Need advice: Buying points straight from another DVC owner

[kim532]

I found a lady who wants to sell her DVC. We work at the same company(large corp. of 5000, so I don't know her. She placed ad in our internal Classifieds). I always hear about buying through the Timeshare Store or buying from Disney directly( what my inclination is since I wouldn't mind buying WLV and from what I hear about the ease of the transaction)

I saw the trhread a about a day back where a member asked about selling his own, but it was a little confusing to me. At one point it said<BLOCKQUOTE><font size="-1">quote:</font><HR> [/quote]You will need to retain SC counsel for the handling of the closing and the registering of the deeds.

What is SC counsel? Is that just a lawyer for the paperwork? Also in my opinion she is asking way to much per point. I don't want this to be the focus of this thread but she is asking $70/point for BWV with a June Use year. I don't like the June use year but I do like BWV. When buying directly it seems like you should get a better break on the price. I WON"T pay $70/point but I would pay int the $60's. Maybe $61-or $62

I know the focus of this board is not to check to make sure you a getting a good deal when you buy, that is why I hesitated to mention the price, but I was curious if anyone who has bought directly from another DVC owner could give some advice or just things they would do differently. THANKS

Kim

offsite- 86, 92, 93
PO(now french quarter)- 2000
CS- 2002

 

[baileybrad]

The SC reference would be regarding a purchase that has HH as the home resort.

I think the use year (June) is what you would get if you purchased the resale.

If you are interested in VLW, by all means check with Disney because $72 through Disney hassle-free, especially if you don't care for the use year with this resale vs. $70 would be better, because by the time you factor in closing costs involved with a resale you would probably be paying more for the BW resale.

Also, I would not hesitate to question pricing on these boards. That is the best way to find out what kind of deals folks are or are not getting in the resale market. Good Luck. Hopefully, Doc, Dean or Rich will see this and will provide more detailed information to your questions.

We bought a resale at HH for $53 a point a few years ago and that included the closing costs but the resale market has changed dramatically in the last 6 months or so. This has primarily impacted the sold out properties--OKW and BW. Eventually it may affect others.

We stayed at VLW in early Feb. and loved it. It is a wonderful resort...I don't think that you will be disappointed in the least. Just keep in mind the time that you will be visiting the most often, along with the size of accomodations that you will stay in the most when deciding on the number of points that you will need or in our case afford. It is a bit more expensive to stay at VWL than say OKW but that is one of the ways that Disney, in my opinion, interjects the cost of living into their newer DVC properties. I kind of got carried away on this but hopefully you will find something useful in this rambling. DVC is a quality set-up but do think of it as a way to assure your self of a wonderful vacation spot and not as an investment per say. Again good luck in your decision.

 

[RobDoc]

baileybrad has provided some good insight! The $70 does sound high to me (remember that she paid- at most $68), but it also depends on what that includes. If it includes all of the June 2000 points (already banked) and if it includes this years maintenance fees (at least prorated to when you would purchase) and if it includes all closing costs for the transaction (including title insurance and recording the deed)- then it may still be an OK deal depending on how many points are involved. I would certainly offer less than that!
The June use year cannot be changed, as it is a component of the deed itself. As baileybrad explained- the SC reference was for a South Carolina purchase- but you would still want an attorney to review the details for you. Also- DVC must review the offer (they have right of refusal onthe deal- but they won't even blink on an offer in the $60's or $70's!)

The seller is trying to avoid any broker commission and that fact should be considered when making your offer- plus the things mentioned above.

Please let us know what happens! Good luck!

