Realistic Price for small contracts?

[havertown]

Hi,

Are the lower valued contracts valued that much more in the marketplace?
I was looking at a Saratoga contract / June / 50 pts, with no points available until June 2014.

Contract went for full asking price within 2 hours of being posted @ 64/pt.
However, when looking at these boards, I see contracts being purchased at 50/pt.

Am I missing something here?

TIA

havertown

 

[Deb & Bill]

Hi,

Are the lower valued contracts valued that much more in the marketplace?
I was looking at a Saratoga contract / June / 50 pts, with no points available until June 2014.

Contract went for full asking price within 2 hours of being posted @ 64/pt.
However, when looking at these boards, I see contracts being purchased at 50/pt.

Am I missing something here?

TIA

havertown

Smaller contracts are easier to sell, so they usually get full asking price or close to it. There are a lot of people who just want a small contract to get into DVC without having to pay a lot of money in fees and initial buy in.

 

[chalee94]

supply and demand.

there are generally fewer small contracts available (and DVC used to not sell them directly to new buyers so resale was the only option).

small contracts cost less and don't require financing, so there are more potential buyers. so small contracts tend to cost more per pt.

some sellers get over-optimistic (especially with stripped contracts like the one you described) so you need to do a little more homework to get a feel for what pricing is reasonable. so if you see a small contract in the right range, you need to act quickly or someone else will jump in ahead of you.

but for a stripped contract, let someone else be over-eager...

 

[chalee94]

However, when looking at these boards, I see contracts being purchased at 50/pt.

i would also add that just because some contracts are purchased at $50 per pt, don't assume that that is a "standard" price - some sellers are more desperate than others...

 

[disneynutz]

We just sold several 50 points contracts, full asking price, no points until next UY, sold within 1 or 2 days.

Bill

 

[Ilyo]

As mentioned..supply and demand.

Smaller contracts are great add-ons..especially if buyer is looking for a particular UY to add-on to existing points. Also financial obligation is less...so very high demand...sells quickly...so high price per point.

Similar thought process goes into why very large contracts go for less most times as it is a bigger financial obligation so less demand...so lower price point to attract buyers.

 

[ELMC]

Also, a lot of small contracts are add ons for existing owners. These are usually the posts where you see something like...

"I know I overpaid but it was the perfect use year for us and we have been waiting for months for one to come available and we just had to have it so we offered above asking price to make sure we got it and we're not going on vacation until 2014 so we didn't even mind that it was stripped."

There is a lot of satisfaction to be had by buying DVC. Just like I was willing to pay more to have BLT be my home resort, people are willing to pay more to get the add on that they need. Cost becomes less of a factor and satisfying a need takes over.

 

[simmons_m]

Yep, supply and demand. Recently paid ~$10.00/per point premium for a small addon, no haggling, just paid the asking price. I figure the seller was happy, and I know we were happy, we were able to get what we were looking for.
Good luck with the hunt.

 

[Mrs. Ciz]

I've been looking at small resale contracts for a while now too. Some of the asking prices are just plain crazy. One popular reseller has a listing for a stripped 50 point SSR for $100 per point!!!!!

 

[Missyrose]

I've been looking at small resale contracts for a while now too. Some of the asking prices are just plain crazy. One popular reseller has a listing for a stripped 50 point SSR for $100 per point!!!!!

Some of the more outrageous listing prices are because the seller has a loan that must be paid off. So if they paid $1xx per point and put a percentage down, they likely need to net that $100 per point to pay off the remainder of that loan.

 

[Goofy DVC]

I was able to buy 2 resale contracts of 100 pts each for a great price with no problem at all. However, I was not able to find a small BCV contract with my UY for over a year. By the time I responded the few contracts that would pop up on occasion were sold. I was a day late and a dollar short each time. So what did I do? You got it, I threw up my hands and bought direct. I then did some justification as to why it was okay. No wait, didn't pay that much more when you consider the price of small contracts and closing costs, all this years points, able to bank points, no ROFR, BLAH, BLAH, BLAH. You get the picture. So, what does that mean? If I ever sell I will ask for more for those small contracts that I own. I experienced the demand issue, the supply issue and the got to have it so give in response. Iam happy with my decision? Oh yea!

