Contracts drying up??

Technically i think board sponsor might be able to do that, but its basically buying and selling at the same time.
If you found someone I'm sure they would do it, but with that 8-10% sellers fee on both of them. I think they are looking for some way just to pair you with someone else for a much smaller fee and then only having to pay closing costs with a title company to swap the owners on the contracts
 
Technically i think board sponsor might be able to do that, but its basically buying and selling at the same time.
What I'm suggesting is not simply two unrelated sales and purchases. That's all the board sponsor is doing.

There is nothing out there Sellers and Buyers can currently use, other than some random Facebook Pages, to share "TRADE" WANTS or AVAILABILITY. There are only 1,000 contracts out there right now someone wants to Sell. Zero listings for Wanted, or Trades (ie upgrade, downgrade, change resort, change use year). That's an untapped market.
 
If you found someone I'm sure they would do it, but with that 8-10% sellers fee on both of them. I think they are looking for some way just to pair you with someone else for a much smaller fee and then only having to pay closing costs with a title company to swap the owners on the contracts
If you already had someone interested the escrow company can handle it. No commissions earned, or paid. Just need to put together a simple "contract" to present for ROFR.
 
I’d agree with this. Pay for what you’re going to use and do not pay for what you are not going to use. Regardless of what month it is. :)
That's how I feel. if I was buying a stripped contract, no way I would pay dues until the year I get the points.
 

What I'm suggesting is not simply two unrelated sales and purchases. That's all the board sponsor is doing.

There is nothing out there Sellers and Buyers can currently use, other than some random Facebook Pages, to share "TRADE" WANTS or AVAILABILITY. There are only 1,000 contracts out there right now someone wants to Sell. Zero listings for Wanted, or Trades (ie upgrade, downgrade, change resort, change use year). That's an untapped market.
I would really love to trade, safely, as well. I am trying to bring extended family with me next year and need 3 rooms at a resort I don't own. I'd love to be able to get that all worked out before the 7 month window so I don't leave 2 groups at one resort and run out of space before I get the 3rd room. My CCV has value, but it isn't quite right for our group. It would be helpful to be able trade with another owner who might be looking for something different themselves. I guess that's how they keep us buying contracts.
 
I would really love to trade, safely, as well. I am trying to bring extended family with me next year and need 3 rooms at a resort I don't own. I'd love to be able to get that all worked out before the 7 month window so I don't leave 2 groups at one resort and run out of space before I get the 3rd room. My CCV has value, but it isn't quite right for our group. It would be helpful to be able trade with another owner who might be looking for something different themselves. I guess that's how they keep us buying contracts.
Not trading ownership I think is also possible with board sponsor, I'd contact some one at DVC rental store & see what they say, i think they did something like that before. @pkrieger2287 ?
 
Not trading ownership I think is also possible with board sponsor, I'd contact some one at DVC rental store & see what they say, i think they did something like that before. @pkrieger2287 ?
There was a trade but it was really poor value, you got instant sale price for your contract as well as other fees on selling and buying.
Other than it being quick I couldn’t see any great benefits to offset the money you were losing on a true market sale and purchase
 
If you found someone I'm sure they would do it, but with that 8-10% sellers fee on both of them. I think they are looking for some way just to pair you with someone else for a much smaller fee and then only having to pay closing costs with a title company to swap the owners on the contracts
If you found someone yourself why would you even need anyone else but the title company?
 
If you found someone yourself why would you even need anyone else but the title company?

Yeah guess you wouldn't have to use them if you found someone yourself. You would just be using the title company. Since finding someone is the hard part, I guess there really isn't a way to actually do it through the board sponsor, because that would just be the same as actually selling and rebuying a different use year.
 
What I'm suggesting is not simply two unrelated sales and purchases. That's all the board sponsor is doing.

There is nothing out there Sellers and Buyers can currently use, other than some random Facebook Pages, to share "TRADE" WANTS or AVAILABILITY. There are only 1,000 contracts out there right now someone wants to Sell. Zero listings for Wanted, or Trades (ie upgrade, downgrade, change resort, change use year). That's an untapped market.
I think you'd only need a title company to do this, right? Just make sure the selling price is high enough to get it safely through ROFR. Two properties (let's say AKV, but different UY) with the same number of points swap at $130pp (DVD isn't going to touch that in ROFR, but it's not high enough to look funny). Money-wise, it's even plus title fees.
 
