Irrational DVC Resale Pricing???

[Anthony1971]

No, the whole point of that post is that MOST people can book at their home resort at 11 months. Your idea that many people cannot is just simply not true, with the exception of a select few rooms or the highest demand seasons.

In order to sell their product, they must make their customers happy......if a lot of people get fed up that they are blocked out of rooms everywhere even earlier, it will slow referrals and if there is no real home resort advantage why would anyone buy a new resort, they would merely purchase at the cheapest available option.

Truthfully, you are attempt to troll the thread an get people upset for no real reason. You make unsubstantiated remarks, saying that DVC is leaning towards this booking window and that most people can't book when these statements are not factually based.

so what you are saying is Disney pushes in its presentation that you NEED the home resort advantage or you can book anywhere at anytime?

This is about education Disney will always sell retail. I do not agree that most can book at 11 months... while a lot may book they end up changing dates some multiple times...

In most cases I have been able to get the resort I wanted at 7 months and always had options even for early Dec and the F&W festival... if not you waitlist and have a very good chance of getting what you want...

will people be less happy after they bought maybe.... some are easy going and some are not....
This would not end DVC in fact it may enhance its sales of off property resorts more options.......and this would make the NEW customers happy.

The end of DVC was no more free Valet parking a while ago.... a lot may have sold for this reason who knows.....

 

[rlovew]

I have never heard Disney saying buy where you wnat to stay-- they sell DVC as having options.
If you can not book at 11 months out cahnces are you can not book at 8 making the present system as good as a new 11/10 for most --
I do not think most people buy because this is BLT or SSR I think they buy because this is what is being sold

They are definately pushing this idea at the BKLT owner sessions. They are suggesting you need to buy where you want to stay to get into smaller resorts (Beach Club/BLT are the 2 smallest resorts by number of rooms availanle to book), speacail services (AKV concierge), different accomidations(Treehouses). It was obvious that their intentions with this was to let you know there were exclusive areas that you might not get into if you didn't own points there- this session was for DVC members.

 

[JimMIA]

I am comparing apples to apples it does not seem you can get a SSR contract for 65.00 that has the current points seems to be closer to 75.00

You are just pulling numbers out of thin air.

If you bother to look at the TTS listings at the top of this page, you will see that SSR resales list from a low of $61 pp to a high of $75. That is the listing price, NOT selling price. If you research a little more and scroll down to the Sale Pending SSR items you will see a highest selling price of $71 (for a tiny 30 point contract with banked points) to a low of $60 (300 point). If you bother to do some simple math, I think you'll find the average selling price is in the mid-$60's -- nowhere near $75.

Once again, $110 (the direct price including the best current incentive, not the top price) - $65 = $45 per point savings via resale.

On the 200 point purchase you would need to get the $110 price direct, that would be a resale savings of $9,000.

plus you will need to pay the MS dues which are prorated you can get away with almost the full amount from Disney

I have no idea what you mean to say here -- just can't make any sense of this.

But generally with resale, the 2010 dues will already be paid and no reimbursement will be expected. That's negotiable, of course, but the normal practice is paid dues aren't reimbursed.

Buying direct from Disney is where you WILL always pay the pro-rated dues from your closing until the end of the year. So you'll usually pay more dues with a direct purchase than you will with resale.

This will reduce your number by lest say another 14.00 a point.

Seriously...where in the world did you get that number??? If you pulled it from where I think you did, don't post that info -- it would be a violation of DIS posting policies!

You really don't understand the math part of a purchasing decision at all, and your misinformation could seriously mislead a newbie reader.

 

[JimMIA]

When we bought BLT last year, our guide ABSOLUTELY discussed that BLT was very small and if we wanted to stay there, we would need home resort priority for most stays...

Not saying that all guides do it, but mine certainly used this as an important part of closing the deal!

That is simply not true. BLT is one of the medium-sized resorts, about the same size as BWV. I don't have the exact figures, but I think it is the 4th or 5th largest. Certainly NOT small.

