Questions About Small Contract Resale Purchase

[bamagirl@hrt]

I have rented points 3x now and have fallen in love with the Epcot resort area. I feel that I know much of the ins & outs of how DVC works. I went to the DVC presentation on the Wonder last month and I read here daily.

DH & I have been weighing the pros & cons of purchasing DVC. We've decided that we don't really want what Disney is offering, since we love the Epcot resort area. We want to buy BCV or BWV. And, we don't want to buy 160 points. I know that's a low amount for many of you. But after much thought, we think that 60 points would be perfect for us. We could do a 5 night stay/year in a studio or go every other year for a longer stay or stay in a larger villa. We do not want to finance, so this would be an amount we could easily pay cash for. Plus, we want to visit many other places than just Disney and we aren't crazy about Disney's exchange program. So, this seems to be the best for us.

So, now my questions. I've looked at the TSS's listings. There aren't many smaller contracts. Do smaller contracts usually make it through ROFR if they aren't priced too low? Or does Disney tend to snap up the smaller contracts and let the larger ones go? How likely is it to find a smaller contract at either of these resorts?

Also, if we buy resale and, in the future, decide to add more points. Can add-ons be done through Disney, even if I don't have their "minimum" number of points?

And, one last thing, can someone explain the importance of use year? We usually vacation in October. Would it really matter when my use year is? If so, what would be the optimal use year for me?

Any help is appreciated!

 

[browniemtb]

All good questions......
First off if you want a small contract let TSS know what you are looking for. Many times the small contracts are gone well before they have a chance to hit the web site. As far as passing ROFR, it would all depend on what the agreed sell price would be, they generally sell for a premium?? Remember though that the BWV and BCV are very demanded properties and generally there are people waiting for these contracts......even the 160 pointers purchased through Disney.

Adding on after the fact....not sure if you can through Disney or not, some one will know though...

Use year really doesn't matter all that much. I do not put as much emphasis on it as some do. But if you travel in October a UY that just precedes your vacation time would be the easiest. So maybe a Sept or Aug.......

Good Luck

Brownie

 

[bamagirl@hrt]

Thank you for your quick response! I figured as soon as DH & I decided FOR SURE to do this, I should contact the TSS directly & get on their list. We already have our plans made for vacation next year, which include renting points for HHI, so we aren't in a huge hurry to make this happen. We can wait for awhile for the perfect contract to come along, if needed.

 

[chalee94]

So, now my questions. I've looked at the TSS's listings. There aren't many smaller contracts.

many smaller contracts are snapped up before making it to the website. email TSS (i've worked with jason and would recommend him) and get on the email list. and be prepared to act quickly if you see something you are interested in.

Do smaller contracts usually make it through ROFR if they aren't priced too low? Or does Disney tend to snap up the smaller contracts and let the larger ones go?

smaller contracts may be at slightly more risk for ROFR, as DVC would prefer not to administrate numerous smaller contracts. but if you offer a reasonable price - and i would trust TSS to help in this area - it will still make it through. i bought a 40 pt OKW contract last year and had no trouble.

check the ROFR thread for more details.

How likely is it to find a smaller contract at either of these resorts?

it goes in cycles. i remember a thread last year asking why there were so many BCV contracts listed for sale. but generally, BCV and BWV are smaller resorts, so smaller contracts in a specific size will be pretty rare. you may need to decide if you would consider 50 pts or 75 pts if they come up - but i do agree that 60 pts is a better number for 5 night studio stays in the low-point seasons.

Also, if we buy resale and, in the future, decide to add more points. Can add-ons be done through Disney, even if I don't have their "minimum" number of points?

yes - you can (currently) add-on through disney even if you have fewer than 160 pts. also, disney doesn't charge closing costs for add-ons.

And, one last thing, can someone explain the importance of use year? We usually vacation in October. Would it really matter when my use year is? If so, what would be the optimal use year for me?

it's generally better to have a use year month that is prior to your typical vacation period. if your use year month is november (for example) and you decide in august that you need to cancel your october vacation for that year, you will most likely be unable to use or bank those points which (with a nov use year month) would expire at the end of october. current banking deadlines allow you to bank up to 8 months into your use year.

it's not a make-or-break factor, but it is worth considering as a risk area...

 

[salmoneous]

I bought from TSS and think they are great. I'd highly encourage folks to go through them. That said, when you are looking for something very specific, don't limit yourself to TSS. There are a few other reputable sellers out there - do a quick Google search and you'll find them.

 

[wendyinoc]

I am in the middle of the process right now with TSS. I am buying 65pts at SSR. It was up for only a few days before I grabbed it. The seller wanted 88 per point. I got them to lower it to 86. Even that's a bit high but since its a small contract I wanted it to pass. It passed last week! It should be mine by the end of the month. I live in Ca so I did not see the benefit yet of a big contract.

 

[LisaS]

Just to add a few comments to the good advice already provided:

- Yes you can add on through Disney even if your initial contract is less than the 160 minimum. Currently the minimum add-on is 25 points if you are paying cash and 50 points if you want Disney financing. The add-on can be for any number of points above the minimum: 27 points, 52 points, etc. and can be at any resort, not just the resort you originally purchased.

- Re: Use Year, I'm one who believes it is important. My DH's work schedule can be hard to predict (especially 11 months in advance) and I have had to cancel a few reservations and that's when your UY can be a help or a hindrance. It's best to pick a UY that starts just before your primary travel dates. In your case, an October UY would be perfect. September or August would be fine as well. The thing to ask yourself is whether you will want to travel at other times. For example, if you decide that in addition to October you might want to go in August then you should try to get an Aug UY instead of October.

