Purchasing resale DVC

[Curiousporpoise]

We are new to DVC and are considering purchasing an Aulani resale contract through Fidelity to get started. Our strategy was to purchase a small Aulani contract so that we can purchase early at the new Disneyland tower at a possible discount.

The prices look pretty reasonable for Aulani at $110-130 a point. Do you offer below asking? Does buyer pay for closing and admin costs? Do you offer to reimburse for 2021 or 2022 points or wait to hear back from seller? Thank you for any advice you can provide!

 

[happythoughts & pixiedust]

Offer less than asking, especially on a small contract - $7 less on 100 points is only $700. If the seller really wants to sell they will accept or counter. Buyer usually pays closing, but you can also ask seller to do so as part of your offer. Not sure what you mean by reimburse for 2021&22 points. Typically an offer is simply $xxx per point. $110-120 is fair for Aulani. On a small contract that’s the range I’d shoot for.

 

[Curiousporpoise]

Thanks for your input! I’m definitely going to start lower and wait for the seller to counter. I guess I was curious if the contract has 50 2021 points and 100 2022 points, is the buyer expected to reimburse the seller for these points?

Of course everything is negotiable, but our first offer was turned down (it was close to asking price), the seller didn’t counter, but the contract is still showing as available. I wasn’t sure if we insulted the seller by not offering to reimburse for “points.”

 

[Marionnette]

Thanks for your input! I’m definitely going to start lower and wait for the seller to counter. I guess I was curious if the contract has 50 2021 points and 100 2022 points, is the buyer expected to reimburse the seller for these points?

Of course everything is negotiable, but our first offer was turned down (it was close to asking price), the seller didn’t counter, but the contract is still showing as available. I wasn’t sure if we insulted the seller by not offering to reimburse for “points.”

I'm confused as to what you mean when you say "reimburse for points". Typically, a listing that includes the previous year's points (2021) does not ask the buyer to reimburse for the dues on those points. Many times, the seller will ask the buyer to pay this year's dues (2022) on any points but that can be negotiated. Your price per point already takes all previous and current UY's points into consideration.

 

[Curiousporpoise]

Oh that makes more sense. The realtor asked if I want to reimburse the seller for points and I said no, but I didn’t really know what she was asking. So if the contract had 100 points for 2022, I could have reimbursed at $8.67 x $100 points for an additional $867 if I wanted to sweeten my offer.

 

[sndral]

Yes, the broker is asking if you are willing to pay the MFs on the points.
Most brokers/sellers IME ask the buyer to pay the maintenance fees (aka dues) for current years points if the contract has them, however that is negotiable.
Also, what’s the use year? If it’s a 50 point contract & there’s 100 points in 2022 that means there’s 50 current points & 50 banked points so you’ll need to use the banked points by the end of the 2022 use year. It’s less common to reimburse the seller MFs on banked points.

 

[Curiousporpoise]

The use year is April.

 

[hammer1995]

If you are using Fidelity be aware of the "admin" fee. It will increase your per point cost roughly $4 per point on a 50 point contract.

 

[sndral]

The use year is April.

So the 50 banked points will need to be used by March 31, 2023. The 50 2022 points can be banked into next year if you want to do so.
Looking at folks on DIS who’ve recently purchased Aulani resale the prices ranged from $118 - $135 https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3878357/ but smaller contracts usually command a higher price per point & w/ Aulani contracts with subsidized (cheaper) dues/maintenance fees usually cost more resale as well.

 

[Curiousporpoise]

Thanks for explaining that. I thought the banked points needed to be used by April 30, 2023.

It’s interesting that smaller contracts usually command a higher price, I was just thinking that by the time I pay closing costs, I might want to go with a larger contract to make it worthwhile. So much to think about.

It looks like the Fidelity contracts are in range or lower on some contracts per point. I just need to find a seller to accept my offer!

Also, thanks for sending the link. It’s interesting to see what everyone has paid for Aulani with all costs included. One buyer in 4th qtr 2021 got a fantastic deal on 200 points!

 

[Curiousporpoise]

If you are using Fidelity be aware of the "admin" fee. It will increase your per point cost roughly $4 per point on a 50 point contract.

