Resale DIS buyback on stripped contract

[jt2323]

On a resale I have been told that Disney will exercise their right to purchase in the range of $65-$67. Is this currently accurate? If the contract being offered has been "stripped" by the owner by borrowing and using all the next year's points what will Disney do? Is it possible to pick up one of these contracts below the usual Disney buyback level?

 

[RobDoc]

You'll never know until you have a low offer accepted and submitted toi DVC for review. Since each transaction is different, Disney's "need" to exercise ROFR can be different depending on the resort, available points, total points, offered price and current demand for sold out resorts thru DVC.

There have been recent reports of resales going thru in the $65-67 range and others being lost at $70.

Good Luck!

 

[jt2323]

My basic question was whether a contract that had been stripped of future points was viewed differently by Disney as far as their buyback was concerned.

 

[Dean]

Originally posted by jt2323
My basic question was whether a contract that had been stripped of future points was viewed differently by Disney as far as their buyback was concerned.

maybe Shontell or other resalers could help you more. I've seen little indication that DVC puts much thought into the resale price other than the formal price per point. They don't seem to adjust much or not at all for who pays the fees or how many points are or are not available. Still, it matters to you as a buyer so offer what your comfortable with and see what happens.

 

[rrobalew]

I just made an offer today on a DVC resale and asked some similar questions. Here's the info I got:

- Part of the deal in buying a DVC resale is reimbursing the seller for maintenance that has been paid, since it's always paid in January. I asked if it would be better to negotiate for NOT reimbursing the maintenance fee instead of trying to save an equivalent amount by lowering the per-point cost. I was told that it didn't make any difference - Disney looks at the entire offer package.

- I also asked if the number of banked points made a difference on the likelihood of Disney buying the contract. I was told it does make a difference. Something to the effect that Disney could sell/rent these out. I'm not sure how that makes sense, though. I don't think Disney can sell banked points, because those are a one-time deal. Perhaps it has to do with how disney trades rooms out with non-DVC or II properties. I think I read that in order to trade via II, you have to make a reservation through DVC and then that gets traded to II. Maybe DVC's acquisition of banked points is similar to having someone spend points by making a reservation.

- Contrary to some previous posts that implied otherwise, I was told that Disney is actively buying points on the resale market. I was discouraged from making an offer too low if I really wanted a particular resale. Of course, there's the possibility that this was said just to get a better deal for the seller, but I don't think it would have benefited the agent (my closing cost was the same regardless). So if there's lots of listings that match want you want to buy, the only thing you'll lose by making a low offer is a little time. But if, like me, there was only one listing available (across 4 different sites that I monitor), you risk having to wait quite a while for another one to come up.

 

[Cruelladeville]

I think that Disney also looks at the use year, whether it's a popular use year or not. For example, a March use year might have 50 people waiting for points to add on to their contracts, while maybe a February use year only has 1 or 2 people waiting for points. If the contract wasn't in a popular use year, and the points were stripped, I would think they might be more inclined to let it go.

A year ago I bought a stripped contract, which Disney let pass at below the usual cut-off price. Of course, it was a terrible contract--no points for this year or next year, and maintenance was only being paid month by month, so no deal there. The only reason I bought was because it had the right amount of points and I already had banked points that I had to use up and didn't need the these points now, and the price was right. Of course, Disney was not buying a lot of contracts at the time, either.

 

[Disney Dollarless]

We just bought 350 points at the Boardwalk for 67 dollars a point. This particular contract had only 13 points left from 2002 with all 350 points becoming available in October 2003.

He paid all the maintenance dues for 2002 and we paid them for 2003 along with closing cost. We paid 23,450.00 for the actual points but by the time they added 2003 maintenance fees, and 575.00 for closing it came to $25,427.00.

I think that it is luck of the draw at this point with Disney. I have been told it is put into the computer, not human hands and the computer chooses to accept or deny. Whether this is true or not i am not sure.

We used Jaki at a A TimeShare Broker. I really liked her she called me immediately and we put in a bid that day via fax and email. I started all this March 29th and we make actual closing tommorrow May 8th. The whole process with Jaki I felt was quick and painless (except to my pocketbook!).