Need Advise on Buying Resale

[CheetoGuido]

After going to WDW almost on a yearly basis since 2002, I think I have finally talked my DH into buying into DVC. I know I want to do re-sale and the disboards have given me a lot on insight such as wanting 2-3 smaller size contracts with different resorts. But i am still unsure about getting the best price per point. I read the thread about ROFR amounts passing and some of those amounts per point are A LOT less than what i see listed on timeshare store and other sites i have visited. I imagine you can put in offer for less and see if the Seller will accept but I guess my question is:
Do I just offer a lower price on the listings I find until I find a seller that accepts? Is that how dis'ers found those great prices?

 

[disneynutz]

Before you get involved with the actual buying process you need to take the time to decide which resort is your favorite, stay there and then start looking for the best deal.

You will own your resort(s) for many years and it doesn't make sense to buy anywhere but your favorite location. As additional members are added booking at your non-home resort will be harder in the future.

Bill

 

[CheetoGuido]

Hi Bill,

Thanks for that input, my DH have talked about that too and our concerns about the ease of booking at other resorts 7 months out or not. We rented points earlier this year and stayed at AKL Jambo House and we are renting points for our Feb trip at Kidani Village and we are definitely interested in AKV as a home resort. Maybe we should take some time and visit our top resorts that we are interested in. If we purchased 2 contracts with 2 different home resorts would we then have an 11 month booking ability with both, even if we have to use our combined points for the stay? Lets say i purchased 50 points at AKV and 100 at SSR, and we wanted to book a week at AKV 11 months out that required 90 points, could we do that even though we only have 50 points on our AKV contract?
And when we are finally ready to buy (hopefully with DH's bonus ), how do we find the DEAL?

Sorry if i don't make any sense..Nancy

 

[disneynutz]

Hi Bill,

Thanks for that input, my DH have talked about that too and our concerns about the ease of booking at other resorts 7 months out or not. We rented points earlier this year and stayed at AKL Jambo House and we are renting points for our Feb trip at Kidani Village and we are definitely interested in AKV as a home resort. Maybe we should take some time and visit our top resorts that we are interested in. If we purchased 2 contracts with 2 different home resorts would we then have an 11 month booking ability with both, even if we have to use our combined points for the stay? Lets say i purchased 50 points at AKV and 100 at SSR, and we wanted to book a week at AKV 11 months out that required 90 points, could we do that even though we only have 50 points on our AKV contract?
And when we are finally ready to buy (hopefully with DH's bonus ), how do we find the DEAL?

Sorry if i don't make any sense..Nancy

You can't combine home resort points at 11 months, only at 7. That's why we own at 5 resorts. I broke my rule and bought BLT without staying there because DW got caught up with all of the sales hype. It has turned out to be our least favorite resort and now we don't want to sell because of falling prices.

Bill

 

[BWV Dreamin]

After going to WDW almost on a yearly basis since 2002, I think I have finally talked my DH into buying into DVC. I know I want to do re-sale and the disboards have given me a lot on insight such as wanting 2-3 smaller size contracts with different resorts. But i am still unsure about getting the best price per point. I read the thread about ROFR amounts passing and some of those amounts per point are A LOT less than what i see listed on timeshare store and other sites i have visited. I imagine you can put in offer for less and see if the Seller will accept but I guess my question is:
Do I just offer a lower price on the listings I find until I find a seller that accepts? Is that how dis'ers found those great prices?

My suggestion, if your resigned to the fact of purchasing resale, I would wait until after Jan 1, 2011. Just sayin....

 

[CheetoGuido]

My suggestion, if your resigned to the fact of purchasing resale, I would wait until after Jan 1, 2011. Just sayin....

BWV Dreamin, Can you elaborate on why? I read another thread that said something similar about waiting until after the new year, but I could not figure out why?
Thanks!

 

[BWV Dreamin]

BWV Dreamin, Can you elaborate on why? I read another thread that said something similar about waiting until after the new year, but I could not figure out why?
Thanks!

I am not at liberty to elaborate at this time. Soon everyone will know!

 

[CheetoGuido]

I am not at liberty to elaborate at this time. Soon everyone will know!

Okay so now i am genuinely intrigued and will most likely go mad

 

[DVC SSR Owner]

Let me guess, Dvc is changing rules about resales and the resale market is going to plummet? Or, a new fantastic Dvc is being announced and they will want to buy there. Am I warm?

 

[LisaS]

Rumors have been swirling for some time now that DVC will set up a two-tier system with different rules for resale points vs points purchased directly from Disney. There have been several threads on this topic with some folks speculating that new rules will be announced soon, possibly at the association meeting in early December.

