Closing Costs?

[jennc221]

We're currently interested in becoming a DVC member. Can someone tell me if there is a difference in closing costs from buying through Disney or through the TimeShare Store? Also, I understand that if we were to buy from Disney directly, we would be able to get all 2006 points. Are there any other benefits?

 

[WDW Here we come!]

We're also in the process of considering becoming DVC members, so I am certainly a newbie, but what I have learned so far on the closing cost question is that there are no closing costs with Disney as opposed to varying closing costs (based on # of points you purchase) with a reseller.

Disney can also help arrange financing for you, although they are a bit expensive, in my opinion.

Good luck and keep me posted on your progress!

 

[LisaS]

Also, I understand that if we were to buy from Disney directly, we would be able to get all 2006 points. Are there any other benefits?

When purchasing directly from Disney you will get current Use Year points. If you purchase a Feb or Mar Use Year Month, those points will be 2006 points. If you purchase any of the other Use Years (Apr, Jun, Aug, Sep, Oct or Dec) you will get 2005 points because with those Use Year Months you would still be in your 2005 Use Year. You get those points as soon as you pay your deposit and can begin making reservations right away. The price of the sold-out resorts is currently $92/point. I'm not sure what the current price is at SSR (list price is $98/pt but there are some incentives right now that lower it to, I think, $90/pt.)

If you purchase a resale contract you could end up with more or fewer points than when purchasing from Disney. Some resale contracts are "loaded" with banked points, all current points and all future points. Others may be "stripped" with no points until some time in 2007. Most resale contracts will cost you less per point (even when you factor in the closing costs) than buying from Disney. The exception is BCV -- some of those contracts will end up costing more than buying from Disney, but that's because it can be difficult to purchase BCV directly from Disney.

There is a range of prices on resale contracts based on the resort and how many points are coming with the contract. Loaded contracts will go for a higher price/point as will small contracts (25-100 points). Stripped contracts should go for several dollars/point less but they are not always listed that way so look over each contract carefully to see how many points you would get.

With resale contracts you have to get through ROFR which can take up to a month so the whole process can take 8 weeks or so. If you're not in a hurry to make reservations, resale can save you some money.

 

[WDW Here we come!]

Wow, Lisa, thanks for all the useful information!

 

[byoung]

No closing costs when buying from Disney.

 

[First Wave]

No closing costs when buying from Disney.

I have to disagree. Whether you pay $90 or $98 (depending on what deal you've been offered - since it seems lately that everyone is being offered something different), you're paying closing costs. They're included in the price.

If you buy a resale for $80 and pay about $2.50 per point in closing costs, it's a bargain.

First Wave