Lopsided Resales

[corpcomp]

Wow, in order, here are the current number of resales (non pending) listed with TTS.

BLT - 42
AKL - 26
WL - 21
BWV - 15
SSR - 5
OKW -3
BCV - 3

What do you think is happening with BLT? A new building and so many resales - Economy? Buying right during the crash?

BCV may be low since DVC is buying up most of the contracts there and maybe BCV owners are holding on to see what DVC does with the resort.

Its a mystery to me.

 

[DVCconvert]

I would assume the BLT effect is related to the economy.
If you bot in, got a mortgage on a vacation timeshare, then lost your job (or your spouse does), or had hours cut back - this would be a relatively pain free method to reduce your on going debt service.

On the other end of the spectrum, I'd think it possible that your 'snapshot in time' shows a reduced inventory as those who wanted to sell or add on prior to the restricted uses came into effect have depleted the immediately available number of contracts.....I know I did my part!

 

[dbs1228]

A lot of BLT were listed at the end of the 3/20 push is what I noticed (I was looking for that small add on there)

 

[Greysword]

People who bought BLT early in the sales cycle can make some money on their contracts now, even with price at $100/point. This may be a motivator for the increased number of listings (to get them out before the March 20th deadline).

 

[JimMIA]

I suspect the numbers you list reflect what has NOT sold, rather than what has sold, or has been listed for sale.

And therefore, the numbers you list do not surprise me.

 

[jade1]

Plus over 1/2 of BLT are under 100 points, most of them are 50 points. I am more surprised how few some like BCV are. Must have been a rush for the deadline-it will all change in a month.

 

[arthur06]

The two highest numbers on your sheet are BLT and AKL, both of which are actively sold through Disney right now. So the "uninformed" buyer does not know about a resale market. Meaning many of the contracts that are being bought are a direct purchase.

Also, the smallest numbers are BCV, OKW, and SSR. BCV has always had a strong following and OKW and SSR are cheaper ways to buy-in/add on.

I'm not surprised with these number either!

 

[DVCconvert]

JimMIA:

I suspect the numbers you list reflect what has NOT sold, rather than what has sold

Wow, in order, here are the current number of resales (non pending) listed with TTS..

yes Jim, I think that's whay corpcomp was citing.

 

[jade1]

Wow, in order, here are the current number of resales (non pending) listed with TTS.

BLT - 42
AKL - 26
WL - 21
BWV - 15
SSR - 5
OKW -3
BCV - 3

What do you think is happening with BLT? A new building and so many resales - Economy? Buying right during the crash?

BCV may be low since DVC is buying up most of the contracts there and maybe BCV owners are holding on to see what DVC does with the resort.

Its a mystery to me.

Points for sale may differ as well.

There are 5000 BLT points on there with 42, and 5500 on there with only 15 at BWV, about 5500 VWL and AKV as well.

 

[KAT4DISNEY]

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.

 

[Brian Noble]

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.

 

[Sandisw]

I think the other piece is price. BLT is still commanding a pretty penny, even on the resale market (in the high 90's, low 100's for the most part) so some new buyers may have gone for the bargains instead.

For someone who is not that worried about home resort, they could pick up a 100 point contract at the other resorts for not much more than a 50 point one at BLT.

 

[gkrykewy]

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.

This. The same happened with SSR and AKV. The prices eventually follow the listing volume.

 

[nolanboys]

I think the other piece is price. BLT is still commanding a pretty penny, even on the resale market (in the high 90's, low 100's for the most part) so some new buyers may have gone for the bargains instead.

For someone who is not that worried about home resort, they could pick up a 100 point contract at the other resorts for not much more than a 50 point one at BLT.

I tend to think this is more the reason why. Many people were looking to pick up points before the March 20 deadline and many were looking for the biggest deal. SSR, OKW, and now BWV sell for less, so I think they were all snatched up, leaving only the more expensive resorts.

 

[zev]

TTS will also NOT list above a certain amount even when offering a "special" 10% commision rate. This was for SSR and even with low inventory not willing to list unless a "fast moving" price. What can I say, I like to set the ceiling. TTS not willing to list at my price, I'm not going to list. How many contracts sell for their list price anyway??

 

[mikeandkarla]

I think it is because you can buy BLT direct thru Disney for $115 point (with current promotion for existing members) plus $500 visa , $0 closing costs, and current uy points. The difference is negligible.

 

[disneynutz]

BLT has so many resales due to Disney's sales hype. They do such a great job at selling, many buy sight unseen or buy not really understanding what they are buying. In a short time the emotions subside and the buyers realize that BLT wasn't a good fit for their family.

I am sure that the same thing has happened at each new resort that Disney has sold.

Bill

 

[JimMIA]

BLT has so many resales due to Disney's sales hype. They do such a great job at selling, many buy sight unseen or buy not really understanding what they are buying. In a short time the emotions subside and the buyers realize that BLT wasn't a good fit for their family.

I am sure that the same thing has happened at each new resort that Disney has sold.

Bill

I'm sure you're right, but I think it's more pronounced with SSR, AKV, and BLT because of the heavy reliance on financed sales.

People who buy on impulse because they can afford the payments are probably the most likely to bail out after only a year or so. Often that happens as soon as they take their first trip and realize the overall cost of their trip (flights, park tickets, food, trinket purchases, etc) really didn't change much with DVC. And obviously, if anything in their financial picture changes, DVC is probably one of the easiest expenses to shed in a financial crunch.

 

[JimMIA]

I think it is because you can buy BLT direct thru Disney for $115 point (with current promotion for existing members) plus $500 visa , $0 closing costs, and current uy points. The difference is negligible.

Well...it depends on how many points you're talking about and what you pay resale.

I don't stay current on promotions because I'm not in the market, but if those prices you quoted are for 200+ points, there's still going to be quite a differential between direct and resale.

For example, if you could buy 200 BLT for $93 (and you could), you'd be paying $20 less per point than buying direct (subtracting the $500 gift card for a net price of $113). On 200 points, that's $4,000. Even factoring in closing costs on a resale, that's still a substantial savings.

The only place where I would even make an attempt to rationalize buying direct would be a small add-on by an existing member with no closing costs. Even paying a much higher price, the total difference is in the hundreds of dollars, and you could argue that the speed and ease of the transaction is worth a few hundred bucks.

 

[dianeschlicht]

I'm sure you're right, but I think it's more pronounced with SSR, AKV, and BLT because of the heavy reliance on financed sales.

People who buy on impulse because they can afford the payments are probably the most likely to bail out after only a year or so. Often that happens as soon as they take their first trip and realize the overall cost of their trip (flights, park tickets, food, trinket purchases, etc) really didn't change much with DVC. And obviously, if anything in their financial picture changes, DVC is probably one of the easiest expenses to shed in a financial crunch.

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.