There have been a few threads on this topic but here are two that the Search function turned up:
http://www.disboards.com/showthread.php?t=2556970
http://www.disboards.com/showthread.php?t=2558248

Initially it sounded like typical sales scare tactics but several people have reported hearing this in the past few weeks so it's sounding more plausible now.

 

[awatt]

My suggestion, if your resigned to the fact of purchasing resale, I would wait until after Jan 1, 2011. Just sayin....

If you were to "just say" some more, would existing contracts be grandfathered?

 

[twoehr]

If you are looking to buy from The Timeshare Store I would suggest subscribing to their mailing list. I found this much better than checking their website for new postings and by saving the emails I could look back to see what things were selling for over time. Also, don't assume that a list that sold actually sold for the asking price. After awhile you'll get a feel for what offer for a particular point/resort combination.

HTH

Tim

 

[twoehr]

Rumors have been swirling for some time now that DVC will set up a two-tier system with different rules for resale points vs points purchased directly from Disney. There have been several threads on this topic with some folks speculating that new rules will be announced soon, possibly at the association meeting in early December.

I'm no lawyer, but once you own your points you have the same ownership interest, and rights, in the property no matter who you bought them from. I would think it would be quite discriminatory, and illegal, to treat an owner differently based on who they purchased from. The ROFR is Disney's only legal tool to insure resales are not too much better than buying directly from the mouse.

 

[DVC SSR Owner]

So. Why would you wait to buy resale until Jan 1 to buy resale IF grandfathering was on the table? Something does not add up. Makes zero sense.

 

[roypup]

So. Why would you wait to buy resale until Jan 1 to buy resale IF grandfathering was on the table? Something does not add up. Makes zero sense.

You would have a very limited chance that your resale purchase would close by December 31, 2010.

 

[roypup]

I'm no lawyer, but once you own your points you have the same ownership interest, and rights, in the property no matter who you bought them from. I would think it would be quite discriminatory, and illegal, to treat an owner differently based on who they purchased from. The ROFR is Disney's only legal tool to insure resales are not too much better than buying directly from the mouse.

Well, IANAL either... Here's some food for thought: Your deeded interest only guarantees you the right to book your home resort with a minimal booking advantage (I believe it's one month.) Everything else you can do in the DVC system (book at other resorts, exchange into RCI, DCL, etc.) is a benefit and they can change that out at will.

 

[CheetoGuido]

Well this throws a big monkey wrench into my plans. When I woke up this morning I thought a had a more clear plan as to what to do, but now i am all confused. It seems that no matter what, because of time constraints I can not close on a re-sale before 1/1/2011 and that my best option is to wait and see what, if anything, changes in 2011 and then review my available options. We should have purchased last year, when i first told DH....

 

[disneynutz]

Rumors have been swirling for some time now that DVC will set up a two-tier system with different rules for resale points vs points purchased directly from Disney. There have been several threads on this topic with some folks speculating that new rules will be announced soon, possibly at the association meeting in early December.

There have been a few threads on this topic but here are two that the Search function turned up:
http://www.disboards.com/showthread.php?t=2556970
http://www.disboards.com/showthread.php?t=2558248

Initially it sounded like typical sales scare tactics but several people have reported hearing this in the past few weeks so it's sounding more plausible now.

Won't be announced at the meeting, Disney doesn't want the confrontation. They will make it affective on a certain date, then announce that it already happened.

Bill

 

[cayman01]

Well this throws a big monkey wrench into my plans. When I woke up this morning I thought a had a more clear plan as to what to do, but now i am all confused. It seems that no matter what, because of time constraints I can not close on a re-sale before 1/1/2011 and that my best option is to wait and see what, if anything, changes in 2011 and then review my available options. We should have purchased last year, when i first told DH....

Hold on a second, all is not lost! It needs to be understood that resale is NOT always the cheapest way to go ESPECIALLY OVER THE LONG TERM! Why you ask? Maintenance Fees. They will eat away all your upfront savings and more over the term of your contract, even at SSR.

Here is an example:

To find out your actual cost per point for a vacation THIS YEAR ( it will change each year as MF's go up and years left on contract go down) use this formula:

Price Paid per Point/ Years Left on Contract + MF's/pt = Actual Cost pp

Right now Disney has an incentive for BLT for 250 points of $18 off pp and a $750 GC. So you actually pay $99 per point ( a very good deal). Your actual cost per point for this year is 99/50 + 3.87 or $5.85/point.

