Noticing a lot of stripped contracts on resale.

Discussion in 'Purchasing DVC' started by AdamsMum, Nov 29, 2018.

  1. AdamsMum

    AdamsMum DIS Veteran

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    Has anyone noticed a lot of stripped contracts available. They are small contracts so traditionally those go fast, but some don't have any points until 2020 or 2021, and they aren't listed for a low price. I'm always checking out small resale contracts, on the fence about whether to add, but these aren't encouraging.
     
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  2. Marionnette

    Marionnette Children see magic because they look for it

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    Small contracts tend to have been addons for people who own larger contracts. It's not unusual for people to begin downsizing after dues are announced. A savvy seller will transfer or use the points before selling a small contract because they know that a loaded contract is not going to get them an appreciable increase in the final price. Of course, there are also a number of sellers who are not aware or inclined to do this, so there will be some loaded contracts out there. I'm currently in ROFR for a small VGF contract (Dec UY) that has all of its 2017 points (banked) and 2018 points. They're out there. You just have to be vigilant and be in touch with an agency so that they can contact you when the right contract comes up.
     
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  4. CookieandOatmeal

    CookieandOatmeal DIS Veteran

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    I’ve been watching the small resale contracts too and want to see if I can catch a good deal. I’m in no hurry to add on so will keep my eyes peeled.
     
  5. lovin'fl

    lovin'fl DIS Veteran

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    I recently listed 2 of my small contracts and when preparing to list I was told, by brokers, that I would not get reimbursed for 2018 dues so I transferred most of my 2018 out into my other UY. I left a few points and all 2019 points so that the contracts would be attractive. No offers yet. Listed 2 weeks ago.
     
  6. MJB62676

    MJB62676 Mouseketeer

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    May I ask the advantage of small contracts? I see them as being very difficult to use, unless you plan on using them only every 3 years or so...or for very few nights. I'm wanting to educate myself and see where my bias may be.
     
  7. JETSDAD

    JETSDAD DIS Veteran

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    It's a cheaper way into ownership for some who may just want a short stay each year or to bank/borrow for longer stays. It's also a way for existing owners to just add on a bit to what they already have.
     
  8. MJB62676

    MJB62676 Mouseketeer

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    I may need to change my thinking on my Aulani plans. My hope was 200 points so I could do a 2BR someday if I wanted...but getting a small contract at first may make more sense...since all I "need" at this point is a Studio.
     
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  9. Jelly563

    Jelly563 Mouseketeer

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    I would like 1000 points, but I cant afford to finance $150,000. So, I grab 50-100 points at a time (slow and steady wins the race). I will get there eventually.
     
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  10. SL6827

    SL6827 Them, loving the lake. Me- not so much!

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    Smaller contracts allows you to dip your feet in the water as well. I think right now I am just fine with doing a few nights DVC then adding maybe one or two nights on before those stays at a moderate resort.
     
  11. Jack_Sparrow_NJ

    Jack_Sparrow_NJ Mouseketeer

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    It does seem like most of the contracts listed lately are stripped out. It takes a lot of patience to find the right contract. I was almost ready to “settle” on one contract but luckily I waited and found one that for me was much more attractive.
     
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  12. MJB62676

    MJB62676 Mouseketeer

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    Seems a good strategy. I'd like to get there as well...but then I look at my dues bill....yikes.
     
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  13. arminnie

    arminnie <font color=blue>Tossed the butter kept the gin<br

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    I recently sold an OKW contract that had a ton of points banked and that year's. I knew I would not get all that much more per point when selllng so I rented out the points (thank you David's). I netted approximately $7 per point on the rentals. I would not have gotten $7 more per point on selling. So for me it maximized my net cash.

    I have a BLT contract I will be selling next year after my current rentals take place. I am not in a hurry for the money so I'm okay with waiting until next year. I've pretty much stripped it too.
     
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  14. DduzDis

    DduzDis Mouseketeer

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    Not only are they stripped, but some still more expensive per point than my loaded BLT contract was last year. I paid $5 per point more for a stripped BWV contract this year than I did for a very loaded BLT contract this time last year. Looks like SWGE and the EPCOT updates are having a decent impact already.

    Definitely not complaining. I very much look forward to those BWV stays. :)
     
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  15. ClosetDisMom

    ClosetDisMom Mouseketeer

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    I keep trolling the resale sites for small contracts and have noticed the overwhelming amount of stripped contracts, too. This thread reassured me that I wasn't just seeing things. :rolleyes1 The explanations about renting out points and transferring also makes a lot of sense. We are not ready to buy that small contract just yet, so I just troll. However, when we eventually are ready, I wonder if the market will have driven the gap between buying direct and buying resale to be a hair's width - especially for small contracts after closing costs are added in... Oh well, when we are ready, it will be a nice "problem" to have to choose between resale and direct. In the meantime I will enjoy my 145 resale points that I bought Oct '17 and be happy because even 2nd class DVC citizens are still Disney citizens. :earboy2:
     
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  16. DduzDis

    DduzDis Mouseketeer

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    There are worse for sure. :)

    Looks like a great trip coming up for you if I read your sig correctly. Love BWV and taking family! Have a blast!
     
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  17. ClosetDisMom

    ClosetDisMom Mouseketeer

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    This will be our first trip to BWV. It is a quick 2 day adventure, but I am SO excited for it. Thanks for the well wishes.
     
    DduzDis likes this.
  18. crisi

    crisi DIS Veteran

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    It makes zero economic sense for the seller to do anything except this. Buyers do not offer enough of a premium for a loaded contract, so as a seller, you should strip it and sell it, unless you are under a time crunch or are not fully informed.
     
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  19. bianca

    bianca DIS Veteran

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    For us, we buy 25 points at new resorts just to give us an 11 month booking advantage. We book just one night at the 11 month window and then come in at the 7 month window to finish booking with our larger contracts. This way, we avoid all that walking nonsense, as procuring the first night is the most critical. We have no intention of selling, but if we had to, we know they would sell with ease.
     
  20. Marionnette

    Marionnette Children see magic because they look for it

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    That strategy won't work when anyone with a home resort advantage could book those subsequent dates before your 7-month window opens for the remaining days you wish to book using your other contracts. It's not a strategy that I would recommend, especially to new owners. You are quite likely to end up with single-night reservations at your preferred resort and then nights at whatever resorts are available at 7 months.
     
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  21. b2k1121

    b2k1121 Mouseketeer

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    Are there any short term options to unload points besides transferring to someone else? Might be selling one of our contracts but don't want to wait 7-11 months renting the points out before selling.
     

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