Does anyone know?

pennyb

Mouseketeer
Joined
Aug 11, 2002
Messages
99
Just wondering... Does anyone know why DVC won't buy back the points from members who want to sell, since DVC is trying to get more points to sell? Why do they want you go through a Real Estate agent or try to sell your points yourself before they will consider buying the points back via First Right of Refusal?
It seems easier for them, IF THEY WANT THE POINTS, to buy it directly from the member, and do the negotiating. Just wondering...
 
DVC hasn't really planned to enter the resale market, although they certainly could at some point. They have used the ROFR to sustain resales at a level that won't directly affect their new sales. Rather than enter into direct purchase, they have opted the right-of-refusal method. This allows sellers to accept an offer they are happy with instead of any accusation that Disney is offering too little for the resales they purchase. In this case, I think it's a win-win for seller and Disney- the seller has already indicated satisfaction with the price and will get that same amount from either the buyer or Disney. Buyers can end up with disappointment at the loss of a purchase and with higher prices than with a true free-market situation.

While it might appear to make sense for DVC to directly buy-back resales, they have never planned to do so. Their real interest is in the development and sales of new timeshare accommodations. They are occasionally forced into resales when owners default on their obligations and , as in the point of your question, when they feel the resale costs might adversely affect new sales. They don't really have an interest in sales to new members at OKW or BWV and soon won't want to continue to sell VWL, BCV, HH or VB except as add-ons to existing members.
 
It's like a car dealership. If they just buy your used car, expect bottom dollar. If DVC just bought back the points directly, expect a price of about $50 pp or less. This way they can cherry pick. I think some people are under the mistaken impression that DVC buys back the points to get inventory. I don't think that's the case at all. They're simply propping up the resale market to make it less likely that one who buys will find a bargain and hopefully buy retail from DVC directly. I doubt they can make a dime at around $70 pp buy back, certainly not enough to make it worth their while.
 



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