Newbie needs help w/ resale

[lisabarr]

I am trying to make my first purchase. Can I please have some opinions on this deal I found and what you think. Thanks

"DVC I/BOARDWALK/AUGUST/50 pt contracts

With all 2004&2005 pt in the contract

And 2004 and 2005 dues paid

With buyer paying all closing costs,DVC Transfer fee and DVC ROFR FEE"

Total cost to me will be around $5800

 

[drusba]

Though I am not sure what you meant by the plural "contracts," if this is a 50 point contract then your $5800 total works out to about $116 a point. You can buy from Disney new for $22 per point less than that. In other words, run away, run far, far away.

 

[CarolA]

Yes, but you can't start with 50 points at SSR only by resale. However, I agree this one is overpriced. If you want to start with a small contract keep looking 116 a point is way too high!

 

[JimMIA]

Drusba is certainly right - that is a ridiculously HIGH price. Sounds like a eBay "deal!"

The '04 points may have some value if you plan on vacationing this summer, but you won't be able to bank more than half of them, since you've already passed the 100% banking deadline. Even to bank half, you would probably have to have the seller bank them, because it's unlikely that you could close by the end of April.

Click on the "Current DVC Resales" link above and you'll see a lot of Boardwalk contracts for MUCH less than you're paying.

 

[Beca]

Well, I am going to give you a little bit different advice than others on this board have.

If you are wanting a "small contract" to get into DVC...they are very hard to come by. You are going to be very lucky to find one, and you will probably pay a lot of money for it.

Most contracts that have 2004 points (not banked) you are responsible for paying maintenance fees for (around $4.50 per point), and all contracts that have 2005 points, you will be paying maintenance fees for (again, around $4.50 per point).

So, here's my math....
$5800-$400 (just picked a number here...not sure whether that is right or not...you can adjust if you need to)

$5400 - $9.00 per point (maintenance fees you will NOT have to pay) is $4500.

This comes out $90 per point with all 2004 and 2005 points intact. True, DVC is selling them for $89 per point...but, if you only want 50 points...you can't get it there. (Granted, you wouldn't pay MF on 2004 points, and 2005 points would be prorated with DVC...but, with any reseller, this would be the case.)

Is it an AMAZING deal, no. But, I personally think it is not that bad, either.



Beca

 

[lisabarr]

THanks for the advice. I am looking for a smaller contract, as we live near Disney and would use the points for short 1 or 2 night visits. I guess we will wait until the right contract comes avaliable.

 

[JimMIA]

So, here's my math....
$5800-$400 (just picked a number here...not sure whether that is right or not...you can adjust if you need to)

Darn, I sure hate to nit-pick my Bud Beca! But I do get different math. What is this $400? Is it closing costs? If so, erase this minus; Seller paying closing is already figured into her total cost of $5800

$5400 - $9.00 per point (maintenance fees you will NOT have to pay) is $4500.

Yes, Beca is right, you should deduct the maintenance fees you would ordinarily expect to pay in order to get an accurate per point price......but... $9 (two years maintenance) X 50 is $450, not $900.

This comes out $90 per point with all 2004 and 2005 points intact.

$5800 - 450 (2 years maintenance) = $5350 / 50 = $107 per point

That's still high in my book, but the real truth (which I believe I first heard from Beca) is that the best contract is the one with your name on it.

It may cost you $1000 more to buy this contract, but in the grand scheme of things that may not be so important. If it's what you want, go for it.

 

[Beca]

Darn, I sure hate to nit-pick my Bud Beca! But I do get different math. What is this $400? Is it closing costs? If so, erase this minus; Seller paying closing is already figured into her total cost of $5800


Yes, Beca is right, you should deduct the maintenance fees you would ordinarily expect to pay in order to get an accurate per point price......but... $9 (two years maintenance) X 50 is $450, not $900.


$5800 - 450 (2 years maintenance) = $5350 / 50 = $107 per point

That's still high in my book, but the real truth (which I believe I first heard from Beca) is that the best contract is the one with your name on it.

It may cost you $1000 more to buy this contract, but in the grand scheme of things that may not be so important. If it's what you want, go for it.

Ooohhh...you are SO right about the MF's...it is just $450. But, yes...I was deducting the $400 for closing costs because their post said the buyer was paying the closing costs, not the seller...so, I think that part is actually right.



Beca

 

[ColoradoBelle1]

I think the price way too high, even with the 'allowance' that it is a small contract.
Have you checked with everybody (3 major timeshare brokers and 2 smaller ones)?

I say bide your time. The major concern for small contracts is that the closing costs are pretty near the same no matter how many points...so the smaller the contract the higher the point cost for the closing.

Someone who ended up selling his BWV on EBay for much higher would have sold to me for $75 a point. There were no 04 points, all 05 points and yes, I would have paid cloing costs and he wanted HIS transfer fee costs paid by me. I offered less. He went on EBAY and scored big!

I consider 04 points 'freebies' and wouldn't think of paying maintenance fees on them...They were paid in January 2004!!!! Since the 2005 fees are also paid in January 2005...if all points are available and the maintenance isn't part of a monthly add on to financing...then I can see paying for those.

Remember...everything is negotiable. Look at the ROFR thread and see what others are paying at your resort. Looks like OKW is $73-$75, BWV is $76, BCV is $80, SS resales are $79. Add on some for the smaller points contract.
And on about $450 for closing costs, less if you can find a cheaper closer.

That $9.00 per point for 50 points with a $450 closing cost is the killer added to the cost of the point (say $76) plus maintenance for 2005 = $89.
The extra money your contract calls for could actually buy you more points.

I think you can do better if you wait. BUt that's just my opinion and experience.