Disney Resales

[grumpydad74]

We met with a DVC agent while on vacation in Disneyland last week. During the presentation I learned that the DVC also resales properties. I may have been the only one to not know this, but it is an alternative option to buying from a third-party resaler and losing all the perks that the DVC has recently taken away. I view it as a middle option between purchasing new via Disney and resale via a third party. Just thought I share in case others were in the dark about this like I was.

 

[Axelskater]

They're probably selling points that Disney re-acquired either through ROFR or from a delinquency. Others have suggested buying resale for substantial savings and then adding on a 25 point contract direct from Disney in order to qualify for the perks.

 

[Dean]

We met with a DVC agent while on vacation in Disneyland last week. During the presentation I learned that the DVC also resales properties. I may have been the only one to not know this, but it is an alternative option to buying from a third-party resaler and losing all the perks that the DVC has recently taken away. I view it as a middle option between purchasing new via Disney and resale via a third party. Just thought I share in case others were in the dark about this like I was.

Disney does not do resales but they do offer some existing properties at slightly reduced prices. It sounds like sales speak.

 

[grumpydad74]

They're probably selling points that Disney re-acquired either through ROFR or from a delinquency. Others have suggested buying resale for substantial savings and then adding on a 25 point contract direct from Disney in order to qualify for the perks.

I believe you are correct. The sales person did say they get the points through the ROFR process. Your suggestions is good and I may need to look into that. However, I thought they only sold a minimum of 100 points, but I could be mistaken.

 

[grumpydad74]

Disney does not do resales but they do offer some existing properties at slightly reduced prices. It sounds like sales speak.

I agree that it's sales speak.

 

[Disney Dad ADL]

Here are all the prices when you buy direct from Disney:

http://www.dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

As far as I know, there is no way to get a discount from these prices, other than the promotions they have every so often.

Anything that is not Poly or Aulani is a "resale" in a sense because they would only be able to get them through ROFR, but you are certainly not getting any kind of discount. AKV is $160 per point from Disney, resale it's what $85 or $90?

For existing members, I believe 25 points is the minimum . Higher for new members.

 

[DVC Doctor]

I would guess that any points bought direct from Disney for OKW, BW, BC, WL, etc. are resales as those resorts sold out a long time ago. The funny thing is that Disney probably bought these resale points cheap and are probably doubling the price and selling them to the public. Disney also has the advantage of breaking up contracts to sell just the amount of points you need.

 

[LisaS]

Technically, it's also possible for a purchase directly from Disney at Aulani or the Poly to be a "resale" of a contract Disney acquired due to foreclosure or ROFR. That's why using terms like "new" and "resale" for contracts purchased directly from Disney are misleading. Calling a purchase "new" implies you stay in newer rooms or will have a longer end date. If you purchase a new Poly contract from Disney (i.e., a contract that never belonged to anyone else) or you purchase a Poly contract Disney acquired through ROFR or you purchase a Poly contract on the resale market, you end up with exactly the same contract end date and will stay in the same pool of rooms. That's why we refer to buying from Disney as a direct purchase and use the term resale to mean buying on the resale market.

A direct purchase of a sold-out resort (AKV, BLT, etc.) does come with all the perks that you get if you bought the Poly or Aulani directly from Disney but you pay a premium for those perks. You need to do the math and see what those perks are costing you.

 

[Dean]

I would guess that any points bought direct from Disney for OKW, BW, BC, WL, etc. are resales as those resorts sold out a long time ago. The funny thing is that Disney probably bought these resale points cheap and are probably doubling the price and selling them to the public. Disney also has the advantage of breaking up contracts to sell just the amount of points you need.

They can sell them all as new, no reason to go the "resale" route. They'll likely make less on ROFR points than they would selling the Poly in almost all instances.

 

[JimMIA]

The key is not whether those particular points have been purchased previously, but WHO you buy points from. Buying directly from the developer (DVD) is one way; buying in the secondary marketplace is the other.

The other big difference with DVD sales is that, as the developer, they have the ability to repackage points. They are not reselling a specific contract, they can put together whatever number of points you want to buy...subject to availability. And with OKW, they can also extend the life of those points.

 

[ScubaCat]

And with OKW, they can also extend the life of those points.

