Questions about costs with resale

[hmillerbarilla]

Hi everyone: I have a few questions!

If buying resale (like thru time share store) I figure we pay the price per point plus closing costs.

For example:
160 points at $87/point (or something similar)
closing costs at $800 (is this realistic?)

so I figure my total would be about $2,000 less than if I bought thru Disney (at 104/point, no closing costs).

Are there any other fees that I'm not aware of when buying resale?

Is it really that good of a deal? It seems too good to be true.

 

[RobDoc]

Closing costs would also probably be lower than $800 on a 160 point purchase - something like $450 might be more realisitic.

Some of the "value" will depend on the availability of points in the resale contract. Some are stripped, with no current points and possibly even points borrowed from the following Use Year. Maintenance fees are also a consideration. Many resales will expect the buyer to pay the current year fees. Purchases direct thru DVC will ALWAYS come with the current year's points available and maintenance fees will be prorated based on when you purchase (buy from DVC on October 1 and the 2008 points will all be there and fees will be prorated from that date - basically 1/4 of the year's fees).

Also be aware that all aspects of the resale are negotiable, so you can include issues of concern in your offer (maintenance fees and closing costs). The resale will also need to go thru ROFR - but if you are paying $87 per point for most resorts that may not be an obstacle.

Either way, just do the math for the entire purchase before deciding!

Good luck with your decision!

 

[hmillerbarilla]

thanks for the quick response. I'm still doing all my caculations! Thank you!

 

[kristenrice]

We just went through the same process. We were weighing a 100-pt AKV resale at $93/point against a 100 point AKV from Disney at $96/point (after $8 discount). Here's what played into our decision....

1) Resale: $9300 purchase price, $397 closing costs, Feb UY with ALL 100 '08 points available, $471 in 2008 maintenance fees due at close.
TOTAL COST VIA RESALE: $10,168

2) Direct: $9600 purchase price, $235 closing costs, Dec UY with 2008 dues prorated (points cannot be used until after 5/1/2009) to $275
TOTAL COST FROM DISNEY: $10,110

So, for us, it would have been about $50 more to buy resale, BUT, the resale contract has points available NOW. We knew that we would be unable to go until 2010 so the current points weren't a factor....at first. When I started talking to some friends about this purchase, one of them offered to pay me for the points that I couldn't use. These points were only available if we bought the resale so that is what we did. We offered $1/point less, which was accepted, and that lowered the resale's price below Disney's.

To reiterate what Doc said...check the resale contracts for the point availability. Some have banked points, some have current points and some have no points coming until 2010. The point availability must be considered to accurately compare resale vs. direct. Also, if you are thinking about going resale, let the broker know what you are looking for. A lot of contracts never make it to the listing page because the brokers are on the look out for them.

Resale takes patience. Our offer was presented and accepted on August 18 and we closed on September 16. Disney offers "instant gratification". I think you'll get a better deal going resale, but you have to wait it out. That is the worst part!

Good Luck with your decision!

 

[Pirate Me]

This waiting is 'killing us!!! I just cannot wait any longer!!!!


'

 

[thelionqueen]

This waiting is 'killing us!!! I just cannot wait any longer!!!!

'

I felt your pain for nearly 3 YEARS waiting for BLT. It's not easy, and we very nearly closed on 3 other contracts (cancelling at the last minute). It is NOT easy!!

I'm fairly certain when I was first able to talk to our guide and told him my name, he was like here we go again with tons of questions, uncertainty and no contract.

Once I gave him our OK and credit card number I'm sure the got off the phone and was like...FINALLY

My best advice is to wait until it feels right, everything feels right! Our other potential contracts all felt good, but not until we signed our paperwork for BLT and made our down payment did it feel absolutely RIGHT! Best wishes on whatever you decide

 

[Melani]

We're looking now for 50 - 75 pts at BWV or BCV. We even put in an offer only to find out 2 hrs. later it had sold ?!?!
The closing cost the this agent told me were $322. I was considering another contract with fewer points at a different broker and that agent told me $400. Anyone know why?

How come there's no MLS for these things? How come I have to check 3 or 4 different broker's sites everyday just to see if there's something new listed? Am I doing this wrong?

Melani

If we want to book a trip 11 months out Jan 14th 2009, when do we need to close?