is there a better time of year to buy resale??

[scrap disney]

Hello,
I'm a long time lurker. I have been debating buy DVC for about 5 years because we go to Disney every year. Last summer we rented points and stayed at Saratago Springs and now I am sold on it. It would be hard to go back to the Pop Century or the All-Stars!
We are looking at a 150 point contract at SSR or OKW. I am not in a hurry as our next trip will be next August. So, here is my question - do contracts tend to be a little cheaper in January when everyone is dealing with the after Christmas financial hangover?? Is there a time of the year when resale prices dip a little or are prices pretty consistent throughout the year?? Just wondered if anyone had noticed any trends?
Thanks for any insights you can provide.
Jody

 

[ELMC]

Hi Jody,

I think the trend we are noticing for calendar year 2012 is that there were more choices and lower prices from the beginning of the year until about March or April. Currently (in my opinion) there are very few really great looking contracts out there. That being said, there are still deals to be had, especially when you consider the difference between buying direct and buying resale.

Speculation is that as the holidays approach and people need money for other reasons there might be more people who choose to sell and fewer people who choose to buy. I'm not so sure I agree with that. There is also speculation that December/January will see an influx of contracts for sale as people are getting their bills for their annual maintenance fees. That I believe.

It's hard to pinpoint a long term trend because the changes made to resale contracts last year had a profound impact on the demand, as people were flocking to purchase resale contracts before the changes took place.

One thing to consider, though...if your next trip is August of 2013 and you would like to book at the 11 month window, the time to start looking for a contract is now. It will take approximately 3 months to close, which would put you right at the beginning of your 11 month booking window. If this isn't a big deal to you, or if you are not going to be booking a high demand location, then you can be more relaxed in your timetable. Good luck!

 

[lions1995]

I would have to agree that best probably time would be near the end of the year when people are trying to avoid the MF for the following year.

It is important to remember that the list price is only the starting point. I only made one purchase resale though I have been through some bids / counterbids and I hope to be signing my scond contract soon. I can say in MY experience, asking for a reduction of $10 / point from the asking price is not unreasonable. The current contract that I am waiting for is $17 below the orginal listing (though it has dropped since then).

I will tell you I have planned years ahead of what I needed and tracked 4 of the major resalers websites every month. I can therefore go back and see how long a given contract has been on the market (one month or 10 months) and what the orginal price was and the latest. It certainly helps determine who might be in a more negotiable mood. Lastly, if the resort / point range you are looking for is plentiful it will probably be easier to negotiate. However, if there are few contracts out for that resort (such as BWV at the moment), it will be harder.

Good Luck Hunting.

 

[AJA]

We've been looking for a while (only recently made an offer and now waiting to hear regarding ROFR) and there are def more contracts in the late fall/early winter. I'm sure it has something to do with the MF's for that year coming out, holiday expenses, and just the overall cost of living in winter in most US states.

Maybe the listed prices aren't that far off from where they are now, just more competition because there are more contracts listed and probably fewer people ready to buy with cash in hand in the middle of winter too.

 

[AllieV]

Ok, this is going to sound really morbid, but here's how I see it:

1) Most contract holders are Floridians. Floridians trend older than other states. More older people die in the heat of summer than any other time of year. The surviving spouse often puts it up for sale; so fall or winter for those contracts. Often these are loaded.

2) Divorcing couples involving families who have loved disney may take one last summer trip for the kids before selling the contract; so fall or winter for those contracts (usually stripped contracts).

3) Grown kids going off to college may trigger a sale of a contract (the contract is too big now; they need college funds; empty-nesters want to buy smaller at a different home resort). But there may be one last summer trip before it goes up for sale. Stripped, fall or winter sale.

4) Smaller contracts of 25 or 50 points are quickly scooped up in the first quarter of the year by people getting a tax return or company bonus. Lots of competition, but you don't want that size anyway.

5) There is less competition closer to the holidays, which means more offerings staying on the market longer. This makes for more choices and possibly more wiggle room in price.

Just my thoughts, not hard rules.

 

[ELMC]

1) Most contract holders are Floridians. Floridians trend older than other states. More older people die in the heat of summer than any other time of year. The surviving spouse often puts it up for sale; so fall or winter for those contracts. Often these are loaded.

I am fascinated by how your mind works.

 

[Shazzasmd]

Ok, this is going to sound really morbid, but here's how I see it:

1) Most contract holders are Floridians. Floridians trend older than other states. More older people die in the heat of summer than any other time of year. The surviving spouse often puts it up for sale; so fall or winter for those contracts. Often these are loaded.

...

Yes, yes - we older Floridians due tend to die. Most of us keep the A/C on in the summer to minimize the risk of heatstroke.

All I can say is, there seemed to be lots of contracts available in Feb - April when we were thinking about buying. Once I got serious, there seemed to be a lot fewer. Having a hard time finding the BCV contract I want - hoping to have more luck by year end (for whatever the reason)

 

[Missyrose]

I am fascinated by how your mind works.

 

[DougEMG]

I think the trend we are noticing for calendar year 2012 is that there were more choices and lower prices from the beginning of the year until about March or April.

