DVC resale question

[Straughn]

We just attended the presentation at the BWV and have put a deposit on 240 points at the BWV thru the DVC. Now I am reading about the resales which are available the Timeshare Store. I have several questions:

1. I remember that we were told during the presentation that, if we wanted to resell our timeshare, DVC had the right to match any offer we received. If we found a resale that we wanted, would we then lose it because DVC matched the offer?

2. How exactly does a resale work? What paperwork, etc do we receive and how does DVC know that we are the new owners?

3. To those of you who have bought a resale, would you buy again that way or would you go directly to DVC?

4. Other than the obvious price advantage, what are the pros and cons of a resale?

I would like to consider this, but I know my husband will have a lot of questions and concerns and I could use all the help I can get in getting him to consider a resale.

Thanks.

 

[Granny]

Originally posted by Straughn


1. I remember that we were told during the presentation that, if we wanted to resell our timeshare, DVC had the right to match any offer we received. If we found a resale that we wanted, would we then lose it because DVC matched the offer?

Yes, that is exactly what would (and has) happened when someone agrees to a price that Disney feels is too low. They have the right to buy them and then they can, of course, resell them at the current prices they charge.

2. How exactly does a resale work? What paperwork, etc do we receive and how does DVC know that we are the new owners?

You will receive closing documents that record the sale. You will go into Disney's computers as the owner, and be issued member cards. Once you purchase, you are treated exactly the same as a Disney-direct buyer. I don't even think the people in Member Services know or care that you bought via resale.

3. To those of you who have bought a resale, would you buy again that way or would you go directly to DVC?

We have bought both ways....direct through Disney and via resale. Right now, if you want SSR, direct through Disney is the only real option. Likewise, if you want OKW, BWV or VWL then resale is your only option. Both are good, and you can save some money via resale. But you don't get to pick exactly how many points you buy, and you don't get to have input on your use year. And of course, SSR lasts for 50 more years and all others end in 38 years.

4. Other than the obvious price advantage, what are the pros and cons of a resale?

The only other advantage is being able to buy a resort that is no longer being sold by Disney.

I would like to consider this, but I know my husband will have a lot of questions and concerns and I could use all the help I can get in getting him to consider a resale.

You should post all your questions here, and you will get a ton of feedback, information and opinions.

There is no right or wrong on going through Disney or resale. It's more a matter of where you want to stay.

And most of us here agree that buying where you want to stay the most is the most useful determination in choosing a DVC "home".

 

[HookdonWDW]

Originally posted by Straughn
We just attended the presentation at the BWV and have put a deposit on 240 points at the BWV thru the DVC. Now I am reading about the resales which are available the Timeshare Store. I have several questions:

Congratulations! I hope you like DVC as much as we do, regardless of how you ultimately decide to purchase!

1. I remember that we were told during the presentation that, if we wanted to resell our timeshare, DVC had the right to match any offer we received. If we found a resale that we wanted, would we then lose it because DVC matched the offer?

It would depend. DVC can pick and choose which resales to buy back. If you find a deal that looks too good to be true, you can almost rest assured that DVC will exercise their ROFR (right of first refusal).

2. How exactly does a resale work? What paperwork, etc do we receive and how does DVC know that we are the new owners?

Much like any other real estate transaction. You make an offer to the seller through their broker. They either accept or decline. Once you come to an agreement, you put down your deposit, and the two of you sign an agreement. Then the proposal goes to DVC for ROFR. If DVC decides not to buy the contract, everyone signs the rest of the papers, the contract is paid for and goes through closing. After closing, DVC receives the documents denoting the change of ownership.

3. To those of you who have bought a resale, would you buy again that way or would you go directly to DVC?

We've bought all of our contracts through DVC, so I can't answer this question.