We tend to go in Jan, May, Oct or Dec. I have an October UY and it works out really well -- I could cancel a trip scheduled for any of those months and still be able to bank 100% of my points into the next UY.

 

[bamagirl@hrt]

Thanks so much, ya'll! I knew I'd be able to get some great, expert advice here!

 

[carlbarry]

I just have to thank you guys . . . I had basically the same question as Bamagirl, but didn't get around to posting it yet. I was also thinking about buying a "small" number of points--60, 70--at resale, then adding on if I have children and need a bigger room. You really clarified this. You guys here are great!

 

[nunzia]

I have noticed that GMAC has alot of smaller contracts, even for the 'hot' properties. That's who I'm working with for my first, small purchase. Now..beware that they do have high closing costs, but I figure it's ok, to get in the door, so to speak.

 

[carlbarry]

I have noticed that GMAC has alot of smaller contracts, even for the 'hot' properties. That's who I'm working with for my first, small purchase. Now..beware that they do have high closing costs, but I figure it's ok, to get in the door, so to speak.

TTS says that closing costs run from $322 for a 25 point purchase, on up. Does GMAC charge more than this? I can't find the information on their site. At nearly $13 per point closing fee, I would imagine that pushes up the per point price to pretty close to buying directly from DVC. But since I would like to buy 60-70 points, that is the way I must go.

 

[MBELSANTI]

TTS says that closing costs run from $322 for a 25 point purchase, on up. Does GMAC charge more than this? I can't find the information on their site. At nearly $13 per point closing fee, I would imagine that pushes up the per point price to pretty close to buying directly from DVC. But since I would like to buy 60-70 points, that is the way I must go.

I don't believe it is $13 per point for the closing fee with TSS. I paid $322 closing costs for my 35 point contract and $397 for a 100 point one.

 

[Chester's Mum]

I don't believe it is $13 per point for the closing fee with TSS. I paid $322 closing costs for my 35 point contract and $397 for a 100 point one.

You are right about the closing costs, they are not a per point item. Some parts of the closing are fixed and some are dependent on how many points and the total cost of the contract.

My BWV 60 point contract was $359 closing, making my $87/point actually about $93/point, still a little lower than buying direct. But the value to me was in being able to purchase a small contract that I can readily pay for. Future purchases will probably be direct from disney as there are no closing costs on add ons.

 

[carlbarry]

Thanks. I'm doing my "due diligence"--it's the lawyer in me!

 

[Astros]

I'm in the same boat, wanting to buy a small contract at BCV or BWV. Since smaller contracts are harder to find, how feasible is it to buy a 160 point contract from Disney, do a small add-on, then sell the orignal contract and keep the small contract?

 

[salmoneous]

I'm in the same boat, wanting to buy a small contract at BCV or BWV. Since smaller contracts are harder to find, how feasible is it to buy a 160 point contract from Disney, do a small add-on, then sell the orignal contract and keep the small contract?

It doesn't really make sense, given the transaction costs from buying and selling the 160 point contract.

 

[Mickey'sApprentice]

DH and I have a 100 point contract at BWV. We bought through the other reseller that is not GMAC. Anyway, we are planning our 3rd trip and are very pleased.

I have found 1 downside. Smaller contracts leave less wiggle room.

Example: What if you may or may not have family joining you? With lots of points you make 2 reservations reflecting both situations and cancel the one you don't need. No problem. With fewer points, you make the reservation for the larger accommodations and if they cancel you either have too much room (wasting your very precious points) or have to rebook for smaller points either the same week or later. This becomes even more complicated if you banked or borrowed the points to be able to go.

The solution to this problem is to plan to travel early in your use year. We have Feb. UY and planned a trip with family in April. DH and I knew we would be alright because we could still plan trips within our uy and still be beyond 7 months.

Banking and borrowing is your friend, but can also make things more complicated with a small contract.

Good Luck!

 

[nunzia]

TTS says that closing costs run from $322 for a 25 point purchase, on up. Does GMAC charge more than this? I can't find the information on their site. At nearly $13 per point closing fee, I would imagine that pushes up the per point price to pretty close to buying directly from DVC. But since I would like to buy 60-70 points, that is the way I must go.

Well, they say that the closing cost is 300 something, but then in the contract, if you want the title search, etc, it is really $450, then also a $197 'adminstrative fee', none of which the seller would help with. This is for 25 points. But again, I see it as worth it to get in the door and will probably buy from DVC for all other add ons.

 

[bamagirl@hrt]

Thanks for your input & advice, Mickey's Apprentice. I can totally see us adding on points in the future. Our kids are young right now - 9 & 6, so we have lots of years of Disney ahead of us. Neither my family or DH's have the desire to travel often to WDW. I can see adding on when our kids get older and we want a larger villa. And definitely when they get married & have kids, we'll want to be able to take the whole family!!

Right now, though, starting small will allow us to get a foot in the door without financing. That is the key for us, because borrowing money to pay for vacations makes no sense to us. I'm just so excited at the possibility of really being able to call WDW my "home."

 

[carlbarry]

Hmmm. That raises a question for me: let's say you have 75 points, and 11 months out you book a vacation at your home resort. But you really want to stay at another resort, so when that one opens up you book there, canceling your original reservation. Will that work, even though you don't have enough points for both at the same time? Thanks.