Making sense of a DVC purchase...a few questions for a finance genius :)

[linzjane88]

A couple of sales guys have been hitting me up now that they found out I put in an offer. One says he called his "guy" at DVC who said they got are buying back any SS contract less than $85 per point. I don't know if it is a sales tactic or truth. I guess we will find out if my offer gets accepted and passes ROFR.

 

[SuperRob]

A couple of sales guys have been hitting me up now that they found out I put in an offer. One says he called his "guy" at DVC who said they got are buying back any SS contract less than $85 per point. I don't know if it is a sales tactic or truth. I guess we will find out if my offer gets accepted and passes ROFR.

Well, there's currently one at $82 a point in the ROFR thread that's waiting right now. Should know soon whether or not that's true. They did just take a BLT contract that was about $52 a point less than Disney sells for. And considering SSR is currently sold by Disney at $135 a point, that seems to be right in the range that Disney would take. That said, they may also have a glut of SSR contracts, and would want to make more profit before taking one. Anyway, I'd say it's a toss up whether or not Disney would bite on that one.

 

[zavandor]

I'm an advocat of "buy the cheapest resort where you don't mind staying". I didn't stay in any DVC resort before buying but I visited some, so I didn't know for sure which one was my favorite. I liked the proximity to DTD of SSR and it was the cheapest so I bought there. I'm very happy I did, but I also can travel during the low DVC season (another reason why this strategy works). I used my points for AKV Value, OKW during marathon week end (I needed the two queen beds) and twice for VGC.

 

[DougEMG]

I follow both strategies. I bought OKW and SSR because they were really good deals and BWV because I like staying there. If prices ever drop back down I'd like to get a BLT contract so I can walk to MK.

 

[linzjane88]

Has anyone ever dealt with a resale company charging a "shared brokerage fee"? It is not the company that I put my offer in with but another one I was looking into. I am just keeping my options open in case my original plan falls through. The price is seemingly good but the closing costs are 1328$ with a 1500$ shared brokerage fee. It is a fully loaded contract (all 2015/2016/2017 points) but the pricing still works out to be about 82.50 pp plus closing costs.

 

[SuperRob]

Has anyone ever dealt with a resale company charging a "shared brokerage fee"? It is not the company that I put my offer in with but another one I was looking into. I am just keeping my options open in case my original plan falls through. The price is seemingly good but the closing costs are 1328$ with a 1500$ shared brokerage fee. It is a fully loaded contract (all 2015/2016/2017 points) but the pricing still works out to be about 82.50 pp plus closing costs.

That seems extremely high to me, but without knowing how many points you're looking at, I couldn't say for sure. And that's just the closing. More than doubling that in additional fees seems irregular to me.

 

[Dean]

Has anyone ever dealt with a resale company charging a "shared brokerage fee"? It is not the company that I put my offer in with but another one I was looking into. I am just keeping my options open in case my original plan falls through. The price is seemingly good but the closing costs are 1328$ with a 1500$ shared brokerage fee. It is a fully loaded contract (all 2015/2016/2017 points) but the pricing still works out to be about 82.50 pp plus closing costs.

No specifically. It sounds like a contract that is being cobrokered between 2 companies which is fairly common for the smaller companies. However, the total should still be the same, usually 10% or so. If not, I'd question it and ask it be corrected. That's also very high on the closing, I'd get a further explanation.

 

[KAT4DISNEY]

A couple of sales guys have been hitting me up now that they found out I put in an offer. One says he called his "guy" at DVC who said they got are buying back any SS contract less than $85 per point. I don't know if it is a sales tactic or truth. I guess we will find out if my offer gets accepted and passes ROFR.

Disney has never demonstrated that it will select a certain price point and buy back everything below it. It's just a sales tactic.

 

[linzjane88]

It is a 200 point contact with full 2015/2016/2017 points.

Sorry no time to quote, getting on a plane ☺

 

[linzjane88]

Disney has never demonstrated that it will select a certain price point and buy back everything below it. It's just a sales tactic.

I *might* have paid 9.99$ for in-flight wi-fi . DVC research is worth it--says me.

Thanks for that advice. I am not great at differentiating between truth and sales tactics!

 

[ColinBlair]

Has anyone ever dealt with a resale company charging a "shared brokerage fee"? It is not the company that I put my offer in with but another one I was looking into. I am just keeping my options open in case my original plan falls through. The price is seemingly good but the closing costs are 1328$ with a 1500$ shared brokerage fee. It is a fully loaded contract (all 2015/2016/2017 points) but the pricing still works out to be about 82.50 pp plus closing costs.

Just as a point of reference, when I purchased SSR last year it was $80 a point for 160 points almost fully loaded. Here is how the numbers went at closing:

Purchase Price $ 12,800.00
Deposit $ 2,560.00

Expenses Credit to Seller from Buyer (DVC 2015 Annual Dues/Maintenance Fees, January-May) $ 345.05
Title Search $75.00
Title Insurance Premium $73.60
Closing Services Fee $218.30
FL Statutory Surcharge (Fidelity National Title Insurance Company) $3.28
Record Deed (Orange County Comptroller) $19.50
Documentary Stamps Deed (Orange County Comptroller) $89.60
DVC 2015 Annual Dues/Maintenance Fees (June-December) (DVCMC Association Manager) $482.94

BALANCE DUE FROM BUYER $ 11,547.27

That works out to closing costs of $479.28 and maintenance fees of $827.99

I am wondering if the closing costs of $1328 you were quoted is including the dues, generally the maintenance fees are quoted separately from the closing costs.