Disney or Resale - Other Expenses ?

[abner1776]

In looking at resales of VWL or BWV they appear to be priced anywhere from $6 to $12 less than Disney and I understand the differences in pricing depending upon available points, etc. Closing costs look like they are around $2.50/point but are there other hidden costs that one would pay with a resale that one would not pay through Disney ? Maybe not having to run the gauntlet of ROFR is worth something, but that is a more subjective thing..not a real $$$ cost. Maybe instant access to the points rather than waiting 7 weeks to close is worth something, but again...it's subjective.

What about prorating dues for 2006...is that different with resales than with Disney?

 

[rogerram]

when I bought my resell, I had to pay dues on the current use year with available points. The DVC resorts other than SSR are $92 a point and they pay closing.

 

[Cruelladeville]

Normally, you pay closing costs and dues on the current year when you buy a resale, and yes, ROFR can be a big thing. Some contracts go thru at $78 and you are hyped-up thinking you paid too much at $83, and then Disney takes your contract!! After that happens 2 or 3 times, buying direct looks like a good thing to do. Also, if you need financing, or you are buying a small contract, go thru Disney. When you buy direct thru Disney, you receive your pts right away to make reservations, you won't need to wait weeks to find out if you passed ROFR.

 

[browniemtb]

Also through Disney you may get last UY points.....Resales may not even have points available until the new UY begins????

 

[1000th happy haunt]

Disney pro-rates the maintenance fees, so the 60 point VWL contract I bought yesterday will only have maintenance fees of $230 instead of $276.

 

[LisaS]

In looking at resales of VWL or BWV they appear to be priced anywhere from $6 to $12 less than Disney and I understand the differences in pricing depending upon available points, etc. Closing costs look like they are around $2.50/point but are there other hidden costs that one would pay with a resale that one would not pay through Disney ? Maybe not having to run the gauntlet of ROFR is worth something, but that is a more subjective thing..not a real $$$ cost. Maybe instant access to the points rather than waiting 7 weeks to close is worth something, but again...it's subjective.

What about prorating dues for 2006...is that different with resales than with Disney?

Your estimate of closing costs may be a little low. Mine were closer to $3/point, but that will vary a bit based on the size of the contract. Although you can negotiate these things, most resale buyers end up paying closing costs and full current-year dues. You will also pay around $50-$60 total to "overnight" the initial sales contract and deposit back to the resale broker and the signed closing docs to the closing company.

If you buy directly from Disney, you pay no closing costs and your current-year dues are pro-rated starting on the day you put down your deposit. You will receive your CURRENT Use Year points so if you purchase a February or March Use Year, you get 2006 Use Year points. If you purchase any other Use Year (Apr, Jun, Aug, Sep, Oct, Dec) you get 2005 Use Year points because that is your current Use Year. You must purchase a minimum of 150 points if you are not already a DVC member and the current price of the sold-out resorts is $92/point, though there are rumors that the price will be going up sometime between now and mid-summer.

 

[greenban]

Also through Disney you may get last UY points.....Resales may not even have points available until the new UY begins????

This is not true, except for very rare promotions in the past and not F&F just expired.

You get current Use Year points when you buy from Disney. Thus if you had a December UY, and bought a 150 Point contract, you would start with 150 points immediately, However, they are not last year's points (which expired 11/30/2005 BTW) but the current December 05 UY which ends on 11/30/2006. You will then get your current December 2006 UY points.

This can be a confusing concept. Now in the case of a resale (triple)

December UY 150 points.

Original Owner never used Dec 2004 Points banked them into 2005 UY. When Dec 2005 came around you have 300 current use year points, (150 true '05 UY and 150 banked '04 UY), and when December '06 comes around you will get another 150.

If you rent your points out at $12.00 a point, for '04 points only, then subtract $12.00 from the effective price per point that you are paying!

This is the only example of true last year's points I'm aware of....

That's why I paid $94 pp for my recent contracts instead of $92.00 vis Disney. (I only came out $6-7 a point cheaper, but X 3 that becomes $1,800-$2,100, and to me (YRMV) that is worth the ROFR wait.

1) Hope this helps!

2) Hope I'm right!

-Tony

 

[rogerram]

Your estimate of closing costs may be a little low. Mine were closer to $3/point, but that will vary a bit based on the size of the contract. Although you can negotiate these things, most resale buyers end up paying closing costs and full current-year dues. You will also pay around $50-$60 total to "overnight" the initial sales contract and deposit back to the resale broker and the signed closing docs to the closing company.

You have to also consider with Disney, when you are buying a resale, they will look at current points and who pays the fees for closing. If the seller were to pay the closing, that means it is a little more attractive for you, but also more attractive for Disney to buy it back.