Lopsided Resales

[Joey7295]

I think it there are so few of the others because of the 3/20 deadline and the much lower prices. People were rushing to get in before 3/20 and a lot were grabbing the Saratoga Springs listings. I can recall there being many more SSR listing than any other resort, but the deadlione help to sell most of the SSR listings.

I also think the resale prices on BLT aren't much lower than direct in which case why would someone want to buy direct.

 

[corpcomp]

Just a couple of days ago a single seller listed many 50 pt BLT contracts for sale which is skewing that number a lot. Still - I would expect that resorts that are closer in price to direct and actively selling direct to take longer to sell in the resale market so those numbers don't surprise me either. If you look at other reseller's I believe AKV outnumbers all other resort contracts left for sale.

You are right - I think they bought 9 50 point contracts, used all the points for 2011 and 2012 and are trying to sell. Since you cannot get points until 2013, there is little incentive to buy at the price ($97) the seller wants. I was looking for a smaller contract at BCV, one came in but sold so fast that TTS did not even include it in their emails.
So if you want full use of the points across all the disney venues, you have to buy from DVC. Since we wanted to go on a cruise and need more points, we now have no other choice.

Actually very clever of DVC. They can restrict the resale usage, buy bacK under ROFR and sell as "New" at a much higher price. They can make a huge profit doing this. While I don't know about anyone else, $140 a point in my mind is beyond anything I'd pay.

 

[Joey7295]

Actually very clever of DVC. They can restrict the resale usage, buy bacK under ROFR and sell as "New" at a much higher price. They can make a huge profit doing this. While I don't know about anyone else, $140 a point in my mind is beyond anything I'd pay.

Way beyond what I would pay, which worries me about when they begin selling GFV. I would love to buy, but am very afraid of the high price and would not pay so much.

 

[keishashadow]

A new-but-not-brand-new resort often has a run of resales. Many purchasers do so in the heat of the vacation moment, without really thinking things through. If the product ultimately isn't for them, but they do not rescind in the 10 day period, they are left with selling.

very likely, although I do think there may also be an element who buys in paying cash, borrows points for 1 trip, then sells hoping that the popularity of a new offering will offset a stripped contract, alllowing them to cut & run.

I believe you are absolutely correct, Jim, and it's why I always advise people to only buy IF they can pay cash and not finance.

Very true, before financing any large purchase it's good to ask: is it a want or a need?

 

[Brian Noble]

They can restrict the resale usage, buy bacK under ROFR and sell as "New" at a much higher price. They can make a huge profit doing this.

Don't be so sure. The rule of thumb in timeshares is that marketing expenses comprise anywhere between 1/4 and 1/2 of the total cost of development---that's "cost", not "price".

So, the $60 or so they can ROFR for may well be *more* than the cost to build a brand new shiny (and easier-to-sell) resort, while the "old" resort would still have to be marketed to be resold---possibly at a greater cost than the "new" one.

 

[corpcomp]

Don't be so sure. The rule of thumb in timeshares is that marketing expenses comprise anywhere between 1/4 and 1/2 of the total cost of development---that's "cost", not "price".

You are right, but after the timeshare sells out, as in the case of BCV & BWV as an example, there are minimal marketing expenses.

 

[Brian Noble]

Not really. Guides still have to be paid, both to answer questions from lookie-lous, the time to write the paperwork, etc. etc. etc. as well as commissions on the sale. They still have to do all the marketing to existing members that they do now (the Welcome Home Wednesdays, etc. etc. etc.)

It's *cheaper* to market to existing Members, but it's not *free*. And, even so, if the *cost* of developing a new resort is less than it would cost to ROFR existing deeds, you're better off developing new.