

 

[Dancind]

Zane, call the seller and ask them which escrow company they will be using. As long as the escrow company checks out, and you send your money to them, you should be OK. Find out first if there are any non-refundable fees from you, because if it's a really good deal, Disney has the "Right of First Refusal". That means if they like the contract, they can buy it instead of you. I saw one being sold by an individual on TUG for $60 a point, no way that one will make it past Disney. Do a search here for "ROFR", that will give you a better idea of which contracts are getting through Disney, and what kind of offer you can make. It really makes no difference to you whether you buy from a realtor or individual as far as what you pay, but you have to make sure your price will pass through Disney if you really want the contract. Hope this makes sense. Dean is the expert on this, perhaps he will chime in. Diana

 

[RobDoc]

Dancind made an important point ...

because of DVC's Right of Refusal on all resale contracts, the buyer has little to gain from a private sale. The seller will avoid paying a commission to the broker, but the seller will have to make an offer high enough to pass ROFR and will not have the advantages provided by the broker throughout the process.

There may be circumstances where a few $$ can be saved with a direct sale, but in most cases, the ROFR will negate the oppportuity for a low price being allowed to go thru by Disney.

As suggested, make sure you are comfortable with the escrow company and with all aspects of the sale before parting with any money.

Good Luck!

 

[Cruelladeville]

On that $60 per point contract offered on TUG--there are almost no points available for 2003, but most are available for 2004. I was interested in this contract, but I wanted 2003 points if I have to make monthly payments on the contract. If you are buying from an individual, you may be buying a contract that you can't use for a long period of time, since the points were stripped from it before it was offered for sale.

 

[Happy Birthday Cat]

you may be buying a contract that you can't use for a long period of time, since the points were stripped from it before it was offered for sale.

Since all reservations are cancelled by Disney when a contract is sold, what happens to those contracts with stripped points? Are the points for the cancelled reservations returned to the buyer of the contract or do they go to DVC?

HBC

 

[RobDoc]

Originally posted by Happy Birthday Cat
Since all reservations are cancelled by Disney when a contract is sold, what happens to those contracts with stripped points? Are the points for the cancelled reservations returned to the buyer of the contract or do they go to DVC?

HBC

If there are any outstanding reservations when the contract is presented to Disney, they will be cancelled and the points returned to the contract. The points do NOT go to Disney.

Disney will certify the details of the contract for the closing and cancelling outstanding reservations is one aspect of that process. The buyer could actually end up with more than points than expected.

Enjoy!

 

[Happy Birthday Cat]

The buyer could actually end up with more than points than expected.

Thanks Doc. I never thought of that. One more question on this. Could it also cause a person to lose a resale to Disney by underbidding on a contract due to what they believe to be lack of points? I could see offering a lower amount based on a contract being "stripped" of points and not knowing that their are reservations out there to be cancelled. That seems to be something perspective resale buyers should ask.

HBC

 

[RobDoc]

Originally posted by Happy Birthday Cat
Thanks Doc. I never thought of that. One more question on this. Could it also cause a person to lose a resale to Disney by underbidding on a contract due to what they believe to be lack of points? I could see offering a lower amount based on a contract being "stripped" of points and not knowing that their are reservations out there to be cancelled. That seems to be something perspective resale buyers should ask.HBC

I suppose that could happen, but suspect that the number of cancelled reservations with resales is a limited number.

I'd suggest that people be more aware of the "apparent" ROFR buyback level than worry too much about offering too little in the chance that there are more points in the contract then advertised.

ROFR seems to negate the opportunity for real bargains with resales. The seller has nothing to lose- if he is willing to accept an offer of $60 per point, he knows that as long as he gets an actual offer at that price, someone (either DVC or the buyer) will actually purchase at that price. If the asking price is low and DVC buys it themselves, the seller still gets exactly what he wanted- the only one disappointed is the one who made the offer.

If I wanted to sell a DVC contract quickly, that's exactly what I would do. I'd ask the lowest amount I'd be willing to accept and then see if DVC exercises ROFR. As long as I had an acceptable offer, the final buyer wouldn't be important and if a buyer offers more than I ask, that's fine too. In either case, I know I will have a buyer (either the one making the offer ... or Disney) and I have lost nothing.

 

[Happy Birthday Cat]

Thanks again Doc. I purchased a resale a few years ago and quite honestly never thought about the possibility of this issue.

HBC

 

[mickeyc]

I have purchased timeshares direct from Disney and resale. I have used the Timeshare Closing Service located on 7345 Sand Lake Road, Orlando. The phone number is: 407-370-2373. Everything was done very professionaly and efficiently.

In one instance I purchased a Mariott direct from the seller and it was not a problem. Depending upon various factors you may obtain a better deal directly from the seller. I have also used the timeshare store and they were excellent.

You can check the timeshare user group website www.tug2.net for other closing services.

It is not as difficult as some people think dealing with a seller. Most closing services have kits they use to walk you through the requirements. It was very easy.

Good luck I am sure you will find something.