Is there a downside to resale?

[Kenswing]

Can't you tell that I'm new to the DVC thing? Just starting my serious research.

Is there any downside to buying resale instead of direct from Disney. From what I can tell, resale seems to be cheaper. Plus we would like to buy at one of the Epcot area properties. Are there any higher closing costs associated with resale? Please feel free to share anything you feel I should consider.

Thanks again

Ken

 

[Deb & Bill]

With a resale, you'll have to pay closing costs. If you purchase from Disney, there are no closing costs.

If you buy resale, you have to go through the ROFR process where Disney decides if you are paying too little for the points. If so, they purchase it out from under you, thus the right of first refusal. If you buy directly from Disney, the process is much quicker.

If you buy resale, you can purchase points at any of the seven resorts and not just SSR. One you have points, you can get on a wait list for points from another resort through Disney. If you buy directly from Disney for your first points, you probably can only get whatever they are selling now, in this case SSR.

With Disney you can purchase any number of points. With resale, you have to look for the package you want/need, for the resort you want/need, and for the use year you want/need.

 

[Caskbill]

Don't know if you consider these to be a downside or not, but:

1. With resale you must arrange your own financing, if required. With Disney you can finance directly through them.

2. Resales will take a little longer to finalize so you won't be able to use the points until closing. With Disney, points become available very quickly.

3. Resale you can only buy the actual contract being sold, as is. With Disney you can buy any number of points (150 minimum), but if you want something different than SSR you would have to go on a waitlist.

4. Resales can be good buys or not. You need to understand the status of all points in a resale and how they would work for you. For example banked points with deadlines coming up, points already used so you won't get anything new for another year, points that may be in holding account, or classified as reservation points. Purchasing through Disney you will always get current year points.

5. Payment of maintenance fees can be an issue. Maintenance fees are payable on a calendar basis, not on a use year basis. Disney prorates the fees based on how many months are left in the calendar year when you buy. Many owners selling resale falsely think maintenance fees are paid according to use year. They are not. Be sure you understand in a resale what fees have been paid and what fees have not been paid and that you will have to pay.

 

[marathonmommy]

3. Resale you can only buy the actual contract being sold, as is. With Disney you can buy any number of points (150 minimum), but if you want something different than SSR you would have to go on a waitlist.

Awesome info Caskbill! I just want to add that you MIGHT NOT have to go on a waitlist - depending on what property you want and if you "hit it" right. I did buy "resale" through DVC at BWV. Luckily, the points I wanted were available right when I wanted them. I got lucky and did not need to wait - in fact I was able to book the day I made a downpayment. I went on my trip before the actual closing.

Also, if you plan the UY right (and what you need is available), it can get you what could seem like a "free" trip - although nothing in DVC is free. I bought in July of 2005 with a September UY. I was able to squeeze in a trip in August. I was able to use 2004 points without paying a year's worth of dues (as September 2005 did not occur yet), go on my trip, and get all new 2005 points at the end of the month! It worked out nicely for me.

I am so happy I bought into DVC and have no regrets. I probably paid a bit more for points buying through Disney than if I went total resale. But, I financed through Disney (50/50) and got the "perk" mentioned in the paragraph above. I was not patient enough to wait for ROFR or the red tape involved with financing on my own. Perhaps it wasn't the "best buy" for others, but for me it was.

 

[disney-super-mom]

With a resale, you'll have to pay closing costs. If you purchase from Disney, there are no closing costs.

I'm so sorry, I don't mean to step on anyone's toes here , but with a resale, you don't "have" to pay closing costs. Terms of a resale contract can be whatever the seller and buyer agree upon, and in many resale contracts, the seller agrees to pay all closing costs. Of course, this is only sometimes, whereas when buying through Disney, Disney always pays closing costs, although you'd be buying at a higher price-per-point through Disney vs. a resale. The only "deal" to be found buying through Disney is buying a SSR contract under the current "DVC owner referral" incentive. Otherwise, finacially speaking, it will save you more to buy a resale.

On the other hand, buying through Disney is quick and easy, and you'll be in the DVC system and able to make ressies using your points within a week or so. If buying a resale, it could take a couple of months to get through ROFR, closing, and then finally being entered into the DVC system so you can use your points to make ressies.

It depends on what's most important to you:

If you want to save some $$, and speed of being in the DVC system is not as important to you, then buying resale maybe the right choice for you.

If you want to get in the system quickly so you can use your points right away, and for just the sheer ease of not having to go through the ROFR process, then buying through Disney would be a good choice.

Just so you know, all resale points for all DVC properties sold through Disney costs $92.00 per point.

However, if you buy a new SSR contract through Disney under the "owner referral incentive" (which could end soon), it would cost $83.30 per point. You must buy a minimum of 150 points, unless you are already a current DVC owner. A current DVC owner can buy contracts as small as 25 points, but no less.

