Large Resale Contracts

[Hjs33]

As everyone knows small, under 100 point, contracts tend to sell quickly and for a premium. To me they appear to sell for about 10-20% above contracts in the 100-200 point range. It also appears to me that contracts over 200 points tend to take longer to sell and at a lower price.

Does anyone have an idea about how much lower large contracts tend to sell for? Are they similarly 10-20% lower than what appears to be the 100-200 point sweet spot?

 

[Ruttangel]

Not sure how big you are talking but this OKW contract is cheap at $72 a pt but will still set you back $130k. I reckon you could get these down to $65ppt
https://www.dvcresalemarket.com/listings/old-key-west/ok11455/
In all seriousness you are right you can lowball these offers a lot easier as less competition. Anything over 300pts you could save 20% on a 150pt contract but you will also have the same issue if you decided to sell.
Purchase price is only part of ownership when factoring in dues you will not be saving 20% on overall money paid for a large contract. Sadly, you can’t haggle on dues

 

[sethschroeder]

Personally one thing you need to account for is while they sell for more when smaller you possibly can still steal a small contract. This makes it much easier in the long run to sell because you don't have to sell everything and you will get to sell at a premium.

So yes small contracts are normally more but that doesn't mean you can't find one in line with the normal going rate that you would find a 150 point contract.

 

[kboo]

A few years back when I was shopping for my VGF contract, there was a 1,000+ point VGF contract that was asking $125pp.

 

[CastAStone]

200-300 probably average more like 3-6% less, until you get to the truly large contracts, somewhere around 350 it seems prices really start to drop?

 

[PaulW08]

Not sure how big you are talking but this OKW contract is cheap at $72 a pt but will still set you back $130k. I reckon you could get these down to $65ppt
https://www.dvcresalemarket.com/listings/old-key-west/ok11455/

Should we all chip in and go splitsy on this one?

 

[poofyo101]

A few years back when I was shopping for my VGF contract, there was a 1,000+ point VGF contract that was asking $125pp.

what was the typical going rate for average size contract then?

 

[CastAStone]

Should we all chip in and go splitsy on this one?

I bought a Mega Millions ticket. That’s my plan.

 

[PedroD]

Still learning here...but I assume that you cannot split a contract up if you ever do a resale? For example, if you by 300 points somewhere you would not be able to eventually sell 150 of those points off but rather would have to sell the entire 300 points together?

Also, I would assume that Disney might be able to use ROFR to buy bigger contracts for cheaper and then THEY could split them up into smaller point packages.

Are my assumptions generally correct here? (eyeing a larger contract but wondering if I should instead pay the premium up front to target 3 smaller contracts of equal total point value for ease of resale and/or bequeathing to kids on an even point basis for each versus asking them to have to manage all of the available points between them).

 

[kboo]

what was the typical going rate for average size contract then?

150-200 point contracts were asking around $145 and up; a few months later got a 100 point somewhat loaded contract for $150pp when most of the asking prices were around $160 for 100 pts.

 

[davidl81]

Still learning here...but I assume that you cannot split a contract up if you ever do a resale? For example, if you by 300 points somewhere you would not be able to eventually sell 150 of those points off but rather would have to sell the entire 300 points together?

Also, I would assume that Disney might be able to use ROFR to buy bigger contracts for cheaper and then THEY could split them up into smaller point packages.

Are my assumptions generally correct here? (eyeing a larger contract but wondering if I should instead pay the premium up front to target 3 smaller contracts of equal total point value for ease of resale and/or bequeathing to kids on an even point basis for each versus asking them to have to manage all of the available points between them).

My thoughts are if you are buying resale and have already decided that you need say 400 points then IMO you are better off just buying one big resale contract as long as you are getting a good "discount" from contracts that are in the 150 point range. A few reasons, but first of all much like say buying stock your cost basis (buy in cost) is what is important if you do consider selling your points in the future. So if you buy a big contract for say $30 a point cheaper than a smaller one, once it comes time for you to sell it you can price it the same $30 a point cheaper and still be neutral to the smaller contracts. Plus you will only have one closing cost to pay and only one ROFR to wait for etc.
Now direct is different, if buying direct buy the amount of points you want buy have them broken into several different contracts.

 

[Sandisw]

Still learning here...but I assume that you cannot split a contract up if you ever do a resale? For example, if you by 300 points somewhere you would not be able to eventually sell 150 of those points off but rather would have to sell the entire 300 points together?

Also, I would assume that Disney might be able to use ROFR to buy bigger contracts for cheaper and then THEY could split them up into smaller point packages.

Are my assumptions generally correct here? (eyeing a larger contract but wondering if I should instead pay the premium up front to target 3 smaller contracts of equal total point value for ease of resale and/or bequeathing to kids on an even point basis for each versus asking them to have to manage all of the available points between them).

That is correct, You will have a deeded interest for the number of points in the contract and must sell as is. Once Disney buys, they can repackage and sell smaller, but not an owner.

That is why it is sometime advised when buying direct to ask them to put into smaller contracts, even though one pays more for closing costs,