disney more active WITH buy bACK OF resales
- Thread starter KANSAS
- Start date
anniet
DIS Veteran
- Joined
- Jul 10, 2002
Since BCV is so new I don't think it's a negative that Disney is buying back resales. It's a positive that BCV is selling out so quickly and depending on what you paid it could be a positive thing that the points are now valued at $84.
I don't think MB hurts the value of BCV in the resale market. It just makes it more attractive to those who may have considered buying resale to buy direct. They can get BCV points at close to what they would pay for a resale without paying closing costs and with the assurance that since they are buying direct from Disney there is little chance of hassles with the timing of paperwork.
Just my opinion.
I don't think MB hurts the value of BCV in the resale market. It just makes it more attractive to those who may have considered buying resale to buy direct. They can get BCV points at close to what they would pay for a resale without paying closing costs and with the assurance that since they are buying direct from Disney there is little chance of hassles with the timing of paperwork.
Just my opinion.
As far as a seller of DVC points is concerned, it matters not if Disney buys back their contract or an unknown buyer with an offer. From a sellers point of view, Disney would be the better purchaser. If there is a signed offer and Disney exercises first right of rufusal, the game is over. And there is no way Disney will not pony up in the end.There have been posts in the past here, where a seller actually backed out of the deal, as well as buyers who have backed out. Also, I'm sure there are situations where financing became an issue or many other unforseen circumstances that prevented a deal from completing.
If you are asking if MB hurts the resale market, sure it does. Especially from a sellers point of view. Supply and demand. If people can purchase new contracts and get exactly what they want then why would they pay the same amount or nearly the same amount after closing costs for something that may be not exactly what they want. Therefore, sellers have to come down. There is also a "premium" if you will, that most people are willing to pay to go directly thru Disney for the benefit of a quick, clean sale without any "unknowns". Right now, it appears that Disney is buying back a lot of contracts. If the price of the resales goes up, then buyers looking for deals have no incentive to buy resale over Disney. Also, if the resale price goes up, then I think Disney has no vested interest in those resales. Who wins? If Disney buys the contracts back, the seller wins, Disney wins because they make the profit, and anyone on a waitlist wins. If the price of resales goes up, no-one wins because people will not pay the going price for resales and the sellers cannot get rid of their properties because no-one will buy them. Therefore, the only way for a seller to get rid of it is to lower their price and all buyers will be subject to the risk of Disney EFROR. If Disney is truely playing this game, they win.
If you are asking if MB hurts the resale market, sure it does. Especially from a sellers point of view. Supply and demand. If people can purchase new contracts and get exactly what they want then why would they pay the same amount or nearly the same amount after closing costs for something that may be not exactly what they want. Therefore, sellers have to come down. There is also a "premium" if you will, that most people are willing to pay to go directly thru Disney for the benefit of a quick, clean sale without any "unknowns". Right now, it appears that Disney is buying back a lot of contracts. If the price of the resales goes up, then buyers looking for deals have no incentive to buy resale over Disney. Also, if the resale price goes up, then I think Disney has no vested interest in those resales. Who wins? If Disney buys the contracts back, the seller wins, Disney wins because they make the profit, and anyone on a waitlist wins. If the price of resales goes up, no-one wins because people will not pay the going price for resales and the sellers cannot get rid of their properties because no-one will buy them. Therefore, the only way for a seller to get rid of it is to lower their price and all buyers will be subject to the risk of Disney EFROR. If Disney is truely playing this game, they win.
- Joined
- Aug 14, 1998
DVC's right of refusal has the effect of artificially supporting resale prices. Without that program, resale costs would be dictated by the free market. As it is now, resale buyers are "competing" with DVC for those purchases.
The effect is positive for a seller, as it does tend to create a higher value than otherwise possible, but is also potentially a negative for the buyer, since a higher offer may be required to begin with and the sale may still go to Disney.
There are many traditional timeshares where resales go for 5-10% of the original sales price. With DVC, many sell for far more than what was paid even 2 years ago- let alone those who purchased 10 years ago.
..a very unusual program indeed!
The effect is positive for a seller, as it does tend to create a higher value than otherwise possible, but is also potentially a negative for the buyer, since a higher offer may be required to begin with and the sale may still go to Disney.
There are many traditional timeshares where resales go for 5-10% of the original sales price. With DVC, many sell for far more than what was paid even 2 years ago- let alone those who purchased 10 years ago.
..a very unusual program indeed!
Caskbill
<font color="blue">DVC-Operations<br>DVC-Planning<
- Joined
- Nov 19, 2000
To me the largest determing factor in the 'value' of a resale vs. using Disney MB is simply the status of points in the resale contract.
For example a 150 point resale at $70/point will be about $76/point including closing costs.
Disney MB would be $74/point.
If both are August use years, and the resale has all of their 2002 points available (and maybe even some 2001 still banked) then those points are worth something. Compare to Disney's offer where you receive no points until Aug 2003.
In this situation the resale is still a better deal. Of course if the reseller is asking for reimbursement of previously paid dues on those 2002 points, that will also affect the 'value'. Of course if the buyer has no opportunity to bank or use those 2002 points, then that also affects the 'value' equation.
Bottom Line: You have to go through <u>all</u> the math for an individual contract to see if it's better or worse than a Disney contract. Each and every one will be different.
For example a 150 point resale at $70/point will be about $76/point including closing costs.
Disney MB would be $74/point.
If both are August use years, and the resale has all of their 2002 points available (and maybe even some 2001 still banked) then those points are worth something. Compare to Disney's offer where you receive no points until Aug 2003.
In this situation the resale is still a better deal. Of course if the reseller is asking for reimbursement of previously paid dues on those 2002 points, that will also affect the 'value'. Of course if the buyer has no opportunity to bank or use those 2002 points, then that also affects the 'value' equation.
Bottom Line: You have to go through <u>all</u> the math for an individual contract to see if it's better or worse than a Disney contract. Each and every one will be different.
buzz5985
DIS Veteran
- Joined
- Jul 6, 2000
Or you could find yourself in a situation like me. I bought 150 points for HH $62/point. BUT this started last October!!!! Price was agreed on. Received Contract on 9/30. I didn't want to pay for 2002 dues, didn't sign contract. Seller agreed to pay 2002 dues. New contract signed and mailed 10/3. Disney signed the right of first refusal 11/13. Just closed on the contract 2/10!!!!! I am in Disney's system as of 2/14, but NO POINTS!!!! I was told another 3 - 4 days for the Check to Clear!!!! So if you are willing to wait, and wait, and wait, buy a resale from the Timeshare Store. Granted the Sellers were from Canada and declaring Bankruptcy, but when I called the Timeshare Closing Co the answers I got were - Oh - you haven't closed yet. Gee, I'll get back to you. 3 weeks running I got that answer. It wasn't exactly a Bad Experience, just a long experience. I don't think I would deal with this Company again.
joepoe
DVC BWV 98 OKW 02
- Joined
- May 15, 2001
Sorry to hear about your bad experience. We bought through the Timeshare Store and they were very clear about how long it might take. Some of the hassle is caused by the state of Florida and the recording of the deed, that is out of the hands of the broker. When you buy direct through Disney, you dont have to wait for the deed to be recorded, once they have your money, you are good to go.
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