HELP!! Getting Ready to Purchase!

[kathi]

OK - We are ready to make a purchase after months of deliberation and waiting for the right resale deal. I found a deal I was very happy with yesterday and was ready to move forward.

Enter scientific husband....he found a second deal with a different reseller that also has some merit.

Both are very reputable firms.

I don't know how much detail I'm allowed to go into, but in general here are my considerations. Both deals are for the same property.

Deal 1
150 Points
Feb Use Year
No points left this year
Seller pays closing costs

Deal 2
180 Points
August Use Year
$2/point cheaper than deal 1
Have to pay closing costs of about $500
Have to pay 2007 dues of $851
180 points available in August.

So Deal 1 is cheaper because no 2007 dues and no closing cost. But no points to use this year (which I didn't think I would need since I've already booked my November trip).

Deal 2 is attractive because I have 180 extra points to work with either through banking or planning another trip this year.

I'm currently planning an anniversary trip for September. I was looking at Napa, CA to do something different. But if I had points I could use for something (but what?) maybe I would select something Disney instead and use my points. The extra money for dues and closing is $1,350, and I would have spent that (or more) for a resort in Napa.

So - HELP!!!

What are you thoughts on the 2 Deals? I'm just so overwhelmed and REALLY REALLY busy at work, my brain is tired and busted.

If I went with Deal 2, what could I use my points for other than DVC? Is there someplace I can look that shows what points are needed for Disney Resorts? How about the cruise? (although September is Hurricane season).

I have to decide right away because I have a contract for Deal 1 and it expires on the 15th.

THANKS EVERYONE!!!!
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[Maistre Gracey]

I would look beyond your next couple of trips and figure out if 150 or 180 points is better for you. I may also look at which use year fits your vacationing habits better, although that doesn't matter all that much.

Although there are many options you can use the extra deal 2 points for, I wouldn't let that factor in my decision unless your first choice would be to use them at a DVC resort.

Good luck!..

MG

 

[RobDoc]

Just to add some other thoughts - you might want to review the ROFR thread to see if either, neither or both deals are likely to pass ROFR. I would be concerned about the "cheaper" deal if it means that Disney will just buy it themselves. In addition, all aspects are negotiable, so just because one is a little more $$ or one asks for maintenance fees to be paid - none of that matters unless it's in the offer and agreed to by both you and the seller.

Good luck with your decision!

 

[kathi]

Thanks!

I think both should pass ROFR based on what I've read.

I have thought about asking the seller to pay the dues for 2007. That would help quite a bit to convince me to go with that deal.

Where in the world can I find a list of what else I can use my points for? (Resort, cruise, ???).

 

[JimMIA]

$360 ($2 cheaper per point) is irrelevent in terms of your overall cost of ownership, so I'd agree with MG that you should give much more consideration to long-term needs than price.

Everything is negotiable in a resale, but normally dues on the current year points are paid by the seller. The reason for that is that dues really have nothing to do with UY. Dues are calendar year fees for maintenance, taxes, etc, etc.

The owner had use of their DVC account since Jan 1, 2007 (8 months probably by the time you close). If they chose not to use DVC during that period, that was their decision -- they still owed the dues for the year. When you buy direct from Disney, they pay the portion of the dues that relate to the period prior to closing and you pay the remainder. In your case, that would probably be about 1/3 of the dues, depending on when you close.

You might use that as a negotiating ploy. The other thing you might do is trade dues for an increase in per-point price if you are close to ROFR...or some combination.

ETA: The most important number in any resale -- as Doc says above -- is the price required to pass ROFR. If you don't pass ROFR, nothing else matters because you end up with nothing.

 

[Caskbill]

To build on what Jim is saying, dues is often misunderstood by a lot of people.

Dues are based on the Calendar Year, not the Use Year. I'm assuming for deal number 2 that there are no 2006 points, and you'd receive all 2007 points in August.

In that case you should not be paying the total 2007 Calendar Year dues.

It is possible to associate the dues for a calendar year to a specific use year. With an August UY, then calendar year 2007 dues covered 7-months of 2006 UY points (Jan-Jul) and 5-months (Aug-Dec) that are applicable to 2007 UY points.

You should only be paying 5/12ths of the 2007 calendar year dues.

Unfortunately many assume dues paid for a calendar year apply to the points for that Use Year. The seller may assume the 2007 dues they paid applied to the 2007 Use Year points. They don't, as explained above.

 

[kathi]

Thanks again everyone. You have been SUPER helpful. It's nice to know there are friendly, knowledgeable folks willing to help new DVC purchasers!

I'll let you know where we end up. If anyone has additional thoughts, please let me know!!

 

[Dean]

In this situation I'd say they are pretty close in cost. You can figure a value of around $1 per month per point with the cheaper price balancing the closing costs. So the size that fits you best would likely be the better choice. The only other issue is whether you have a trip you plan prior to Feb and then whether you might be able to buy then book that trip on points.