Insane amount for 30 points BWV?

[sasmmb]

OK, after our recent stay we decided we needed "a few more points". Found a 30 point contract at BWV (our home resort) with our same use year. I know small contracts like this go for a premium but is it insane for it to be $97 with 30 points banked from 2014 (negotiated down from original of $99)? Or is this what is to be expected? We bought really low a few years ago ($58 for 150), so I think I may just be in general sticker shock.

 

[Msmithmd]

Nope, sounds about right for a contract of 50 points or less. It's a whole lot cheaper than $130pp from DVC direct.

The reason small contracts cost more is that they are often what existing members are looking for- and existing members are vastly more likely to be aware of the resale market. I'm confident a meaningful majority of first time owners just buy on or soon after their tour and don't even spend the time to check out what they are purchasing via Internet research.

The guides may mention resale, but they do it in such a new-car-sales sort of way as to make it sound to a rookie that resale isn't a good choice.

After owning a few years, a lot of owners decide they need a few more points to add at their home resort, or maybe decide they want the eleven month advantage at a different property every other or every third year. Enter the small add-on contract.

And, years into ownership, a lot of those current owners have browsed the Internet enough to find sites like this one or others that make them understand why a resale purchase is a wise financial decision. Thus, creating a higher demand curve for the small contracts that come to aftermarket.

 

[DebbieB]

I was shocked that a friend of mine sold her 50 point HH contract in the $90's. This was about 5 years ago when HH was going in the $50's.

If you are going to have to pay closing costs, you may want to call DVC direct.

 

[DizBub]

If you are going to have to pay closing costs, you may want to call DVC direct.

On the other hand this contract does have 30 banked points. If you go direct you may have to wait months to get your points and may or may not get 2014 points. Any one know how much closing costs on 30 points resale?

 

[DebbieB]

On the other hand this contract does have 30 banked points. If you go direct you may have to wait months to get your points and may or may not get 2014 points. Any one know how much closing costs on 30 points resale?

If you buy direct, you typically will get current year points, which would be 2014. If you buy this month with a December use year, you may even be able to get 2013 points.

According to the timeshare store website, closing costs on 30 points is $331. I'm not sure what the current status of closing costs is with DVC direct.

This listing has no 2014 points and is asking $96 per point.

http://www.dvc-resales.com/detail.cfm?ID=BW30-10-1029

 

[JustTinking]

I wanted to add on 75 BWV points last year, and after combing the resale market for months, I ended up buying direct. The wait for direct points was close to 9 months, so I wouldn't hold out for getting anything direct this year. If you've found a resale contract, and it's your use year, grab it.

 

[djohn06]

I was shocked that a friend of mine sold her 50 point HH contract in the $90's. This was about 5 years ago when HH was going in the $50's. If you are going to have to pay closing costs, you may want to call DVC direct.

5 years ago HHI was $80 direct. For someone to sell resale for $90 makes for a very questionable transaction.

 

[Dean]

OK, after our recent stay we decided we needed "a few more points". Found a 30 point contract at BWV (our home resort) with our same use year. I know small contracts like this go for a premium but is it insane for it to be $97 with 30 points banked from 2014 (negotiated down from original of $99)? Or is this what is to be expected? We bought really low a few years ago ($58 for 150), so I think I may just be in general sticker shock.

It sounds reasonable from a sales standpoint but is it reasonable from a purchase standpoint. My view is that it's easy to stretch to cover 30 pts a year if that's all that's needed. The other side is whether more than 30 would be better long term. Lastly, in this situation, retail may be just as good or better. Assuming you're paying closing, this resale will only save $500 and by buying resale and if you're reimbursing for dues, that's another $200. You'd still get the 2014 points and get the points immediately and get access to members cruises if your other points are not qualified. Now it may be that DVD doesn't currently have what you need and that'd be a factor.

My suggestion if you haven't already committed is lay out the numbers for resale and retail and if retail looks reasonable, check with DVD to see if they have points in your UY. I'd also go through the thought process whether 70-150 additional points would be reasonable in the situation. If it is, one might consider a different home resort to give more long term options, that further opens up the possibilities and contracts to pull from.

 

[supersnoop]

5 years ago HHI was $80 direct. For someone to sell resale for $90 makes for a very questionable transaction.

Since Disney restricts a initial purchases to 100 points, it could make sense for a new member to pay more than direct for a smaller contract. Of course, that would be a very specific circumstance.

 

[DebbieB]

Since Disney restricts a initial purchases to 100 points, it could make sense for a new member to pay more than direct for a smaller contract. Of course, that would be a very specific circumstance.

At that time I think it was 150.

 

[Dean]

Since Disney restricts a initial purchases to 100 points, it could make sense for a new member to pay more than direct for a smaller contract. Of course, that would be a very specific circumstance.

They sometimes allow less as an initial purchase. It tends to come and go but it can be as little as 50 points direct. For those looking at a combo of retail and resale it's usually best to buy the resale first and try to match up the retail to that contract due to the difficulty of matching a specific option buying resale. But it can vary with specifics and the resorts in question.

 

[Darklord77]

I paid $105 in closing costs on a 30 pt direct contract add-on this year.

 

[zavandor]

Since the contract is loaded with banked points, you can easily rent those for $13 pp or even more. So comparing with a contract with only current year points, like a retail one, the cost would be "just" $83 pp. Still a lot, but small contracts are sold for a premium and would resale for a premium as well in case you'll want to sell them in the future.

 

[sasmmb]

Thanks for all your input and replies. Sounds like it is enough in the ballpark to pull the trigger.

 

[djohn06]

Since Disney restricts a initial purchases to 100 points, it could make sense for a new member to pay more than direct for a smaller contract. Of course, that would be a very specific circumstance.

I guess it makes sense. Just not financial sense.

I bought 150 HHI points last year resale for $44 and I split closing. Hard to fathom someone buying the same resort and getting half as many points.

 

[Best Aunt]

OK, after our recent stay we decided we needed "a few more points". Found a 30 point contract at BWV (our home resort) with our same use year. I know small contracts like this go for a premium but is it insane for it to be $97 with 30 points banked from 2014 (negotiated down from original of $99)? Or is this what is to be expected? We bought really low a few years ago ($58 for 150), so I think I may just be in general sticker shock.

I listed a 25 point BWV contract for $125 per point earlier this year. Just four hours after it was listed on the resale company's website, I got a call that there was a buyer willing to pay full asking price. No banked points. No borrowed points. 25 points from current use year were available.

So no, it is not insane to be $97 per point.

 

[got4boys]

Small point contracts are great for ones that want the DVC membership perks (Annual Pass Discount) without buying a lot of points.