Good luck!

 

[bongo59]

having bought both ways.............i always recommend a resale.............just be patient and you'll score a good deal.

 

[chips]

With resale you can not book a reservation until the contract is in the system. Any existing reservations are canceled when the contract changes hands. With a direct purchase, you can make a reservation right away.

Also, you can pay for the direct purchase with a credit card and get reward points. Resellers demand a certified check.

However, overall, if you have patience and do not need a reservations immediately, resale is cheaper.

 

[iankh]

I've bought twice via resale and in both cases the prices with the closing costs were still better than buying directly from Disney. Once you do buy the resale, adding on small amounts of points can be done directly from Disney. In the case of adding on small point packages going direct to Disney makes sense because there are no closing costs (spreading closing costs over a smaller number of points can put direct on par with resale)
My advice?

1. Buy where you want to stay. Be happy with your choice.
2. You'll hear a lot of things on these boards about what to offer and anxiety over ROFR, some people even offering more than the asking price. My take on this is, what do you have to lose? The worst case is you won't get it, and there will always be more contracts. I've not seen any rhyme or reason to ROFR. I know that at the same time I bought my resales, other DISers were ROFR'd and were offering to pay MORE than I was. But in the end, do what makes you feel comfortable. Just a few months ago I got a real deal on a small OKW package. I decided to go for it, thinking that it probably won't get past ROFR. My take was, "What could it hurt?" Worst case is I don't get it and I still have my money and the seller finally unloads their resale.
3. If you don't want to buy via resale, you CAN buy directly from DVC. They won't offer it. You'll have to press it. That way, although you may wait a bit, you will get exactly what you want. Just be firm with the guide. Depending on the resort, they are sitting on points, but won't tell you that because they are pushing SSR right now.
4. Relax. We're not talking about solving world hunger, just a timeshare resort in a contrived little place (a contrived little place that I visit regularly like clockwork, I should add).

 

[DVCPal]

I bought two contracts (200 pts. and 150 pts.) thru resale. Then I bought two add-ons (one for 25 pts. and one for 75 pts.) thru Disney. The advantage of resale is price, but Disney is the way to go if you want a specific number of points at a specific location and especially if you want low point contracts.

 

[las3888]

I'm so sorry, I don't mean to step on anyone's toes here , but with a resale, you don't "have" to pay closing costs. Terms of a resale contract can be whatever the seller and buyer agree upon, and in many resale contracts, the seller agrees to pay all closing costs.

Very true - we negotiated our last contract to have seller pay closing costs and that worked out for that deal. Of course it doesn't always go that way.

We like our resales - I have a thing about not wanting to go through Disney because I just have a bad taste in my mouth about the sales guides. We tried to buy direct from Disney on a few occasions and our guide wouldn't even bother to call us back. We can get into a big conversation about switching guides etc. but I would rather buy from somebody who actually wants my business. Just me...I know others feel differently about their guides.

 

[JimC]

Keep in mind that the upfront costs of Disney or any timeshare for that matter, while meaningful; are a very small portion of the total cost of ownership. The real money is in the annual dues that you will spend over the years. Sometimes we lose sight of that worrying about a few hundred dollars difference resale versus direect from Disney on the front end or in the excitement of putting a good deal together.

Each has advantages and disadvantages - many explained in prior posts. It comes downto what is important to you and fits your circustances well. We bought resale using the Timeshare Store and we have bought direct from Disney. We have also sold through the Timeshare Store.

 

[CarolMN]

Just want to add that after you are an owner - no matter how you become one (buy direct or via resale), DVC treats you exactly the same! No difference in perks or treatment. That's not necessarily true of all other timeshares.

Best wishes -

 

[Kenswing]

WOW!

Thanks everyone for all the great information and advise. The people on this board are some of the nicest and most helpful on the DIS.

I thank you for that.

Ken

 

[Disney Doll]

We have bought 2 contracts...the first through Disney, the second through resale.

Each experience was fine, not a lot of hassle.

Disney will give you financing. If you do resale, you have to have financing.

Disney will "push" SSR resales right now. You will need to "push" back if you want something different. I recall a post from a while back where the person actually said to their guide "I want points at BWV. If you can't supply me with those points, I will go to the resale market". Miraculously, they found points!!!!

If you buy through Disney, you can use your points before you actually close(as someone noted above).

Be careful with the resale contract as to what points are remaining, what dues payments may be remaining etc. When we bought our resale, we offered a flat number to buy the contract. We made it clear that we would pay no closing costs nor remaining dues for that year...that would be the seller's responsibility. The number was fair, and we had a deal. Start to finish, the process took about 6 weeks.

ROFR is always a "sticky wicket" with resales.

As another poster said, depending on what your needs/wants are, either option could work. Resale probably tends to be a bit less expensive, but the money is not always the only issue.

Good luck on your search.