The only really small resorts at WDW are VWL and BCV. All of the other WDW resorts are pretty bookable at 7 months, except for peak periods.

You WILL need the 11-month booking window (assuming you are able to plan and book then) for special views, accommodations, peak periods, etc.

 

[JimMIA]

(Beach Club/BLT are the 2 smallest resorts by number of rooms availanle to book

BLT is NOT a small resort - see post above.

BCV is small, but carefully consider your options. Disney is charging $115 per point for BCV and BWV!

From a quick look at sales pending on the TTS listings, most BCV resales appear to be selling in the low-$80's range. That's a resale savings of $30-$35 PER POINT.

 

[disneynutz]

You are correct. This would cause many DVC owners to sell (I think would have thousands of upset owners) causing The Timeshare Store, Inc.® to have a huge increase in sales.

Jason

you can't sell if you can't find a buyer. Disney is really smart.

 

[crisi]

That is simply not true. BLT is one of the medium-sized resorts, about the same size as BWV. I don't have the exact figures, but I think it is the 4th or 5th largest. Certainly NOT small.

The only really small resorts at WDW are VWL and BCV. All of the other WDW resorts are pretty bookable at 7 months, except for peak periods.

You WILL need the 11-month booking window (assuming you are able to plan and book then) for special views, accommodations, peak periods, etc.

Worth repeating. If you are happy with "any room in the Epcot area" there are only a few times of year where 7 months is problematic - and even then, if you call right at seven months you might get lucky as often as not. Where people tend to get disappointed is when they get "stuck" with preferred view BWV at seven months. Or there aren't any MK Views at BLT. Or there aren't OKW Grand Villas. Or they can't get two beds in a two bedroom at BCV. And sometimes those things ARE available at seven months as well - but not so consistently that you can bet your vacation on it.

And while I love VWL, for a small resort its often possible to book most of the year six or seven months out. It seems to be less popular for its size than some of the others.

 

[Anthony1971]

You are just pulling numbers out of thin air.

If you bother to look at the TTS listings at the top of this page, you will see that SSR resales list from a low of $61 pp to a high of $75. That is the listing price, NOT selling price. If you research a little more and scroll down to the Sale Pending SSR items you will see a highest selling price of $71 (for a tiny 30 point contract with banked points) to a low of $60 (300 point). If you bother to do some simple math, I think you'll find the average selling price is in the mid-$60's -- nowhere near $75.

Once again, $110 (the direct price including the best current incentive, not the top price) - $65 = $45 per point savings via resale.

On the 200 point purchase you would need to get the $110 price direct, that would be a resale savings of $9,000.

I have no idea what you mean to say here -- just can't make any sense of this.

But generally with resale, the 2010 dues will already be paid and no reimbursement will be expected. That's negotiable, of course, but the normal practice is paid dues aren't reimbursed.

Buying direct from Disney is where you WILL always pay the pro-rated dues from your closing until the end of the year. So you'll usually pay more dues with a direct purchase than you will with resale. Seriously...where in the world did you get that number??? If you pulled it from where I think you did, don't post that info -- it would be a violation of DIS posting policies!

You really don't understand the math part of a purchasing decision at all, and your misinformation could seriously mislead a newbie reader.

You are not taking into consideration ALL factors which is a common mistake so here is the equation to help understand the true price.

