DVC resale...trying to make sense of pricing

[mickgirth]

I'm considering a DVC purchase. Leaning toward resale, primarily because I don't care to use the other Disney benefits that direct purchase affords, and secondly because I would really like BLT as my home resort, and $165/pt. direct just won't cut it. But here's what I don't understand:

Contracts for the same number of points are commodities as far as I can tell, i.e. should be priced nearly the same because value to the customer of one vs. the other contract are nearly the same. Save for Use Year, number of banked points from the current year, and whether current year dues are required to be paid.....why would prices vary so much? Is it just owners listing high and hoping someone buys it? Are there hidden characterisitcs in one contract vs, another that provides additional value to the buyer.

May be a silly question...just started the process, and though I have read posts over the last month, I'm just not quite feeling completely educated yet. Thanks in advance for the help!

 

[job09]

Everyone here is going to tell you buy where you want to stay but here is my experience:

We bought 150 pts at VB in 09 for $50 a point with a fully loaded contract. We were able to go on 5 fantastic vacations since then. I just sold my stripped VB contract for $42 a point (not the best investment but we really enjoyed it!). I enjoyed every minute of it and got almost every reservation I wanted. Yes the dues are higher but the price was so much lower. I stayed everywhere from BLT to Grand Californian Lodge (berfore GCV open). If you can plan ahead I would buy at SSR (low price and low dues). But if you want very specific times/resorts then you need to buy there but with some flexibility and planning go for the lower price point. It really worked for us!

 

[lodge]

Supply and demand..... Lots of options = lower prices.

 

[rcchello]

In all real estate sales the price has many factors which can lead to different listing prices:
1) What are the highest and lowest prices of recent sales.
2) Does the seller need a quick sale?
3) Is there a hidden problem, which will make the sake take longer (divorce, forclosure, etc)
4) Does the owner feel they have to get a certain amount to pay off a loan,
5) How long has the been for sale?

Plus probably many other.

People buying and selling Dvc do not all have perfect information and the buying and selling prices vary over a reasonable range.

 

[KAT4DISNEY]

Things are priced differently because the sellers can. Prices have also been taking an upward swing and I think more owners are testing the market to see how high it will go. In other cases they have loans on the properties and need a certain amount to be made whole.

 

[lawboy2001]

I don't know that there is all that much variance actually. Look at the BLT ROFR thread...leaving aside one or two outliers, the sales for reasonable sized contracts have all been in the $90s per point this summer.

You are correct that more efficient pricing would result in a narrower band of prices, but everyone who buys resale BLT points is saving money from direct, whether they pay $85 per point, or $120 per point. So I don't think buyers are particularly motivated to squeeze every dollar they can from the seller.

I just bought BLT resale. I knew I could get a better deal than what I did, but also was saving so much money from direct, I actually didn't really care. I made a deal when considered against the direct prices and that's all I wanted.

 

[DreamChasers]

One of the biggest factors that will determine what price a seller can expect to sell for is the size of the contract. Small contracts sell for more money because there is a higher demand for them. Many people will be on the lookout for a small add on, usually a 100 points or less. Very large contracts usually go for less because very few people will generally buy a contract that is several hundred points in size. The other factor that will affect asking prices is people can post for any price they want. That does not mean they will get it. I have seen ads for 500 Vero Beach points with an asking price over $100 a point.

I have to agree with job09 to some degree. If you want to stay at Bay Lake tower almost every trip you should buy there. If you want to stay at a variety of properties and can book at 7 months out, there are less expensive options.

 

[Trooper8286]

We have a resale purchase at BLT pending ROFR....

What I noticed was a variance in price by number of points available now and in the near future. Some contracts were "stripped" of current points and had points borrowed from next year. Some contracts like that tended to have a slightly lower price. There is also a variance in price based on contract size.... Smaller contracts, more demand, higher price per point.
There are some folks, like me, who probably pay to much out of anxiety of ROFR. I read the ROFR posts and figured the break for BLT was about 94 a point. Any lower and there was a greater chance for Disney taking it. I had a dialogue with several brokers and they confirmed my suspicion, although they did not give me a specific price.
In the end I offered the price I did based on the fact I wanted a contract by the end of the year and I was ok with paying more of a premium on price per point. THAT eagerness, probably shared by other folks just off a trip to Orlando , bring upward pressure on price per point.

Lastly, the broker said our sellers were picky and had turned down lower offers..... Maybe they had a debt they needed to pay off....idk.

I wondered about that, too.

Sent from my iPhone using DISBoards

 

[mickgirth]

Thanks to everyone for the help!