Contracts drying up??

[Chili327]

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

Make the price just under the direct price.

 

[CarolynFH]

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)...

Yes, when DVC gets contracts back via ROFR, foreclosure, etc., the contract is dissolved and the points go back into the overall pool of points for that resort. And they can change the UY of the points - they gave themselves that power some years ago.

 

[TheDailyMoo]

Any threads talking about that Poly contract that was sitting there today or did no one bring it up because everyone tried to get it at asking price...or maybe even a bidding war (is that possible like it is with real estate?)

 

[HyperspaceMountainPilot]

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.

The reason why is that you’ll pay about 10% on the contract you’re selling for an unnecessary broker. Also if you sell and find one you want, I think the odds of ROFR are about the same, but you’re not paying a broker fee and, if you’re lucky and don’t get ROFR, you only have title/escrow once.

I agree with whoever said the reason it probably doesn’t exist is that it disrupts a cushy business model for the brokers, but it’s also probably something Disney likes— the more friction there is in resale and swaps, the more likely we are to just add 25-100 direct.

 

[TinkAgainU]

Any threads talking about that Poly contract that was sitting there today or did no one bring it up because everyone tried to get it at asking price...or maybe even a bidding war (is that possible like it is with real estate?)

Be careful of the whole bidding war mentality, I've found the brokers like to say they have 8 offers (that seems a favorite number lol) when they want you to pay all the extra fees. But unlike in normal real estate, there does not seem to be anyone making sure they are not blowing smoke. In my state you'd lose your license if you said you had 8 offers and could not prove it with signed offers

I only saw one halfway decent Poly and it's still available, probably because the Broker tacks on extra fees and has rather tough cancellation policies. If you get too good of a deal, you still get to sit for around 28 days waiting for DVC to take the deal you negotiated (and they have taken Poly lately) and put a deposit on. And if it's a "Delayed" closing, keep in mind the Seller has a LONG time to change their mind and just give you the deposit back and walk away. While there is a contract, it's not easy to enforce from your side.

All that said, if you saw a good one, I hope you get it!!!

 

[JackosinDIS]

Any threads talking about that Poly contract that was sitting there today or did no one bring it up because everyone tried to get it at asking price...or maybe even a bidding war (is that possible like it is with real estate?)

I did glance at it but it was pretty stripped and couldn’t close until for 7 months, so would have been a no-go for me. Fair price though for a change!

 

[pinkxray]

I haven’t been searching resales for a few months since we won’t be in a position to buy for at least 2 years. We just sold a contract in June so that’s the last time I think I’ve browsed. What a difference since then!

Once DD finishes college I am hoping to add either BLT or CCV Oct. use year, maybe 150 pts. Not much available now, although maybe that’s a good thing so I don’t get tempted.

 

[Sandisw]

The reason why is that you’ll pay about 10% on the contract you’re selling for an unnecessary broker. Also if you sell and find one you want, I think the odds of ROFR are about the same, but you’re not paying a broker fee and, if you’re lucky and don’t get ROFR, you only have title/escrow once.

I agree with whoever said the reason it probably doesn’t exist is that it disrupts a cushy business model for the brokers, but it’s also probably something Disney likes— the more friction there is in resale and swaps, the more likely we are to just add 25-100 direct.

Having sold several, I found that the ease and quick ability to find a buyer was worth the commission.

The most though I have ever paid in commission has been 8%.

But, to be fair , it really is still just selling your contract and buying another. Its just you are both…

The process is still the same. And I’d think you have a better chance of finding a seller to negotiate a better price when dealing with lot of them then just one.

IMO, it has nothing to do with Disney and control because they don’t lose a thing as they still have ROFR power.

 

[AstroBlasters]

Having sold several, I found that the ease and quick ability to find a buyer was worth the commission.

The most though I have ever paid in commission has been 8%.

But, to be fair , it really is still just selling your contract and buying another. Its just you are both…

The process is still the same. And I’d think you have a better chance of finding a seller to negotiate a better price when dealing with lot of them then just one.

IMO, it has nothing to do with Disney and control because they don’t lose a thing as they still have ROFR power.

But if someone wants to sell a 200pt VGC for $250pp that’s $50,000 gross and a $4-5k commission….

 

[Sandisw]

But if someone wants to sell a 200pt VGC for $250pp that’s $50,000 gross and a $4-5k commission….

It is, but in the end, it’s the cost of having to sell if one wants to maximize the number of buyers seeing it, and getting it sold.

Like I said, I found that having the broker handle it was worth the commission.

