Looking at Resale Contracts...Red Flags?

[princessophiali]

First, I want to say how much I appreciate the wealth of wisdom from this forum and the DVC Show on YouTube. I have learned a lot and I really feel as if purchasing the right resale contract is the way to go for our family. I am so excited because, in all honesty, I thought this would be something out of our reach. But after doing some homework and understanding the resale market a little bit, I can see us being a part of the family, which is magical!!

My question is this...I have seen a couple of contracts that we are very interested in. One seems like a great deal, but it has been on the market since June. Are there any red flags I should look for in a contract? I mean, it is pretty cut and dry...except, I still don't quite get the banked points. This particular one has banked points from 2018. UY is October. Will those points be lost if they are not used this year?

Is there anything I should look for in a contract that would be a red flag? I am mainly using 2 websites recommended on here.

 

[_auroraborealis_]

Banked 2018 October points have to be used by September 30, 2020.

 

[princessophiali]

Banked 2018 October points have to be used by September 30, 2020.

Thank you!

 

[HickoryDickory]

Not a 'red flag' just an FYI - If you need the points sooner than later (ie planning for a DVC points trip in the next 12 months) then watch out for delayed closing contracts. These could be contracts where the current owner has a reservation booked and cannot close until after their trip concludes or international seller contracts. Nothing wrong with international seller contracts, but the sellers often have extra hoops to jump through (scheduling and waiting for an appointment at an embassy to notarize forms, longer document mailing times, etc.) which can add several days to certain steps along the way that USA sellers can have turn around in 24 hours.

Don't limit yourself to just two brokers. There are about half a dozen more solid, well known, reputable DVC broker sites you should be watching. Your main goal is to find that perfect contract for you with the right resort, points, and price. Limiting yourself to just two of the brokers listings isn't doing yourself any favors. After the initial offer and negotiation stage, it's all about the title company anyway. The title company folks are the ones you'll be communicating with for 98% of the resale purchase process.

Good luck!

 

[princessophiali]

Not a 'red flag' just an FYI - If you need the points sooner than later (ie planning for a DVC points trip in the next 12 months) then watch out for delayed closing contracts. These could be contracts where the current owner has a reservation booked and cannot close until after their trip concludes or international seller contracts. Nothing wrong with international seller contracts, but the sellers often have extra hoops to jump through (scheduling and waiting for an appointment at an embassy to notarize forms, longer document mailing times, etc.) which can add several days to certain steps along the way that USA sellers can have turn around in 24 hours.

Don't limit yourself to just two brokers. There are about half a dozen more solid, well known, reputable DVC broker sites you should be watching. Your main goal is to find that perfect contract for you with the right resort, points, and price. Limiting yourself to just two of the brokers listings isn't doing yourself any favors. After the initial offer and negotiation stage, it's all about the title company anyway. The title company folks are the ones you'll be communicating with for 98% of the resale purchase process.

Good luck!

Ohhh!! Hadn't even realized that could be an issue...good point (pun intended lol)! Thanks so much! What are other companies you'd recommend? I have looked at several others, but I really like how Timeshare Store, DVC Resale and DVC Sales have theirs laid out.

 

[HickoryDickory]

In addition to Timeshare Store, DVC Resale Market, and DVC Sales you could monitor Vacatia, Fidelity, DVC Shop, Resales DVC, and DVC Magic.

 

[jerseyduke]

As pointed out above, know the issues of delayed closing contracts. While there is nothing wrong with them (I bought one myself), you do typically lose some negotiating power since the seller cant close on it right away anyway.

Secondly, if I were making an offer on a resale contract, I would put an expiration on it. Probably 48 hours. We live in a world where we get emails all but instantly, so do not let a seller string you along for a week while they hope for a better offer.

 

[igrsod]

First, I want to say how much I appreciate the wealth of wisdom from this forum and the DVC Show on YouTube. I have learned a lot and I really feel as if purchasing the right resale contract is the way to go for our family. I am so excited because, in all honesty, I thought this would be something out of our reach. But after doing some homework and understanding the resale market a little bit, I can see us being a part of the family, which is magical!!

My question is this...I have seen a couple of contracts that we are very interested in. One seems like a great deal, but it has been on the market since June. Are there any red flags I should look for in a contract? I mean, it is pretty cut and dry...except, I still don't quite get the banked points. This particular one has banked points from 2018. UY is October. Will those points be lost if they are not used this year?

Is there anything I should look for in a contract that would be a red flag? I am mainly using 2 websites recommended on here.

Can't wait to see what contract you decide upon. You have been doing a lot of research. I'm telling you, you are going to be so happy in the end... I can tell.
Just be patient. I remember waiting for our contract to come through.... I was driving myself and my hubby crazy. It's like waiting for Christmas morning as a 5 year old....lol

 

[Philsfan77]

First, I want to say how much I appreciate the wealth of wisdom from this forum and the DVC Show on YouTube. I have learned a lot and I really feel as if purchasing the right resale contract is the way to go for our family. I am so excited because, in all honesty, I thought this would be something out of our reach. But after doing some homework and understanding the resale market a little bit, I can see us being a part of the family, which is magical!!

My question is this...I have seen a couple of contracts that we are very interested in. One seems like a great deal, but it has been on the market since June. Are there any red flags I should look for in a contract? I mean, it is pretty cut and dry...except, I still don't quite get the banked points. This particular one has banked points from 2018. UY is October. Will those points be lost if they are not used this year?

Is there anything I should look for in a contract that would be a red flag? I am mainly using 2 websites recommended on here.

Is the conract a Poly contract or Copper Creek? I've seen them last longer on the resale sites...my guess is because both are tied into Cabins/Bungalows which can make booking (especially studio's at Copper Creek) difficult. Poly also essentially only has Studio's which limits some people from wanting to buy there depending on your family size.

