Help! What should we pay for resales?

[amee]

Hello again! After having so many of you answer questions for me over the past couple of weeks, we have been actively looking at resales.....

One of the biggest questions i have has to do with contracts that have no points left for this year(say october use year), yet still cost 62-65 dollars per point......

1) i know i can offer on the low end, say 9,300 for 150 points.....

2) but is there really no possibility of going lower with Disney?

3)Is there any other way to recoup the loss of points for this year?

Any other ideas on these types of contracts? Seems there are quite a few at all point levels out there.......maybe that's just normal...

thanks again for you help!

Amee

 

[mickeyc]

I have been in contact with various timeshare brokers over the past several weeks. I received consistent answers that Disney would not let any contracts sell for under $ 62 per point. When making an offer you can always make a lower bid and if not accepted increase the bid.

Also, keep in mind the number of points available. If all the points have been used in the current use year the price should be lower.

You might want to try some timeshare web sites that are for owers selling without brokers. You might find a lower price, if the seller is motivated. When you close you could use the Timeshare Closing Service or Prodox. You can check the classified adds at www.tug2.net. Some DVC contracts are available. Good luck! I am sure you will find something.

 

[amee]

Thank you, Mickeyc......i will check Tug and just wait and see!

thanks again,

amee

 

[WDWorld]

Hi,

Another way to decrease your cost is to make the seller pay for closing. For a 150 pts contract that represents about 3$ / point.

I bought mine thru The Timeshare Warehouse. It was about 1.5 monts that I was looking night and day to find a resale which suited my needs and all I saw available didn't have any points of the current year available and sometimes some points were borrowed from next year. And despite that fact, they were selling very fast and at a price I thought that was too high.

One Day, Y sent an email to this broker to ask if he had DVC for sale because they were not listed on the web site. And guess what.. He had one and I bought it !!!

If this can help you this is a 150 pts contract. 85 points were banked from 2001 and all points from 2002 were available. I paid 62$ / point (9300$) and half of closing, the other half being paid by the seller.

Good luck !!!! and be patient

 

[Dean]

IF you keep looking, you will find a contract that fits your needs at a reasonable price. DVC no long gives you the chance to increase the bid, at least not consistently so. Buying Resale is simply a question of all the fees (Closing, maint fees, price pp). Keep that in mind and adlust the value up or down by around $10 per point for any points extra or not available. This $10 per point includes the maint fees so make sure you take that into account if you're paying any fees back to the seller. There's no way to bypass the DVC review but no all contracts will be bought back at the "target price". I bought BW earlier this year at $54 pp with seller paying all fees. At the time the buy back price was $58 pp. There weren't many points available in the current use year but all were there come this December. DVC bought another contract we had under contract at $54.50 pp just before that.

 

[Alliekat79]

If you physically go to Orlando to sign the papers, they will buy back 2002 points from you at $5-15 per point depending on your property. 150 points at Vero Beach from 2003-2042 would cost you $9750 without having to pay any closing costs. Just something to think about.

 

[DVCajun]

Dean, so you're saying if you make an offer for $60, then Disney will just buy them at $60 and that's that? That kind of takes the wind out of the sails if you're hoping to negotiate!

I'm interested in others' experiences because I think we're going to be looking at a resale in about a year. I just don't have enough points to keep me happy!

 

[Richyams]

If you physically go to Orlando to sign the papers, they will buy back 2002 points from you at $5-15 per point depending on your property. 150 points at Vero Beach from 2003-2042 would cost you $9750 without having to pay any closing costs. Just something to think about.

If you intend to stay at WDW, Vero Beach is not something to think about for very long.

 

[Dean]

Originally posted by DVCajun
Dean, so you're saying if you make an offer for $60, then Disney will just buy them at $60 and that's that? That kind of takes the wind out of the sails if you're hoping to negotiate!

I'm interested in others' experiences because I think we're going to be looking at a resale in about a year. I just don't have enough points to keep me happy!

First, I agree with Rich. I think it's nuts to buy VB or HH for that matter with the main intent of staying at WDW though I think it's a great place to have points to stay at VB, HH either for that matter. I'd only buy HH points if I wanted to stay there in the summer.

At one point DVC would say something like "we're going to buy it back unless you want to submit a higher offer". While they may or may not do it again, I haven't heard of this happening in a while. I know it happened about 3 years ago but know for certain it didn't happen earlier this year with one of my resales that DVC bought back.