price of retail
-price of resale
-incentives offered by Disney
+/- difference in closing costs (you can negotiate with buyer)
- price difference for location (Disney puts a value of 15 for BLT to SSR 110-95 if they still sell SSR for 95) (use same formula for other resorts) you can put any number you want for some it is 0 for others it is priceless
+/- differece MF you must pay to seller and Disney (seller can charge you all MF for current years points Disney prorates them)
+/- Rental fee for anything less then current years points and points coming on use year date or points that would be banked from previous year (Disney put a value of 10 in previous years)
- any benefit you will receive being able to pay the full amount of the contract via credit card through Disney if you can pay cash (multiple scenarios here)
+/- any difference you will pay in financing fees for a rate the would get through Disney and rate through an outside timeshare finance company. (you can also use an outside loan for both in which case you fees will be the same)
+/- a value for length of contract (Disney does not have this in its values as pricing for SSR and BC, BW etc shows) Ex 2054 SSR expires BLT expires 2060 if I sell my BLT contract for one dollar a point in 2054 there is a value. (I do not know if i have the expire years correct)
+/- (this is petty but a cost) any interest you will gain for not having a down payment with a resale company as with Disney you get use of point now.
- a value for time and stress to buy a resale –yes every ones time is worth something –let me know if not I have some things I am to lazy to do and if you will help for free I will gladly accept

another consideration will be can you make a reservation for this year with Disney you gate to make a reservation now and the guide will help with a resale you need to wait at least a month sometimes a lot longer and that assumes you already found the contract you want

Not all of the above applies to everyone you most choose which ones you need based on the contract being considered. There are also other considerations for future expenses I am just considering present value with this

This will help with an informed decision not A-B=C which you imply. As I stated earlier A-B=C works well but is by far not the true difference. Which works for you is your decision. In the end a better price is not always a better a price when you have to drive 50 miles to save 5 dollars or get 1/2 % discount for paying cash when you can get a 1% reward form a credit card plus the use of the money for a week to 5 weeks.
But to each is own

 

[JimMIA]

You are not taking into consideration ALL factors which is a common mistake so here is the equation to help understand the true price.

price of retail
-price of resale
-incentives offered by Disney
+/- difference in closing costs (you can negotiate with buyer)

Those are exactly the numbers I used to get to $2000 resale savings for BLT and $9000 resale savings for SSR!

The best current direct price for BLT, including the incentive for buying 200 points is $110. (If I am wrong, somebody knowledgeable please correct me!)

The average resale selling price of BLT appears to be about $100, probably silghtly less, as detailed earlier. The average selling price of SSR is about $65, as detailed earlier.

Using those numbers, the raw savings are roughly $2000 buying BLT resale or $9000 buying SSR.

In an earlier example I assumed the buyer would pay all of the closing costs on a 200 point SSR purchase, but they might not have to. That's where I got $8,500 savings instead of $9000.

The following claims are bogus as discussed below.

- price difference for location (Disney puts a value of 15 for BLT to SSR 110-95 if they still sell SSR for 95) (use same formula for other resorts) you can put any number you want for some it is 0 for others it is priceless

Now seriously Anthony...please tell me you don't believe that. If you do, you should buy BWV, because they say that's worth $115. Disney says (for their own financial gain) SSR is worth $95. The free market says it's only worth $65 (and I AM an SSR owner).

+/- differece MF you must pay to seller and Disney (seller can charge you all MF for current years points Disney prorates them)

Again, you just have this backwards. Current year MFs are already paid by the seller, and they rarely want reimbursement because MFs have nothing to do with points. If they do ask, just say no.

Disney does charge you the pro-rated MFs, and that's non-negotiable. So if you want to consider current year MF's you have to add that to your cost of buying direct.

+/- Rental fee for anything less then current years points and points coming on use year date or points that would be banked from previous year (Disney put a value of 10 in previous years)

Totally bogus for several reasons. First, it assumes a resale purchaser would not have the option of renting, which is obviously not true. Second, it assumes the direct buyer would want to rent (which the vast majority of owners do not do for a variety of reasons), and that they would be successful in renting every one of the points, and that they would suffer no loss from the risks associated with renting. You know what happens when we assume...

- any benefit you will receive being able to pay the full amount of the contract via credit card through Disney if you can pay cash (multiple scenarios here)

To really count that fairly (and we're probably talking about dozens of dollars here ) the buyer would have to receive a cash benefit that they could spend anywhere, and that same benefit could not be available anywhere else. I don't think it's going to add up to $2,000!