My point was more that the only difference in a trade vs the market the way it is today is the same seller and same buyer…the process is the same and the potential for a savings in commission.

it’s not like you can go do DVd and say, we are trading owners and DVD just changes the names.

 

[AstroBlasters]

It is, but in the end, it’s the cost of having to sell if one wants to maximize the number of buyers seeing it, and getting it sold.

Like I said, I found that having the broker handle it was worth the commission.

My point was more that the only difference in a trade vs the market the way it is today is the same seller and same buyer…the process is the same and the potential for a savings in commission.

it’s not like you can go do DVd and say, we are trading owners and DVD just changes the names.

But couldn’t two parties go to a title company and submit an agreement that they assigned a mutually agreed upon value to the contracts and are submitting an exchange plus some level of boot (cash equalizer) just like is done with every other piece of real estate.

It still has to go to Disney and if they want to buy the contract for the agreed upon price then they can…. the seller still wouldn’t owe anyone commissions.

 

[atthebeachclub]

But couldn’t two parties go to a title company and submit an agreement that they assigned a mutually agreed upon value to the contracts and are submitting an exchange plus some level of boot (cash equalizer) just like is done with every other piece of real estate.

It still has to go to Disney and if they want to buy the contract for the agreed upon price then they can…. the seller still wouldn’t owe anyone commissions.

This is what I would do. If I can buy a house this way (which I have done) I don’t see why you can’t buy a timeshare this way. You just need a contract, and a salesperson isn’t needed for that.

 

[Sandisw]

But couldn’t two parties go to a title company and submit an agreement that they assigned a mutually agreed upon value to the contracts and are submitting an exchange plus some level of boot (cash equalizer) just like is done with every other piece of real estate.

It still has to go to Disney and if they want to buy the contract for the agreed upon price then they can…. the seller still wouldn’t owe anyone commissions.

Sure. They can. I just think that the process is still no different and than the buying and selling with the exception of the commission. Closing costs still need to be paid.

I just don’t see a big benefit or market for a situation for a set up to connect just one buyer with one seller. I think the ability to market your contract to a lot of potential buyers is worth whatever commission you pay to do that.

But couldn’t two parties go to a title company and submit an agreement that they assigned a mutually agreed upon value to the contracts and are submitting an exchange plus some level of boot (cash equalizer) just like is done with every other piece of real estate.

It still has to go to Disney and if they want to buy the contract for the agreed upon price then they can…. the seller still wouldn’t owe anyone commissions.

 

[AstroBlasters]

Sure. They can. I just think that the process is still no different and than the buying and selling with the exception of the commission. Closing costs still need to be paid.

I just don’t see a big benefit or market for a situation for a set up to connect just one buyer with one seller. I think the ability to market your contract to a lot of potential buyers is worth whatever commission you pay to do that.

If selling, sure. But if just trying to reduce your number of use years via a swap…. I would argue there is a market.

 

[Sandisw]

If selling, sure. But if just trying to reduce your number of use years via a swap…. I would argue there is a market.

Oh, there might be a few that would find it as a plus.

I’m just saying that it’s not like owners can go to DVD to swap and it happens. You have to go through all the same steps…prepare contracts, send to DVD for ROFR, and close.

I guess I just don’t see it as a popular option for too many owners.

 

[Sandisw]

This is what I would do. If I can buy a house this way (which I have done) I don’t see why you can’t buy a timeshare this way. You just need a contract, and a salesperson isn’t needed for that.

But when you sell a house, you don’t have to go through ROFR do you?

 

[juliebee]

https://www.dvcforless.com/ went under 1000. Currently has 999 listings.

 

[disneylandtour]

But when you sell a house, you don’t have to go through ROFR do you?

Oh, you usually have to go through far more.

 

[atthebeachclub]

But when you sell a house, you don’t have to go through ROFR do you?

You don’t, but the title company to my understanding is the one who actually handles ROFR, whereas the listing agency just does the sale. When buying our house without a real estate agent, we came to a mutual agreement and then we hired a lawyer to draw up a sales contract we both agreed to, and used the title company for everything else. I don’t think the sales agency does much with ROFR directly other than giving the buyer ideas for prices that would likely pass, and that information can be gathered through other sources.

 

[Blerghityblergh]

https://www.dvcforless.com/ went under 1000. Currently has 999 listings.

Are they all happy haunts? Perhaps room for one more?

But seriously, that’s wild. I think this is the first year dvcforless has been up so I’m interested to see if the availability swings this dramatically every year or if this is a major trend.