Poly Resale Abundance - Cause for Concern?

[Jhoyer5150]

Hi, prospective DVC buyer here - looking at MK resorts and resale purchase. I'd at least initially look to book primarily studios, which seemingly makes Polynesian a strong contender among MK-area options. However, I find it a bit alarming just how many Poly contracts I'm seeing at various resale websites. Obviously the Polynesian DVC is fairly new, so these sellers have presumably bought just 3,4 years ago and are now wanting out. Moreover, they likely purchased at a higher price and are now willing to sell under what they paid. These data points are a bit of a red flag here.

So, any theories on why so many Poly resales (and/or their slow purchase turnaround time) abound? In comparison to BLT or GF, for example, whose contracts go to "Pending" or "Sold" status very quickly, Poly resale market appears to be lagging considerably. (I get why GF would go quick, as supply is limited; BLT, however, is a bit more surprising in this regard). Is this reflective of lack of 1BR/2BR options which limits the prospective buyer base? Is the "point hogging" Bungalows creating frustrated Poly owners? My belief is availability of studios at Poly isn't the issue that it is at CCV right now. But could owners or astute point value watchers weigh in? Much thanks.

 

[RaymOOOnd]

Perhaps it's because the entire lobby and lounge area looks perpetually like a train station. Everyone sprawled out on chairs beside O'hana, playing with their phones. I just don't understand the place.

On a serious note - I'm guessing it's frustration with only having a studio option, to which you've already alluded, since most don't have enough points for the bungalows.

 

[miTnosnhoJ]

It is a very large resort, so a small percentage of sales can look like a lot. I would not worry about it, as long as you are OK with studios.

 

[Lauren in NC]

My guess? The combination of all studios and the points-hog bungalows. Buyers' family demographics change and studios don't work for them anymore. I'm also guessing there's some frustration with trying to book certain times, since lots of small contracts were sold "from" the bungalows that are too small to even book a night at them.

 

[_auroraborealis_]

There were a bunch of people who didn't ever understand that Poly was all studios when they bought, and also who thought that they would be able to switch elsewhere at 7 months at will.

 

[KAT4DISNEY]

The main thing "wrong" with the Poly is no 1 and 2 Brs. Since you are looking at studios it isn't the same issue for you.

 

[The Jackal]

It is a very large resort, so a small percentage of sales can look like a lot. I would not worry about it, as long as you are OK with studios.

Poly is not a large resort, it may have a lot of studios because there are no one bedroom, 2 bedroom and 3 bedroom grand villas. If they had these the amount of rooms would be small. So the resort is good for studios, but lots of people want more options.

 

[bobbiwoz]

The main thing "wrong" with the Poly is no 1 and 2 Brs. Since you are looking at studios it isn't the same issue for you.

I agree with this.

The studios are very nice IMO, and you have the option of getting two that internally connect. While it’s not guaranteed, people have mostly been able to get them, as reported here.

I like the ease in getting to Epcot and MK from Poly.

 

[GoofyCoaster]

The poly studios are our favorite at WDW. They’re spacious, well appointed, and it’s great having two showers and two vanity/sink areas. That being said, we will not be buying there. Studios work great for us now, but there’s no 1 or 2 BR options as needs change. Worries about future point reallocations or above average increases in MFs for all those bungalows also entered my mind. The joke from a previous poster about the Great Ceremonial House being like a train station is not far off.

Regarding BLT, it sells quickly because of walking to MK and low MFs. There have been numerous blogs and message boards threads regarding the “most economical DVC resort to own”. BLT frequently comes in at number 2, right behind SSR. If you look at ROFR data from broker sites and threads here, BLT (and BCV) contracts were bought back by Disney through ROFR at high rates (like 40%) Jan-April. Some people have gone through multiple contracts until they could get one through ROFR and to closing. So I think that is also contributing to quick offers on fairly priced contracts at BLT.

 

[DisneyOutsider]

If you like Epcot and MK it's the most convenient location of any MK-area DVC by far. Easy walk to the TTC and three different ways get to/from MK quickly.

As long as you understand it's about the studios, then I wouldn't worry about what the resale market is doing.

 

[CookieandOatmeal]

I own at the Poly and am in the market for a resale contract to add on there. We are a studio family and will not find use in a bigger room as we don't tend to bring friends/family with us and won't cook on vacation. In the rare instance that we do, we will just see where we can grab a 2 bedroom. We tend to travel during school vacations or summer, so competition for 2 bedrooms won't be as fierce as Fall-early Jan. The location of the resort can't be beat in our opinion. We love how we can walk to the TTC for Epcot and even MK. We can walk to GF easily and we go there often for some of our favorite restaurants.

