How do you know you are getting a good price?

[TheMick424]

We are currently considering buying a DVC resale. I’ve been watching the listings on various resale sites but still don’t understand how to tell whether a contract is a good price. What should you be looking for in terms of points availability? Fully loaded, loaded...I’m so confused about what all of these terms mean when it comes to driving price per point. For example, if we don’t intend to stay until 2019, would we want a contract with 2017 points still available? Please help a newbie out!

 

[hlhlaw07]

We are currently considering buying a DVC resale. I’ve been watching the listings on various resale sites but still don’t understand how to tell whether a contract is a good price. What should you be looking for in terms of points availability? Fully loaded, loaded...I’m so confused about what all of these terms mean when it comes to driving price per point. For example, if we don’t intend to stay until 2019, would we want a contract with 2017 points still available? Please help a newbie out!

If you are not going to stay until 2019 then you will not need 2017 points. Depending on what the UY for the contract is, there is the possibility that if it had 2017 points that you could use them for a trip in 2019. But if the UY doesn’t align right then 2017 points would be useless to you unless you want to turn around and rent them out.

Generally, the more points available on the contract at the time of sale will drive the price up. Because you do not intend to travel until 2019, you should be able to find some better prices on some partially stripped contracts. If you are going to buy a stripped contract for a lower price just make sure that the UY that you get aligns with when you are looking to travel in 2019 or you might have to start out in borrow mode. Meaning don’t get a contract without 2018 points if when you intend to travel in 2019 falls within the cotnract’s 2018 UY.

 

[Ben E N]

I would give each contract the added value of about $10-12 per point year. You could rent out any extra points if you found a fully loaded for the same price as a stripped contract, but in your situation I would look more for stripped ones due to them being cheaper, in less demand overall, and less likely to be taken in ROFR.

 

[DizBub]

As far as knowing when you are getting a good price, there is a ROFR thread on this board that lists the prices that all resorts are selling for. It can be a very useful tool in determining what to offer on a particular contract.

 

[supersnoop]

A good price is one that you’re satisfied with.

 

[Spartan86]

A good price is one that you’re satisfied with.

I agree that is the most important metric. Appropriate size and use year trump a few dollars per point, and as has been discussed here at length, “the market” doesn’t necessarily price stripped versus loaded contracts very efficiently so it comes down to your decision of what it is worth to you.

 

[iheartglaciers]

Agree with what others have said. The ROFR thread has great data to help you decide how much you’re willing to pay for a certain contract, taking other factors into consideration such as point size, how many points are left, and UY (if it’s a rarer UY and/or it’s your ideal UY).

But I wouldn’t get too hung up on a couple dollars per point, because when you divide it across the years left on the contract, it usually isn’t that significant.

 

[Ben E N]

Agree with what others have said. The ROFR thread has great data to help you decide how much you’re willing to pay for a certain contract, taking other factors into consideration such as point size, how many points are left, and UY (if it’s a rarer UY and/or it’s your ideal UY).

But I wouldn’t get too hung up on a couple dollars per point, because when you divide it across the years left on the contract, it usually isn’t that significant.

I agree. UY and number of points are much more important than the exact price per point or number of points that the contract comes initially loaded with.

 

[WALTSAGOD]

Factored out over the life of the contract, stripped vs loaded starts to mean less and less. With a Poly contract stretched out over its remaining years, if everything else looks good, go for it.

 

[skippytx]

But I wouldn’t get too hung up on a couple dollars per point, because when you divide it across the years left on the contract, it usually isn’t that significant.

I would take this even a little farther, I wouldn't get hung up on +/- 10 dollars a point as long as the contract was exactly what you were looking for.

In the grand scheme of spending money at WDW, even an extra 10 bucks a point on the initial purchase ends up being a rounding error when you think about the total costs of all these trips. Sure everyone wants to feel like they got a great deal when they purchase, but when you take a 10,000 foot view of the entire situation, I think it's way more important to get the ideal contract for your situation, and if that contract costs a few more dollars a point, I think that is fine. The initial purchase price is a one time thing. Maintenance fees, Tickets, travel costs, those expenses are the big ones that add up over the years.

 

[TheMick424]

Thanks, everyone! Very helpful tips. I guess I need to narrow down my contract size. Based on our typical travel, I was targeting a Feb UY, but they seem to be in shorter supply? I was hoping to start with 150 or 160 points to cover a 1BR every other year (although I'm debating adding on later to potentially go yearly), but don't know if this is a good idea.

 

[Ben E N]

Thanks, everyone! Very helpful tips. I guess I need to narrow down my contract size. Based on our typical travel, I was targeting a Feb UY, but they seem to be in shorter supply? I was hoping to start with 150 or 160 points to cover a 1BR every other year (although I'm debating adding on later to potentially go yearly), but don't know if this is a good idea.

From my personal experience, I would say round up your estimate. I haven't even started using my DVC points and already wish I had bought more just based on the spreadsheets I filled out. Once you go 1 BR, I doubt you would want to downsize back to a studio unless there are 2 or less people on your party.
Also, consider if you want to add on 25 direct or not. They are pricy points, but the benefits are worth it to some people and not to others. Include that in your total both for points and cost planning.

 

[iheartglaciers]

Thanks, everyone! Very helpful tips. I guess I need to narrow down my contract size. Based on our typical travel, I was targeting a Feb UY, but they seem to be in shorter supply? I was hoping to start with 150 or 160 points to cover a 1BR every other year (although I'm debating adding on later to potentially go yearly), but don't know if this is a good idea.

UY depends on the resort. A large percentage of BLT and BCV points are Feb UY, but that's not the case for other resorts. You can see the breakdown here:

http://dvcnews.com/index.php/dvc-pr...ar-distribution-charts-updated-september-2015

I saw an updated one for Poly, but I can't find the link now.

 

[David Petersen]

Here is a link to the updated DVC points use year distribution charts (as of February 2018).

http://dvcnews.com/index.php/dvc-pr...ear-distribution-charts-updated-february-2018

 

[kniquy]

When you can write the check and not throw up!! Only kidding -- it depends on the size of the contract, the points status and what resort you are buying. The best resource we have to go by is the ROFR thread on this forum. Your next step is to test what the sellers are willing to accept. You could have 2 identical contracts for the same resort - both listing for $110 per point, but you offer $100 per point -- one might accept and the other might counter or hold firm. It is kind of like buying a car -with multiple dealers selling the same exact car but one is more likely to give you a better deal. You need to decided what you can afford, what you are looking for with regards to resort, UY, Points and then shop around. When you find what you need make an offer you are comfortable with -- you can't go offering $80 per point for the list which is at $110 - it won't be accepted by the seller and likely would not pass ROFR.

 

[Shellyred8]

The ROFR thread is nice because you are seeing what people are actually paying for the contract. Not just what the owner lists the price at.

Our first contract was for 160 points (enough for 1br at BWV in Jan). While I do like staying in a 1BR, I like staying in a Studio and getting to go twice a year even better!! It didn't take long for me to get add-on-itis!!! We ended up buying 200 points at BLT early last year. So, now we are good for awhile. In hind sight, I wish we would've bought more when bought our first contract, because the price back then was much cheaper.

Unless the economy takes another really big nose-dive, I don't see the DVC prices going down much.

Good luck with your decision!

 

[Wakey]

I bought my last contract with points I couldn't use, banked so I didn't pay dues on them. They were far from useless as I rented them and thus reduced the buy in costs by $13 a point bringing that SSR contract still with current years' points on down to $62 a point. That was Jan 17 though.