DVC Resale

[marathonmommy]

I've never posted before on a discussion board, so I hope I am doing this correctly. Please forgive me in advance for my novice mistakes:

I am seriously considering buying into DVC. I am a bit torn between the extra 12 years at Saratoga and buying a resale. I am really leaning toward a resale at BCV or BWV and believe that is what I will eventually do. I will probably buy between 150-200 points.

I looked at some websites to check out resale prices. My neigbor told me she got into a resale at BWV for $76 per point within the last year. The lowest resales I saw at the two locations were $82 per point. I spoke to a saleswoman at one of the timeshare sites and she said that Disney will buy back anything less than $82 per point and that they really won't let it be sold for less than that. Would you agree that this is true, or is the summer just a "hot" season for resales? Should I wait it out and look for something cheaper, or will that never happen at this point?

Any feedback you could give me would be greatly appreciated! Thanks!

 

[CarolMN]

Welcome to the Boards!

I'll just get this started for you - I'm sure others will have info to add.

DVC just raised the price for SSR, so it is entirely possible that the resale prices have also gone up - Disney pretty much keeps resale prices up by the price it chooses to exercise ROFR.

take a look at this thread - it has a lot of info on recent resales and the associated prices and terms. Believe Becca summarized things very well towards the end of the thread:

http://www.disboards.com/showthread.php?t=720134

Have fun deciding!

best wishes -

 

[marathonmommy]

Thanks for the input! I really appreciate it!

 

[crisi]

DVC prices have been climbing fast. Prices won't go down (at least not until they start dropping due to contract life).

If you enjoy BWV or BCV, buy your point there. The exception I'd make to that advice is that if you will still be relatively young for the last 12 years and that is overriding to you.

 

[Cruelladeville]

It doesn't hurt to offer less. No one knows for sure what Disney looks for when they exercise their ROFR(their buy-back). I just closed on 270 OKW points for $75. That included 430 banked points and the owner paid the dues. I think I was probably really close to the cut-off, but they let it go. If they take a contract you wanted, just try another. Lots of times it will depend upon whether or not members are waiting for points in that use year. Remember that realtors can say anything they want, they are SALES. Think used cars when you are talking to resale agents.

 

[minniesfriend]

We just sold some of our BWV points at $78 pp. We bought these points (as a resale) and re-sold them through the Timeshare Store. We chose to purchase resale because we, too, wanted BWV and these are less expensive. Except for a shirt or duffle bag perhaps, to my knowledge, there is no difference in purchasing through DVC or resale - except in price (unless you are financing through DVC. I don't think you can finance through DVC if you are not purchasing from them). We were never treated differently because we purchased through the Timeshare Store.

 

[Jason@dvcstore]

[/QUOTE]I looked at some websites to check out resale prices. My neigbor told me she got into a resale at BWV for $76 per point within the last year. The lowest resales I saw at the two locations were $82 per point. I spoke to a saleswoman at one of the timeshare sites and she said that Disney will buy back anything less than $82 per point and that they really won't let it be sold for less than that. Would you agree that this is true, or is the summer just a "hot" season for resales? Should I wait it out and look for something cheaper, or will that never happen at this point?

Any feedback you could give me would be greatly appreciated! Thanks![/QUOTE]

Regarding the prices concerning Disney's Boardwalk Villas it is not an exact science when it comes to ROFR. For example, prices at the Boardwalk were ranging from $74 to $78 per point at the beginning of the year. At the time I helped someone purchase a Boardwalk 150 contract and was very confident that the property would make it through ROFR at $77 per point. However, we would find out later that Disney would exercise their right on this property. The buyer was extremly disappointed as well as myself as I was sure at that price it would make it through.

I am trying to let you know that Disney's ROFR isn't set in stone. At this point, however, if you were to buy a Boardwalk property at $82 I would feel confident that it would make it through ROFR. When you start to offer less, you run the risk of Disney buying back the property and starting your search over.

I hope this helps!!!

 

[vascubaguy]

Here is a good thread were Beca is doing a good job of tracking some resale results. You can take a look and get a glimpse at what has been passing and being ROFR'd:

http://www.disboards.com/showthread.php?p=9207078#post9207078

The current trend is:
VWL, BWV are in the upper 70's to low 80's
BCV are in the mid to upper 80's
OKW in the mid 70's
HH, VB in the mid/upper 60's to low 70's
SSR right around 80

BCV, BWV, and VWL are HOT right now and don't stay on the market long at all. You'll notice how quickly they change them to "sale pending".

OKW, HH, and VB are pretty plentiful out there, and I'm actually trying to get a small contract at OKW just to get me in the door. Then I can try and add-on at BWV later on. DVC sells the sold-out resort add-ons for $92 per point (which is better than getting BCV thru resale, and about the same as BWV). I'm considering SSR as an add-on due to the 12 years, but my decision between resale or DVC on that will depend on incentives offered at the time. (I believe right now if you get 150 pts at SSR you can get them for $90 per point?)

There's plenty of information on the boards. Everyone is always really helpful.

Good luck!

