How Restrictive Will Resale Get?

[Carolynleanne]

Is anyone curious how restrictive resale contracts will get in the future? We already know the perks aren't there, and now there won't be access to the new resorts. But do you think it'll get to the point where the only thing you can book is your HOME resort? There's no guarantees, right? I remember even being told by a DVC sales guide that the fees never increased over a certain percentage, and that certainly wasn't the case this year.

 

[cruisin5]

I believe a home resort restriction is not legal. Doesn't mean they won't try it .....

 

[starry_solo]

Can't they change the window of time (in advance) to book? I forgot what it's called but 11 months for home resort, 7 months for all others. They could potentially change it to less 7 months for non-home resort people, right? That would make it more difficult for people.

 

[Madame]

Can't they change the window of time (in advance) to book? I forgot what it's called but 11 months for home resort, 7 months for all others. They could potentially change it to less 7 months for non-home resort people, right? That would make it more difficult for people.

Yes, I think the home resort priority can be as little as 1 month.

 

[Marionnette]

Yes, I think the home resort priority can be as little as 1 month.

So, could they shorten the home resort priority for resale purchasers to 8 months while still allowing direct purchasers an 11-month advantage?

 

[Madame]

So, could they shorten the home resort priority for resale purchasers to 8 months while still allowing direct purchasers an 11-month advantage?

That they could have different HRP booking dates for direct vs resale I’m not sure of. In general, the HRP window can be as little as 1 month.

 

[Madame]

So, could they shorten the home resort priority for resale purchasers to 8 months while still allowing direct purchasers an 11-month advantage?

It seems here that there shouldn’t be a resale/direct distinction, but I am not a real estate attorney. #4 indicates the shortest the priority can be is 1 month.

 

[starry_solo]

Interesting, it doesn't say anything about decreasing the amount of time for non-home resort priority

 

[jarestel]

I don't think we've seen the last of the resale restrictions since every few years they come up with some new way to torment resale purchasers. Having said that, I don't believe they would (or could) create different home resort booking windows for resale members.

 

[nkosiek]

Is anyone curious how restrictive resale contracts will get in the future? We already know the perks aren't there, and now there won't be access to the new resorts. But do you think it'll get to the point where the only thing you can book is your HOME resort? There's no guarantees, right? I remember even being told by a DVC sales guide that the fees never increased over a certain percentage, and that certainly wasn't the case this year.

Isn't this what is going to happen at the Riveria? If you buy that resale, you'll be limited to only the Riv, at least that's what I've read.

 

[sleepydog25]

Is anyone curious how restrictive resale contracts will get in the future? We already know the perks aren't there, and now there won't be access to the new resorts. But do you think it'll get to the point where the only thing you can book is your HOME resort? There's no guarantees, right? I remember even being told by a DVC sales guide that the fees never increased over a certain percentage, and that certainly wasn't the case this year.

Yes, they will get more restrictive on resale buyers. How exactly is yet to be determined beyond the new rules regarding the purchases of both Riviera and Reflections. Sales guides generally aren't any more well-versed in the intricacies of DVC than your average person who has done the research. I can't be certain what your guide told you, but maintenance fees have always been dynamic. On average they may only go up 2-3% each year, but that's not a legal requirement. Another issue was with the reallocation of points, and the latest change was met with a great deal of anger and derision from owners. Did DVD stay within the letter of the law? It appears they did; however, the reallocation was horrendous for many as it rewarded those who had plenty of points and could easily afford a 2BR while punishing those who mostly do studios and 1BRs. Apparently, though we'll never know for sure, the blow back from said owners was enough to make Disney change its mind and keep the 2019 points chart as the model for the 2020. I don't think that's the end, however. I expect another reallocation that's perhaps a bit less onerous for 2021.

 

[Wayland10]

Do you think that they will eventually stop grandfathering in existing resale contracts? For example, if you purchased resale before the Riviera restrictions kicked in, will Disney eventually apply them retroactively?

 

[_auroraborealis_]

Do you think that they will eventually stop grandfathering in existing resale contracts? For example, if you purchased resale before the Riviera restrictions kicked in, will Disney eventually apply them retroactively?

Can't easily. There is a reason this is only for Riviera and forward. It involves the condo association rules for BVT.

 

[ziravan]

Do you think that they will eventually stop grandfathering in existing resale contracts? For example, if you purchased resale before the Riviera restrictions kicked in, will Disney eventually apply them retroactively?

What would be the point?

The point of a resale restriction effective say, yesterday, is to get you to change your mind about buying a resale contract today and buy a direct contract instead.

How does not grandfathering someone who already owns and penalizing someone who’s not making that decision today help that goal?

On the other hand, enraging 300,000 owners (probably 60% of your total owners - and that’s a guess based on 10 year turnover) — while not helping with today’s sale at all — will certainly have an effect on your business model.

 

[Carolynleanne]

Hmmm. I think we may take the DVC tour again on our next trip simply out of interests sake and to see what they tell us about the future of DVC sales

 

[Wayland10]

What would be the point?

The point of a resale restriction effective say, yesterday, is to get you to change your mind about buying a resale contract today and buy a direct contract instead.

How does not grandfathering someone who already owns and penalizing someone who’s not making that decision today help that goal?

On the other hand, enraging 300,000 owners (probably 60% of your total owners - and that’s a guess based on 10 year turnover) — while not helping with today’s sale at all — will certainly have an effect on your business model.

Thank you, that makes sense!

 

[_auroraborealis_]

Hmmm. I think we may take the DVC tour again on our next trip simply out of interests sake and to see what they tell us about the future of DVC sales

I wouldn't bother.

1. Guides are the last to get real detail and have been guilty of both rumor-mongering, and outright lying about resale vs. direct.

2. Even the executives who have privileged info probably don't know the full future. Depends how long this group of execs lasts.

 

[jimim]

If they ever lowered home booking priority to 1 month that would be a real db move if I’m reading that correct.

 

[Carolynleanne]

It just seems like such a risk right now. We were very seriously considering buying at the end of last year but now, I just don't trust DVC. Has trust ever been this bad before? Or have you all bought in knowing the risks?

 

[WilsonFlyer]

Just point of clarification. I read it that at least a one month advantage must be given to owners for home resort booking. My interpretation is that could change to 8 and 7 or even 9 and 8 or 10 and 8. The only take away I see is that 30 days of advantage must be given.