Questions re DVD ReSale and Points -THANKS!

[Wendybird55]

Hi,

The friends we've been renting points from the past 2 years are seriously considering selling their DVC timeshare and we are seriously considering buying it.

I know Disney has first refusal and we plan to offer a fair price.

I just have a few questions...

If we go thru a DVC resaler - are there any additional costs to the buyer and if so what are they? Just trying to figure out total cost.

Also, can we do the transaction directly thru Disney (not use a reseller)? If so are the fees less? And how much of a hassle is it compared to a reseller?

Last question - POINTS - does Disney raise points for DVC rooms often? It's been the same points the past 2 years, but will they get raised and how frequently?

Thanks for your help and input.

 

[dianeschlicht]

Selling a timeshare is much like selling real estate. You will need to have a closing company that ultimately takes care of the title. I suppose you could do that yourself, but that means lots of leg work physically in Florida, so I guess I'd go with a title company there. If you buy privately, all the same ROFR issues apply, and it will have to be presented to Disney. If neither of you feel comfortable in that process, it might be worth it to use a reseller agent. Of course, that will either increase the price to you or the profit to the previous owner. I think resellers charge about 10-12%, but I'm not sure about that. The bottom line is that if either of you feel confident that you can do everything that needs to be done legally and financially, then have it it by yourselves.

 

[RobDoc]

Hi,

The friends we've been renting points from the past 2 years are seriously considering selling their DVC timeshare and we are seriously considering buying it.

I know Disney has first refusal and we plan to offer a fair price.

I just have a few questions...

If we go thru a DVC resaler - are there any additional costs to the buyer and if so what are they? Just trying to figure out total cost.

Also, can we do the transaction directly thru Disney (not use a reseller)? If so are the fees less? And how much of a hassle is it compared to a reseller?

Last question - POINTS - does Disney raise points for DVC rooms often? It's been the same points the past 2 years, but will they get raised and how frequently?

Thanks for your help and input.

There are no fees for the buyer to go thru a resale broker. Your options are to either buy directly from the seller (ROFR is still necessary) or let the resale broker handle the details for you. Either way, the buyer will pay the same amount - any broker commission is paid by the seller. Some broker will even have a nominal flat commission for sellers who find their own buyer.

IMO, the most important aspect of the sale is passing ROFR. The usual benefit for the buyer with a purchase directly with a seller is that the purchase price can be less and the seller pays no commission to a broker. However, with ROFR, DVC can purchase the contract at the same rate if they deem it to be too low - so the buyer could lose the contract in that situation (this also happens with brokered sales).

I'd make sure I offered a reasonable price (check out the ROFR thread here) and then see how minimally you can close on the purchase. You can do it without a broker but make sure you have everything handled in sequence.

As for your question about points - DVC can (and has) changed the point charts. The most significant change will occur beginning in 2010. However, they cannot just raise the point costs - it must be balanced, so if some nights are raised others MUST be lowered so that the total number of points at the resort does not change. There is a long thread here already discussing the changes for 2010.

Good luck!

 

[DisFam95]

I was told by The Timeshare Store that if I used them and brought my own buyer (we are selling to a friend too) that there would be only a $500 commission instead of the 10%.

 

[Wendybird55]

Thanks for the input. I already checked the resale site linked on allears to get an idea of how much resales were costing and the price we're considering is right in the ballpark.

This is happening fast and though I really want to buy into DVC - I'm still considering is it the best thing to do with our money now.

 

[JimMIA]

If we go thru a DVC resaler - are there any additional costs to the buyer and if so what are they? Just trying to figure out total cost.

As Doc said, no additional costs to the buyer. However, most resellers charge between 10-12% commission to the seller.

Also, can we do the transaction directly thru Disney (not use a reseller)? If so are the fees less? And how much of a hassle is it compared to a reseller?

I could easily be mistaken, but I think the only time they handle a transfer directly is when someone is giving a DVC ownership to a relative, or changing the title on an account to include relatives.

You don't really need a realtor; what you need is a closing agent. There are a number of folks here who have done private sales of DVC contracts and have used various closing companies. One of them may be able to give you a referral. Or you could use one of the ones the reputable resale brokers use.

Last question - POINTS - does Disney raise points for DVC rooms often? It's been the same points the past 2 years, but will they get raised and how frequently?

They can't change the overall number of points for a resort, and they rarely change anything. However, recently they made a pretty significant restructuring of points starting 1/1/2010. They lessened the points required for Friday/Saturday stays, raised weeknight points, and made a number of other modifications. It's been rather controversial, and there is a separate thread discussing that topic here.

 

[Opie100]

Not to raise any eyebrows here, but what would stop a friend from offering up what would pass ROFR only to have arrangements on the side for the seller to give some money back after the transaction?

 

[hakepb]

Due to gifting/tax laws I think a bank would require additional paperwork for any $10,000 transaction outside the sale, and what about any additional gains taxes (if the contract was bought cheaper) and additional commissions?

What you are suggesting is the reason states may tax a car sale per model year instead of a % of the sales price (too many people were selling $1 cars)

 

[JimMIA]

Not to raise any eyebrows here, but what would stop a friend from offering up what would pass ROFR only to have arrangements on the side for the seller to give some money back after the transaction?

That would be a felony violation of Florida's real estate fraud laws.