Yes! I was wondering why they add that $195 fee when they are already getting a commission.

 

[Ruttangel]

Remember that AUL has never been taken in ROFR and a lot of listings out there. We‘ve seen passes as low as $70pp in last 18 months.
Up to you if you want to go lowball and see if you catch one.

 

[Sandisw]

The use year is April.

MFs are based on calendar year and I would not offer to pay anything but the 2022 MFs for the contract. If it is a 100 point contract, I’d offer, to pay all 2022 since it sounds like there may be 50 banked from 2021.

When you buy direct, MFs are calculated from date you sign the contract but resale tends to ask for buyers to reimburse based on points and not where we are in the calendar.

Except for one offer, I always used the calendar as my guide.

 

[Curiousporpoise]

Remember that AUL has never been taken in ROFR and a lot of listings out there. We‘ve seen passes as low as $70pp in last 18 months.
Up to you if you want to go lowball and see if you catch one.

Really? I had no idea that Aulani has never been taken in ROFR. I would love to find a contract at $70pp. I should keep looking on other websites, the lowest I’ve seen is $110 per point.

I do want to lowball and get a small 100-150 point contract and then possibly buy direct when Disneyland Tower goes on sale.

 

[Curiousporpoise]

MFs are based on calendar year and I would not offer to pay anything but the 2022 MFs for the contract. If it is a 100 point contract, I’d offer, to pay all 2022 since it sounds like there may be 50 banked from 2021.

When you buy direct, MFs are calculated from date you sign the contract but resale tends to ask for buyers to reimburse based on points and not where we are in the calendar.

Except for one offer, I always used the calendar as my guide.

That’s interesting to note. I was wondering if some people offer to reimburse based on where we are in the calendar too. I started to look at other Aulani contracts, and I feel like you won’t have enough time to use some of the 2022 points if it goes through ROFR and then closing - depending on the UY.

 

[Sandisw]

That’s interesting to note. I was wondering if some people offer to reimburse based on where we are in the calendar too. I started to look at other Aulani contracts, and I feel like you won’t have enough time to use some of the 2022 points if it goes through ROFR and then closing - depending on the UY.

I have based it on the offer when I have negotiated especially if there were banked points.

So, if I was buying May 1st, I’d offer 2022 with some banked points. If I was buying July? Probably offer half.

Of course, a seller needs to agree and in the scheme of things, I would not left a few hundred dollars cost me a contract that works really well.

 

[varyth]

I do want to lowball and get a small 100-150 point contract and then possibly buy direct when Disneyland Tower goes on sale.

We were looking to do something similar since we're on the west coast!
We purchased direct at VGF last month to get our foot in the door with a WDW home resort.
Our "welcome home" stay will be in Aulani later this year and, if we fall in love, I'll be stalking resale for a subsidized contract.
I'm still waiting on DLT to see if the pricing will be tempting enough to overshadow our love for VGC. The current resale prices are still giving me pause.

 

[DVChris]

Are you looking to buy Aulani just to get the member pricing for VDH, then turnaround to sell? If so, I would suggest another resort to do this. The State of Hawaii has a withholding tax of 7.25% called HARPTA which will be added to all sales of Aulani. You can file extra tax paperwork to try to get it back but it's additional steps that you may want to avoid altogether. Aulani also has higher dues than many WDW resorts. Would be easier to go with a resort in Florida.

 

[Ashlotte]

We are new to DVC and are considering purchasing an Aulani resale contract through Fidelity to get started. Our strategy was to purchase a small Aulani contract so that we can purchase early at the new Disneyland tower at a possible discount.

The prices look pretty reasonable for Aulani at $110-130 a point. Do you offer below asking? Does buyer pay for closing and admin costs? Do you offer to reimburse for 2021 or 2022 points or wait to hear back from seller? Thank you for any advice you can provide!

If you are in the market for a resale Aulani account, there are currently three subsidized accounts for sale right now (dues are $6.52 per point vs $8.67). They will cost you more up front (the one from the board sponsor is $155 per point, the other two are $129), but you will save money over the length of the contract. They are currently the lowest maintenance dues in all of DVC.

 

[RichVIII]

Are you picking Aulani for the lower price or you do actually want to stay there?