+/- any difference you will pay in financing fees for a rate the would get through Disney and rate through an outside timeshare finance company. (you can also use an outside loan for both in which case you fees will be the same)

Or...you could pay cash and the number would be zero.

Tell you what you do -- take that beautiful financing deal from Disney and multiply the monthly payment X the number of months of the loan. Do the same math for a resale, using the resale price and finance rate. Those are your true acquisition costs. Compare the numbers -- the difference is the real savings for a financed purchase of one method over the other.

Then, divide your totals by the number of points you are buying -- that's your true per-point cost.

If you do that math, you probably won't buy either one when you realize the true cost!

+/- a value for length of contract (Disney does not have this in its values as pricing for SSR and BC, BW etc shows) Ex 2054 SSR expires BLT expires 2060 if I sell my BLT contract for one dollar a point in 2054 there is a value.

Assuming anything but a zero value for any timeshare 30+ years down the road is foolhardy.

+/- (this is petty but a cost) any interest you will gain for not having a down payment with a resale company as with Disney you get use of point now.

You're right -- not worth considering.

- a value for time and stress to buy a resale –yes every ones time is worth something

How about the stress of realizing later you made a $9,000 mistake? How about the stress of buying direct in this thread? http://www.disboards.com/showthread.php?t=2526090

another consideration will be can you make a reservation for this year with Disney you gate to make a reservation now and the guide will help with a resale you need to wait at least a month sometimes a lot longer and that assumes you already found the contract you want

I just can't feel sorry for anyone who makes such an important decision based on something like that. You just can't help folks who think that way. They lead very difficult lives.

 

[weaver9710]

Not for or against your argument. Just correcting an error. 200 points at BLT is 110 when purchased direct. With that you receive 09 points worth $10/pp on the rental market. You will also be getting 2010 points which can also be converted to $10/pp. Most of the SSR contracts selling for $60 to $65 are stripped. If they don't include any points until 2011 then your gap shrinks by $20/pp. That brings the price difference to $25 to $35..... not $45. I don't think it would be hard renting BLT at 11 months. Whether you choose to rent or not that is your choice but the value is still there.

 

[JimMIA]

With that you receive 09 points worth $10/pp on the rental market.

You receive those points because you are buying them. You are buying in that contract's 2009 UY and you are just getting the points you are buying for roughly $7 per point. Nobody is giving you anything.

Now...you want to actually realize that huge $10 windfall? First of all, you have to realize that you're really only looking at a $3-4 net because you paid for the points. Then, you have to successfully rent every one of those points to get the full revenue. If you can rent only half, you lost money.

To rent successfully, you will first have to learn how to go about renting. Then you will have to research the risks -- little things like last minute cancellations causing you to lose the points entirely, bill-to-room items unpaid and charged to YOU, damage to the villa by people you rent to, etc.

And, by the way, you will be in competition with experienced owners with excellent reputations who have been renting for years and are very good at it.

You really want to go through all that? Most of us who have researched renting have decided not to.

You will also be getting 2010 points which can also be converted to $10/pp.

So will the resale buyer, so that's a wash at best. And if you continue down that path, you could rent all your points each year and make a big profit! In the real world, most DVC owners buy their points to use them for their own vacations.

Most of the SSR contracts selling for $60 to $65 are stripped. If they don't include any points until 2011 then your gap shrinks by $20/pp. That brings the price difference to $25 to $35..... not $45.

If that's a negative factor for you, don't buy a stripped contract. Nobody's holding a gun to your head and making you buy a stripped contract. And you're not going to purchase "Most of the SSR contracts." You only need one good one.

Be patient and buy one with full points. Or buy one like TTS' SS320-09-0804: 320 SSR points, October UY, 320 points + 111 banked coming on 10/1/2010 and full points on 10/1/11...ASKING price $66 per point. (not my contract, BTW, just so nobody thinks I'm advertising)

Full contracts are out there and the savings are worth waiting for.

