DVC direct sales vs. Resale

[Amy5000]

good info, Amy.

on #1: I'm surprised the Disney direct add-on takes so long to close. I figured since it doesn't go thru ROFR it would be quick. You can't stay on points until closed, correct?

on # 2: What was the time between you returning the closing papers and the actual closing date?

thanks...

Actually, when I briefly reviewed the add-on paperwork I was under the distinct impression you could use the points prior to closing. (I think there was something in there stating that if you don't close you have to pay for the points you used). But really...Disney's timing contemplates closing in 7 weeks. I think the really difficult thing is trying to get a reservation only 7 weeks out.

As for your second question, I recall the time between receipt of closing doc and closing to be relatively short. Maybe 2 weeks, tops. But it really depends if the seller does everything they need to do. (I just had to send in a check and a few papers, but they had to get papers notarized, and get multiple signatures). My sellers were pretty prompt in returning their paperwork. The biggest delay was between passing ROFR (which only took one week) and getting closing docs. They kept telling me they were waiting for the estoppels from Disney and that it would take up to 4 weeks. When six weeks passed and I didn't hear from them I left a voicemail and miraculously they just got my estoppels. And I got closing docs within the week.

 

[crisi]

Our resale took more in the neighborhood of three months.

The thing with resales is that you can't control the seller. Ours wasn't too excited about getting paperwork back (a common complaint around here when people are in the midst of buying a resale.) Disney took all 30 days to get back with ROFR. When our seller did return the paperwork, it was unnotarized and all had to go back to her and get redone - then we start the "slow turnaround" thing again. If you buy from a seller overseas, that can easily add a week or two to the process. When we finally did have all the paperwork in hand, our closing got pushed out and we didn't close for two weeks. Then there is a week to ten days now between closing on a resale and showing up in the DVC systems. That was several years ago, but one shouldn't count on a resale closing in six to eight weeks.

 

[nunzia]

Initial Purchase from DVC

• You can get the exact number of points that you want (although you must buy a minimum of 160)
• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.

Initial Purchase via Resale

• You may not get the exact number of points you want
• You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Be wary of “stripped” contracts on the resale market.
• Can pickup any of the older resorts (you have to tell DVC that you won't buy AKV or SSR before they'll sell you the older resorts)

My initial purchase, as well as my 10 point add-ons, have all been done with DVC. I tried to pickup some contracts via resale, but the right contract (point size and use year) didn't become available and I decided it was faster and easier to buy direct from DVC (even though it cost a bit more).

You can buy just 10 point add ons?? That is great. I thought minimum add ons were 25.
When you factor in high closing costs at resale, I am thinking Disney is a better deal, even with higher per point costs...

 

[DVC Mike]

You can buy just 10 point add ons?? That is great. I thought minimum add ons were 25.
When you factor in high closing costs at resale, I am thinking Disney is a better deal, even with higher per point costs...

My comment about my "10 point add-ons" was in reference to the fact that I had added-on points 10 times (it's now 12 times!).

The minimum add-on is 25 points if you pay cash and 50 points if you finance.

 

[nunzia]

<<<With smaller contracts (less than 50 points) for members adding on, generally the higher closing costs eats up pretty much all of the savings from a lower "purchase price". As the contracts get bigger that fixed cost plays a lesser role.>>>

Agreed..I am in the process, and the closing costs are just huge in comparison to points. However..I went into it knowing I was basically eating it this first time. I have the intention of buying my add ons through Disney, since they will all be small, the higher point cost will actually make it about equal to resale when you minus closing costs.

 

[nunzia]

My comment about my "10 point add-ons" was in reference to the fact that I had added-on points 10 times (it's now 12 times!).

The minimum add-on is 25 points if you pay cash and 50 points if you finance.

OH! OK..I see I read that wrong. Still..10 points would be nice. A $1,000 drop is not as painful as a $2,500