Disadvantages of purchasing via resale?

[rmaiers]

I have a question....

My wife and I are considering purchasing a DVC interest and were wondering what the disadvantages are (if any) of purchasing via resale.

We are both young and have one young child (with more to come!) so off the top of my head, one disadvantage would be I would bot have a full 40-years vested in the Club because, for example, I might buy an interest that has been "used" for 8 years.

Can anybody think of other reasons? Is purchasing "new" the way to go or are the savings via resale so great that purchasing direct from Disney a waste of money.

We are going to purchase this coming week (before the price increase) and are just looking for a little guidance...

Thanks in advance...


Bob & Shelly

 

[crisi]

Contracts at the non-SSR resorts (OKW, BWV, VWL, BCV, HH, and VB) all end in 2042. SSR gets you 10 more years. (But that isn't a matter of "use" they were all sold to end in 2042. If you bought OKW 10 years ago, you got more use than if you bought BCV two years ago).

Disadvantages of resale:

Financing is much more difficult

Sale can fall through

It can take time to find the right contract.

You may end up with a few more points than you'd buy if you bought direct - say 180 points would be ideal for you - you might wait a long time for 180 points to come up on the resale market and may need to buy 200.

It takes a little longer to close on the contract, and until you close and are in the system - no reservations can be made.

Advantages of resale:

You may save some money.

You can buy something other than SSR.

 

[Beca]

Hi,

We just purchased resale....and, for us it was a GREAT experience. There have been TONS of threads on this, if you want info "ad nauseum", you might try "resale" on the search page.

However, here's a run down from my perspective. When you divide the cost of points via resale by 38 yrs, and the cost of points @SSR by 50 yrs...the difference is negligable. The real cost of DVC is the recurring maintenance fees...some DVC resorts are more, some less...but, IMO the differences are not that great!

The real disadvantage to not buying from Disney is not having the ability to finance your purchase for 10 yrs. That being said, there are other good ways to finance (if you need to).

If you read these boards for any length of time, you will see the phrase "buy where you want to stay" over and over again. I think this is the best advice!! Each resort seems to have advantages that are as unique as the resorts themselves. My best advice would be to figure out what your family needs (we too have 1 small child and are hoping for more...so, we found the location and option to stretch your points using "standard" view at BWV very appealing... others like SAB at BCV with small children...others like the size of the rooms at OKW for the same reasons...the list could go on!!!) and pick the resort that you think you would like to stay at the most! Remember, you get 4 months to reserve that resort before "non-home" guests can do so.

We read Disney's info, and were going to buy into SSR until I spoke to DVC members who said, "Do your research...and then buy what works best for you." That was the best advice I got....I'm sure SSR will be gorgeous, but I am so glad we got BWV...I think it will be exactly what our "growing" family will need for years to come!!

Good luck in choosing your resort of choice...It really is an amazing "shopping experience"

And....please let us know what you decide!


Beca

 

[rmaiers]

Wow... Thanks for the prompt reply....

Anybody have a theory why there are so many more OKW interests for sale when compared to the other resorts?

Kinda make me nervous to put an offer on one.... Why are so many more people looking to unload OKW interests versus the others?

 

[Happy Birthday Cat]

Originally posted by rmaiers
Wow... Thanks for the prompt reply....

Anybody have a theory why there are so many more OKW interests for sale when compared to the other resorts?

Kinda make me nervous to put an offer on one.... Why are so many more people looking to unload OKW interests versus the others?

It is because OKW was the first DVC resort. Many people have already had it for over 10 years. A lot changes can happen in life in that amount of time. Another thing is that it is the largest DVC up to now (SSR will be larger) so there are many more points to be sold.

HBC

 

[Beca]

Originally posted by rmaiers
Wow... Thanks for the prompt reply....

Anybody have a theory why there are so many more OKW interests for sale when compared to the other resorts?

Kinda make me nervous to put an offer on one.... Why are so many more people looking to unload OKW interests versus the others?

That is SO funny!! I started a thread a couple of weeks ago asking the EXACT same thing. Here it is...I hope it provides some answers for you!!

http://www.disboards.com/showthread.php?s=&threadid=531508

Good luck in your decsision!!
Beca

 

[sunan]

Our story is similar to Beca's, except that SSR was never really in the running. A bit of a research nut, I did the "ad nauseum" search through this forum. But you don't have to read through many threads to get the "buy where you want to stay" message. After many years visiting WDW, we knew that we loved the EPCOT resorts area. Proximity to EPCOT and MGM outweighed any other consideration for us (adult siblings.) We'd have taken BCV, but BWV ran slightly ahead, and that's what plopped into my lap when I called DVC by Resale.

The resale process is a little more cumbersome than Dis direct, but financing was not an issue so it was pretty straightforward. Shontell and Maggie were great to work with (and very supportive through the nail-biting.)

