May have to sell

[Kathy O]

Sad news, but we may have to consider selling our contract. Anyone out there have any advise as to the best route. Is the Timeshare Store the best way and what is ROFR. I think it is right of first refusal, but I'm a bit confused. KO

 

[Chuck S]

I'm sorry you have to consider selling your membership, but sometimes we have to make tough decisions. Best of luck to you.

ROFR is Right of First Refusal. Disney/DVD/DVC has the right to step in and buy the contract if the price negotiated between the buyer and seller is, in Disney's opinion, too low.

While some folks sell their own timeshares, I personally would use a reputable broker (like The Timeshare Store), because I just don't want all the paperwork hassle. It isn't cheap, but it would give me some peace of mind.

 

[mydogdrew]

If contract is 100 points or less I would strongly consider sale by owner. The minimum broker fee on these small contracts can be too much to justify. You would simply make arrangements with one of the closing agents who will escrow funds and record deed etc. The buyer usually pays for these services. You can list it on TUG, EBAY. For a 200 point or larger contract it is much easier to justify the fee (~ 10% I think). My experience with the resale agents is they really do a great job.

 

[OneMoreTry]

 

[calypso*a*go-go]

Where are your points? If they are at HHI or VB I would use a resale broker as you would probably have more exposure through them. If they are on-site @ WDW you could probably sell them yourself through TUG or ebay. It's a very personal decision so you just need to decide what your bottom-line is as far as what you need to take away from the table and use whatever source can net that amount. Good luck!

 

[TiggerFreak]

Sorry we may lose you as a neighbor

Originally posted by Chuck S
ROFR is Right of First Refusal. Disney/DVD/DVC has the right to step in and buy the contract if the price negotiated between the buyer and seller is, in Disney's opinion, too low.

Isn't ROFR exercised, when in DISNEY/DVC/DVD estimation, the price is "low enough" for it to be profitable for them to purchase the contract and re-sell it.
OR
Is when the price is "too Low" and they are keeping prices artificially high in relationship to market pressure?

IMHO it is only when it is deemed profitable that ROFR is excercised.

 

[Maria395712]

maybe you can just rent your points and pay your dues and keep renting till you can use them again .if they are less than 200 points it might not be worth it to sell with fees and all. I would figure out what I would come out with in the end .hope it works out
maria

 

[msdis]

TTS is 12% commission.Also a transfer fee. I think the transfer fee now is more than the $75 we paid, but I know it's not more that $125. They are just as good for selling as they are for buying.

 

[tjkraz]

Originally posted by TiggerFreak
Isn't ROFR exercised, when in DISNEY/DVC/DVD estimation, the price is "low enough" for it to be profitable for them to purchase the contract and re-sell it.
OR
Is when the price is "too Low" and they are keeping prices artificially high in relationship to market pressure?

Probably a little bit of both. When DVC exercises ROFR on a 150 point contract, they could end up splitting that contract into as many as 6 individual 25-pt add-ons. That's a lot of paperwork, legal filings, administrative overhead and I assume there would even be some commission or other compensation for the DVC Guide. I don't think it's necessarily a given that DVC will make a profit on every ROFR--certainly not enough of a profit to totally justify the work involved.

The other half is keeping resale costs in line with DVC's "new" point prices at SSR. DVC's sales would certainly be impacted if they are charging $95 per point for SSR and yet let resales go through at $50-60 per point.

Right now, they seem to be OK with resales that have the buyer paying a net of about $80 per point including the base fee (roughly $72), current year maintenance ($4) and closing costs ($3-4). Most offers under that level are getting grabbed by ROFR. DVC is then selling the points for a flat $89. So, you can figure they're pocketing upward of $10-11 per point on the contracts they grab.

You may disagree, but I don't think revenues of ~$1500 or more on a 150-point contract generates much profit after you deduct the expenses associated with re-selling those points.

Of course, there are other intangibles associated with facilitating add-ons for members like the simple issue of member satisfaction.

 

[robinb]

As a seller the ROFR means nothing to you. You will still get whatever price you agreed to.

I bought both of my resales from The Timeshare Store. They are a class act. I'm surprised that their fee (12%) is so low. I expected it to be much higher.

 

[DisMN]

Originally posted by Maria395712
maybe you can just rent your points and pay your dues and keep renting till you can use them again........
maria

This was my thought too. Good luck and I hope you figure out a solution that works for your particular situation.

 

[TheRustyScupper]

!) I would do a two-pronged approach.
2) List with 1-2 timeshare resellers (eg. Timeshare Store)
3) List yourself on Timeshare Users Group (www.tug2.net)
4) The Closing company will handle the ROFR process.

NOTE: Do not pay any advance fees to an agent to sell the timeshare. This is ONLY done once they sell your property. The advantage of listing on TUG is there is no agency fee/commission.