How much of a premium does a small contract warrant?

[hilltopper152]

Poly and Saratoga, yes, The minimum add on is 50 for RIV. This also assumes same UY And same owners. They won’t sell you a different UY unless it meets the minimum of 150 as it would be a new membership.

I like the idea of having one small direct contract for a few studio nights at newer resorts like Riv and future. The price spread is huge though at places like Poly where I would like to stay. I would buy near epcot but every resort expires in 20 years except Riv and feel part of the value is me potentially recouping money down the road by selling but maybe I never will. 50 points is just higher than what I need as I really am just seeking to have a 2 night studio stay added to my collection of points. Struggling to figure out what to do as money is a big factor. I made a littke chart... we actually like Saratoga and considered direct there to give me booking flexibility and it is cheaper to own there. Would not be forced to buy 50 points.

		PerPoint		Points	Cost	Closing	Total Cost		Points	Pre closing Cost
Saratoga	Direct	$205		35	$7,175	$589	$7,764		50	$10,250
Saratoga	Resale	$138		35	$4,830	$589	$5,419		50	$6,900
Saratoga	Difference	$67			$2,345	$0	$2,345			$3,350
Riveria	Direct	$217		50	$10,850	$600	$11,450		75	$16,275
Riveria	Resale	$146		50	$7,300	$600	$7,900		75	$10,950
Riveria	Difference	$71			$3,550	$0	$3,550			$5,325
Poly	Direct	$250		35	$8,750	$589	$9,339		50	$12,500
Poly	Resale	$172		35	$6,020	$589	$6,609		50	$8,600
Poly	Difference	$78			$2,730	$0	$2,730			$3,900

 

[Cfabar1]

I think small direct contracts make a lot of sense for our use case right now - a few nights a year - in studios - likely at AK or MK. We could stay at swan or dolphin for Epcot/HS. We would stay no more than 3 nights at once, so the kitchen 1BR use is limited. We figure start with 50 here, 25 there, and see if we end up with what we need. Maybe we hit 150 eventually, maybe not.

We recently bought a small resale contract so that we could purchase small direct contracts in part.

I do wonder, if anyone has experience with the board sponsor and small contracts. Many of theirs are listed firm sale price. Does that mean they won’t present under asking?

 

[TCRAIG]

I think small direct contracts make a lot of sense for our use case right now - a few nights a year - in studios - likely at AK or MK. We could stay at swan or dolphin for Epcot/HS. We would stay no more than 3 nights at once, so the kitchen 1BR use is limited. We figure start with 50 here, 25 there, and see if we end up with what we need. Maybe we hit 150 eventually, maybe not.

We recently bought a small resale contract so that we could purchase small direct contracts in part.

I do wonder, if anyone has experience with the board sponsor and small contracts. Many of theirs are listed firm sale price. Does that mean they won’t present under asking?

It’s not so much that the broker won’t present an under asking offer - but rather that the seller has already told the broker that they will not consider any offer other than full asking price so don’t even bother…

 

[davidhr]

I think small direct contracts make a lot of sense for our use case right now - a few nights a year - in studios - likely at AK or MK. We could stay at swan or dolphin for Epcot/HS. We would stay no more than 3 nights at once, so the kitchen 1BR use is limited. We figure start with 50 here, 25 there, and see if we end up with what we need. Maybe we hit 150 eventually, maybe not.

We recently bought a small resale contract so that we could purchase small direct contracts in part.

I do wonder, if anyone has experience with the board sponsor and small contracts. Many of theirs are listed firm sale price. Does that mean they won’t present under asking?

My first one was a small AKV contract. And the main purpose was to become a member so I could add direct points.

The 150 minimum was too much for one resort for me. I want to own four 75 points contracts at different resorts. With banking I want take two trips per year at around 150 points. I want 4 different resorts to be able to have priority booking at those resorts. I also want my points unrestricted.

I already bought direct 75 CCV and 75 RIV. I’ll add 75 more for the Poly2. I don’t like the GFV too much, so I’m a bit hesitant to add that one. I might wait a few years for that 4th contract.

I sold my AKV contract a few weeks ago. I asked a premium for it and it sold in less than a week. I got asking price with the first offer. I sold it because AKL is easy to book and the booking priority there wasn’t as necessary as I thought it was when I joined DVC. I used that money to pay for a good portion of my RIV contract.

One thing to consider. I’m not worried about paying a premium for the points (at 75 points you don’t get the incentive), so that’s why I’m ok with direct prices. I’d have purchased direct to start if they had a lower limit or some flexibility to add multiple resorts.

 

[Cfabar1]

Same here… if direct offered 25 points to start out, I would have started direct. Blue card benefits mean very little to me, and though I may discover I want more points down the road, for now the small contracts make more sense.

 

[BWV Dreamin]

I think small direct contracts make a lot of sense for our use case right now - a few nights a year - in studios - likely at AK or MK. We could stay at swan or dolphin for Epcot/HS. We would stay no more than 3 nights at once, so the kitchen 1BR use is limited. We figure start with 50 here, 25 there, and see if we end up with what we need. Maybe we hit 150 eventually, maybe not.

We recently bought a small resale contract so that we could purchase small direct contracts in part.

I do wonder, if anyone has experience with the board sponsor and small contracts. Many of theirs are listed firm sale price. Does that mean they won’t present under asking?

Some sellers request a certain sales threshold. Some not at all. It is determined by the seller, and thus an offer not meeting the set threshold will not get presented.

 

[NEW-B]

I am only purchasing small contracts as they are easier to sell whenever I may need or want to. Much easier and quicker than trying to dump a 200+ point contract. Closing costs are minimal over the long run.

 

[Craho]

I agree. I would just buy direct for a small contract.....

I did not buy direct because I don’t want 150 points right out of the gate. My first resale is 50 and I’ll probably buy one more 50 point resale and then maybe a 50 point direct. If direct minimum was 50 I would have started there.

 

[Craho]

The savings of 2.5k to 5k are against ROFR numbers, not average selling price for 50 pt contracts. You will likely be waiting a while and putting in a lot of effort to get these prices.

When I recently bought my BWV resale contract it said that price per point was final. So I did not negotiate. Wondering if that was not smart.

 

[Cfabar1]

When I recently bought my BWV resale contract it said that price per point was final. So I did not negotiate. Wondering if that was not smart.

It sounds like based on what people wrote, if they listed it as final, the agent might not have presented your counter.