Negatives of going thru resale????

[Jon99]

Seeing the cost is less, what are the negatives of going resale instead of thru Disney?????

I swear, I will get this figured out and stop asking questions real soon!!!!!!

 

[kem330]

We made our first purchase at BWV through resale- Jaki at Atimeshare.com It was very easy, we closed within 3 weeks and saved about $1500 over Disney- plus we wanted BWV over VWL.
We did not get the welcome gifts- that was the only difference between a direct sale and a resale. Also with resale you have to wait to close before you can make a ressie. Be careful with resale- we had all previous and current years points included in sale- Price should adjust accordingly if points have been used or borrowed.

 

[barbarabee]

I'm going through resale right now, and it has been a pretty smooth process. The disadvantages that I've seen is that it takes a lot longer to close (I believe at Disney once you sign the paperwork you can make reservations, and I'm not yet done at 6 1/2 weeks). Also, you're limited to what is available...you can't get the Beach Club Villas if that is what you want for example. And financing might be a little trickier, however I went through Tammac Financial and qualified no problem. And the interest rate is the same as Disney. I feel like I'm getting a great deal. I wanted Boardwalk, and could only get that through resale. I'm paying $10 less per point, and I'm getting 128 banked points! Hope this helps.

 

[JonHM]

don't forget if you buy a resale, you have to pay closing costs - which you don't if you buy through Disney - this does have an effect on the actual price per point. Others could give you more info on this. I *think* that other commissions are paid by the seller, not the buyer - but the closing costs are an issue.

 

[barbarabee]

Yes, that's true. I paid $400 in closing costs...which adds a couple of dollars to my per point cost.

 

[kem330]

I included closing costs in my savings- I paid $62/point plus $450 for closing (200 point purchase) compared to $72/point for VWL last Jan.

 

[crisi]

I'm paying $63 a point, plus $400 in closing for BWV. Points for 2002 have been used (except a whole 7), which is fine with me, we aren't planning on traveling in 2002 anyway - late 2003 is our next Disney target. Since there aren't any 2002 points, we aren't paying any dues until April of 2003.

Total cost to me $9850.

It is taking a while, although I did have the first round of paperwork signed before the DVC sales guide called me back from my initial inquiry (took them three weeks to call back, during which I'd found a resale, signed paperwork, and sent off my escrow check). I'm not going to get any welcome gifts. I will probably wait an extra month to get my membership guide and other materials from Disney.

 

[JeffreyH]

150 points can be purchased through Disney right now for $10,500. You would get 150 points in 2002. If you're comparing this to a resale which doesn't have any 2002 points available, you could just assume that you would rent the 2002 points you would get through Disney (say for $10 each, or $1,500). That lowers your cost to $9,000. Although you would have to pay maintenance fees on those 150 points (maybe about $425 between now and March 2003).
Comparing this Disney purchase and rental of the 2002 points to some resale prices out there (with current year points already used), it can be cheaper to go through Disney (although in this example you'd have the hassle of renting the points).

As kem330 said, just be careful with what is banked and borrowed.

Keep in mind the Disney financing may be tax-deductible for you (if you itemize, etc.). Anyone know if interest on a loan specifically for a DVC purchase (such as one through Tammac as barbarabee mentioned) is deductible? Or does it have to be a "mortgage"?

 

[Ed T]

Getting financing for a resale maybe the only downside but if you have equity in your home or have cash around resales can be a nice way to go and save some money.
Granted it was Dec 99 that we bought a resale at OKW and paid $ 50 a pt and saved $ 3000 I still think there are current deals out there it is a matter of getting the right seller who is motivated to sell. You can negotiate your deal to include seller paying closing cost or splitting cost etc. Our seller wanted $55 a pt and we offered $ 50 they took it and we paid the closing cost happily. We paid $ 57 a pt back in 1994 when we first bought in.
I would shop the resale market just to make sure you are not missing something

If you email me I'd be happy to share my contact with you.

Ed
DVC 1994

 

[DisneyKidds]

If you go resale it will be a month from the time you agree on a price to when you can make a reservation. With a direct purchase you can make ressies right away. If you need to finance, you won't have the Disney financing available to you. As far as I can see these are the only downsides. We have been extremely happy with our 2 resales.

Of course, if we bought thru Disney instead of resale we would have closed in time to get a ressie for the first week of Dec at VWL - right now we are on the waitlist . However, it would have cost $1,000 more.

As others have said, take the time to analyze the numbers on a resale. Banked points can make resales a great deal. If there are no current points or points have been borrowed you need to look a little closer. Good luck.

 

[lovewdw13]

What everyone said is true. Another issue to consider are the incentives. Right now, you receive a future free stay with a BCV purchase or $5 per point without giving up your points. HH and Vero have different incentives that can make the purchase price come down. So weigh the costs. Find out what resale will cost total. Then if you're coming down, do a tour to find out our total costs with incentives. At least make sure you talk to a guide about it so you know the diffs.
Benedetta
DVC Cast Member

 

[SueM in MN]

We bought 2 resales with no problems at all. Just be aware of what is banked/borrowed or used, like the other posters said.
The last resale we bought actually finally closed in October after a bit of hassle. We had an accepted bid on one contract, which was later withdrawn. The husband and wife were getting divorced and he put it up for sale without telling her!!! She found out when it came time to sign the papers. I guess he thought that he could sell it without her signing and found out differently. We had our Timeshare agent looking for something else for us for a while before one came up to bid on again. Another divorce situation, which made it a little more messy to bid since we were buying from 2 people who were not on friendly terms.
I'd still do a resale again (especially since what you want may be already sold out thru Disney). Just be aware that there are some other potential bumps in the road.