I don't think it would be hard renting BLT at 11 months. Whether you choose to rent or not that is your choice but the value is still there.

No -- if you don't want the aggravation of renting for a $3 net, there is zero rental value. The only value with that argument is as a sales gimmick for a timesharre salesman.

The real value of DVC points is the smiles on your kids faces. Don't be mislead by smooth-talking snake oil salesmen.

*****
Don't get me wrong. I don't care if someone buys BLT. I don't care if someone buys direct from Disney. I've bought direct from Disney.

What I don't like, though, is people being intentionally misled by timeshare salespersons into thinking they are getting a "deal" when they are not.

Or being misled into thinking they are purchasing in the most cost-effective way when they are not.

As consumers, we have to protect ourselves. Nobody else will protect us...least of all a timeshare salesperson.

 

[Jason@dvcstore]

you can't sell if you can't find a buyer. Disney is really smart.

If Disney is so smart than they would figure out a way to sell their product so that no one EVER wants to sell their points for any reason. If that was the case there would not be a single resale on the market. The demand for DVC would be much higher and they could sell it for more per point. Disney is not that smart. They still can't prevent someone from canceling their BLT purchase from Disney and buying a Saratoga Springs resale contract via resale for $65 per point especially when that buyer plans to make vacations 5 months in advance or less.

Also not sure how Disney is going to prevent buyers from finding The Timeshare Store, Inc.® (blindfold them after leaving the presentation and telling them they have no access to a computer ever) so I think we will be fine.

To all sellers or future sellers out there: Don't worry as there will always be buyesr for your points should you ever have the need to sell.

Jason

 

[JBx3]

JimMia, thanks. As you always do..... help place reality and logic into the threads and in particular this thread.

I caught this thread late and the last 2 or 3 pages are somewhat amazing as to how one views things from not being able to book home resort at 11 mos. to how ones sees at least a $14.00 add back into resale cost????? Wow!

I just added HHI (Resale)

Disney direct - $80.00 a pt x 150 points = Total cost $12,000. No closing , no MF's for 2009 bonus points, so my acct. would show 300 total point

Resale = $48.00 a pt. x 150 points, buyer pays closing of $425. Seller pays MF's until Jan. 2011. 147 points from 2009 banked (equals Disney direct previuos year bonus points) , so my acct. will show a total of 297 points. total cost $7,325.00

Savings $4,675.00 and basically same 2009 and 2010 point totals

How in the world does someone add back $14.00 a point to resale?

Someone is a bit off on the reality check and it sure is NOT JimMia.

JimMia, thanks again for your truthful and factual logic in keeping this thread right side up for newcomers who may be viewing it!

 

[DebbieB]

so what you are saying is Disney pushes in its presentation that you NEED the home resort advantage or you can book anywhere at anytime?

It depends on the resort they are selling. Many people who bought SSR reported that they were told they would be able to book anywhere with no problem. Some of those people are then disappointed when they try to book elsewhere at 7 months. There was a post a couple of years ago from an SSR owner who was furious she could not get BCV in October, even with the waitlist because that was how it was sold to her. DVC sales used the popularity of the other resorts to sell SSR.

 

[Anthony1971]

It depends on the resort they are selling. Many people who bought SSR reported that they were told they would be able to book anywhere with no problem. Some of those people are then disappointed when they try to book elsewhere at 7 months. There was a post a couple of years ago from an SSR owner who was furious she could not get BCV in October, even with the waitlist because that was how it was sold to her. DVC sales used the popularity of the other resorts to sell SSR.

I agree with most of what you say... I am talking of NEW memeber presentations only and I have sat in on 3 in the last year and less than a half where BLT, AKV, GC and SSR were being sold....they gave the prices on all three and some how on a side note AKV was the lowest price???
My point is if Disney were to advertise and sell this as you can only book at this resort to (again NEW) they would never sell it...
As owners you find different. what Disney showed as easy may not be and also trading out may not be the best choice... The main presntation is about options.... they sell vaction memories not the true program.
I think it is a good program but I never went to a presentation before I boought I knew how it worked as I had family who bought in in the 90's wish it was me....