Weigh the factors that are most important to you and decide which location is the best match. As Beca noted, there's a ton of info on the subject in this forum. And I certainly wouldn't be the slightest bit concerned about making a purchase at OKW if that's what works best for your family.

Good luck with your decision.

 

[dcfromva]

rmaiers,
Disadvantages, The only things I can of are:

1. You can't make a reservation until your contract is closed and recorded (so Disney knows you are the owner).

2. You have to pay closing costs.

3. You have to pass the ROFR--so, it can leave you wondering if your deal will go through.

4. You may have to pay more Maint. fees (this goes according to the the agreement that the seller/buyer agree upon). Disney prorates your maint. fees. In the case of an add on--it goes from the day you call them up to add on (I think for new contracts--it goes according to when you close, but I'm not sure). Sometimes, in resales, the owner will want you to pay for the full year of maint. fees (and if there are banked points, they may want you to pay the previous year, too).

5. The seller may have a change of heart and back out of selling.

6. You have to figure out your own financing.

7. It may take some time to find the ideal contract--ie the place where you want to stay with the right use year for your vacationing habits and the right number of points.

After you have closed, there is no difference in the membership. (I think the key to buying resale is being patient. )

-DC :ears:

 

[stacy6552]

It can be very time consuming and the brokers are soley interested in getting the contract signed. Because once the offer is in, they dont care whether Disney gets it or you do. If you sign this week, it could be April before you find out that you didnt get the contract and have to start from scratch.

I would only really reccommend buying resale is you have a very strong desire to own somewhere else.

 

[crisi]

stacey,

I'd disagree.We did our resale through Jaki and I never got the impression that her only concern was closing the contract. In fact, our closing was delayed (for various reasons) and none of the three of us (buyer, seller or Jaki) was doing much pushing with the closing company.

Of course she has a financial interest in getting the thing closed - that's how she pays her bills. But she also had an interest in keeping us happy - in case we are in the market for another resale or going to recommend a resale to someone. It would be shortsighted to be solely focused on a single closing when her business is driven off referrals.

Buying resale isn't for everyone. There is more stress and delay involved while Disney reviews it. The seller can back out. You may spend your days wondering if a better contract would have shown up tomorrow. But a lot of people have closed on exactly what they wanted - sometimes saving thousands of dollars over what they would have paid Disney. And once you are closed and registered in Disney's system, there isn't a difference between a resale buyer and a Disney buyer.

 

[Beca]

I have to agree with crisi...we initially looked at SSR, and our DVC rep was nice...but, I could tell that he was "going for the sale" (as he should...that's his job!...please don't flame me for this...I have nothing bad to say about him...but, he was definitely a salesman!) We purchased from Pat at TTS...she was just amazing!!! Being women...we talked about everything under the sun before we got to timeshares...I picked her brain on "the resale market" and discussed the trends she was seeing and got her opinion on the "future". Then, even though I know she "represents" the seller...she also took care of me (There were some things I was ready to pay for, and she told me "absolutely not"! She didn't have to do that...they could've taken me to the cleaners! I agree that she is focused not only on this sale, but also future sales, and word of mouth.

It IS a more cumbersome process (not buying from DVC), but it really is not bad...we signed our contract on 3/7, and we are hoping to be able to make reservations this week! That's just over three weeks...not bad!!

You've got to do what works for you....certainly if you want SSR...it's a REALLY easy process. But, don't be afraid of the resale world...we couldn't be happier with our purchase!!!

Beca

PS - I you decide to go resale and don't see what you want...give the "big three" a call. They have waiting lists and a lot of the good contracts never make it to the websites. They will "be on the lookout" for you if they know what you want! Good luck!!

 

[wisbucky]

Dont get to caught up in advantages and disadvantages. Look for the resort where you will want to stay most. We debated on purchasing resale back in January. We fell in love with OKW and decided to go resale. It went smoothly with Jaki. We are more than pleased with our decission. We later purchased add on points from SSR as we really liked the location. If you are just looking to buy into DVC and the location/resort doesnt mean much to you then SSR is probably your best choice.

 

[jarestel]

Bob & Shelly,

If you have your financing already lined up, I don't think there are any meaningful disadvantages to buying a DVC resale. We bought one of our contracts resale, and everything went quite smoothly. The advice you've already discovered about buying where you most want to stay is the most important decision you need to make.

Point #2: The length of the contract ( 38 years DVCI vs 50 years SSR ) is not a big deal IMO. The number of resales available indicates that many people won't own their DVC interest for anywhere close to the term of the contract anyway. Even if you do stick it out, 38 years is a LONG ways off. Just try to remember what was important to you 38 years ago and you may see my point.

