Resale 101:My start-to-finish timeline

[Mic]

I know a lot of people are skeptical about buying on the resale market, so I thought I would post my recent experience, with dates included. The only "snag" I ran into was Disney did not inform my broker when they waived Right of First Refusal, so I did not know I was about to close. Other than that, everything was pretty simple.

March 15---Received email from Timeshare Store with the day's new listings. I saw the contract I wanted, so I placed a call to them at 7 pm.

March 16---Received contract via email. Signed and faxed back, then mailed the deposit.

March 21---Received email from the Timeshare Store that contract was sent to Disney for Right of First Refusal.

March 27---Received "open escrow documents" from Timeshare Closing Services via email, which I filled out and faxed back.

April 12---Received Closing documents from Timeshare Closing Services, via email. It took me a few days to get to the bank and get a certified check, so I may have held up the process a little bit.

April 24---Received email from Timeshare Closing services that my contract had closed, and was sent to Disney. The email stated I should contact Member Services in about 10 days, and listed the number.

So, the whole process took a little more than a month. This is my first experience with purchasing resale, but I have been a DVC member since December, 1999. Thinking back to my original contract purchase through Disney in 1999, the closing process took about two months for my 150-point contract. However, add-on contracts through Disney only take a few weeks, and you have access to your new points as soon as you pay the $500 deposit. I hope this timeline helps anyone considering joining DVC through resale!

 

[Parkhopper13]

Thanks for the post. I also just closed on my resale with a similar timeline and the process was so simple. Nothing to be afraid of.

Thanks

 

[erickr123]

How much were closing costs and any other fees for re-sale?

Thanks,
Erick

 

[Mic]

erick-
My closing costs were $322 total for my 30-point contract through the Timeshare Store. I was quoted a closing cost of $285 by another timeshare reseller that specializes in DVC sales had I found a small contract(50 points or less) through her agency. I also had to pay maintenance fees on the 2007 points available(which was $132 in my case.) That amount was calculated on number of '07 points(30 for me) multiplied by the current maintenance cost per point($4.40 for OKW). My understanding is that these costs can be negotiated with the seller, and it is possible to have them pay some of the cost, especially for a larger contract. I purchased a small contract, and did not negotiate anything because someone else would have snatched it away from me.

 

[Amy5000]

erick-
My closing costs were $322 total for my 30-point contract through the Timeshare Store. I was quoted a closing cost of $285 by another timeshare reseller that specializes in DVC sales had I found a small contract(50 points or less) through her agency. I also had to pay maintenance fees on the 2007 points available(which was $132 in my case.) That amount was calculated on number of '07 points(30 for me) multiplied by the current maintenance cost per point($4.40 for OKW). My understanding is that these costs can be negotiated with the seller, and it is possible to have them pay some of the cost, especially for a larger contract. I purchased a small contract, and did not negotiate anything because someone else would have snatched it away from me.

Hey Mic: Can I ask a question: Were you a DVC member prior to this purchase? If so, how much would it have cost you to purchase such a small number of points at OKW from DVC?

In any event, it looks like you got a good price on closing costs for a small contract.

 

[Disney Pappy]

Parkhopper13,
Wher did you get the CR - A DVC resort signature photo? Does this mean there will be a CR-DVC?

 

[Mic]

Amy5000-
My husband and I own a few contracts together with a December Use Year, but I wanted to purchase a small contract in my name alone to share with my sister. Long story short, I would have had to buy a minimum of 160 points through Disney to do that, so I started looking for small resale contracts. The 30-point contract gives me a lot of flexibility. My husband gets upset when I give my points away to family and friends, especially when I give them to my sister who cancels at the last minute, leaving me with holding points. He wants us to use "our" contracts for long vacations or cruises, so I purchased a small contract for me to use any way I want to. With 30 points, I can treat my sister and nephew to 5-6 nights in a studio at OKW every other year. If I need more points, I can just add-on through Disney, in increments of 25-50 points, and pay cash for those. The same 30 points I paid a total of $3064 for through resale would have cost only $2760 directly through Disney, but they would have been considered an add-on to my original contract I share with my husband. My new 30-point contract is a stand-alone contract in just my name, that I can add my sister's name to as an associate if I choose to. My husband would never let me add my sister's name to our joint contract in any fashion. In my opinion, for a mere $304 more, I was able to do 2 things: keep everyone happy, and purchase more points!

 

[JerJan]

Just curious? If you did a 30 point add-on through Disney do you know if you can finance that? Or is that a cash-only deal for such small add-ons?

 

[Amy5000]

Amy5000-
My husband and I own a few contracts together with a December Use Year, but I wanted to purchase a small contract in my name alone to share with my sister. Long story short, I would have had to buy a minimum of 160 points through Disney to do that, so I started looking for small resale contracts. The 30-point contract gives me a lot of flexibility. My husband gets upset when I give my points away to family and friends, especially when I give them to my sister who cancels at the last minute, leaving me with holding points. He wants us to use "our" contracts for long vacations or cruises, so I purchased a small contract for me to use any way I want to. With 30 points, I can treat my sister and nephew to 5-6 nights in a studio at OKW every other year. If I need more points, I can just add-on through Disney, in increments of 25-50 points, and pay cash for those. The same 30 points I paid a total of $3064 for through resale would have cost only $2760 directly through Disney, but they would have been considered an add-on to my original contract I share with my husband. My new 30-point contract is a stand-alone contract in just my name, that I can add my sister's name to as an associate if I choose to. My husband would never let me add my sister's name to our joint contract in any fashion. In my opinion, for a mere $304 more, I was able to do 2 things: keep everyone happy, and purchase more points!

Mic: You read my mind! I recently bought a resale and I'll say with certain closing costs, I was pretty close to Disney price. I big difference was I wanted a small contract and Disney wouldn't let me buy less than 160. You sound like an awesome sister and your purchase seems like a smart investment to keep the peace. Congrats on your purchase, may you (and your DS and DN) enjoy it!

 

[Mic]

JerJan-
Disney will not finance anything less than a 50-point add-on. But they make it SO easy to do!!! I have decided NOT to finance any add-on to my new 30-point contract, so I will just add-on 25-50 points at a time when(and if) I can afford it. My oldest will begin her second year of college in August, and my second daughter will be a high school senior. My son will be a high school sophomore, and my youngest will be an 8th-grader, so I may not be able to add any points to this small contract for a VERY long time. For now, this small contract will be enough to treat my sister and nephew to 5-6 nights in a studio at Old Key West.

Amy5000-
We financed our original contract through Disney. Not everyone would agree that it was a smart decision, but I have never regretted it. I did(and still do) view it as a great investment for my family. I also financed a few add-ons that I don't regret, but I probably could have just paid cash for if I had been a little more frugal. If I had to do all over again, I would purchase a resale contract of less than 160 points, then add-on as I could afford to.