 

[Anthony1971]

Those are exactly the numbers I used to get to $2000 resale savings for BLT and $9000 resale savings for SSR!

The best current direct price for BLT, including the incentive for buying 200 points is $110. (If I am wrong, somebody knowledgeable please correct me!)

The average resale selling price of BLT appears to be about $100, probably silghtly less, as detailed earlier. The average selling price of SSR is about $65, as detailed earlier.

Using those numbers, the raw savings are roughly $2000 buying BLT resale or $9000 buying SSR.

In an earlier example I assumed the buyer would pay all of the closing costs on a 200 point SSR purchase, but they might not have to. That's where I got $8,500 savings instead of $9000.

The following claims are bogus as discussed below.Now seriously Anthony...please tell me you don't believe that. If you do, you should buy BWV, because they say that's worth $115. Disney says (for their own financial gain) SSR is worth $95. The free market says it's only worth $65 (and I AM an SSR owner).
Again, you just have this backwards. Current year MFs are already paid by the seller, and they rarely want reimbursement because MFs have nothing to do with points. If they do ask, just say no.

Disney does charge you the pro-rated MFs, and that's non-negotiable. So if you want to consider current year MF's you have to add that to your cost of buying direct.Totally bogus for several reasons. First, it assumes a resale purchaser would not have the option of renting, which is obviously not true. Second, it assumes the direct buyer would want to rent (which the vast majority of owners do not do for a variety of reasons), and that they would be successful in renting every one of the points, and that they would suffer no loss from the risks associated with renting. You know what happens when we assume...
To really count that fairly (and we're probably talking about dozens of dollars here ) the buyer would have to receive a cash benefit that they could spend anywhere, and that same benefit could not be available anywhere else. I don't think it's going to add up to $2,000!
Or...you could pay cash and the number would be zero.

Tell you what you do -- take that beautiful financing deal from Disney and multiply the monthly payment X the number of months of the loan. Do the same math for a resale, using the resale price and finance rate. Those are your true acquisition costs. Compare the numbers -- the difference is the real savings for a financed purchase of one method over the other.

Then, divide your totals by the number of points you are buying -- that's your true per-point cost.

If you do that math, you probably won't buy either one when you realize the true cost!
Assuming anything but a zero value for any timeshare 30+ years down the road is foolhardy.
You're right -- not worth considering.
How about the stress of realizing later you made a $9,000 mistake? How about the stress of buying direct in this thread? http://www.disboards.com/showthread.php?t=2526090

I just can't feel sorry for anyone who makes such an important decision based on something like that. You just can't help folks who think that way. They lead very difficult lives.

I can not argue with you everyoen will use the numbers taht make them feel good about a purchase...
I have presented basic economics...
to answer a few things
Yes Location is worth extra I paid for it with my house and I would assume you did as well... The taxes a few blocks from me are almost half the 9,400 I paid this year my resale value is higher as well... why Location I am zoned for better schools and I can walk to them...
To give you a flip side I will not pay for BLT's location or BW or BC they do not appeal to me... but as they say in Real estate Location Location Location and BLT does have the best one as MK is what Disney is all about in the end.
Yes EPCOT does appeal to a lot as well hence the price of BC and BW.

Many Poeple here have reported paying The MF to the seller I have a +/- here as to if you do or not....

Rental points again +/- as either can be rented or you can rent many peopel on these boards reported buying a contract and renting the bonus points either way more less points have a value this is what you are buying in the end points to use for a vacation...

Paying in full-- you can use a cah back credit card giving you 1% of the total purchase cash it is money do not see your pint here period

Financing-- again I said you could pay cash see above I do not beleive in Finacing but that will offend a lot of people -- I do not have a mortgage on my house here in the northeast I paid it off over 2 years ago when my son was 1 1/2 that is how I feel about paying interest on anything-- but not everyone can do so or wants to...

