Comparing resale contracts

[jyssilly]

Just starting to go through this whole board of posts - lots of awesome information!
So I'm trying to figure out how to compare the costs of contracts that have points available at the time of purchase vs. those that don't have any points available until the next use-year.
It seems like if the price-per-point were the same, then obviously the one with the points available now would be a better value?
Are there other things to consider when comparing resale contracts?

 

[MickeyTrooper]

HOW MUCH MONEY YOU HAVE

 

[DduzDis]

Just starting to go through this whole board of posts - lots of awesome information!
So I'm trying to figure out how to compare the costs of contracts that have points available at the time of purchase vs. those that don't have any points available until the next use-year.
It seems like if the price-per-point were the same, then obviously the one with the points available now would be a better value?
Are there other things to consider when comparing resale contracts?

A stripped contract would not have to pay dues on the current year points so the overall contract will be cheaper at closing. For those that have points available now you would have to multiply that number by the current dues price/ point for a given resort to see what additional cost there would be. You can always negotiate that in the price for the offer (have owner pay),but it has been said that Disney likes to see the buyer have some skin in the deal and pay these.

 

[JETSDAD]

But if you can find contracts with banked points from previous years you can also get points without any dues. We paid about $10/pt more for a fully loaded contract than we could have got a mostly stripped/current contract for. In doing so we received 2 years worth of points with no dues (purchased an Aug UY in early 2017, so still 2016 UY, with 2015 pts banked into 2016 and 2016 into 2017). We only paid 2017 dues.

If you can make use of extra points, either personally or by renting them out, it is worth waiting and paying a bit more for. The market doesn't seem to value loaded vs stripped as much as it should.

 

[DduzDis]

If you can make use of extra points, either personally or by renting them out, it is worth waiting and paying a bit more for. The market doesn't seem to value loaded vs stripped as much as it should.

This is a great point. I am planning to rent banked points that I did not have to pay MFs on to lower the overall cost of our recent contract we have in closing and did offer a little higher with that in mind.

 

[scot@dvcstore]

Many buyers will focus on listings with current points or even banked points. The extra points have do have value and the extra points will generally justify the higher price per point. With that being said, some buyers that do not plan on visiting Disney in the near future will look for listings without current points with the intention of saving on the price per point and annual dues.

 

[PatMcDuck]

I compared prices for a few weeks, looking at current ones for sale and those that were just recently sold but still visible in the listings. I looked at every site I could find online, about 5-6 different ones,( a couple of those seemed small, less activity). I was looking at Boulder Ridge, which made it easier, less contracts to keep track of. I carefully noted which were stripped, which were loaded, and those in between.

We jumped when we saw one loaded with 2017 points, and the 2018 points coming a few months later, at the same price as those with no loaded points. As others said, the 2017 dues were paid, so those were "free points" lol. Yet we STILL offered $5 less (list $100, offered $95) and the seller took it immediately, 10 minutes for my call back from listing agency. And when I say we jumped, I saw this new listing before this company even opened at 9 am, and i called at 9, haha.

I understand the benefit of buying a stripped one, too, of course. We do now have 2 different use years, both at WLBR, an older one with 25, and this one we bought last February (200), but I am working with it. We are 60/61 so we were ok buying at WL BR.

 

[jyssilly]

HOW MUCH MONEY YOU HAVE

HAHA - true true! Just wondering how I can compare though, I mean, is it worth paying $10-20 more per point to get the upfront points?

 

[jyssilly]

I compared prices for a few weeks, looking at current ones for sale and those that were just recently sold but still visible in the listings. I looked at every site I could find online, about 5-6 different ones,( a couple of those seemed small, less activity). I was looking at Boulder Ridge, which made it easier, less contracts to keep track of. I carefully noted which were stripped, which were loaded, and those in between.

We jumped when we saw one loaded with 2017 points, and the 2018 points coming a few months later, at the same price as those with no loaded points. As others said, the 2017 dues were paid, so those were "free points" lol. Yet we STILL offered $5 less (list $100, offered $95) and the seller took it immediately, 10 minutes for my call back from listing agency. And when I say we jumped, I saw this new listing before this company even opened at 9 am, and i called at 9, haha.

I understand the benefit of buying a stripped one, too, of course. We do now have 2 different use years, both at WLBR, an older one with 25, and this one we bought last February (200), but I am working with it. We are 60/61 so we were ok buying at WL BR.

Good points - Were there sites you liked better? I'm checking Timeshare store because a friend recommended. I'm just wondering the difference of $10-20 or even $30-40 per point when buying a contract that still has its 2018 and 2019 points.

 

[kniquy]

some buyers that do not plan on visiting Disney in the near future will look for listings without current points with the intention of saving on the price per point and annual dues.

This is exactly what we put into consideration when buying our contract. We were planning for a bigger trip in 2018 with needing to bank 2017 points. We bought in 2015, the contract didn't have points until 2017. I did not have to pay any due at closing and in fact received a credit for the MF which were due for 2016. I didn't have to technically pay dues (out of my pocket) until 2017. It worked out for us because we were not traveling for a couple years and we got a great price per point on our contract.

Are there other things to consider when comparing resale contracts?

If a contract has points which offer no use to use, but the contract might be $5 or $10 more per point you could factor in that on the rental market you could get ~$14-17 per point so subtract that from your total buy in and you are probably paying less per point compared to other contracts.