Going Price...

doubletrouble_vb

Inspired
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May 13, 2001
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What's the going price these days for resales? Common sense says I should sell but I'm still looking for a white knight to save me.
 
I just spoke to the Timeshare Store this afternoon, we are interested in adding another 100 points to our OKW contract. I found out that the going price is $68 to $72 per point, I had spoken to my DVC rep earlier, they have 100 points at OKW, but they want $ 84 a point! I think I'll wait and see what the Timeshare Store can do for me, the saving is considerable!
 
Is it worth it to save $1000 or a little less going resale. For some it is, for others not. I think you can expect the price pp for resales to continue to increase as SSR opens and the direct price goes up. this increase might happen before you could buy a resale and your savings would be less.
 
Originally posted by Dean
Is it worth it to save $1000 or a little less going resale. For some it is, for others not.

I just bought 200 direct (SSR) and am in the process of buying a 230 point resale (OKW). I've found the resale to be just as easy as buying direct. Financing would be easier on a direct purchase but I did not need financing. So for me I'm saving about $2000 (after closing costs) and yes it is very much worth it.
 

Originally posted by arminnie
I just bought 200 direct (SSR) and am in the process of buying a 230 point resale (OKW). I've found the resale to be just as easy as buying direct. Financing would be easier on a direct purchase but I did not need financing. So for me I'm saving about $2000 (after closing costs) and yes it is very much worth it.
I agree in most situations and it's rare I wouldn't be recommending resale. However, this is different. This is someone who needs a specific sold out resort, for a specific size contract for a set use year. It's not like there are 2 chocies setting there. DVC has the points and they'd have to go find them for resale. Since this size contract tends to sell for more per point, I am questioning whether it's worth it to pass up a sure thing vs a POSSIBLE modest savings. I guess it depends on how badly they want extra points and how set they are on the exact number. But if they don't find it soon, the resale price is likely to go up when DVC raises the direct price again, likely early summer.

Of course they could buy the points directly, look for a resale in the mean time then cancel the direct purchase if they found something that worked out.
 
OKW91, did they offer you the $10 buyback program? I just bought 150 OKW points from Disney at $74/point. It was $84 per point but they "bought back" the first year's points at $10/point so it cost me $74/point...no closing costs. They sent documents to me overnight with a return paid envelope and everything was done in a matter of days. He even put the points in my account the day we spoke.

With the timeshare places, I could have gotten a little less per point but with the closing costs, it would have ended up exactly the same price. I much preferred dealing with Disney directly rather than the uncertainty of a seller, etc.

You could ask them if they are still doing that.....
 
I'm gonna agree with Dean on this one::yes:: : in the case of a small add-on at a sold-out resort, I think it makes the most sense to go direct, since the savings are likely less than $1000 after closing costs. I would think the breakeven point, where the savings from going resale exceed the hassle and extra costs might be a bit more than 100 points.
::MinnieMo ARMinnie's 230 pt contract seems a perfect resale candidate, in that she was able to glean substantial savings and did not need any type of financing. My more modest 65 pt add-on (for which we sign the docs today:D ) was a natural direct purchase candidate (even tho we're paying cash), as the savings of going resale were less than $200; furthermore, for that few points, I was not gonna mess around with potential transferability problems. Our excellent guide did offer is the $10 off per pt for the first year's points, but we needed the extra points right away (and have had something reserved with them since the day we put down the deposit).

Lexxie; IMO for tracking purposes, I would recommend sticking with your same UY. And for ease of process for a small pt add-on like you are talking, probly direct from DVD is easiest and cost efficient.

just my $0.02 here
 
Originally posted by pumpkinboy
I'm gonna agree with Dean on this one::yes:: : in the case of a small add-on at a sold-out resort, I think it makes the most sense to go direct, since the savings are likely less than $1000 after closing costs. I would think the breakeven point, where the savings from going resale exceed the hassle and extra costs might be a bit more than 100 points.
::MinnieMo ARMinnie's 230 pt contract seems a perfect resale candidate, in that she was able to glean substantial savings and did not need any type of financing. My more modest 65 pt add-on (for which we sign the docs today:D ) was a natural direct purchase candidate (even tho we're paying cash), as the savings of going resale were less than $200; furthermore, for that few points, I was not gonna mess around with potential transferability problems. Our excellent guide did offer is the $10 off per pt for the first year's points, but we needed the extra points right away (and have had something reserved with them since the day we put down the deposit).

Lexxie; IMO for tracking purposes, I would recommend sticking with your same UY. And for ease of process for a small pt add-on like you are talking, probly direct from DVD is easiest and cost efficient.

just my $0.02 here
The break even point depends on the number of points one is getting, points accounting and closing costs. The break even assuming $72 pp cost, the same points availability and using a discount closing like Timeshare transfers ($250 closing) is about 25 points or just over if buyer pays the transfer fee. The Break even for a more tradtional closing company is more like 50 points with the same assumptions. You must compare to $84 pp if the points availability is the same and then adjust accordingly if it's not. That's true on any purchase or resale. Personally I'd figure a point is worth around $10 pp but that includes the maint fees. I'd also adjust by 1/12 of the $10 pp for different use years. Every resale is different and to a lessor extent, every direct purchase is different as well. IF there are a differnt number of points, one must first decide if that is a good amount of points for them. If it is, I'd adjust by around $68-72 pp for each point in the larger contract.

