Newbie- buying a contract

[CailinFig]

Hi, trying to understand some of the contracts for sale. If a 100pt contract with 200 points available on sept 2014 (100 banked from 2013 and 100 2014 points) is for sale...does that mean you could borrow 100 of 2014 points prior to September 2014? So this contract is not necessarily stripped? Thanks!

 

[JustTinking]

Hi, this contract is not stripped. It has all of its 2013 points (which became available last month on Sept 1, 2013), plus all of next year's points. The owner had until end of April 2014 to bank the 100 2013 points but they have already banked them forward. If you were to book a vacation for a time period before Sept 1 2014, you would need to borrow points from the 2014 UY. If you were to book a vacation for a time period after Sept 1, 2014, you could use both the 2013 points as well as the 2014 points if you needed to. Plus you could also borrow from 2015 UY. The 100 points from the 2013 UY will need to be used for a vacation before Sept 1, 2015 or they expire.

You have the first 8 months of the UY to bank points forward. Common practice is to wait as long as possible to bank, or at least until you know that you will not need the points for the current UY. I have a Sept UY and I usually bank sometime in March or even in April.

 

[dbs1228]

It is very odd that an owner would bank current year points that just became available last month - are you sure they are not banked 2012 points with 2013 also available? I have not seen any contracts on the market with such current UY points already banked since as PP said the owners had until next April to bank them. Either way it is not a stripped contract just have to wait if it is in fact 2013 points banked. good luck

 

[DVC Dude]

A stripped contract would show zero 2013 points (already used) and even zero 2014 points (borrowed and used already). Points would refresh in 2015. That would be a less than desirable situation for most buyers.

 

[CailinFig]

Thank you. Trying to get a hang of what is stripped vs loaded.

 

[Nabas]

Thank you. Trying to get a hang of what is stripped vs loaded.

I agree with everyone else. It's rather unusual to bank points so early but the contract has all of its current points.

It's unfortunate because you take a slight risk borrowing 2014 points if you want to use them before September 1, 2014. By borrowing them, you won't be able to bank them if you cancel the trip.

 

[CailinFig]

Would this be a scenario where the seller would expect full asking price since it has all
Of its points? I feel like there is risk involved with borrowing the 2014 points in case we needed to cancel the trip as well.

 

[dbs1228]

i think you should offer what you are comfortable with they will come back with one of 3 responses 1) yes 2) counter offer or 3) no. If this one does not work out there will be many more! Back in Feb I was looking to add on BWV and after DVC took the 1st 2 contracts I was trying to buy, the 3rd contract the seller backed out, and the 4th was the perfect UY, # of points and was fully loaded (2012, 2013 & 2014 points) and that contract went through without any problems! It always was the best suited contract for us and the fact it was my UY was a huge bonus. Good luck