How fluid are DVC contracts

[ACJT]

Do sellers find themselves sitting on them for a while once listed? Is there an average listing length? I realize there are variables (i.e. price) that would cause them to sell quicker or sit longer, but just trying to get a general sense.

Also, what are the fees generally associated with both the buyer and seller in a DVC contract sale?

 

[disneynutz]

DVC contracts are no different than any other real estate transaction. Supply and demand, price, terms and location determine price and days on market.

Also like other real estate transactions, fees can vary depending on the parities involved.

Bill

 

[chalee94]

Do sellers find themselves sitting on them for a while once listed? Is there an average listing length? I realize there are variables (i.e. price) that would cause them to sell quicker or sit longer, but just trying to get a general sense.

small contracts (25 - 75 pts) that are reasonably priced often sell within a day. a 1000 pt contract will most likely sit for a while as there are fewer parties with the means to acquire it (and price per-point will likely be lower as well). naturally it also depends on the resort (SSR might typically sit longer than BCV) and economy in general.

Also, what are the fees generally associated with both the buyer and seller in a DVC contract sale?

the seller typically owes 10-12% in sales commissions to the broker.

the buyer is usually responsible for closing costs (although that is negotiable). closing costs for the timeshare store start around $330 for a small contract and go up based on contract size (a 300 pt BWV contract had closing costs of $630, for comparison) and resort (HHI often has higher closing costs due to legal rules in SC, i think.

i think fidelity charges other, additional fees but for a broker like the timeshare store, it is pretty straightforward to figure out.

 

[com_op_2000]

It is just like any real estate contract, all things are negotiable in a resale contract. You will find some sellers that will negotiate and some that will not. As long as both parties agree to the terms, sign the contracts, and complete the terms the contract you will have a fully executed contract.

 

[crisi]

DVC contracts are no different than any other real estate transaction. Supply and demand, price, terms and location determine price and days on market.

Also like other real estate transactions, fees can vary depending on the parities involved.

Bill

Supply and demand can be the biggest risk. If the question is being asked from a "I want to buy and if I can't afford it, I need to know I can sell it" perspective (and its a good thing to think about before you buy), the biggest risk is that there will be another event like the 2008 recession - where you are unlucky enough to loose your job and sell your contract - in the face of high unemployment and a whole lot of economic uncertainty.

If we consider that the "worst case" prices were about 40% lower than they are now and contracts sat for months in some cases - particularly anything that was priced higher because people had to pay off loans. But even then, if you put it up for cheap enough, it would be gone in a day or so.

 

[disneynutz]

Supply and demand can be the biggest risk. If the question is being asked from a "I want to buy and if I can't afford it, I need to know I can sell it" perspective (and its a good thing to think about before you buy), the biggest risk is that there will be another event like the 2008 recession - where you are unlucky enough to loose your job and sell your contract - in the face of high unemployment and a whole lot of economic uncertainty.

If we consider that the "worst case" prices were about 40% lower than they are now and contracts sat for months in some cases - particularly anything that was priced higher because people had to pay off loans. But even then, if you put it up for cheap enough, it would be gone in a day or so.

The last bunch of contracts that we sold were at a $10,000 loss including fees compared to their purchase price. Buy high, sell low, that's my motto!

Bill

 

[wordwitt]

I bought a small contract resale (BWV) and sold it within 6 months for a profit. The contract was on the market for less than 24 hours (this was recently). I sold it because I saw the appreciation, and I realized that, for us at least, our home resort doesn't matter much because we will never, ever book at 11 months. So my plan was to sell the small contract (I do have another one) and buy a few more points at one of the less expensive resorts. But I know my good fortune was fueled by demand for small contracts and for small contracts at BWV in particular.

 

[dundey]

As for buyer fees, we just agreed on a 100 point contract at BLT.
Fidelity is the broker and closing is $425, but I specifically asked that Magic Vacation Title be the closing agent since I've dealt with them before and had good experiences.

Fidelity also charges a $195 admin fee. Other brokers do not, but Fidelity had the best per point price (I'll let everyone know after it passes ROFR) and the seller was somewhat flexible.

Signed the contract on 11/24, sellers signed on 11/26 and went to ROFR on Dec. 2nd. Not bad considering the long Thanksgiving weekend was in between!