DVC Resale Tutorial Please

[buck0086]

We've purchased BLT points three times directly from DVC. We are now considering an add-on at BWV/BCV and would like to go the resale route. I would appreciate some guidance regarding how to best approach this. We aren't in a hurry and I'm interested in roughly 100 points. It would be helpful if I could find out what the typical range of prices is currently for BWV and well as the resources to use to become better informed before making an offer. Thanks.

Buck

 

[jocin3]

We just did our first resale (and actually first ever DVC purchase) of BWV from The Timeshare Store-just waiting for closing. Can't say enough good things about them-check their listings out to get a feel for costs (see the banner at top of this page) When we were looking, one thing we were checking was whether there were banked points available as well as points for 2011 & 2012 (in other words the contract wasn't stripped). Also wanted to get a Use Year that worked for us.
Good luck!

 

[chalee94]

it's easier in the long run to get a resale with the same UY month and ask DVC to add the resale under your current membership number.

there is a ROFR thread somewhere that lists what prices have passed at a given resort (more important for BCV offers than BWV, as BCV is much more commonly ROFRed.) that would be worth looking up.

 

[JimMIA]

it's easier in the long run to get a resale with the same UY month and ask DVC to add the resale under your current membership number.

Excellent advice, and be sure the contract is titled exactly the same as your existing direct-purchase contracts.

If everything is not idenitcal, your resale will have to be a separate account which could be a nightmare to manage. Don't over-complicate things.

 

[Kidanifan08]

The smaller point contracts tend to go for a higher price per point than larger contracts. If you find a 100 point contract for BWV or BCV that is near your price range, jump on it quickly, because those small contracts rarely last for more than a few days, unless they are extremely overpriced. As an example, one Monday in April, two contracts for AKV were listed on TSS. One was 55 points and the other wast 50 points. They both had some banked points and were listed at $79. I told my DW that they would both be gone by the end of the day. They were both sale pending that night.

 

[MFMont]

I bought BWV pre 3/20 for $52 ppt. loaded

 

[mjc2003]

We too have been looking to add on to our 200 BCV points with a 50-100 pt contract, April UY, but have not found one. So, we recently started considering a small add on at BWV as well, though my wife isn't too keen on this idea so unless something at BCV comes along we probably won't do anything. I contemplated adding on direct if they can find us an April UY at BCV, but even for 50 pts it's about $1500 more!

I can't seem to find any small contracts at either at the moment. I've been checking the 3 main resellers.
I don't know what your UY is, but the smallest BCV contract I can find anywhere is a 100 point contract with Sept UY. (Fidelity).

I don't see anything below 150 pts at BWV. However, the 150 points at BWV will basically cost what 100 at BCV will, so that's something to consider.

Between the 2 resorts I only currently see 1 contract below 150 points.

Good luck!!

 

[saintstickets]

We've purchased BLT points three times directly from DVC. We are now considering an add-on at BWV/BCV and would like to go the resale route. I would appreciate some guidance regarding how to best approach this. We aren't in a hurry and I'm interested in roughly 100 points. It would be helpful if I could find out what the typical range of prices is currently for BWV and well as the resources to use to become better informed before making an offer. Thanks.

Buck

The thread mentioned in a previous post with a list of recent prices paid for resale contracts is hosted by "Donald is #1". The most recent post of resale prices is here
http://www.disboards.com/showthread.php?t=2661661&page=53
but should be updated shortly. As you can see, prices for BCV for the past few months have ranged from $66 to $89 but that $66 is the exception. Most BCV contracts below $80 do not make it past Disney's ROFR. Prices for BWV have ranged from $46 - $70. Both are far below the price to buy direct from Disney. Since you are not in a hurry, I would suggest subscribing to the email lists provided by the resale companies and let them know what you are looking to purchase. Depending on the UY you want, there are numerous 100-150 point contracts for sale at both resorts. My tip would be that everything is negotiable - the price per point and whether the seller or buyer pays for the closing costs and current year MF's. We have purchase 3 contracts thru resale and have negotiated a final price different than the listing on 2 of those 3. Good luck!

 

[buck0086]

Thank you for all the info. I've got a few more questions. First, I appreciate some more information about the negotiating of the contract price. I understand negotiating the price per point, but I'd like more guidance on negotiating MF's and closing costs. My other question focuses on BCV vs. BWV. It seems to me that BWV contracts are selling for a substantial discount in comparison to BCV. Since I've only stayed at BWV, it is difficult for me to determine if I should focus solely on BWV contracts. FYI-When we stayed at BWV, we loved being close to DHS and Epcot, really liked the BW, thought the pool area was nice and not terribly crowded (we have DSons 6 & 4), and liked the feel of the rooms and resort. I'm not sure how that would compare to BCV. I think the location of being near Epcot and DHS is our favorite part. Thanks in advance for additional reactions.