One cannot compare a resale with extra points to a direct purchase price selling back the points. IMO, the reasons to buy resale then become price and availability. If DVC doesn't have what one wants and it becomes available resale, it's a good deal up until the price is more than through DVC or until the price crosses the buyers threshold price. If DVC has the points and it's not right there resale, I'd accept a fair gap in price before I'd pass it up but what that price is would vary with the specifics. If one has the choice of both right in front of them with all factors either being the same or "evening out", I'd think I'd want a difference of at least $500-1000 to go resale but it depends in part on the financing issue and how soon one wanted to use the points.

The principles hold for VB and HH but the numbers must be shifted by at least about $7 pp downward.
 
We're thinking of doing a small add-on at OKW, in the 50-75 point range, however, DVC isn't licensed in Nova Scotia, do we have to be *IN* Fla to purchase resale?

Apparently, we do have to be there to buy with DVC, even though we're already members...

For us, purchasing resale, even with closing costs, would be cheaper (no flights to Fla!!) if we didn't have to "be there"...

Any insights, comments, opinions or suggestions would be very much appreciated!!

:sunny:
 
Oooh Dean. Do I recognize a fellow Finance Wonk? I do admire your method here; nice to see it all spelled out! Well done.

And MBB, for resale you do not have to be in Florida, as they are not selling directly to you. Being in Nova Scotia leaves you with resale as the only option (other than doing a direct add-on directly from DVC next time you are in Fla). Now if you were to move to Maine, or even Ontario, you would have more options;) ; there's my C$0.02.
:teeth:
 
Originally posted by pumpkinboy
... Now if you were to move to Maine, or even Ontario, you would have more options;) ; there's my C$0.02.:teeth:

$.02.. that's gotta be, like $100.00 CDN!! And worth every penny for the answer!!:D

Living in Ontario,...or Maine?...gotta be like,
*ahem*...living in exile...

Thanks, Pumpkinboy!!:sunny:
 
Originally posted by pumpkinboy
Oooh Dean. Do I recognize a fellow Finance Wonk? I do admire your method here; nice to see it all spelled out! Well done.

And MBB, for resale you do not have to be in Florida, as they are not selling directly to you. Being in Nova Scotia leaves you with resale as the only option (other than doing a direct add-on directly from DVC next time you are in Fla). Now if you were to move to Maine, or even Ontario, you would have more options;) ; there's my C$0.02.
:teeth:
I think it's all the years dealing with the scientific method. To me it's all black and white and rules and numbers. No room for the emotional component when comparing buying or not, renting, etc.
 
Keep in mind that on 3rd party resales, the BUYER is responsible for closing costs on the sale. Also, a title search is recommended on 3rd party sales and someone has to pay for it.

There are no closing costs or title search costs when points are purhcased through DVC.

Keep these points in mind when looking at point cost on resales.
 
Originally posted by cindercat
Also, a title search is recommended on 3rd party sales and someone has to pay for it.

Why would a title search ever be necessary for a Right to Use contract??? There is no title to a piece of real property involved for DVC purchases, right?
 
There is a deed to a specific % of a specific building or unit. I bought direct from DVC, they sent me a title insurance policy.
 
<font face="times" size="+0">hmm... i'm a bit confused by the replies... they all seem to be about buying via resale.
doubletrouble_vb, weren't you asking this question in regards to selling via resale?
What's the going price these days for resales? Common sense says I should sell
i was going to comment that i believe the resale market reached it's peak (from a seller's perspective) last year around mid-February. that was the time when sellers could command $74/pt on resales of all sizes. ever since SSR started selling, the supply of resales started growing! (maybe people are selling their old resort, and buying SSR as a replacement. :smooth: ) if you look at the 4 big DVC brokers' listings, you can see how much supply has gone up. as a result, prices have gone down.

my realistic price estimate is that for contracts of all sizes, i think only BCV can sell for over $70/pt now. other Orlando resorts can maybe sell for $65 to $70/pt.

for small add-on sized contracts of 150pts or less, you can probably still sell those for a higher price. although, i did see some listings that seem overly ambitious, such as a VERY stripped (no points till Oct-2005) OKW 100pts going for $75/pt. i really doubt anyone would buy that.

i think, unless you're selling a small add-on, it's a difficult market. and, as a seller, you have to make your contract stand out above all the others out there. so either offer it at a lower price, or make sure it's in good standing (not too stripped).

JMHO from observing the resale market for a little over a year. i'm sure there are more expert opinions out there. good luck!</font>
 
Originally posted by cindercat
Keep in mind that on 3rd party resales, the BUYER is responsible for closing costs on the sale. Also, a title search is recommended on 3rd party sales and someone has to pay for it.

There are no closing costs or title search costs when points are purhcased through DVC.

Keep these points in mind when looking at point cost on resales.
A title search and policy are common but I'm not sure it's a necessary route. What are the areas one could be caught in? If it's not free and clear or in good standing from DVC's standpoint, they won't give a waiver. The only way to reasonable finance a timesahre otherwise is Tammac and home equity type loans. I know the latter doesn't tie up the timeshare and suspect Tammac is simply a signature loan as well. Once can look to make sure that the parties selling are the same ones listed on the deed. The transaction for FL requires two witnesses AND a notary. This type of "insurance" is a racquet and doesn't offer all that much protection anyway from what I'm told.

So if you document with DVC that all is OK and look a the old deed info for Orange county, I think one is in pretty good shape. The only issue is getting the deed done professionally but even this isn't necessarily needed in all cases.
 



















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