 

[jekjones1558]

marathonmommy:
Previous replies are great summaries of what is going on in resale. I just wanted to add that your post was well done! You do NOT need to be intimidated at all in posting! Welcome to DIS!

 

[RobDoc]

It doesn't hurt to offer less. No one knows for sure what Disney looks for when they exercise their ROFR(their buy-back). I just closed on 270 OKW points for $75. That included 430 banked points and the owner paid the dues. I think I was probably really close to the cut-off, but they let it go. If they take a contract you wanted, just try another. Lots of times it will depend upon whether or not members are waiting for points in that use year. Remember that realtors can say anything they want, they are SALES. Think used cars when you are talking to resale agents.

In the case of the resale brokers usually mentioned on this site, there is little to gain by advising buyers to make an offer they feel will pass ROFR rather than a low offer that may not get past ROFR. The broker will get the same commission whether it is purchased by me or by DVC. If they suggest that a contract is more likely to pass ROFR at a certain level, they likely have a good feel for the recent offers to pass ROFR. Certainly, if you don't care if ROFR is invoked by DVC and are just trying to save a few dollars, then don't accept the advice of a professional - but if your time is worth something and you find a contract that otherwise suits your needs, the honest advise of the broker should make the process go a lot smoother. If I lost an attractive contract over a couple of hundred dollars, I would be upset with myself.

I have purchased three contracts with the assistance of the Timeshare Store and always got excellent advice from the broker I worked with (Pat Spell). I never had the feeling that I was being treated like a used-car buyer. Just the contrary, all aspects of my purchases were handled in a very professional manner. On two of the contracts I was interested in purchasing, she agreed with my assessmemt of the relative value and helped me find exactly what I was looking for - at the price I wanted to pay, just by passing on those two and waiting until the next one came along.

Sorry to hear others have had such negative experiences working with their resale agents. Suggesting that realtors can "say anything they want" is an exaggeration at best, as they are also responsible for the claims they make - unlike used car salesmen. While some contracts may slip thru ROFR at a lower level than expected, due to a variety of reasons, responsible brokers definitely will have a better handle on recent acceptable levels than the average buyer will ever have (and they are privy to the actual details of the sales- unlike other sources, including some of the reports made on this board).

 

[First Wave]

I've read so many posts by Ms. DeVille in the last year and a half that I have become accustomed to ignoring her comments.

Personally, I asked my broker (Timeshare Store) to advise me on how much to offer and was told what the current buy-backs "seemed" to be. I was told that they would get paid whether or not the sale went thru. It was up to me if I wanted to take a chance. Some low offers do go thru. There is no set cut off.

Believe me, I never had the feeling I was dealing with a used car salesperson. The decision on what to offer was left up to me. But since I wanted my purchase to get past ROFR, I took my salesperson's advise. And...we passed ROFR.

Maybe Cruella is dealing with a less than reputable company. I understand that DVC suggests two companies to their members that need to sell. Since she's a DVC member, she may want to call Disney and ask who they suggest Then, maybe, she might quit bad-mouthing the extremely professional companies that represent DVC resales. When and if she every needs to sell her memberhsip, who will she ask to help her?

I've purchased resale and have no complaints. I suggest that people considering resales do their homework (like I did).

 

[vascubaguy]

There are some good ones and bad ones out there. I happen to know from personal experience that the primary 2 that are recommended here by people on the DIS are very helpful. They are straight up in that they tell you what the seller is asking and then what they think you should offer with best chance of passing ROFR. They also told me that they could present a lower offer and hope to pass, but that was up to me (and the seller to accept).

I have also talked to some one where they were quoting what I believe to be extremely high closing costs. They were listing the per point prices really low, but the seller had to pay closing and all fees (MN and transfer). They were telling me the closing on a 50 point contract would be over $500. Needless to say, I didn't really check with them anymore.

 

[Zurg]

Remember that realtors can say anything they want, they are SALES. Think used cars when you are talking to resale agents.

IHMO you treat people straight up they respond in kind.

Our experiance with a broker was fine and we have more Points as a result.

Going in with the Use Car mind set is a sure way to project that you want to be treated like a tire kicking used car buyer who is wasting the brokers time.

 

[crisi]

When we bought years ago we didn't try to underbid on either contract. This may be because our first offer, at list price, was pulled by the owners who felt they weren't ready to sell - at least not at that price! Since BWVs and BCVs are hot, and prices are rising, as an owner I wouldn't take a lowball offer unless I was in distressed circumstances (or the contract was stripped - i.e. all the current points spent and a lot borrowed). If it doesn't sell today at list, it will sell tomorrow at list. If I were a broker, I'd be recommending the same to my clients....the extra comission on $2 more a point would not be pushing me to recommend that (really, who cares, by the time it it hits the agents pocket $2 a point on a 150 point contract at 12%, less taxes and fees to the timeshare resale company is probably less than $20).

 

[JimMIA]

I've never posted before on a discussion board, so I hope I am doing this correctly. Please forgive me in advance for my novice mistakes:

I am seriously considering buying into DVC. I am a bit torn between the extra 12 years at Saratoga and buying a resale. I am really leaning toward a resale at BCV or BWV and believe that is what I will eventually do. I will probably buy between 150-200 points.