Now let's head to the resale market and get a "cheap" SSR contract. Let's say we pay $64/pt INCLUDING closing costs. The actual cost per point for this year is 64/44 + 4.46 or (drumroll please) $5.91/point.

Yes, in this example BLT is actually slightly cheaper than SSR. So a 200 point vacation using BLT points actually costs you $1170 vs. $1182 using SSR points.

How do the other resorts stack up? Here's a list:

OKW '42: 55/32 + 4.87= $6.59 $1318
OKW '57: 70/47 + 4.87= $6.36 1272
BWV: 70/32 + 5.36= $7.55 1510
AKV: 80/47 + 4.95= $6.65 1330
BCV: 86/32 + 5.15= $7.84 1468
VWL: 72/32 + 5.20= $7.45 1490
VGC: 100/50 + 3.94= $5.94 1188
HHI: 50/32 + 5.57= $7.13 1426
VB: 42/32 + 6.61= $7.92 1584

I tried to lowball the price paid per point and added $3 for closing costs. The actual cost will very according to price paid per point, but this gives you a good idea of what you actual cost is for a 200 point vacation. BLT, VGC, and SSR are the least expensive by a good amount. VB, BWV and VWL are the most expensive.

Also remember that price is not the only consideration. It matters not that BLT and SSR are the cheapest if you don't like staying there. Yes you can stay at other resorts but you might not always get what you want. The bigger the resort the easier it is to book at 7 months. For example, you might
buy BLT and stay at AKV and save around $150 per 200 point vacation. Conversely, you could by at SSR but have a difficult time getting BCV or VWL at 7 months because they are so small.

If you like BLT get it now. These are the best incentives I've seen in awhile.If you don't like BLT wait til after the smoke clears from possible changes and then buy resale.

 

[cel_disney]

Hold on a second, all is not lost! It needs to be understood that resale is NOT always the cheapest way to go ESPECIALLY OVER THE LONG TERM! Why you ask? Maintenance Fees. They will eat away all your upfront savings and more over the term of your contract, even at SSR.

Here is an example:

To find out your actual cost per point for a vacation THIS YEAR ( it will change each year as MF's go up and years left on contract go down) use this formula:

Price Paid per Point/ Years Left on Contract + MF's/pt = Actual Cost pp

Right now Disney has an incentive for BLT for 250 points of $18 off pp and a $750 GC. So you actually pay $99 per point ( a very good deal). Your actual cost per point for this year is 99/50 + 3.87 or $5.85/point.

Now let's head to the resale market and get a "cheap" SSR contract. Let's say we pay $64/pt INCLUDING closing costs. The actual cost per point for this year is 64/44 + 4.46 or (drumroll please) $5.91/point.

Yes, in this example BLT is actually slightly cheaper than SSR. So a 200 point vacation using BLT points actually costs you $1170 vs. $1182 using SSR points.

How do the other resorts stack up? Here's a list:

OKW '42: 55/32 + 4.87= $6.59 $1318
OKW '57: 70/47 + 4.87= $6.36 1272
BWV: 70/32 + 5.36= $7.55 1510
AKV: 80/47 + 4.95= $6.65 1330
BCV: 86/32 + 5.15= $7.84 1468
VWL: 72/32 + 5.20= $7.45 1490
VGC: 100/50 + 3.94= $5.94 1188
HHI: 50/32 + 5.57= $7.13 1426
VB: 42/32 + 6.61= $7.92 1584

I tried to lowball the price paid per point and added $3 for closing costs. The actual cost will very according to price paid per point, but this gives you a good idea of what you actual cost is for a 200 point vacation. BLT, VGC, and SSR are the least expensive by a good amount. VB, BWV and VWL are the most expensive.

Also remember that price is not the only consideration. It matters not that BLT and SSR are the cheapest if you don't like staying there. Yes you can stay at other resorts but you might not always get what you want. The bigger the resort the easier it is to book at 7 months. For example, you might
buy BLT and stay at AKV and save around $150 per 200 point vacation. Conversely, you could by at SSR but have a difficult time getting BCV or VWL at 7 months because they are so small.

If you like BLT get it now. These are the best incentives I've seen in awhile.If you don't like BLT wait til after the smoke clears from possible changes and then buy resale.

I think that the part of this story that is missing is that 200 points doesnt get you nearly as far AT BLT as it does AT SSR or OKW...so thats something you need to factor in to your overall vacation budget as well..

I do find all of the price increases Disney is planning for Dec 1st to be interesting in light of the potential resale rule changes...