Resale Oddity (Everybody's Stripped)

[ZekeKelso]

I looked at some resale listing for the first time in months and noticed something odd - most of the contracts are stripped of points, and very few have extra points. Is this a trend, or coincidense? In the past, I've seen a good mix of all different types of point-situations...

I've always felt the resale market didn't properly refelct point status. Fully stripped contracts were only a few $/point cheaper than contracts with banked and current points. Which made the ones with current and banked points a great deal.

Taking a look at what resellars are asking for stripped contracts, compared to buying from Disney (assuming they are still offering current year points + incentives + closing cost savings) for the first time I can remember, I see almost no financal incentive to go resale.

Going to be interesting to see if this trend continues...

 

[Caskbill]

Some people take advantages of the incentives by Disney and buy add-on contracts. Disney pays the closing costs, gives them current year points, maybe they also get developer points, they get so much $$$ of per point etc.

They use all the points, maybe even borrow the next year's points, then put the stripped contract up for sale.

They basically wind up with lots of points they got to use basically for 'free'.

 

[Frankiesmom]

I have to say that if you're interested in looking and waiting;that there are options available. We just put an offer in with the TSS for 150 points @ VWL that is coming with 126 2007 points and all 150 2008 on 6/1/08. We actually thought this was a great deal; and the price is $84 per point. Hopefully we make it thru ROFR!

 

[CarolMN]

Obviously, the "stripped" contracts take longer to sell than the "loaded" ones.

I think most of the loaded contracts never make it to the website listings - they are snapped up by buyers who have let the broker know what they want.

Anyway, that's probably why there are so many stripped contracts listed. We don't get to see the ones the brokers sell without ever having to publicly listing them.

 

[tammymacb]

I am awaiting ROFR on a small 50 point BCV contract. It has 26 banked 2007 points and all for '08 & '09.

From watching the boards, I feel like I would have been on a loooong waiting list for BCV and I certainly would have seen no 2007 points. ( I have a June UY) The price was $92.00 PP compared to $104 from Disney.

I think I got a great deal. I also snagged it 5 minutes after the email was sent out and it hit the website already tagged "sold".

 

[starbox]

I don't think it's unusual - we were on a list @TSS for a 50-100 point VB contract last year and everything that came up in the 3 months we were looking was stripped. We ended up just adding on @ AKV directly.

 

[Saratoga Souris]

I have to say that if you're interested in looking and waiting;that there are options available. We just put an offer in with the TSS for 150 points @ VWL that is coming with 126 2007 points and all 150 2008 on 6/1/08. We actually thought this was a great deal; and the price is $84 per point. Hopefully we make it thru ROFR!

The way I see it... that contract is still partially "stripped". There are 24 points missing. If you bought from Disney(if available), with a June UY you would get all 150 of the 2007 points plus you wouldn't pay closing costs. If you are a first-timj buyer it would have to be 160 points

In Jan, I bought an OKW "add on"(100 points) with a March UY and I got all of the 2007 points and on March 1st got the 2008 (100 points). Since it was 2008 already, I didn't have to pay 2007 dues.

No closing costs no waiting for ROFR. Used the points to book a vacation already

 

[Frankiesmom]

That is true looking @ it like that; but I like that I'm paying less per point and for 26 points it doesn't seem like a big deal. Now, I think of stripped as being no points till 2009 or 2010, Even @ a lower price per point it really wouldn't make sense then. And then I would see dealing with Disney directly would be the better deal.

 

[CarolA]

My favorite was the one that was on TSS forever that was stripped for all of the year it listed, all of the next year and most of the year after with a "can't close until" In other words they were using the three year points left on that "last vacation" but they wanted you to pay TOP dollar for something that didn't have points until 2010. I think it disappeared, but I have no idea if it actually sold!

 

[LIFERBABE]

It could be a deal for new buyers wanting to start small. I bet there is no problem selling stripped 50 point contracts.

 

[3DisneyKids]

Some people take advantages of the incentives by Disney and buy add-on contracts. Disney pays the closing costs, gives them current year points, maybe they also get developer points, they get so much $$$ of per point etc.

