Confused about resale

[nolenbelledavis]

Hi. We are interested in the Grand Californian. I saw on a resale website that some people have their points for sale. I talked to the salespeople today and they told me GC is sold out and there is a huge waiting list for it.

How are there people doing resale of GC when Disney has first right of refusal. Wouldn't Disney just buy them all back?

 

[Lynne M]

Disney only decides whether to exercise ROFR once an offer has been made. The owner has to put the contract up for sale, then, if an offer is received and accepted by the seller, it's all submitted to DVC, and they decide whether they want to purchase it at the price the buyer and seller had agreed on.

 

[disBOBney]

Since, as you have found out, Disney is sold out on VGC, I can understand that you might think they would claim all contracts but that is not the case. I myself sold my California and Disney did not step in. It is in their best interest to help a active and vibrant resale market. The two markets help to keep prices climbing.

BTW, Disney can only claim a contract if the contract first has a buyer lined up. Disney does not negotiate to buy back properties, they only step in after a proposed buyer and seller have completed their negotiations.

 

[skier_pete]

Another point, Disney is only going to consider buying back a resale contract if it is worth their while to resell. Since VGC is HIGH demand, it is HIGH resale. Looks like resales for VGC are running $110-$130 per point. If Disney grabs a contract to do resale on it, they get it for low end $110, and resell for $140, that's only $30 a point that Disney would make, not counting the fact they have to both handling the re-buy and the re-sell of the contract, they might not consider that even worth their effort. Meanwhile, if they see an SSR contract that is going for $60 a point, and can re-sale at $120, that's worth $60 a point to them, and would actually be worth it to them.

In addition, when you talk to Disney, they don't really want you buying in at a resort they've already sold out. Again, if they get you to buy VGF at $160 a point, that's $160 they make, Not $30 that they make on a resale contract that they had to buy back.

 

[disneynutz]

Since, as you have found out, Disney is sold out on VGC, I can understand that you might think they would claim all contracts but that is not the case. I myself sold my California and Disney did not step in. It is in their best interest to help a active and vibrant resale market. The two markets help to keep prices climbing.

BTW, Disney can only claim a contract if the contract first has a buyer lined up. Disney does not negotiate to buy back properties, they only step in after a proposed buyer and seller have completed their negotiations.

I don't agree, Disney doesn't care about resale, if they did, they wouldn't place restrictions on where resale buyers can use their points.

Disney only cares about selling new resorts, that's is where the money is.

Bill

 

[Millionaire2K]

I don't agree, Disney doesn't care about resale, if they did, they wouldn't place restrictions on where resale buyers can use their points.

Disney only cares about selling new resorts, that's is where the money is.

Bill

Disney does care about resale, but they want you to buy direct. The 1 stupid resale restriction is just so their agents have a talking point to BLOW out of proportion to their clients.

If Resale prices fall to low people will stop buying direct.

If the resale market prices crashed no one would ever pay Disney $160 for BLT when resale has it for $70. So Disney buys back contracts as needed to keep prices as high as they can. Disney still makes more money when they turn the contracts over for $160+ via their waitlist.

 

[Dean]

Since, as you have found out, Disney is sold out on VGC, I can understand that you might think they would claim all contracts but that is not the case. I myself sold my California and Disney did not step in. It is in their best interest to help a active and vibrant resale market. The two markets help to keep prices climbing.

BTW, Disney can only claim a contract if the contract first has a buyer lined up. Disney does not negotiate to buy back properties, they only step in after a proposed buyer and seller have completed their negotiations.

DVD doesn't care about the resale buyer in any way other than as they think it impacts their sales and other related activities. I personally don't think resale prices have much impact on sales one way or another, certainly not enough to make a real difference. Timeshares sell consistently that are not worth paying the maint fees once one owns. Put another way, timeshares are sold, not bought for the most part. From Disney's perspective they'd just as soon you not even be able to sell it, this is not a win win proposition it's us against them in a sense.