There could be a forum section for people looking to swap, but trying to find the perfect match resort, perfect UY, perfect amount of points then agree on a price is the tough part.
I seem to recall being told we could not list specific contract wishes etc. on Disboards.

So, someone would have to set up an income producing website :) The website could have three automatic adjustment calculations for different resort values (someone could trade AKL for BWV for example with a $XX/pp adjustment), and any amount of points difference between the two contracts (140 vs 150 for example), and any amount of points remaining/used for current and next year.

Those are numeric differences not subjective to some extent. The two parties might differ on whether they liked the $XX value of the adjustment allocations - but that could be a simple here is my offer [insert $/resort, $/contract points, $/unused points]. Each to pay their own Escrow/Title/Estoppel fees. Plus a shared flat fee to the website per dual transaction. The site could generate a stock purchase agreement to give to their recommended escrow ;)

As to ROFR, as long as the "purchase agreement" was clearly stated as "Contingent on BOTH parties receiving their agreed Contracts at the agreed adjustment amounts", ROFR is a non issue. If DVC wanted to step in and take both, issuing both the requested Contracts at the terms negotiated, everyone still gets what they wanted.
 
I seem to recall being told we could not list specific contract wishes etc. on Disboards.

So, someone would have to set up an income producing website :) The website could have three automatic adjustment calculations for different resort values (someone could trade AKL for BWV for example with a $XX/pp adjustment), and any amount of points difference between the two contracts (140 vs 150 for example), and any amount of points remaining/used for current and next year.

Those are numeric differences not subjective to some extent. The two parties might differ on whether they liked the $XX value of the adjustment allocations - but that could be a simple here is my offer [insert $/resort, $/contract points, $/unused points]. Each to pay their own Escrow/Title/Estoppel fees. Plus a shared flat fee to the website per dual transaction. The site could generate a stock purchase agreement to give to their recommended escrow ;)

As to ROFR, as long as the "purchase agreement" was clearly stated as "Contingent on BOTH parties receiving their agreed Contracts at the agreed adjustment amounts", ROFR is a non issue. If DVC wanted to step in and take both, issuing both the requested Contracts at the terms negotiated, everyone still gets what they wanted.
I think a “1031” type of DVC site would be a big hit.

But the current DVC resale infrastructure would hate it because right now they get to charge 9.25% commissions to sell the contracts + title fees.
 
Keeping in mind, the vast majority of those were sold to people and allocated the Use Year the Guide suggested. I had friends who definitely believed they could Only buy the marketed resort and accept the Use Year offered. Does not mean the Guide lied, but the focus on the sale was likely not explaining Options ;) So while there may be a lot in say February or December (making adding on easy if you pick those), they may not be the Use Year people would have picked once they really thought about their typical travel useage.

That is true but the initially predetermine how many points will be sold in the UYs so you can see that they purposely did not allocate the same % to each.
 
I always wished someone would come up with a TRADING site, where we could trade, especially Use Year contracts (thru a shared escrow) with a relatively preset/standard price adjustment for resort changes or varied points, but no adjustment for Use Year change. I am certain there are people who have changed travel plans (or decided they were ready to consolidate UYs, or downsize) who would use a site like that if the commissions and escrow fees were not so high. The purchase agreements could be contingent on the reciprocal trade (still have to go thru ROFR, after all).

Right now the only option is for each of you to sell your contract (8-10 percent commission) and buy another one. The commissions and fees add up, and my guess is it's why more people don't make changes.

I'd likely be fine switching with someone if our total expenses were a fair adjustment, shared escrow expenses, and a flat fee to the website for providing the calculations and purchase form for us to hand to escrow. It would take some high tech setup for the calculations, but each party could adjust if they wanted to make an offer to another person. If you set it up right, it could be pretty much automated, these are not "real" real estate properties ;)

The thing is that the system would still allow DVD to step in and exercise ROFR.

So, how would one guarantee that one doesn’t get taken?

I am sure that you might find someone who would want to do it but why? Just sell and find the contract you want. I think that has to be easier.
 
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Several posts were deleted because they included the name of a broker and that broker can not be discussed here on the DiS.
 
That is true but the initially predetermine how many points will be sold in the UYs so you can see that they purposely did not allocate the same % to each.
Interesting! I did not know the UYs had a formal initial allocation. But makes sense.

Was also surprised to learn, from my very experienced Guide, Disney can take in a 200 point XXX use year and resell it as a 100 point YYY Use year, same resort (and I assume sell the other 100 separately)...
 



















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