 

[Crazy4Disney06]

In March we closed on a 50 point contract at OKW and paid $55 per point. We were happy with that. I have since looked for a small contract to add on and am having no such luck. I may just have to purchase direct for another small add on.

 

[zavandor]

I bought a 65 points contract for 55$ a point at SSR. Now all contracts are priced much more than that, even the largest ones!
On the Fidelity website there is even a 50 points contract priced 120$ per point. It's even more than purchasing Disney direct! Crazy.
I think now it's a slow period for resale, maybe at the end of the year more contacts will be put on sale (since MF will be coming and people had taken their last vacation on points from the contacts they want to sell) and prices will drop a little.

 

[ljhayes]

One thing that we considered was the total cost, and not just the per point cost. The sellers were asking $66 per point for 110 pts at SSR, Oct UY. We initially offered $60 per point and splitting closing and MFs. They said no, so we offered $66 per point, but they pay full closing and MFs. This only ended up being $184 more, even though it's a big difference in the cost per point. The closing costs and MFs aside, though, I think it's often easier for people to justify a higher per point cost on the smaller contracts because it just doesn't amount to as much money as the same difference would on a large contract.

We obviously could've done better with a larger package or if we'd been willing to consider other use years, but for all the reasons mentioned by others we paid a bit more for this one

 

[gopfans]

I learned my lesson this morning on a small resale contract. We own at AKV purchased direct. We were looking to add on at BLT with our same use year- just enough to scratch the addonitis until we have the cash to add on a bigger contract. I called to see if it was still available and was told yes. I said ok, I want to offer full asking price of 96 per point and have seller pay closing and maint. Broker said that isn't smart. You should offer less per point and you pay the fees. I said ok, how about this. I will pay 94/pt, seller pay closing and I'll pay maintence fees. Broker says, ok. No problem. I get a call back an hour later saying, sorry but somebody called right after you and offered full asking, too bad. I was shocked. I was like seriously? I would have paid full but didn't really think I should put it all out there in the first time conversation. This was a different person I talked to that time. He said you should have told the first guy that. He didn't ask, I didn't know. I thought I at least would have had an opportunity for a counter. Lesson learned.

 

[DougEMG]

Small contracts do go fast and usually for asking.

 

[qzar33]

What do you consider a small contract?

 

[leighnsean]

We added on at Vero for 75 a point today

 

[Missyrose]

What do you consider a small contract?

Typically, anything less than 100 points

 

[ELMC]

I learned my lesson this morning on a small resale contract. We own at AKV purchased direct. We were looking to add on at BLT with our same use year- just enough to scratch the addonitis until we have the cash to add on a bigger contract. I called to see if it was still available and was told yes. I said ok, I want to offer full asking price of 96 per point and have seller pay closing and maint. Broker said that isn't smart. You should offer less per point and you pay the fees. I said ok, how about this. I will pay 94/pt, seller pay closing and I'll pay maintence fees. Broker says, ok. No problem. I get a call back an hour later saying, sorry but somebody called right after you and offered full asking, too bad. I was shocked. I was like seriously? I would have paid full but didn't really think I should put it all out there in the first time conversation. This was a different person I talked to that time. He said you should have told the first guy that. He didn't ask, I didn't know. I thought I at least would have had an opportunity for a counter. Lesson learned.

Typically brokers don't involve themselves in bidding wars. If there is an accepted offer (especially if it is for full asking price) they won't contact other people who had expressed an interest in the contract to see if they would be willing to offer a higher price. It gets very messy and it's not technically a part of their job.