DVC resales; why are there so many?

[AmyDek]

What are reasons that people list their contracts for resale? On the one hand it's comforting to know that there is a resale market should we ever want to sell, on the other hand it's worrisome that so many are getting rid of their DVC.

If it's that people's children get older, at what age do you feel you will or did stop using DVC? By my math we will break even around 4-5 trips. If we go every other year that takes us to about 10 years from now. in 10 years my oldest will be 12. How much longer can we expect to use it? I would love to go every year but we can't afford that many points and I'm afraid it would be way too many later on down the line. We might buy an additional small contract later on to be able to sell off etc. but just trying to figure out the lifespan of a DVC membership and when and why folks get rid of it.

Also wondering if anyone breaks even or makes money with a resale on the seller's end.

Thanks!

 

[chalee94]

there are hundreds of thousands of DVC owners, so I'm not sure what "so many" means in this context.

death. divorce. job loss. aging of children. a sudden major expense (health issues). different interests (like, for example, Europe or cruising). some sell so they can buy back in for a preferred home resort.

I like my DVC but at these current resale prices, I am tempted to sell and cash in while I can break even.

children are not a factor in my ownership, but they (and their associated costs and changing interests) do affect many owners' decisions on how long to continue their ownership.

if you look at the DVC Information Center stickied thread, many who bought in at historical offering prices can currently sell at a profit (or at least break even). but if you expect to buy at current prices and break even down the road, that is pretty risky IMO.

 

[disneynutz]

In addition to the above, many bought not understanding what they bought, they may have stuck it out for a week or for a few years. Others may have found that the competition to book studios in certain low point categories too great for their liking. Spending this amount of money and not getting what you want or having to jump through hoops to make a reservation isn't worth it to some and only after buying do they really understand the reality of owning a DVC interest.

Bill

 

[supersnoop]

Short answer; there aren't. Single family residential real estate turns over at a rate between 8%-12% every year. DVC turns over closer to 1.5%.

http://www.disboards.com/threads/why-so-many-resales.3245841/#post-50932040
http://www.disboards.com/threads/why-are-there-so-many-for-sale.3465187/
http://www.disboards.com/threads/why-so-many-ssr-resales.1716068/
http://www.disboards.com/threads/why-so-much-saratoga-springs-for-resale.1966113/
http://www.disboards.com/threads/if-dvc-is-so-good-why-are-there-so-many-resales.533183/

 

[KAT4DISNEY]

Short answer; there aren't. Single family residential real estate turns over at a rate between 8%-12% every year. DVC turns over closer to 1.5%.

http://www.disboards.com/threads/why-so-many-resales.3245841/#post-50932040
http://www.disboards.com/threads/why-are-there-so-many-for-sale.3465187/
http://www.disboards.com/threads/why-so-many-ssr-resales.1716068/
http://www.disboards.com/threads/why-so-much-saratoga-springs-for-resale.1966113/
http://www.disboards.com/threads/if-dvc-is-so-good-why-are-there-so-many-resales.533183/

And considering DVC is not a primary home - it's even more extraordinary.

 

[disneynutz]

Short answer; there aren't. Single family residential real estate turns over at a rate between 8%-12% every year. DVC turns over closer to 1.5%.

http://www.disboards.com/threads/why-so-many-resales.3245841/#post-50932040
http://www.disboards.com/threads/why-are-there-so-many-for-sale.3465187/
http://www.disboards.com/threads/why-so-many-ssr-resales.1716068/
http://www.disboards.com/threads/why-so-much-saratoga-springs-for-resale.1966113/
http://www.disboards.com/threads/if-dvc-is-so-good-why-are-there-so-many-resales.533183/

What happens if you adjust the numbers to reflect the number of single family homes and the number of DVC contracts?

Bill

 

[crisi]

I have a sixteen and a seventeen year old. My son - the seventeen year old, was pretty done around twelve. However, Universal still appealed to him for a few years and you can rent a car and drive over. My daughter still likes Disney - and plenty of people here have raised kids who love Disney.

We haven't been in three years - we are going again next summer. My son will be almost eighteen and will be staying home (with my mother so we don't come home to a trashed house - high schoolers do not make good housesitters). My daughter will be going with us and bringing a friend. Two years ago, we took my Girl Scout troop to Hilton Head and used the points that way. Two and a half years from now, my daughter will be heading off to college, and I expect to rent some points and use some points for her to roadtrip down for Spring Break a year or two in college. So about seven years from now, my daughter will be done with college, and my husband and I will be looking at being sixty. I'm hoping we are both semi retired by then and will use the points to escape Minnesota in January or February. If not, we will rent and then use the points to escape when we are ready.