4. Other than the obvious price advantage, what are the pros and cons of a resale?
CONS:
You have to make sure that you add closing costs to the cost of the points, since the buyer usually pays closing. You could lose significant value if you buy a stripped contract (one where the current, and sometimes future, points have been used up). You have to bite your nails while you wait to find out if you make it passed ROFR. You can't finance through DVC, and sometimes it's hard to find financing. You have to wait until after closing to make reservations. You can't buy exactly the number of points you want... you have to take what is available.

PROS:

You can save significant money.
You can buy at a sold out resort, and you should buy where you want to stay.
You may find a contract with banked points, adding to the number of points available the first year.

 

[bobbiwoz]

Are you saying that there are new BWV points being sold by DVC? There have been recent questions on that topic.

Bobbi

 

[Straughn]

Thank you for all the input. After much conversation, we have decided to go thru the DVC. Today, we were able to get exactly what we wanted. I do not know if the points at the Boardwalk are new or were purchased back by Disney from a resale. I can tell you that they had points today at both the Boardwalk and the Wilderness.

 

[bobbiwoz]

Well, good for you, and Welcome Home!

bobbi

 

[tjkraz]

Originally posted by bobbiwoz
Are you saying that there are new BWV points being sold by DVC?

I suspect that if any member or non-member picked up the phone and told DVC "I refuse to buy anywhere but Boardwalk Villas and I INSIST on paying $84 per point", they will probably find a way to accommodate you.

Existing members probably have to waitlist for a specific Use Year, but non-members would be a bit easier to accommodate.

 

[drusba]

Not sure where BWV stands on exisitng points but they had been selling new points because they are changing the DVC store there into rooms once the store is sent to SSR.

Resale is fairly painless through recognized DVC brokers (including the one that is a sponsor of this site). Time from sale to closing is only about a month. You sign a contract and then have a closing that you need not attend. Differences between buying from Disney and resale are:

1. Disney's price is non-negotiable; resale you can negotiate.

2. Disney's price includes closing costs; resale the buyer is presumed to pay closing costs (about $400) unless negotiated otherwise.

3. Disney's credit arm provides financing via a mortgage. Its rates tend to be less than market timeshare rates and those timeshare loans are personal lines of credit not secured by the property and thus not tax deductible. You can actually get lower rates and the tax advantage if you finance by taking a home equity loan on your existing home.

4. In a Disney sale, your dues begin from month of sale (not later month of closing) and thus you will pay whatever share is left for the year usually on a monthly basis. In a resale, all dues for the current calendar year must be paid at time of closing. Also, who pays what in dues is item subject to negotiation. The seller might want the buyer to pay the entire year's dues even if you are buying in June -- that may actually be fair if all current points are available for use and there are also some significant banked points. Important is that you remember to consider that issue and decide what you are willing to negoitate on it.

5. If you buy from Disney, you can start making ressies right after the sale is approved and well before closing; with resale you cannot make ressie until after closing.

As you read through 1 to 4 above, you likely realized that you need to do some math to determine whether the resale you might buy truly costs less than Disney. A $75 per point resale can actually end up costing more than Disney's $84 price once you factor in other charges and the loss of any tax advantage on a loan.

 

[Straughn]

Drusba-
Thanks for the information-this was the kind of anaylsis I was looking for. We did buy thru DVC and got the Wilderness Lodge which was our first choice; if we had gone with the BWV, we would have had to take fewer points initially and gone on the waiting list to purchase more. We talked to our tax person who made several of the points you made about deductability, financing, and some other financial and tax implications specific to us. And ultimately, as I suspected all along, my husband was simply more comfortable dealing directly with Disney rather than a third party.

To all of you, I really appreciate the input. I am sure that I will be back with more questions as we begn to make reservations and decide on unit size, time of year, etc. This board has already supplied me with a ton of info on DVC. I have always followed the action on several of the other Disboards and the DVC board was the first place I went for research when we decided that we wanted to buy into the DVC.

Thanks.

 

[dianeschlicht]

Looks like you got your questions answered so let me just say...
CONGRATULATIONS AND WELCOME HOME!