Newbie questions about resale financing and ROFR

[ethanwa]

Hi -

I'm a newbie considering a purchase via resale. The prices are just so much better than going through Disney themselves.

1. Does dvc-resales.com do financing? How good of credit and down payment do you need? What kind of rates do they offer?

2. What is the lowest price per point Disney usually accepts? I don't want to get all excited about a deal just to loose it to ROFR. Is $59/point too low on a 1000 point deal? What is the acceptable range?

3. Is $59/point for Old Key West too high? What is considered a "good deal" on the resale market?

Ethan

 

[JimMIA]

Is $59/point too low on a 1000 point deal?

Gulp...just a few questions...

1. What on Earth are you going to do with 1,000 points???
2. If you are concerned with financing, what's the plan to pay the almost $5,000 each year in dues on those 1,000 points?
3. Do you realize that contract has been sitting there for about 3 years...or more? Any idea why? (If so, put yourself into the picture of the owner of that contract you can't sell. Then picture yourself writing the check for those $5,000 in dues each year.)

Ethan...take a few breaths -- breathe in, breathe out. Then start over, starting with forgetting you ever heard of a 1,000 point contract.

 

[ethanwa]

I'm sorry but you really didn't answer any of my questions. I'm not going to get a 1000 points (there is no way I could afford that), I was using it as an example.

 

[chalee94]

1. they can probably connect you to some form of financing. i would expect interest rates to start in the 14-15% range and go up from there. timeshares are notorious for losing significant value. DVC has a marketing machine in place to resell your points if you default on a disney loan - a bank would see no value in taking your potentially worthless timeshare.

i would suggest starting small and buying what you can pay for in cash. add on as you can afford it.

2. the timeshare store has said that nothing other than BCV has been ROFRd in the last year or 2. i wouldn't worry too much about ROFR at this point...if you lose the contract, just start over and make an offer on another one...

3. it varies. how large is the contract? does it have banked pts or do you have to wait over a year to start to get pts? take your time and do your own homework...

 

[ethanwa]

i would suggest starting small and buying what you can pay for in cash. add on as you can afford it..

This is probably what I'll do. Thanks!

 

[JimMIA]

Okay...now that I can breathe again, I'll take a shot at your questions.

Hi -

I'm a newbie considering a purchase via resale. The prices are just so much better than going through Disney themselves.

1. Does dvc-resales.com do financing? How good of credit and down payment do you need? What kind of rates do they offer?

Not directly, but they have a financing arrangement with a financial institution. I believe the rates are slightly higher than Disney's 10.75% and 14.75%. You should find a link on the TTS website.

2. What is the lowest price per point Disney usually accepts? I don't want to get all excited about a deal just to loose it to ROFR. Is $59/point too low on a 1000 point deal? What is the acceptable range?

Depends on the resort. For some, that would be way too low; for others, way too high. Check the ROFR thread (Post #1) for the latest info available.

3. Is $59/point for Old Key West too high?

No. I recently (during the 3/20 rush) sold an OKW contract for $58 and change.

But it all depends on the contract, and what other similar contracts are currently selling for. Does the contract have all of this year's current points? Are there banked points? Is the contract stripped? Is the size of the contract exactly what you want?

[ETA: If my memory is correct, the LOWEST OKW price clearing ROFR in the past year has been about $45 per point. But if you check the ROFR thread, I think you'll see most deals somewhat higher than $45. There's always going to be a weird outlier or two.]

A GOOD broker should have a pretty good feel for the market and is probably your best guide to resale prices. The ROFR thread is helpful also, but that's self-reported and is only a tiny sample of the overall market.

 

[csharpwv]

Here is our story on the HHI contract that we bought recently -

It was posted for $59.00 per point.

My wife wanted to offer $50.00 per point.

I had done my research and knew that the seller would likely go lower than that.

I took a deep breath and offered $40.00 per point.

At that point the seller had three options - accept the offer, ignore the offer and say no thanks - and call me a jerk under their breath, or make a counter offer.

The seller made a counter offer for $1.85 cents more than our offer. $8.15 less per point that what my wife thought was a good offer.

So we bought a really nice loaded contract at Hilton Head Island for $41.85

$39.15 less per point than what we could have bought the same number of points for directly through DVC. - Disney sells Hilton Head Island for $80.00 per point.

While Hilton Head and Vero Beach both go for considerably less on the resale market than the WDW and DLR resorts do - we plan to use those points at Hilton Head - on Holidays. So we would never get what we wanted at 7 months out by using our other points - so the higher maintenance fees at HHI don't bother us. We plan on enjoying the resort - and we will enjoy it even more knowing that we got a great price on our points!

We LOVE DVC!