 

[LYSE]

I wouldn't worry about it, I bought PVB resale one year ago and have a little bit of equity as far as I can tell.

 

[Deb & Bill]

I think Polynesian was the first resort where they lowered the minimum point requirement to below 100 points. And many people jumped at that chance. Now they have monthly payments for their purchase, plus the annual fees and they can't afford it any more, especially with the price of park admission, travel to Orlando and food.

 

[Matty B13]

What I have said from day 1 that Poly DVC went on sale, is the fact that it has no 1 or 2 bedroom options, I think for a lot of families this was a huge issue. I know for our family having a place to put a sleeping child in a room separated from everyone else can make or brake a family vacation. We would have easily bought over 300 points if they had had the option.

I think a lot of people bought on the nostalgia of the Poly, always being a place people remembered staying at. After a stay or two, they realized that the cost of owning at the Poly is pretty high for the options available, and they start to want to stay at other resorts. Also, a lot of people buy with pixie dust in their eyes and are now realizing the huge financial costs of owning DVC, and can't afford it. I think in the next couple of years Poly will be selling for under $130/point, because now with the resale restrictions, the long contract is no longer a benefit when you can only stay at a few resorts and can't book any of the DVC2 resorts. Heck some of the contracts on Fidelity's website are almost there.

 

[kniquy]

Is this reflective of lack of 1BR/2BR options which limits the prospective buyer base? Is the "point hogging" Bungalows creating frustrated Poly owners? My belief is availability of studios at Poly isn't the issue that it is at CCV right now. But could owners or astute point value watchers weigh in? Much thanks.

I think, with any resort, there are people who buy in uneducated as to what they are buying, life gets in the way (divorce, job loss, health) or family travel habits change -- these are just a few reasons why people might sell irregardless of the resort. Then there are the people who have stayed at poly and realize that only studios is now a problem for them (their family of 5 now becomes 6).

I am currently in the process of buying a poly resale because we love the location and the feel of the resort. The previous owners of the contract just bought in June 2017 -- all i know is that they have a mortgage on the property and the contract still has current year points and had holding points. Possibly life got in the way, they realize they can't travel to WDW to make use of their contract, so they opted to sell. Who really knows their situation.

You need to buy doing all your homework - do a pro/con list for each resort you are interested in - from the locations, room options, point cost, resort amenities etc. This is how you will make the best informed decision for yourself.

As a family of 5 we also own at AK so when we need a larger room we have that option, because i am sure as a family of 5 - staying all in a studio for a week might be too much and sharing beds between kids might not always be an option. I wouldn't over analyze the number of contracts for sale -- I would say a large percentage of sellers who are selling after only a couple years might be they bought on site with the pixie dust on them -- then they get home, maybe use the contract for one trip and realize it isn't a good fit for them.

 

[Jason@dvcstore]

The main thing "wrong" with the Poly is no 1 and 2 Brs. Since you are looking at studios it isn't the same issue for you.

I agree that this is the biggest issue with the Polynesian. The studio is not large enough for a lot of members and the Bungalows require too many points for most owners. If all you want is the studio then it shouldn't be an issue for you.

 

[skippytx]

I wouldn't really worry about it. A few possibilities

-Poly started selling about 4 years ago, and for many people (not the folks around here) DVC is an impulse purchase. A very expensive impulse purchase.

-If they financed, 4 years is probably around their break even point at current resale prices. They can probably sell and get out of the contract without bringing money to the table.

-4 years is long enough for the pixie dust to wear off and for folks to realize DVC might not be for them

Life changes, and DVC might not be suiting their needs, or they may have a financial issue that necessitates the sale.


One comment though, DVC has enjoyed insane resale values, especially considering it's a timeshare. Never forget it's just a timeshare. That doesn't mean it will continue to have strong resale value. If resale value is a major factor in your equation, rethink the purchase. The ability to get out of DVC is a big plus, but I never once expected to be able to sell to break even or profit. Another recession and we could see DVC resale prices similar to 10 years ago again pretty quickly. I understand the need to "justify" a purchase like this or "make the numbers work", but this is a 100% unnecessary luxury purchase. Even with DVC consider all the money you'll spend actually using it. Every time I go I'm paying for flights, tickets, food, etc in addition to my dues. None of this makes financial sense.