I agree with that. Better deals seem to happen early in the year what with Christmas bills, MF bills and Tax bills all come due.

The one downside is that you might not have a contract in time to make an AUG booking. You should give yourself a minimum of 2 months and really as safety 3 months from offer to getting the points in your membership.

 

[scrap disney]

Thank you for all your replies! All of you are such a wealth of information. I am definitely going to continue to monitor the large resale companies but I'll likely hold off until the fall or early winter! I realize that I will have to give myself enough time to secure a reservation for next August but that's the gamble I am willing to take at this point.
Thanks again!
Jody

 

[ELMC]

I am fascinated by how your mind works.

For the record, for all to read, and especially for Allie to read, this was not intended as an insult. I look forward to Allie's posts because they are almost always unexpected and they certainly represent a different point of view than my own. I just wanted to clarify so that there aren't any hurt feelings. I apologize for any unintended harm my comment may have caused.

 

[AllieV]

I am fascinated by how your mind works.

I actually hear this a lot. No offense taken. When co-workers are stuck, they often call me in, give me the briefest explanation, then see my response. It's never a solution, but things I say get them thinking in a different direction and they find their way quickly after that. You should hear some of my other theories. They make sense to me.

 

[DougEMG]

I actually hear this a lot. No offense taken. When co-workers are stuck, they often call me in, give me the briefest explanation, then see my response. It's never a solution, but things I say get them thinking in a different direction and they find their way quickly after that. You should hear some of my other theories. They make sense to me.

Thinking outside the box is a good thing

 

[princessaloha]

i am fascinated by how your mind works.

me too!!!

ETA: this is my 100th post. WOW.

 

[Shazzasmd]

I actually hear this a lot. No offense taken. When co-workers are stuck, they often call me in, give me the briefest explanation, then see my response. It's never a solution, but things I say get them thinking in a different direction and they find their way quickly after that. You should hear some of my other theories. They make sense to me.

Thinking outside the box can be very helpful to the group. I should also clarify that I wasn't at AllieV. The comment stuck me as funny because my husband always says we should move from Florida before we get much older, since statistics show so many old folks die here.

 

[bdoleary]

I agree with that. Better deals seem to happen early in the year what with Christmas bills, MF bills and Tax bills all come due.

The one downside is that you might not have a contract in time to make an AUG booking. You should give yourself a minimum of 2 months and really as safety 3 months from offer to getting the points in your membership.

I agree there were definitely better deals earlier in the year!

 

[minniemoms]

Ok, so that question was for the best time to buy. When is the best time to sell. Looking to sell Saratga Springs.. Not sure HOW to do this, When to do this, WHO to go thru??? I know there are crooks out there, and where can I go to read reports or reviews on who is good and who to avoid???

 

[AJA]

Ok, so that question was for the best time to buy. When is the best time to sell. Looking to sell Saratga Springs.. Not sure HOW to do this, When to do this, WHO to go thru??? I know there are crooks out there, and where can I go to read reports or reviews on who is good and who to avoid???

Someone will correct me if I'm wrong, but it seems NOW is a good time to sell. It's summer, a lot of people realize what they pay in hotel costs in the summer, why not buy DVC and not pay those rates, kwim?

The main 4 resale companies are mentioned here (in a round about way) all the time. A lot of posters have bought/sold/re bought at a different resort/etc. The Disboard's sponers banner at the top of this page is a good place to start. I'm sure they would be happy to send you the sellers info (just from what limited info I read as a buyer, it sounds like the normal fee for the seller is 10% of the purchase price, not counting sellers paying part of the closing costs or mf's that are negotiated as part of the contract) they should be able to answer all your questions. -even if ultimately you decide not to sell or want to use someone else.

 

[ELMC]

Ok, so that question was for the best time to buy. When is the best time to sell. Looking to sell Saratga Springs.. Not sure HOW to do this, When to do this, WHO to go thru??? I know there are crooks out there, and where can I go to read reports or reviews on who is good and who to avoid???

Well, if "safety" is your concern, I would probably go with the company who is an official sponsor of the DISboards by clicking on the logo at the top of the page (The Timeshare Store). What better endorsement could you ask for?

Someone will correct me if I'm wrong, but it seems NOW is a good time to sell. It's summer, a lot of people realize what they pay in hotel costs in the summer, why not buy DVC and not pay those rates, kwim?

I agree with your statement but not your reasoning. Now is a good time to sell because there is less competition. Fewer sellers equals higher prices. However, people buying now will have a 0% chance of actually using their points during the summer, so I'm not so sure how much I agree with that reasoning.

 

[DougEMG]

However, people buying now will have a 0% chance of actually using their points during the summer.

Agree, I would think that if someone has a vacation that they are planning to take and they were wanting to purchase DVC resale to use for that vacation that they should be looking to buy at least 4-5 months ahead of their travel date. Even then you had better be willing to take whatever rooms are available.

The absolutely fastest that a DVC resale can take place is in 2 months, 3 months is more likely and sometimes it can take 4 months.