Doc
doc@wdwinfo.com

 

[kem330]

Kim If you do a search on resales, you will find some more info. The most important advice is buy where you plan to stay. The 11 month reservation advantage can be important, especially at peak times for BWV. As for your situation. This is how I would compare it:
Buy from Disney:
VWL for ex: 200 pts x 72= $14,400
includes closing, Dec use year, 200 points from Dec. 2000 and 200 more points in Dec 2001. Your dues prorated for 2001
Resale: Current BW resales are listed at $68/point plus $400- $500 for closing so in this case say $2.25/pt bringing total cost to $70.25/pt
However those are through a broker and the seller would be paying $1500 - 2000 in commission. Also factor in that sale should be discounted if it doesn't include any previous years points as applies w/ Disney. Also from info on this board most sales actually range in the $64- $68 range and less if they are missing points. So use this info to decide what is a fair price for both of you. One way to value it: Cost through broker inc closing: $70.25 x 200pts =$14,050 - 1500 commission =$12,550 %200pts =$62.75/point. This would be a maximum value compared to resale- price would be discounted for missing points (prorated maintenance would be extra).Just one way to figure it.

[This message was edited by kem330 on 04-07-01 at 11:19 AM.]

 

[goofyforwdw]

I did this for my points at BW this fall We bought points from my brother and sister in law (money problems).Once we agreed on price banking of points and who would pay for closing (we split the cost)We faxed this agrement out to MS. Disney has first rights to the points so we had to get eveything in righting and send it to dvc. They did not want to buy back the points and told us it was ok to proceed with the purchase, they recomened a timeshare closing co.I then called them and faxed them the contract we had worked up and they took it from there . Fed ex the paper to us and seller sent them the money and signed papers back about two weeks later we were members at BWV. We were already members at HH since 1996
Good luck
posted

1978 outside (honeymoon)
1989 FW, 91 FW, 93 outside
95 DL, 96 HH, 97 KW, 98 FW&VB
98-99 BC,3 day cruise & GF
99 HH, 2-00 FW& BWV,6-00 HH
9-00 7 day cruise,12-00 FW
2-01 BWV&VWL

 

[spruce]

There is another option for transfering a deed. It's called a quit claim. Basically a person gives up their interest in the deeded property and signs it over to someone else. You can call the Orange County courthouse (in Orlando) recorder of deeds and have the process explained to you. Many office document stores will have the form. Then you just file the new deed with the courthouse. It's much cheaper then using title company's or lawyers. I bought 2 timeshares this way and intend to add my Wife to my DVC 2 deeds in this way. Disney wants over $500 to add her whereas I can quit claim them from myself to both of us for under $100.
As for insuring the owner ownes the timeshare, I've called the timeshare company, explained that I was buying x week from y person and do they actually own the week? Then you call the recorder of deeds and determine if there is a free and clear title(deed) or if their is any lien on it. If all this checks out, Quit claims can save you some cash......spruce

Offsite 87,92,97,00
CBR 95
DI 98
Vero 98
BWV 98,99,00
OKW 99x2,00,01
DCL 98,01

 

[kim532]

You guys are great. I have to ask some more questions, but if she is trying to make a profit(which is kinda what it sounds like) But I am knew to this stuff and it can't hurt to try to negotisate on price and who pays closing costs. I will definitely keep you guys posted on my decision and I am hoping you can welcome me as a new member in a month or so. Before the price hike in June!!!!

Kim

offsite- 86, 92, 93
PO(now french quarter)- 2000
CS- 2002

 

[kim532]

I am not going to buy from the lady. I think it boiled down to the use year and knowing that if I bought from Disney directly I could get something more suitable for me. And to be perfectly honest, the ease of transaction from buying thru Disney. My husband isn't all own board for this purchase yet and if it is a hassle to buy, he may change his mind. He is actually wanting to wait until we go on vacation 2002 and just buy when we were down there. Of course I told him no because of the price increase and the fact that we can use our points for that vacation. I have some more explaining to him about this because I won't buy either until he is 100% comfortable with the purchase.

Thanks again for your help.

Kim

offsite- 86, 92, 93
PO(now french quarter)- 2000
CS- 2002

 

[baileybrad]

if you want VWL and plan on waiting until 2002, then you will be out of luck buying from Disney because that property will most likely be sold out by the end of this year.

 

[kem330]

Good luck Kim!Hope to welcome you home soon!