Considering resale as a first purchase for DVC

[tarheellovesdisney]

We have been to WDW for 20+ years and stayed in many of the villas on rented points. I have started looking into a purchase of a small contract to start our ownership into DVC. I have read many of the threads here and looked at broker sites and blogs. I would appreciate any advice to consider before buying. Our favorite resort is BWV- I've read all about the 2042 exp (but that works for us). I would love to buy there if I could find a 50-75 pt contract. What kind of price is reasonable to expect? (I've seen a wide range) I have also been looking at BLT- with the longer exp and low MFs - that is a contender. We have bought & sold 4 houses but there seems to be a stiff learning curve with DVC. We are not too concerned with investment value, more so value for the vacations we can take for the next decade or two. Thanks!

 

[CastAStone]

If you’re wanting or planning to stay mostly in studios at BWV, buying BWV is your only realistic option.

It sounds like you’re considering a very small contract; be aware that standard studios during the low point seasons are fought over intensely at both BWV and BLT. You should buy enough points to ensure you are covered when you regularly get stuck instead in a pool/garden room at BWV or a lake view room at BLT.

Pricing for small contracts is significantly higher per point than pricing for larger ones. You will see people getting BWV for $100 per point and BLT for $110; that’s almost certainly not going to happen for 50-75 points. It’s not impossible that a 100 point contract will be the same price as a 75 point one.

What you should expect to pay depends how patient you are. There’s contracts on the market today you could just buy. If you want to pay, say $120, that might be possible, at least at the 75 point level. But it will likely take a lot of patience to find a seller impatient enough to be willing to part with their contract at that price.

 

[jolynne28]

Agree with above poster, buy BWV if that's what you love. That would be a great place to start, then you can always add other resorts later in small increments if you want to try other places too.

We just passed ROFR on a 50 pt BWV contract. The seller had a number of small contracts listed, and i went in at asking, which was $125/pt. Another person on this board got one of this seller's contracts for $114/pt, only difference being that mine had 28 more banked points. I paid more, but when buying such small contracts, the price swing doesn't make a huge difference. If you see something that you like, in a UY that works for your travel patterns, grab it, the small ones go quickly! I didn't want to miss out on the contract over a few hundred dollars.

 

[tarheellovesdisney]

Thanks for the information! I realize on a small contract, the initial outlay of money is fairly small. It's the MFs over the lifetime that adds up. Our travel to WDW is completely flexible and inconsistent as far as length of trips. I would be happy if points would pay for 3-4 nights/ once a year and we could pay OOP for another resort/split stay or just do a short trip. We would also be okay if we were set on a time of year and all we could get was SSR. We enjoy that resort too but love the location of BWV. Do sellers negotiate once you make an offer? Are there other items to ask for if we would go in at full asking?

 

[CastAStone]

Do sellers negotiate once you make an offer? Are there other items to ask for if we would go in at full asking?

that depends on the seller! I had maybe 25% counter when I was making offers and 75% reject without a counter.

The negotiable items are who pays dues for 2024, closing costs (seller typically pays commission which is the largest closing cost but there’s other smaller costs, mostly related to title, and mostly borne by the buyer), and, if the 2025 points are already used, who pays 2025 dues. The Standard is buyer pays 2024 dues if the 2024 points are available and seller pays if they’ve been used, although some brokers suggest the buyer should pay either way.

 

[BrianLo]

Thanks for the information! I realize on a small contract, the initial outlay of money is fairly small. It's the MFs over the lifetime that adds up. Our travel to WDW is completely flexible and inconsistent as far as length of trips. I would be happy if points would pay for 3-4 nights/ once a year and we could pay OOP for another resort/split stay or just do a short trip. We would also be okay if we were set on a time of year and all we could get was SSR. We enjoy that resort too but love the location of BWV. Do sellers negotiate once you make an offer? Are there other items to ask for if we would go in at full asking?

If you aren't in any particular rush (which is the best way to approach resale), take your time. Feel free to walk away from contracts. They grow on trees, especially when you are not even entering the conversation with a use year yet.

I find the smaller ones sometimes are a bit too shall we say 'eager' in their pp discrepancy over larger contracts. They are worth more, but they aren't worth that much more... I'm kind of a terrible negotiator and have actually bought every contract I started an offer on ironically. So people do negotiate.

As an extreme my last contract I offered 35 dollars below asking, received a counter 10 dollars lower that was 'firm' and I told the broker I was willing to go up another 10 but we were clearly too far away. They actually just spot accepted.

Sometimes the ones that have been sitting for several months will negotiate a bit more freely.

 

[tarheellovesdisney]

If you aren't in any particular rush (which is the best way to approach resale), take your time. Feel free to walk away from contracts. They grow on trees, especially when you are not even entering the conversation with a use year yet.

I find the smaller ones sometimes are a bit too shall we say 'eager' in their pp discrepancy over larger contracts. They are worth more, but they aren't worth that much more... I'm kind of a terrible negotiator and have actually bought every contract I started an offer on ironically. So people do negotiate.

As an extreme my last contract I offered 35 dollars below asking, received a counter 10 dollars lower that was 'firm' and I told the broker I was willing to go up another 10 but we were clearly too far away. They actually just spot accepted.

Sometimes the ones that have been sitting for several months will negotiate a bit more freely.

very helpful! It helps me to have a real example of how it could go. We are in no hurry. I don't want to waste an opportunity but also don't want to overpay just because we haven't done this before

 

[NY Pirate Princess]

I say take your time and whatever you do, don't make a low-ball "practice offer" just to see how it goes! I ended up with an accepted offer after negotiation by days end. Oooooops!

Your travel time is flexible from your post, but I would do some research on the availability of use years for your desired resorts. You will want to be able to add on easily if you purchase a very small contract. Some use years have very little availability which will drive you mad later if/when you want more. Multiple use years are certainly possible but add a challenge to most owners.

Good luck and take your time. No rush. Unless a new set of rules comes out there is no hurry to lock down a contract.

 

[jolynne28]

I say take your time and whatever you do, don't make a low-ball "practice offer" just to see how it goes! I ended up with an accepted offer after negotiation by days end. Oooooops!

Your travel time is flexible from your post, but I would do some research on the availability of use years for your desired resorts. You will want to be able to add on easily if you purchase a very small contract. Some use years have very little availability which will drive you mad later if/when you want more. Multiple use years are certainly possible but add a challenge to most owners.

Good luck and take your time. No rush. Unless a new set of rules comes out there is no hurry to lock down a contract.

This is very helpful

https://dvcnews.com/dvc-program/own...ty-of-disney-vacation-club-points-by-use-year

 

[tarheellovesdisney]

This is very helpful

https://dvcnews.com/dvc-program/own...ty-of-disney-vacation-club-points-by-use-year

This is great info! Thanks!

 

[radiodome21]

I was in a similar boat last summer. I even had a few online chats with a some resale companies as well as Disney direct. I was convinced I would buy a resale at either BWV or Poly since I loved those resorts when we stayed there before. Plus the price was attractive. I wasn’t in any rush either. Lo and behold the summer VGF incentives came out last year and I bought a 150 point direct contract at VGF despite having never stayed there. Price was a little higher but I was ok with that. Our first trip is scheduled for December and we can’t wait. I’m exploring adding on points already but am waiting to see what happens when the poly tower goes on sale first to see what they offer.