Buck

 

[Buckeye Fan]

Thank you for all the info. I've got a few more questions. First, I appreciate some more information about the negotiating of the contract price. I understand negotiating the price per point, but I'd like more guidance on negotiating MF's and closing costs. My other question focuses on BCV vs. BWV. It seems to me that BWV contracts are selling for a substantial discount in comparison to BCV. Since I've only stayed at BWV, it is difficult for me to determine if I should focus solely on BWV contracts. FYI-When we stayed at BWV, we loved being close to DHS and Epcot, really liked the BW, thought the pool area was nice and not terribly crowded (we have DSons 6 & 4), and liked the feel of the rooms and resort. I'm not sure how that would compare to BCV. I think the location of being near Epcot and DHS is our favorite part. Thanks in advance for additional reactions.

Buck

Three things are negotiable in resale: price per point, maintenance fees, and closing costs. I have found that the best way to approach it is to work with the three larger brokers and tell them exactly what you are looking for (e.g., 100 points a BWV, Feb UY, $50 per point, seller pays closing and maintenance fees). They will be able to tell you what they have, and then start making offers for you. That's when the negotiations will start (or not). We've had people accept our offer on the spot.

As got BCV and BWV, both are lovely resorts. We've stayed at both, and they have a very different feel. BWV is very lively, while BCV is very laid back to me. The pool at BCV with two young kids would drive me nuts, but it will be a selling point when they are older. It's a great pool- just big, deeper, winding and difficult to watch kids. Between the two, it would be hard for me to choose. I like BCV better, but I don't know that I like it $30 per point via the resale market better. I would be just as happy staying at BWV. If you're in no hurry, try BCV out next trip, and see what you think!

 

[chalee94]

I'd like more guidance on negotiating MF's...

the general rule is the one who gets the use, pays the fees. but as stated, everything is negotiable.

if the contract has banked pts, you should expect to see a higher price. if no points are coming till 2012 or 2013, the price should be reduced to reflect that.

the risk at BWV seems to be getting a villa at the end of one of the long hallways...if that is no issue for you, i'd be looking for a BWV resale. (BCV is also very popular due to it's fancy sandy-bottomed pool.)

 

[buck0086]

As I've looked at other closings I'm getting a better handle on MF's but I'm still confused as to how to know what MF cost is. I have no idea if it is $100 or $1000 and what UY it is covering. I'd once again appreciate some clarification. Thanks.

Buck

 

[JimMIA]

As I've looked at other closings I'm getting a better handle on MF's but I'm still confused as to how to know what MF cost is. I have no idea if it is $100 or $1000 and what UY it is covering. I'd once again appreciate some clarification. Thanks.

Buck

MF's have nothing to do with Use Year. MF's (AKA: dues) cover the expenses of running the home resort for the CALENDAR year. So no matter what your UY is, your dues cover the resort's expenses 1/1 - 12/31.

In resales however, adjustments are often made if a sizeable percentage of points for the current UY have been used. Everything is negotiable in a resale, but often if 100 points have been used, the adjustment that is made is to deduct whatever the dues are for 100 points.

Conversely, if all or most of the current UY points are intact, the common practice is for the buyer to reimburse the seller for the dues they have already paid.

There is no generic way to know how much the MF's would be because it will vary from contract to contract. But at least on the Timeshare Store listings, the amount of dues reimbursement expected is shown.

 

[buck0086]

That's helpful. I think I'm starting to get it. So it most or all cases, the dues have already been paid for the current UY and then depending on how many current UY points are available or expended might encourage the buyer or seller to cover them. Of course, that is negotiable, but it might be more likely for the buyer to pay for MF if most or all of the points are available whereas the seller may pay the MF if the points have been used. Again, I could negotiate one way or the other depending on what I am willing to pay overall for points, closing costs and MF combined. Am I on the right track now?

Buck

 

[JimMIA]

So it most or all cases, the dues have already been paid for the current UY

Do NOT take that for granted! There are a lot of distressed contracts on the market, and in many of those, the dues have not been paid.

That is something you should research on any contract you bid on, and if the dues are not paid, that would be a red flag that should perk you up a bit. You might get a great price on a distressed contract, but they can be very problematic as well.

Another type of distress I would be careful with is a financed contract purchased in the last 3-4 years. I'd want to know what their loan payoff is for that contract, because the seller may not understand that they will have to PAY to close, rather than getting a check for the proceeds.

Am I on the right track now?

On dues, except for the UY/calendar year thing, pretty much. Your idea of looking at the whole package - price, dues, closing, points status, etc - is the right approach. Resales are a little confusing, because every single deal is a little different.