New $500 Resale DVC Transfer Fee

[VGCgroupie]

Whelp … there it is! The reason they cancelled the membership meeting. Can’t stomach the pitch fork and torches crowd … we all knew something unpleasant was coming.

They cancelled??

 

[mkatsy]

They cancelled??

They are still having the individual resort meetings. The big membership meeting (where we got “free” cookies) was mysteriously cancelled.

 

[VGCgroupie]

They are still having the individual resort meetings. The big membership meeting (where we got “free” cookies) was mysteriously cancelled.

Ahhh okay I did remember seeing that one getting the ax

 

[eticketplease]

So due to ROFR there is no real way to avoid this with a new resale contract at this point.

I am curious about this. I would think that as long as the contract is agreed upon and signed by all parties the sale agreement would then be considered completed on that date. Then Disney gets to decide if they will allow the transfer to the new owner or if they will snag it via the ROFR process. In my eyes as long as it is signed by 12/31/2025 there won’t be an extra fee.

 

[kmc8826]

Extra fee is definitely just another way to kill the resale market. I have bought resale and direct and sold direct small contracts. (Keeping my bigger direct contracts). Ironically the only contract I have kept is my big resale that was bought in 2018 before the restrictions on new resorts went into effect. This new fee would make me hesitate to sell a small direct just like the restrictions have made me hesitate to sell my grandfathered BLT resale.

Either way I think it makes buying a small resale VGF or Poly rather questionable. I would bet buyers will end up absorbing the cost (and sellers indirectly by lower cost per point). I probably will still buy Boardwalk resale...I need/want more and the spread is too much between 240 a point and the 114 a point I just paid. But I think I will effectively stop bothering to look at buying resale options on VGF.

Either way it is frustrating and seems dirty. Oh Disney.

 

[mkatsy]

A lose for us all. Whether we buy or sell, no one is going to want to pay that. Glad im done buying resale. Won't stop people from buying or selling resale though, $500 is still better than an extra 10 grand.

Wonder what other creative way they'll come up with to devalue resale next. More money in their pockets, but a lot of resale people cannot just buy a bunch of direct because the gap is going to keep narrowing.

If all my resales were 30k plus I wouldnt be having all these and buying direct instead anyways. Pretty soon the amount of points to stay in anything other than a studio is going to be for ballers only

You know what’s coming next? … I bet it’s a fee to change the name on a reservation. They are trying to punish anyone making money off of their product, without them.

 

[VGCgroupie]

You know what’s coming next? … I bet it’s a fee to change the name on a reservation. They are trying to punish anyone making money off of their product, without them.

Interesting…

 

[Girlstar30]

You know what’s coming next? … I bet it’s a fee to change the name on a reservation. They are trying to punish anyone making money off of their product, without them.

Wouldn't be surprised sadly

 

[HyperspaceMountainPilot]

You know what’s coming next? … I bet it’s a fee to change the name on a reservation. They are trying to punish anyone making money off of their product, without them.

This one I would support actually. If they charged for name change modifications, it would force the heavier users of MS to pay more, and curb spec renting.

 

[JackosinDIS]

Wow. $500 seems steep. If this was purely to cover the admin involved with transferring a contract, I would say $100, maybe even $250 would be reasonable. But this is a punitive level of cost for what one would think is a fairly admin-level task.
While it will probably be accepted at this level, imagine if it was $1000 or $2000. That would be challenged surely as it would be a block on selling.
For a 50 point VB contract, we are talking 20-25% of the entire cost of the contract at this level.
This is going to be a nice little earner for DVC!

 

[walt34]

$500 is quite expensive, particularly for smaller contracts. For a 50-point contract Disney might regularly earn more than the resale agent's commission with significantly less effort.

 

[AstroBlasters]

DVC put a tariff on resale contracts

 

[mkatsy]

DVC put a tariff on resale contracts

time to diversify the vacation supply chain

 

[smileyanna]

I’m mostly concerned about what this says about other unilateral changes or fees that could come our way. I always take @Sandisw ’s read of the terms seriously that we shouldn’t expect the current booking windows and privileges to remain more generous than they are required to be.

Would the brokers lower their fees (a “small contract discount?”) if the resale market gets less attractive and activity slows at the margin? There are often three players in a resale transaction, not just buyer and seller…

 

[Hubalorian]

AI told me https://www.dvcresalemarket.com sold 4,400 contracts last year. If we use that as the baseline, that is another $2.2 million dollars in their pockets for doing nothing extra, just business as usual.

I want more free Mickey Ice Cream bars now

 

[AnnaKristoff2013]

Yikes! That's huge on smaller contracts!

Out of curiosity, is there anything preventing them from charging $5000, or $50,000? What are the chances that this gets challenged in some way?

Nothing. Marriott charges huge junk fees to transfer resale points contracts. Effectively thousands of dollars.

 

[sndral]

I’m mostly concerned about what this says about other unilateral changes or fees that could come our way. I always take @Sandisw ’s read of the terms seriously that we shouldn’t expect the current booking windows and privileges to remain more generous than they are required to be.

Would the brokers lower their fees (a “small contract discount?”) if the resale market gets less attractive and activity slows at the margin? There are often three players in a resale transaction, not just buyer and seller…

Interesting thought - DVC resale broker commissions are really high - like 9% - compared to the 5-6% for most real estate commissions.
I suppose who pays the transfer fee will be yet another negotiable item between buyer & seller, or will it be rolled into the ‘closing costs’ that title companies charge & generally (but not always) buyers pay.

 

[matt_in_nh]

It is like we are playing the bratty 6 year old in a board game and they make up new the rules to favor them.........

 

[Cfabar1]

To anyone who thinks Disney has a vested interest in a strong resale market, or that they care about resale value, remember this decision.

 

[mkatsy]

It is like we are playing the bratty 6 year old in a board game and they make up new the rules to favor them.........

Yup … and they’re gearing up to kick over the monopoly board because they’re not winning.