Do smaller contracts sell well on the resale market?

[Ashlotte]

I know the smaller contracts cost more per point, but do they actually sell well? It seems like it isn't worth it when you are paying the same amount to close.

I'm considering adding on a smaller (50-75) contract and trying to figure out if it is worth it in the long run, should I need to resell. Would love to hear your experiences. Thanks!

 

[intamin]

Small contracts sell the fastest and easiest.

1. The buy in price is a lot lower than for a 200+ point contract meaning you have a larger market of buyers
2. People who are a few points shy of what their annual trips to cost are likely to say I may as well add on a couple points instead of buying one time use points since our family likes staying in 1/2/3 BRs every few years etc.

It’s likely the best contract to be holding especially if you plan to resell it because you’re unlikely have to waver much at all from your asking price just because there is a large market for them.

 

[lovin'fl]

We had 650 points at one point, now have 300. We bought many smaller contracts in order to resell should we need to downsize. Our first contract, in 2006, was 200 at OKW. We lived in NC then but moved to MD in 2007 and worried we wouldn't use 200 each year so we asked about breaking some off to resell and discovered you can't. Ended up adding and adding more and more...actually. LOL. My sister in law also owns so we did a lot of family trips. We started to think about having enough points to stay every Jan and Feb, snow bird sort of.

We became empty nest and started doing adult only trips...us and with in laws and friends sometimes. Our kids never wanted to really go anymore (from like 15 to 21), so no need for the 1-2 BRs (no need for as many points). Then covid hit. And the DH was work from home permanently so we said...let's buy a place in FL and start the snow birding now since he can work from anywhere. So we did that, bought a townhouse 30 mins from WDW to use for like 6 weeks here and 6 weeks there and also rent out when not using.

We really didn't need so many points anymore. So we started reselling and the smaller the contract, the quicker they sold and for more money too. So it is a good idea. We even added some small contracts direct for high dollar and it worked out OK to resell a few years later at top dollar. Bridged that price gap from buying direct and helped offset all the closing costs we paid.

We had the townhouse for 1 year when we decided we wanted to flip the script even more. So we sold it (was a pain renting it, that's a whole other discussion) after 1 year and made a good profit. Then sold our big house up north and also made a profit. Used those profits to buy a single family house in a 55+ in FL, 15 mins closer to WDW.

So we don't need the 300 points we have. But we use them for a night or 2 here and there so we can stay and drink and not drive home. Plus now our kids, mid 20s, like to do Disney. Now that they can drink the world showcase. So we can book a place for their visits. And, down the line, we will have grandkids hopefully. So I guess we will hold at 300. You do have claim on taxes and it's a little bit of a pain. DH does our taxes and said no more selling. Okay, sounds fine to me.

Long story short...I recommend buying small add ons. Another reason we did it was because we could pay in full when we bought.

 

[Ruttangel]

I know the smaller contracts cost more per point, but do they actually sell well? It seems like it isn't worth it when you are paying the same amount to close.

I'm considering adding on a smaller (50-75) contract and trying to figure out if it is worth it in the long run, should I need to resell. Would love to hear your experiences. Thanks!

BCV small contracts used to last hours if not minutes and small resorts such as VGF had quick sales, then DVC expanded that resort and you now can book there at 7 months so no need to own there if you want to stay.
At some point soon buying a small value 2042 will have the same issues as any 2042 contract, prices need to drop towards that 0 value in 18+ years
Many people bought RIV with incentives at 300 points and split that into 4, 75 point contracts, yes additional closing costs but worth it as 300pt is going to be hard to sell for more than $110 but 75 points may get up to $135.

you can plug some numbers in here to get an idea how much more small contracts go for

https://www.dvcresalemarket.com/selling/what-is-my-dvc-contract-worth/

 

[Matty B13]

Since small contract are usually priced a lot higher than big contracts, you have to do the math. Some BCV small contracts you were only saving a couple of hundred dollars over direct, so it made it tempting to buy direct...... if DVC had the points.

 

[Cfabar1]

Small contracts have much more utility. More reasons why a buyer might want them. You pay more but they will retain more value.

 

[tom1944]

Small contracts have much more utility. More reasons why a buyer might want them. You pay more but they will retain more value.

What is small below 75 points?

 

[RichVIII]

Most newer-selling resorts, the minimum purchase is 50 points.

Smaller contracts cost more to buy but command more when you sell. But that smaller amount is much more tolerable for most, a recent 25-point contract at Saratoga sold on board sponsor for just under 4k recently.That is a tax return for someone. When you start looking at the higher end, even with 300 points, you are easily looking 30K+. That is a bigger family decision. I see contracts listed for six figures. Sure, some have that level of disposable income but....

 

[lovin'fl]

What is small below 75 points?

Prob below 100. But, yeah, 25-75 is definitely desirable. Think about folks with regular size contracts that want just a little more at same resort with same UY.