Do resales hold their value?

[kblbdad]

Can anyone give me an idea of how much the cost of resales change from year to year? We recently found out about resales and are considering making a purchase. It seems like you can't go wrong since the resale prices seem to be about the same as points originally sold for.

 

[mickeyc]

If you have been following the resale market you will note that a resale is approximately 15% to 20% less than buying thru Disney.

First, you need to factor in the contract the total points banked or barrowed. The value of the contract will depend upon that number.

Second, if you buy thru Disney the closing cost is included. If you buy a resale it will cost approximately $450 or more depending upon the number of points purchased.

Third, you can negociate with the seller closing cost, reimburement for maintance fees, and price per point. As you may know Disney has the ROFR ( right of first refusal )and will excerise that right if the cost of a contract falls below $67 per point.

Fourth, most resales at this time have 38 years remaining on the contract. SSR currently is selling a 50 year contract at significantly higher cost.

I think you can save thousands of dollars if you buy a resale; however, as I mentioned above not all contracts are equal.
I purchased a resale and via Disney and saved thousands. In the latter instance I saved 15% thru Disney because my son was a CM and received the discount.

You have a lot to think about. However, I think a resale is a good value, if you find the right contract. Good luck I would recommend a resale if the price is right.

 

[rocketriter]

So far Disney has kept the price of resales growing just behind the price of their own sales. They do this by exercising Right of First Refusal on some resale properties. No-one knows exactly what their criteria are for doing so, but they seem to scoop up anything that's selling for too low a price, especially if they have someone waitlisted to buy that particular resort. The good news is that this has made the DVC one of the few timeshares on the planet that has held and even increased its value over the years. The bad news is that Disney could change this behavior at any time, so there are no guarantees.

With that in mind, it's probably best to make your own buying decision based on whether or not you would be staying at first-class Disney resorts often enough to make the DVC a good deal. Consider things like increased resale value or the ability to occasionally trade out to other destinations as the gravy, not the main dish.

 

[spartacus]

DW and I were just informed that our resale contract went through. We bought 80 points on the resale market and this also included 80 points banked from last year. The offerings with banked points add an additional bonus.
The real value is the investment in family vacation and memories:
AS THE COMMERICAL GOES
80 BANKED POINTS : FREE
80 POINTS $67 PER POINT ( PLUS CLOSING : $375)
MEMORIES: pRICELESS

 

[kblbdad]

Thanks for the replies. I think knowing that we can probably resell our shares for close to the same value at which we purchased them will finally push us over the top in our decision to purchase. I don't think it will ever come to us wanting to resell, but it's nice to know that the option exists if we need it. Now we are kicking ourselves for not doing it sooner and spending so much money on hotels the last few years.

 

[Happy Birthday Cat]

knowing that we can probably resell our shares for close to the same value at which we purchased them will finally push us over the top in our decision to purchase

Remember that there is 38 years left on most DVC contracts (not SSR which is 50). There is some debate on these boards as to when the resale prices will start to drop. Many think it will be because of the declining number of years left to the contracts, others believe that it will have to do with when Disney stops excersising its ROFR. I tend to think it will be some combination of both.

We purchased one resale contract quite a while ago that I could today sell for more than the original purchase price. Quite amazing for a timeshare.

HBC

 

[crisi]

We bought two years ago, and knowing that we probably wouldn't loose much money if we had to sell did help us decide.

Almost exactly two years ago, we bought our contract for $63 per point plus $400 in closing costs. At that time, the floor on contracts was around $60 (maybe $58 at Vero), the "expensive" contracts were listing for around $67.

Do keep in mind that - although you can try and sell it yourself - most resale companies will charge you commission if you resell. After two years of ownership, we'd still be somewhere around $1000 in the hole after commissions if we needed to sell. Then again, we took a vacation that would have cost that plus dues easily if we had needed to pay cash.