Had brokers not become a thing, I think we would have sold. I'm not one to bother with renters and renting. But fortunately for us, a broker makes the rental process pretty easy and more than covers the dues.

 

[Lakegirl]

I think this time of year there are a lot due to members having to pay dues at this time. Whether it be loss of job, medical issues or divorce people's finances change thus making them have to sell.

 

[aymekae]

We just decided today to sell our contract we've had for 4 years. Breaks my heart, but it's one of a few drastic measures we're taking to pay off some business debts and improve our monthly cash flow.

 

[LenInMaine]

Agreed. We just bought our first contract, and on the grand scheme of things, there isn't many resales. Compared to buying direct, they are a steal (and go fast). As to the point of studios, be bought for just the opposite. We're a family of 6, so the DVC was a cheaper way to go (by far) for staying in site. I would never suggest DVC to someone solely just for studios, as they probably won't be happy for long.

 

[mort1331]

Lots of great points, let me address your last one. Just like the housing market, depends on timing. We bought when resale was low and the Can$ was par. Now 4years later I could sell at a nice profit even taking into the account of broker fees and the taxes for out of country residents. (Now at 15% grrrr) But we are not selling. If 5 years from now our dollar still sucks and US slides and resales take a dive, then we might look at a loss.
Timing is everything, but after looking at a lot, and I mean a lot of other timeshares, we saw that at least with Disney there might be an outside chance of getting some money back, if we sell or need to get out.

 

[cdnjason]

I agree with those who say resale inventory is low. I shopped the resale market before buying direct. I couldn't find anything that fit my family's needs. So, ultimately, bought direct.

 

[gdrj]

I have considered selling my BWV contract (I would be able to profit slightly) and purchase at a resort with a later end date.

Our kids are grown but they still enjoy WDW, and are jealous that we go without them!

 

[ILuvCrush]

I've had my contract (250 points AKV) on the resale market since December. It's partially stripped for 2016 but asking price is well below others ive seen. Not one offer. So I think that there's a lot of variables involved. Time of year.. Location... Other contracts available.... Size of contract... Etc.
BTW... I'm not selling to get 'rid' of my DVC. I have another contract and I want a total of less points. So once this does (eventually) sell, I plan to repurchase thru resale a small (50-100) point contract so that my total points are around 150. I currently just have more than I can use considering how much vacation time I get and the fact I want to go other places too besides DVC resorts.

 

[browniemtb]

We just put a contract up for a sale….we bought 2 equal contracts years ago but now with kids entering High School & college age and we don't get to WDW as often we decided to sell one of the contracts. So that one contracts will give us the same amount of points, just every other year.

For me I don't understand the newer contracts that are up for sale already like Aluani or the Poly.

 

[jerseyduke]

I think there are very few DVC resales available in terms of percentages. As previously stated, there is over 100,00 contacts out there.

 

[DougEMG]

You'll know that there are a lot of DVC sellers when the resale prices start taking a big drop.

 

[jerseyduke]

You'll know that there are a lot of DVC sellers when the resale prices start taking a big drop.

So very true! And since they are at an all time high, despite everyone being that much closer to lease end, further suggests with respect to demand, the supply is low.

 

[MsTessP]

We just put a contract up for a sale….we bought 2 equal contracts years ago but now with kids entering High School & college age and we don't get to WDW as often we decided to sell one of the contracts. So that one contracts will give us the same amount of points, just every other year.

For me I don't understand the newer contracts that are up for sale already like Aluani or the Poly.

I believe most of the Aulani and Poly, and even the GF resale contracts, are mostly the result of two things: 1) the pixie dust intoxication which led to the purchase has worn off and the financial reality has set in and 2.) the realization that timeshares, and particularly DVC, is not a right fit for the family.
If the owners have financed their unwise purchases, many of them may have additional regret.

 

[malba2366]

The broker I was working with told me they have seen an uptick in resales from the lower cost resorts (she named SSR and Vero Beach) and tighter inventory in the higher priced ones. This is coming from a salesperson so I am not 100% convinced, but this would suggest that people who bought the lower cost ones thinking they could book any resort at 7 months are heading for the exits or are wanting to sell and buy in a different resort.