Need some expert advice on add-on

[Lasrnw]

We are ready....(already) to add on - but DH has it in his mind that we should look for small contracts and get a few. His thoughts are that if we ever decide to sell them - they would go quickly and always retain their value. I was hoping for some thoughts from you expert DVC...ers....thanks

 

[tiggercrew]

I am certainly no expert but just looking at the resale sites I tend to agree with your husband. The smaller contracts (25, 50, 75 and even 100) are usually listed as sale pending almost as soon as they appear on the website. From other posters, the best bet when purchasing a smaller contract (if you don't use Disney) is to contact the resale co and let them know what you are looking for so they can contact you as soon as one becomes available.

Good luck on your decision to add on.

 

[utahkennedys]

If you are doing a small add-on, I would go through Disney. I figured out it is actually cheaper to do an OKW add-on than buy resale. Plus, no waiting, ROFR, etc. Right now I think the only inventory Disney doesn't have is BCV.

 

[Blue&Gold]

What is the current price for existing resorts when buying from Disney? DVD is not allowed by the State of Nebraska to market directly to residents. We can only purchase from DVD when actually physically present in Florida. No problems legally with resales, but it is a bit of a dog waiting for the right use year/point combination!

 

[NJOYURLIFE]

I do agree that smaller add ons are better in the event that you want to sell or divide your contracts later on. We purchased our 50 point contract on the resale market. The small contracts do go fast so you do need to call and let them know that you are looking and what you are looking for.

Now, if you were just getting into DVC and wanted to start off with the smaller point contracts, then resale is your only option. However, if you are already an owner, you can still add on in increments of as little as 25 points without DVC financing or 50 points with DVC financing. So you are not limited to resale only for smaller contract add ons.

Of course, for some of the incentives, there is also a minimum number of points required to be purchased. I am thinking about the recent one with the 120 minimum add on.

Hope this helps.

 

[gjw007]

Going through Disney for small contract may also make more sense economically as you don't have to pay closing costs. In addition, some resales you may have to pay for the maintanance fees. At least from Disney, it will be pro-rated for the rest of the year. Of these, the closing costs plus the additional wait to get into the system in my opinion, outweight not going directly with Disney.

 

[Dean]

It really depends on your situation, mainly on what resort and how many points you want NOW. I do think that it's easier to sell smaller contracts currently than large ones but that doesn't necessarily mean you'll be better off with multiple 25 point contracts. Plus I'd never pay significantly more to have multiple contracts. It may be easier to find some items through DVC while others may be easier resale. If you're set on a specific use year, resort and relatively small contract of say 75 or less, I'd likely go through DVC directly unless you can easily find it resale. If you're looking at a larger contract of say 100 or more and don't care which use year (even if it's different) then resale will likely save you money but I'd never hold out for multiple smaller contracts and pay the extra fees to do so.

In most cases I'd recommend getting the same use year but there are also advantages to having different use years for some situations. If you do decide to go through DVC, you would have the option of increments as small as 25 points. Get what you need but for 75 or less, I'd just get one contract unless you specifically plan to sell only a portion later on.

 

[JeanJoe]

We are ready....(already) to add on - but DH has it in his mind that we should look for small contracts and get a few. His thoughts are that if we ever decide to sell them - they would go quickly and always retain their value. I was hoping for some thoughts from you expert DVC...ers....thanks

I'm no expert here, but I agree with your DH, at least to a certain point.

The smaller 25-75 point contracts do always seem to go quickly, and actually command a little bit of a price premium. But, just in case future results don't match past trends, you might want to remember, as others have already posted, that the closing costs and transfer fees make a much larger $/point difference with a 25 compared to a 100 point contract.

For example, transfer fees are a flat $200, regardless of contract size. For a 25 point contract, that would be $8/point in fees, while for a 100 point contract, it would be $2/point.

If I were in your situation, I would probably go for the "sweet spot" of 50 - 100 point contracts, not bigger (because as you DH says, they are a little less flexible, e.g. the 1000 point OKW honker) or smaller (because if transfer or closing fees increase, smaller contracts will be affected more).

How's that reasoning sound to you? YMMV of course!

 

[Lasrnw]

As always you came through!