I looked at some websites to check out resale prices. My neigbor told me she got into a resale at BWV for $76 per point within the last year. The lowest resales I saw at the two locations were $82 per point. I spoke to a saleswoman at one of the timeshare sites and she said that Disney will buy back anything less than $82 per point and that they really won't let it be sold for less than that. Would you agree that this is true, or is the summer just a "hot" season for resales? Should I wait it out and look for something cheaper, or will that never happen at this point?

Any feedback you could give me would be greatly appreciated! Thanks!

To get back on topic, the most important number in any resale transaction is not the lowest price, but the price which will successfully clear ROFR. If your contract doesn't pass ROFR, it doesn't matter what the selling price was...except to the seller and Disney.

As Carol correctly pointed out above, DVC just raised their SSR prices last month, and their ROFR threshholds will creep up to maintain a rational connection between resale and new prices. If Disney didn't do that, the gap would be too great and their new sales would suffer.

Here's a link to a thread I started several months ago. It starts with a discussion of the home resort/11-month window issue, and there is a good bit of info scattered throughout the thread. http://www.disboards.com/showthread.php?t=778634

 

[Pooh Pal]

To add some recent personal experience, Disney ROFR'd a 200 BWV from us two weeks ago at $75 a point. On this contract, points were not available until 2007, unless we would borrow. I thought Disney may pass on this one because of that, but I was wrong.


Since I didn't want to go through that agony again, I told myself the next contract I saw that I really wanted I'd make sure I offered a high enough price to pass ROFR, but try not to spend more than I needed to...a tough proposition.

Well, this past Monday we sent a contract to Disney for 200 BWV at $84 a point, which was the listing price. This was a couple more dollars a point then I had planned, but I felt comfortable with the offer because there are 200 banked and 200 current points available.

If Disney takes this one, I fear I may need to spend more money on a BWV contract than I first thought.

 

[vascubaguy]

To add some recent personal experience, Disney ROFR'd a 200 BWV from us two weeks ago at $75 a point. On this contract, points were not available until 2007, unless we would borrow. I thought Disney may pass on this one because of that, but I was wrong.


Since I didn't want to go through that agony again, I told myself the next contract I saw that I really wanted I'd make sure I offered a high enough price to pass ROFR, but try not to spend more than I needed to...a tough proposition.

Well, this past Monday we sent a contract to Disney for 200 BWV at $84 a point, which was the listing price. This was a couple more dollars a point then I had planned, but I felt comfortable with the offer because there are 200 banked and 200 current points available.

If Disney takes this one, I fear I may need to spend more money on a BWV contract than I first thought.

Good luck with the contract!
$84 seems like a reasonable offer for BWV. Just remember, if it comes down to it, you can buy direct from DVC for $92 per point (no closing costs). Then you wouldn't have to wait for the ROFR and I don't think you'd have to pay the MN fees that year either (not sure).

Again good luck!

 

[JimMIA]

To add some recent personal experience, Disney ROFR'd a 200 BWV from us two weeks ago at $75 a point. On this contract, points were not available until 2007, unless we would borrow. I thought Disney may pass on this one because of that, but I was wrong.


Since I didn't want to go through that agony again, I told myself the next contract I saw that I really wanted I'd make sure I offered a high enough price to pass ROFR, but try not to spend more than I needed to...a tough proposition.

Well, this past Monday we sent a contract to Disney for 200 BWV at $84 a point, which was the listing price. This was a couple more dollars a point then I had planned, but I felt comfortable with the offer because there are 200 banked and 200 current points available.

If Disney takes this one, I fear I may need to spend more money on a BWV contract than I first thought.

The $75 price was pretty unrealistic, considering numerous ROFRs in the $77-80 range.

$84 sounds much more promising, but I don't think anything much less would fly.

 

[vascubaguy]

I won't mention which resale agency I was talking to when I got this response, but I just wonder how many people have discussed an offer with an agent and then have them say the following:

"The seller was firm on their asking terms, but if nothing promising comes up in the next few days I'll gladly submit your offer and see what the seller says."

Just left me with a bad impression. Could at least submit the offer and see if the seller counter offers or just flat out says no.

 

[crisi]

I won't mention which resale agency I was talking to when I got this response, but I just wonder how many people have discussed an offer with an agent and then have them say the following:

"The seller was firm on their asking terms, but if nothing promising comes up in the next few days I'll gladly submit your offer and see what the seller says."

Just left me with a bad impression. Could at least submit the offer and see if the seller counter offers or just flat out says no.

Didn't get it when we bought, but I'd love to sell my contract through them if I ever sell. I don't need to be bothered with people lowballing me when the contract first gets listed at a fair price in a hot market. Maybe after its sat two weeks without a nibble I'll be willing to entertain offers.

Its one of the many reasons why having extra points and renting out what I don't use doesn't appeal to me. I don't need to hit the delete key on every "I'll pay you $8" email that results.