Point $3: If you're looking for a mid-size resale ( 200-300 points ), and don't want to worry about Disney's ROFR, just offer what the seller is asking and you'll probably get past ROFR. I know many people can't offer asking price because it won't be a "deal", but you're only talking a few hundred dollars difference on a small to medium contract, so why chance blowing the deal for a few ( relatively ) extra dollars. Your main expense in any contract will be the annual dues, so getting too caught up in the initial contract price isn't necessarily a good idea.

Good luck with your decision, and we'll hope to see you around DVC soon!

 

[rmaiers]

Wow.... Thanks for all the solid advice everybody...

I will let you know where we end up....

BTW - I've read a couple place people mentioning the "Big Three" timeshare resellers. I am aware of dvcbyresale.com and The Timeshare Store. What is the third?

 

[Zurg]

Anybody have a theory why there are so many more OKW interests for sale when compared to the other resorts?

Either
1) Places are so big people get lost in the suite.

or

2) Word got out about Rich cooking a big batch of pigs feet.

 

[sunan]

Jaki Apetz at atimeshare.com. I used DVC by Resale, but people on these boards speak very highly of Jaki.

Good luck with your search.

 

[Beca]

Here's the link to the third of "the big three"

http://www.atimeshare.com/cgi-local/listd.cgi?disy




Beca

 

[OneMoreTry]

Unless you HAVE to have SSR and have it now, the only disadvantages are psychological. You recoup any "finance charges" -- and more -- by getting a better price and, probably, lower interest rates by finding your own financing. The good Timeshare sales places are very helpful and will answer your questions and walk you through the process. (I had a fantastic experience with the Timeshare Store. I DID NOT feel pressured at all. Every question was answered without any hint of impatience.) If you don't pass ROFR, heck, bid again on another contract.

It may not seem as magical to buy resale, but once you're in it feels just the same except there's that extra good feeling knowing you waited for and got a great buy.

It's like buying a car, the more patience you have the better deal you can get. Whoever wants the deal more is at a financial disadvantage. The product is the same either way.

 

[Disney Doll]

Let me tell you how we approached both fo our buying experiences...one through DVC and one through Pat Spell at The Timeshare Store. Also, just as an FYI, my DH is a realtor, so he knows this type of stuff very well.

When we decided to buy our first contract through DVC, OKW and BWV were all that were available...this was 1997. We took the tour. Our guide was Mark Webb, who was very good, very knowledgeable, very willing to spend time to answer all our questions, and not at all pushy. We loved OKW for the size, we loved BWV for the location. At the time, BWV was more expensive than OKW, both points-wise and dues-wise. We ended up buying at OKW. Basically, we asked ourselves this question:"If we could never stay anywhere else on WDW property again except for our home resort, could we be happy at OKW for the next 42 years?" The answer was yes, the price was better, so we bought. Now obviously, we have since stayed at all the other DVC resorts without a problem booking at the 7 month window, so we have the best of both worlds thus far...less expensive OKW costs and the ability to stay in whatever location we want. Again, if the "location ability" changed and we HAD to always stay at OKW, we'd be happy there.

Our 2nd contract was a resale, purchased through Pat Spell at The Timeshare Store. We got in right before the DVC got gung ho on ROFR, so from start to finish was about 6 weeks, the deed was recorded in about a week or two after, so it was pretty much immediate in our ability to book a trip. We started the process before Christmas, and we weren't going to be traveling until Spring, so it wasn't like we were under a time crunch to get it done quickly because we needed the points to use for a trip in a hurry.Pat and the folks at TTS were fine to work with, very professional, very responsive...we had no problem with them.

As far as why OKW has so many for resale right now...there are probably several reasons:
1. It's the oldest resort, and people who purchased in 1991 may have had life changes necessitating sale(divorce, college tuition,job changes,financial status changes, moves that have made it harder to get to WDW at least every other year)
2. Some folks who bought when they were relatively young are still relatively young and may want to do SSR to have the benefit of the extra years, but don't have the money to hold both contracts, so they are selling OKW to purchase SSR
3. Some folks prefer "hotel-style" units rather than "condo-style" units
4. After staying in OKW, some folks may have decided that they prefer the location of another resort more, and can't fford to hold 2 contracts, and want the 11 month window at a resort whose location they like better than OKW's

My advice, like everyone else's, would be to buy where you want to stay. If you love the BW, then buy at BCV or BWV. If you love proximity to the MK, then buy VWL. If you love proximity to DD and golf, then OKW or SSR are the way to go. If unit size is important, OKW units are the largest square foot-wise. The others are certainly ample in size for vacation property(I'm not looking to start a debate here )but OKW is physically the biggest as far as unti size. If you have the opportunity to look at all the resorts before you decide, that would be the best option.