If your DVC (do not want others) has no value to you 30 years from now please send me a contrcat that you will give me yours in 30 years form today I will gladly take it....

Interest--can be petty but I could have bought X amount of shares of Citibank at 3.75 and in less then a month they went up to 4.27 one day.. if your down payment was 3.750.00 you could have bought 1000 shares and made 520.00 dollars using scottrade 506.00 after com. yes you would need to pay your normal tax rate as you do on bank interest.... yes you would need to be a very smart and lucky investor but it can be done..

This board is riddled with people making mistakes in both cases..
bottom line hear is time does have a value and buying direct is less stressful

A lot of people in the US want it NOW period and it does have a value...

Again my points are if you wnated truly analize a purchase you may not think the way I do... But a lot of people do I bring all valid points to the table if you want to take advantage or not is a personal decison...
Price minus price might be yours and others model....that is fine...
it is not mine and never will be with a purchase this size
again I leave with this so long as a buyer feels they made the right decison that is all that counts as if you use DVC they way it was menat and it brings you years of family memories it is worth whatever price you pay... as Disney has one thing right... you can never put a price on being with family

 

[LisaS]

Disney direct - $80.00 a pt x 150 points = Total cost $12,000. No closing , no MF's for 2009 bonus points, so my acct. would show 300 total point

Other than for new construction, Disney starts buyers off with a full set of current UY points if they have them available but they are not free of MFs. You pay pro-rated MFs starting from your purchase date. If the first set of points was truly free of MFs then your pro-rated MFs would begin on the first day of your next UY.

For example if you purchased a contract with an Oct UY today (Aug 6, 2010) your first set of points would be Oct 2009 points if available and you would pay dues starting from your purchase date so you would pay approximately 148 days worth of dues for 2010. If the Oct 2009 points were really free of MFs then your pro-rated dues would start when you receive the 2010 points on Oct 1, 2010 which would be 92 days worth of dues for 2010.

ETA: Let's look at a more extreme example where someone purchases an add-on with a Dec UY on Jan 1, 2010. They start with Dec 2009 UY points and pay "pro-rated" dues for 2010 starting from Jan 1st meaning they pay a full year's worth of dues. If the 2009 points were really free, dues would begin on Dec 1, 2010 and they would pay only 30 days worth of dues.

 

[JBx3]

OK, got it and that makes sense, thank you. In the end this then only enchances the resale add on we did at HHI, not take anything more away from the direct vs. resale difference already gained.

 

[LisaS]

For completeness' sake, the rule is that pro-rated dues begin on the later of your purchase date, the start of your initial Use Year (which is normally back dated) or the occupancy date of the Unit you purchased.

So if you purchased a contract with a Sep UY today, your Unit is already open and you got Sep 2009 points then pro-rated dues would begin today. If they were out of Sep 2009 points, your initial UY would be Sep 2010 and dues would begin on Sep 1, 2010. If you purchased new construction today with an Sep UY and your Unit had an occupancy date of Dec 1st and your first points were Sep 2010 points, pro-rated dues would begin on Dec 1, 2010.

The reason I bring all this up is that many people report that Disney is telling them the 2009 points they receive with their purchase are "free". If Disney is being careful, they are saying something like "You get 2009 points but you don't pay 2009 MFs" which is true. But you do pay some 2010 MFs on those points so they are not totally free of MFs.

 

[JBx3]

Yes, LISA `S thanks. I do kind of remember my first direct buy contract and that is how I remebered it. On my resale this past month, who different story, seller paid all 2009 MF's and my 2010 point Dec. UY, start in January 2011.

I agree when buying direct, Disney sure promotes those free cuurent year points with the little spin on "some MF's for 2010" as you mentioned.

I had a hard time finding how the OP mentioned that you should "add back in" about $14 to get a more accurate resale final buy in?? That one took me for a good spin for sure!