They use all the points, maybe even borrow the next year's points, then put the stripped contract up for sale.

They basically wind up with lots of points they got to use basically for 'free'.

This was my thinking as well, Bill. But...does this really end up working out in the original owner's interest? I mean, they must take a hit selling at resale. Sure, they used the points, but isn't the "depreciation" (for lack of a better term) going to balance that out?

 

[BWV Dreamin]

I have to say that if you're interested in looking and waiting;that there are options available. We just put an offer in with the TSS for 150 points @ VWL that is coming with 126 2007 points and all 150 2008 on 6/1/08. We actually thought this was a great deal; and the price is $84 per point. Hopefully we make it thru ROFR!

If the 2007 points are banked, yes this is a very good deal.

 

[Frankiesmom]

Yes, 2007 points were banked. There are alot of contracts that are stripped; but if you want a less expensive price point and willing to wait there are options. We have been looking for a while; and this contract will suit us nicely for a while! LOL

 

[tammymacb]

Not to mention, for many of the older resorts there are no points available and you have to waitlist.

For my June UY there were no BWV or BCV and I've seen lists here for 2 years waiting for BCV. If your waitlist comes through, often there are no '07 points with it as they are all gone. ( And yes, I realize this isn't the same with AKL, and SSR, and no with the added years OKW )

Everyone has a different definition of good, but especially with an older resort, if you get banked points from the previous year, I think you probably ended up ahead.

 

[Buckeye Fan]

I absolutely agree that in general, Disney can be pretty competetive with the resale market if you look at the entire package, closing costs and any fees. I've been lurking around the resale market for the last 2 + years, because we've purchased resale. If you have the time and patience, you can find great contracts. I think it really depends on which resorts you're interested in buying. Some would be better bargains via resale, while others wouldn't. For us, was is it worth it? Here's been our experience:

1) 270 point SSR contract - Not worth it. If I had to do over again, would have purchased through Dis. Contract had 217 banked points from 2006 and all of 2007 coming. Paid $84 per point and MFs for 2007. Seller paid closing costs and GMAC fee. I could have purchased this directly from Dis with the F&F/15 year anniversary promo for $86 per point. I would have received a full 270 points for 2006. However, I would have had to pay closing costs through Dis, as this was our first contract, not an add-on.
2) 120 point SSR contract - Worth it. Would buy resale again. 120 banked 2005 points, all 2006 points and all 2007 points coming. This was a rare find. Paid $84 per point, MFs for 2007 and $195 GMAC fee. Seller paid closing costs. Could have purchased through Dis for $86 per point, but again, would have paid closing costs through Dis, as this was our first contract, not an add-on. Even with adding in the GMAC fee, I got a 120 extra points that I wouldn't have gotten from Dis.
3) 150 point VB contract - Worth it. In the process of closing and would buy resale again. 150 2007 points and all 2008 points coming. $60 per point. Buyer pays 2008 MFs. Seller pays closing costs and GMAC fee. This was a huge savings over buying direct.

I will say, DH and I have had GREAT experiences buying through resale. Never any problems, contracts were as presented, sellers turned everything into GMAC in a timely manner, etc. Overall...smooth transactions. I know that's not everyone's experience and may make buying via resale truly not worth it, regardless of savings!!!

 

[monami7]

We are buying a resale that has all '06 which we will not be able to use at this rate!, '07 and '08 points for 80 pp. Also we are selling our HHI with '08 and '09 points. That seemed OK to me. maybe the stripped nes are just what you saw when you looked?

 

[bookwormde]

I agree with your idea of the stripped contracts for the most part being overpriced. I think this mostly come from Disney not adjusting for borrowed/used /banked points at the same value as most people do. I use 10 per point, so if a contract is missing all its current points it should be worth $5/pt less (assuming you were reimbursing current year maintenance with points and not without). if there are full banked points it should be worth $10/pt more. If next years points have been borrowed then it should be worth $10/pt less. You don't see near this level of spread. I think that this is because Disney uses a much lower point value in there ROFR calculations (my guess is $4-5). Because of this you will see a much higher percentage of "striped" contracts being ROFR'd, as people try to get them for the proper "perceived" value.

bookwormde