It doesn't really take the negotiations away from resales but does give somewhat of a floor to the possiblities. If one gets too good of a deal, you may lose it. Most sellers and brokers will know that also. Now remember that the brokers are mostly working for the seller so keep that in mind when taking their advice. To get the best deal possible on a resale, you need to be willing to walk away from it. That applies to both the initial negotiations as well as the DVC approval process. Good luck.

 

[Cap]

You can be very creative on how you struture your offer.

As an example, you could offer $62.10 /point, with seller paying all closing costs.

To get more creative, you could even try to get seller to reimburse you $x / point for any borrowed points, or make the effective date of the sale Jan 15, with the seller to pay x% of the 2003 dues (which are billed effective Jan 1).

Look at ways to have the per point price just above the reported DVC buyback level but the TOTAL COST to be what you want to pay per point.

DVC likely doesn't want to have to deal with / track odd resale contracts out of the many they review, but for you it is just a single item to handle.

Ask your resale broker to get creative.

 

[DVCajun]

But isn't Disney looking at the entirety of the offer? In other words, if you're offering $62.50 with seller paying closing costs, don't you think that Disney's smart enough to figure that out and get the same deal?

Dean, on your recent purchase, how many times did you have to talk away from a deal before you finally landed one? That attitude really does seem to be the way to go.

 

[amee]

We have sent over our paper work.... so now we just wait and see......thank you all so much!

Amee

 

[Jimbo]

But isn't Disney looking at the entirety of the offer? In other words, if you're offering $62.50 with seller paying closing costs, don't you think that Disney's smart enough to figure that out and get the same deal?

It's always been my understanding that Disney solely looks at the cost per point. That's because they are trying to maintain a minimum 'floor' for what a point costs. Any other things, like maintenance, closing costs, slush funds, whatever, are ignored by DVC.

 

[Dean]

Originally posted by Jimbo
It's always been my understanding that Disney solely looks at the cost per point. That's because they are trying to maintain a minimum 'floor' for what a point costs. Any other things, like maintenance, closing costs, slush funds, whatever, are ignored by DVC.

I don't know that anyone knows for certain about this but what I've personally seen would suggest that they only look at the points availability, contract size and cost per point. Otherwise, I don't think my recent resale would have gone through.

 

[Dean]

Originally posted by DVCajun
Dean, on your recent purchase, how many times did you have to talk away from a deal before you finally landed one? That attitude really does seem to be the way to go.

I've been know to talk away at a lot of things but frankly would have walked away from both BW contracts we signed for a higher price of even a few dollars. I take it you perceive that as an attitude problem, hopefully I am interpreting wrong. On both contracts there was a listing price and I made an offer. On the first, the price per point was accepted but the counter offer included that I pay maint fees for the year, I countered back with a split which was accepted. On the second I made an offer and the seller came back with a price $1200 higher but less than his first offer. I said thanks but no thanks, I made my best offer, good luck. The next day I got a call from the broker saying the seller had reconsidered and accepted my offer, so we were set and it closed.

Over the years I've bought a total of 3 contracts and had another bought back by DVC. In every case I was willing to walk away if the price exceeding my limits which are generally rock bottom offers. I've never had a contract I made an offer on not get signed and either completed or bought back by DVC (3 and 1).

I bought a second Marriott Grande Ocean week this past winter for $2000 less than most of the companies said I'd ever find one and $10000 less than Marriott sells the week for. I simply called a few brokers and told them what I wanted and what I'd pay, most said I was dreaming and one called back a month or 2 later and said he had what I wanted. He did and I bought it. I always wondered if I could have gotten it cheaper but I made a standing offer and as long as what I wanted came up and I was still in the market, it would have been rude for me to bait and switch my offer I had made already. Still it was the same price as the OceanFront unit I bought 1.5 years earlier which is worth $5000 more resale and through Marriott.

 

[DVCajun]

No, you completely misunderstood me, Dean! I am *agreeing* that a willingness to walk away will mean that you'll eventually get a great deal. I fully intend to take your approach when we enter the buyer's market again. This kind of attitude makes a successful negotiator-- period. I think sellers can sense weakness. If you are truly prepared to walk away you're more likely to get the deal in the first place, and you are definitely not going to bid against yourself.

 

[Dean]

Sorry, I did go back and reread your post and saw I had misread one portion. Still I hope it's helpful to air the info for those that might be reluctant to be hard nosed abou it.

 

[DVCajun]

I agree it's helpful to read others' success stories.

When you're looking at the resale market, the urgency to buy should be very low. It's not like buying from Disney who really can sell out one of these days. If one resale doesn't pan out, another will be along shortly. I'm glad a few more BWV resales are showing up now. For a while there they were few and far between.