 

[princessophiali]

Is the conract a Poly contract or Copper Creek? I've seen them last longer on the resale sites...my guess is because both are tied into Cabins/Bungalows which can make booking (especially studio's at Copper Creek) difficult. Poly also essentially only has Studio's which limits some people from wanting to buy there depending on your family size.

It is both We are a family of 4, plus my mom will likely travel with us. Hubby and I like to shut the bedroom door, so we are hoping to get enough points for a 1 br. From what I have been reading this morning, SSR may be an option now because of wanting to stay in 1br and not a studio. My head hurts from all this information, but I keep reminding myself to breathe and read.

 

[princessophiali]

Can't wait to see what contract you decide upon. You have been doing a lot of research. I'm telling you, you are going to be so happy in the end... I can tell.
Just be patient. I remember waiting for our contract to come through.... I was driving myself and my hubby crazy. It's like waiting for Christmas morning as a 5 year old....lol

YES!!!! I know how you feel...I was crying happy tears this morning just thinking about what this would mean to our family. Thank you for the encouraging words

 

[Philsfan77]

It is both We are a family of 4, plus my mom will likely travel with us. Hubby and I like to shut the bedroom door, so we are hoping to get enough points for a 1 br. From what I have been reading this morning, SSR may be an option now because of wanting to stay in 1br and not a studio. My head hurts from all this information, but I keep reminding myself to breathe and read.

Unfortunately, that would eliminate Copper Creek and Poly for you. Poly doesn't have a 1 bedroom option, and Copper Creek's 1 bedroom only sleeps 4. Based on the info you just provided...your best options will be OKW, SSR (the new refurbishments look amazing and the 1 bedroom is projected to sleep 5 people), and AKL (1-bedrooms at Kidani have 2 bathrooms, which could be a big plus for your family).

 

[princessophiali]

Unfortunately, that would eliminate Copper Creek and Poly for you. Poly doesn't have a 1 bedroom option, and Copper Creek's 1 bedroom only sleeps 4. Based on the info you just provided...your best options will be OKW, SSR (the new refurbishments look amazing and the 1 bedroom is projected to sleep 5 people), and AKL (1-bedrooms at Kidani have 2 bathrooms, which could be a big plus for your family).

Gotcha! Thanks!

 

[_auroraborealis_]

Gotcha! Thanks!

I would add BLT as well to your list. Again, 2 baths in a 1BR.

 

[kboo]

Unfortunately, that would eliminate Copper Creek and Poly for you. Poly doesn't have a 1 bedroom option, and Copper Creek's 1 bedroom only sleeps 4. Based on the info you just provided...your best options will be OKW, SSR (the new refurbishments look amazing and the 1 bedroom is projected to sleep 5 people), and AKL (1-bedrooms at Kidani have 2 bathrooms, which could be a big plus for your family).

Agreed. BLT 1br also sleep 5 and have 2 baths. (ha, cross posted w @_auroraborealis_

VGF studios and 1br both sleep 5 and have a split bath, but they are point hogs (but poly studios cost about the same # of points as VGF studios) and contracts are pricey.

 

[Philsfan77]

I would add BLT as well to your list. Again, 2 baths in a 1BR.

Forgot about BLT...good catch

 

[igrsod]

I have noticed quite a few Poly and CC small point contracts on the market and that is always my first thought... probably people who thought they would use for studios only to find out how hard they are to book due to cabins and bungalows. Even though I love both places, I have avoided even looking to buy a contract at either. As well as GF, I see small point contracts come up there but it's easy to see that that won't get you much there even banking and borrowing. We own an AKL contract and a SSR contract in ROFR right now. We have stayed at AKL, OKW, SSR, BLT and BC on our AKL points with no problem at various times of the year. Busy times we "have to" stay at our home (which we love). We never have any trouble getting a studio at AKL 11-7 months at all.

 

[MICKIMINI]

1 BR is priceless for space for everyone to enjoy, a full kitchen for simple meals and w/d...I'd definitely try to stretch your budget to get that 1 BR. A studio might be "good enough" but it's not a 1 BR - it will spoil you forever!

 

[ELMC]

Speaking to your "red flag" question, that pertains more to houses that have been on the market for awhile, you're always wondering why. With DVC contracts it's pretty straightforward. Many buyers have specific requirements when looking for a contract. If a contract has been on the market for awhile it's likely because the price, UY, or size does not match what buyers are looking for. That said, it would be wise to heed the advice given above regarding expiring points and other variables that affect the price and value of a contract. But aside from that and unlike houses which can have a number of hidden "bonuses", all contracts are fundamentally the same with no one contract being "better" than any other with regards to integrity or use.

 

[TonyaG83]

I have noticed quite a few Poly and CC small point contracts on the market and that is always my first thought... probably people who thought they would use for studios only to find out how hard they are to book due to cabins and bungalows. Even though I love both places, I have avoided even looking to buy a contract at either. As well as GF, I see small point contracts come up there but it's easy to see that that won't get you much there even banking and borrowing. We own an AKL contract and a SSR contract in ROFR right now. We have stayed at AKL, OKW, SSR, BLT and BC on our AKL points with no problem at various times of the year. Busy times we "have to" stay at our home (which we love). We never have any trouble getting a studio at AKL 11-7 months at all.

I think it works out in favor for people looking for Poly contracts. There isn’t the usual premium price on smaller contracts. I find pricing for 100 pt contracts the same as those with 200+ points. My plan is to slowly amass a bunch of smaller ones, so eventually I do have enough to afford a bungalow if need be. I’m not forced to spend more than I’m ready to all at once, and I don’t have to feel like I’m overpaying because the small point upcharge doesn’t really exist.