Disney buyback

[lumiereguy]

What is the dollar value that Disney is currently buying back resales? I see that resales are selling in the high $60's to low $70's per point through the Timeshare Store. I mentioned this to my guide and she told me that anything like those prices would be bought back by Disney. I realize that she doesn't want my money to go to resales but to her instead, but those numbers seem high for Disney to buy the points back. She told me that she recently heard of a BWV resale going for $92 a point. I'd say the buyer of that resale lost his shirt. Please reply with your thoughts.

 

[Dean]

Originally posted by lumiereguy
What is the dollar value that Disney is currently buying back resales? I see that resales are selling in the high $60's to low $70's per point through the Timeshare Store. I mentioned this to my guide and she told me that anything like those prices would be bought back by Disney. I realize that she doesn't want my money to go to resales but to her instead, but those numbers seem high for Disney to buy the points back. She told me that she recently heard of a BWV resale going for $92 a point. I'd say the buyer of that resale lost his shirt. Please reply with your thoughts.

As you noted, they have a vested interest and don't seem to be quite honest with you as you've presented it. I'd say that MOST anything below about $62 pp will be bought back by DVC, at or above that, you have a good chance of success. Even then, DVC doesn't buy them all at or below the "target" price. It remaines to be seen whether the recent retail price increase will affect the buy back price.

 

[Poorman]

If you say a price of $62.00 if you add in the closing cost and current years dues you are up to about $68 per point give or take. If the points aren't all there for the current year then the price goes up. At $84.00 per point what do you actually get? If you buy a June use year in January do you get that amount of points at closing and then another when your use year comes up?

Thanks , Rich

 

[Dean]

Originally posted by Poorman
If you say a price of $62.00 if you add in the closing cost and current years dues you are up to about $68 per point give or take. If the points aren't all there for the current year then the price goes up. At $84.00 per point what do you actually get? If you buy a June use year in January do you get that amount of points at closing and then another when your use year comes up?

Thanks , Rich

Both closing and any dues reimbursement are negotiable. You are right that these issues affect your ultimate price. If there are less points, it's worth somewhat less. Many who buy resale actually get more points than they would through DVC. Still, it's easy to save a few thousand dollars resale if you watch the items. Besides no closing, DVC tends to charge less dues for the first year than you would pay on most resales. I've bought 3 contracts and never paid closing and only paid some of the dues on one of them.

 

[Poorman]

Hi Dean, Were those 3 contracts resale or through Disney? Would you consider the cost you paid: cost of points + closing + current years dues = total cost, devide that by points and it gives you the actual cost per point. Am I correct in that assumption?If you buy through Disney and you pay $84.00 pp that is your actual cost. So if you buy points at $72 pp at BWV add in current years dues add in closing you are up to $78 pp . That is assuming that all current year points haven't been borrowed,that again affects the cost per point. You can get some good deals and some bad ones on resale if you don't consider everthing. Take care, Rich

 

[Dean]

Originally posted by Poorman
Hi Dean, Were those 3 contracts resale or through Disney? Would you consider the cost you paid: cost of points + closing + current years dues = total cost, devide that by points and it gives you the actual cost per point. Am I correct in that assumption?If you buy through Disney and you pay $84.00 pp that is your actual cost. So if you buy points at $72 pp at BWV add in current years dues add in closing you are up to $78 pp . That is assuming that all current year points haven't been borrowed,that again affects the cost per point. You can get some good deals and some bad ones on resale if you don't consider everthing. Take care, Rich

They were all resale. I wouldn't include the first years dues except to the extend you paid more than you would through DVC, which I didn't. I would include the points accounting (how many points availalbe, banked, etc) in the decision. Extra points, add value, less points subtract value. One thing to know is that DVC charges dues on a Calendar year basis. That means that the dues I paid this month on my December contract were for 11 months of the 2002 points and 1 month of the 2003 points.

$72 pp plus closing and dues is too much for OKW, HH, VB or BW and getting near or over the limit for WLV and BCV. My last contract was earlier this year at $54 pp out the door with no extra for closing, no extra fees and a few points in the current use year and all in the next one starting 5 months from closing. Yes that was under the then buy back price of $58 pp. With all the contracts out there, I can't imagine giving more than $62 pp plus closing and the APPROPRIATE dues reimbursement for the contract unless it's BCV or maybe VWL.

 

[disnefile]

Does DVC give you the $62 per point when you sell to them or do you have to pay a commission to them so you get less than $62 per point. I would think if you sell outside Disney through a real estate broker the seller gets much less than the stated sales price due to commission.

 

[RobDoc]

Disney's option is to purchase the contract for the amount offered... or not. The seller will therefore get just what he had agreed to and will have to pay any commission to his broker. In this case, the seller takes no less than what he was offered by the buyer and the buyer is the loser on the deal. Closing costs are not part of the actual transaction (only who will pay them) so that doesn't affect the decision by Disney. If you were planning to pay closing costs yourself, it might make sense to increase the offer by that amount and then have the seller pay for closing. Same with the dues reimbursement. That might discourage any buyback by Disney. If you have agreed to have the seller pay closing costs and maintenance fees, then that wouldn't matter.

Good Luck!

 

[Dean]

Originally posted by disnefile
Does DVC give you the $62 per point when you sell to them or do you have to pay a commission to them so you get less than $62 per point. I would think if you sell outside Disney through a real estate broker the seller gets much less than the stated sales price due to commission.

You can't just go to DVC and sell it to them. Once you have a valid and signed contract and it's submitted to DVC, they then decide what they will do. The seller gets the exact same amount and the buying is only out the grief of losing a purchase but no money directly. DVC simply sends the commission to the broker directly.

 

[Richyams]

I believe the buyer then has a chance to sweeten the offer.

 

[Dean]

Originally posted by Richyams
I believe the buyer then has a chance to sweeten the offer.

Rich, I believe they no longer do this. I know it happened several years ago but I haven't heard of it happening the last 2 years and I know for certain that with the one they bought from under me last spring, we didn't have that option.