Question about selling a DVC

[tlynk]

I'm currently in the process of buying a DVC, but my contract is at Disney for ROFR? My question is when a member plans to sell his/her contract why would they go through resale through a company such as "The Timeshare Store" vs Disney when Disney may buy the points from the seller anyway? I'm confused?

 

[erionm]

Disney will not help a member sell their contract.

 

[skelfbsfb]

Disney do not buy or help you sell your contract. They will buy back from at the ROFR stage if they believe the price is to low and if they want a particular resort, which has been highlighted recently with BC.

 

[chalee94]

why would they go through resale through a company such as "The Timeshare Store" vs Disney when Disney may buy the points from the seller anyway?

you have no choice.

when BCV resales were routinely selling for $85ish (IIRC - a few years ago) per pt, there were rumors that DVC might offer you $50 per pt if you wanted to sell your BCV pts directly to DVC. but generally speaking, DVC will not offer to buy your pts directly.

as stated, DVC has ROFR, so if the buyer negotiates a terrific deal, DVC can step into the buyer's shoes and pay the seller the negotiated amount and take the contract. the seller gets the price agreed-upon and the original buyer gets to start over...

 

[mgroshans]

I thought you could do a "deed back" to Disney or am I really confused on that process?

 

[vicki_c]

I thought you could do a "deed back" to Disney or am I really confused on that process?

I believe that only happens when a member is in financial difficulty and in arrears, and Disney has to agree to it - you can't just decide to do it because you want to sell your membership.

 

[mgroshans]

I believe that only happens when a member is in financial difficulty and in arrears, and Disney has to agree to it - you can't just decide to do it because you want to sell your membership.

ok, gotcha. I couldn't remember what that meant. Thanks.

 

[LisaS]

I thought you could do a "deed back" to Disney or am I really confused on that process?

As I understand it a "deed back" means exactly that -- you give the deed back to Disney to satisfy any outstanding debt. You do not receive any money.

 

[Jason@dvcstore]

I thought you could do a "deed back" to Disney or am I really confused on that process?

I believe you are referring to a "deed in lieu of foreclosure" and this is something that would be a last resort.

Jason

 

[edk35]

Hey if DVC buys back a contract does the The Timeshare Store still get their commission??? Never thought of that until now.

 

[Jason@dvcstore]

I'm currently in the process of buying a DVC, but my contract is at Disney for ROFR? My question is when a member plans to sell his/her contract why would they go through resale through a company such as "The Timeshare Store" vs Disney when Disney may buy the points from the seller anyway? I'm confused?

Unless you bought Beach Club points I would expect you to make it through ROFR.

Jason

 

[Jason@dvcstore]

Hey if DVC buys back a contract does the The Timeshare Store still get their commission??? Never thought of that until now.

The Timeshare Store would still receive their commission. The contract remains the same except Disney is simply taking over as the buyer. Disney sends the commission directly to us and then mails the appropriate funds to seller.

Jason

 

[edk35]

The Timeshare Store would still receive their commission. The contract remains the same except Disney is simply taking over as the buyer. Disney sends the commission directly to us and then mails the appropriate funds to seller.

Jason

Thanks!! I was thinking how unfair that would be to NOT get it.

 

[tlynk]

Unless you bought Beach Club points I would expect you to make it through ROFR.

Jason

I'm hoping you are right!

 

[tlynk]

I guess I can't figure out why a seller wouldn't ask Disney to buy their contract first? Then if Disney is not interested the seller could sell it through a realtor to someone else. The process of the contract going to Disney for approval after the buyer puts a deposit down is eliminated then.

The buyer wouldn't have to wonder what is going to happen for 3 weeks. I'm sure there is logic to it, but I'm very new to everything DVC. I seem to be going to the theme parks more often that it makes sense to buy into it though.

 

[vicki_c]

I guess I can't figure out why a seller wouldn't ask Disney to buy their contract first? Then if Disney is not interested the seller could sell it through a realtor to someone else. The process of the contract going to Disney for approval after the buyer puts a deposit down is eliminated then.

The buyer wouldn't have to wonder what is going to happen for 3 weeks. I'm sure there is logic to it, but I'm very new to everything DVC. I seem to be going to the theme parks more often that it makes sense to buy into it though.

Because as stated above, they don't really do that. They're not in the business of buying back ownerships. AFAIK, they only buy back through the ROFR process or take back (not buy) through the "in lieu of foreclosure" scenario above. You can't just call them and say "want to buy my contract back".

 

[JimMIA]

In a deed in lieu of foreclosure, Disney doesn't pay anyone anything. The owner gives up their DVC and gets nothing in return, except possibly relief from whatever loan they owe on the contract. The owner is losing every penny they put into DVC.

A few years ago, when resale prices were MUCH higher, DVC would occasionally repurchase contracts, but only for a fraction of what they were worth. I haven't heard of them doing that in the last couple of years because they are eating too many contracts as it is.

 

[tlynk]

Thanks everyone for answering my question. I'm really looking forward to owning a DVC!