*Slight* correction: If you buy OKW points direct, they expire 1/31/2057. The only OKW points you can buy that expire in 2042 are via resale where the previous owner did not pay the assessment for the additional 15 years. All OKW points technically expire in 2057; some are simply deeded back to Disney for the last 15 years. (...and, of course, some are in "limbo" where the current owner didn't sign the quitclaim OR pay, but that's irrelevant because the seller has to sign the quitclaim to complete the sale anyway, so those will also be 2042 expiring points.)

 

[MountainMouse]

*Slight* correction: If you buy OKW points direct, they expire 1/31/2057. The only OKW points you can buy that expire in 2042 are via resale where the previous owner did not pay the assessment for the additional 15 years. All OKW points technically expire in 2057; some are simply deeded back to Disney for the last 15 years. (...and, of course, some are in "limbo" where the current owner didn't sign the quitclaim OR pay, but that's irrelevant because the seller has to sign the quitclaim to complete the sale anyway, so those will also be 2042 expiring points.)

What if the owner doesn't sell, do those still revert to Disney in 2042?

 

[Dean]

What if the owner doesn't sell, do those still revert to Disney in 2042?

The short answer is yes. If the contract was never deeded back over to DVD and not extended, then it's still a little unclear IMO. All unit were extended and what DVD set up was to place a special assessment against anyone who didn't either extend or deed the 15 yrs back. To my knowledge, they've never done that (SA) and as I read the POS, they don't have the authority to do so. Certainly DVC could make it difficult at the least, fighting them legally would be an uphill battle. We have seen a couple of reports of people buying OKW contracts resale that were never either extended or deeded back and at least one instance where the resale buyer was offered the extension.

 

[ScubaCat]

They haven't taken any action probably due to pending litigation, but one thing I do know is that they won't complete the transfer (upon closing a sale) until that quitclaim is filed. Thus, those contracts are effectively 2042 contracts if you buy them resale. (At that point, why would a seller care anyway? Get the deed and quitclaim notarized at the same time and be done with it.)

Once the new membership is set up, a resale buyer can pay the $25/point assessment and extend the contract at any time. That's always an option.

 

[hbrother]

Disney also has the advantage of breaking up contracts to sell just the amount of points you need.

From my recent conversations with a DVC guide, it seems they can't change the use year of the purchased points. I wonder if this, combined with the wait lists they maintain for sold out properties, explains some of the seemingly erratic ROFR behavior. Also they don't maintain a wait list for Grand Floridian or Beach Club. Apparently, those lists extended years so they were done away with.

 

[supersnoop]

From my recent conversations with a DVC guide, it seems they can't change the use year of the purchased points. I wonder if this, combined with the wait lists they maintain for sold out properties, explains some of the seemingly erratic ROFR behavior. Also they don't maintain a wait list for Grand Floridian or Beach Club. Apparently, those lists extended years so they were done away with.

Use year is based on the unit, so, not, they can't change that.

The VGF and BCV waitlists still exist. They just won't add anyone to the list anymore.

 

[ScubaCat]

Use year is based on the unit, so, not, they can't change that.

The VGF and BCV waitlists still exist. They just won't add anyone to the list anymore.

They MIGHT if you press them on it, and then act like they did you some earthshatteringly huge favor. But it's true -- I was told the same about BCV. No problem, though, I just bought resale instead for a LOT cheaper!

 

[WBogley]

They MIGHT if you press them on it, and then act like they did you some earthshatteringly huge favor. But it's true -- I was told the same about BCV. No problem, though, I just bought resale instead for a LOT cheaper!

I don't understand why they don't Rofr the contracts for the resorts with a waiting list. I see BCV pass at $50-60 below what they could sell it for. They pass VGF at $40 below what they could sell it for. I guess it is not worth it for dis to mess with these.

 

[_auroraborealis_]

I don't understand why they don't Rofr the contracts for the resorts with a waiting list. I see BCV pass at $50-60 below what they could sell it for. They pass VGF at $40 below what they could sell it for. I guess it is not worth it for dis to mess with these.

Insufficient profit margin and distracts from primary operations of "gotta sell current resorts."

 

[ScubaCat]

MUCH lower volume with ROFR/foreclosure sales vs. new construction. And, they're probably holding the unsold units with a rolling line of credit, so important to get them off the books sooner rather than later. (I don't know for sure if DVD does that but most builders do, including Pulte, the largest home builder in the country.)