resale prices going down?

[fzssyv]

Hi-- I just (almost) bought 75 points at OKW for $83 per point in February. I have to mail a check this week. I checked online and the DVC resale prices seem to be much lower now--in the low to mid 70s. Is that normal?

I'm disappointed now because for less than $2,500 more I could have gotten 120 points instead! That's 70% more points. I'm worried now that we made a mistake by signing when we did. Eleven dollars less per point is a lot (I think) for the same resort. I thought that we got such a great deal and now I'm just bummed.

 

[lisaviolet]

Hi-- I just (almost) bought 75 points at OKW for $83 per point in February. I have to mail a check this week. I checked online and the DVC resale prices seem to be much lower now--in the low to mid 70s. Is that normal?

I'm disappointed now because for less than $2,500 more I could have gotten 120 points instead! That's 70% more points. I'm worried now that we made a mistake by signing when we did. Eleven dollars less per point is a lot (I think) for the same resort. I thought that we got such a great deal and now I'm just bummed.

All 2042 resorts will start to fall in price. It only makes sense as new longer contract DVC resorts come on board. And then there is the fact that one can buy or add on to OKW directly from Disney and have an ending date on line with AKV now. At a higher rate than resale of course.

But don't let your head hurt about it. Really. It's always a crapshoot. I bought DVC three years ago and just before a nice promotion. Disney would have given it to me but I was already closing.

I know it's difficult but just enjoy. Is this your first contract? If so, congratulations.

Lisa

 

[nuts]

Hi-- I just (almost) bought 75 points at OKW for $83 per point in February. I have to mail a check this week. I checked online and the DVC resale prices seem to be much lower now--in the low to mid 70s. Is that normal?

I'm disappointed now because for less than $2,500 more I could have gotten 120 points instead! That's 70% more points. I'm worried now that we made a mistake by signing when we did. Eleven dollars less per point is a lot (I think) for the same resort. I thought that we got such a great deal and now I'm just bummed.

Hmmm, no, they are not down. I noticed you only have 3 posts. Are you new to all this?

 

[ZekeKelso]

Hi-- I just (almost) bought 75 points at OKW for $83 per point in February. I have to mail a check this week. I checked online and the DVC resale prices seem to be much lower now--in the low to mid 70s. Is that normal?

Be sure you are comparing apples to apples. Small contracts (like your 75 point one) are always more expensive than larger contracts. And contracts with banked and/or current points are more expensive than contracts where the points are striped. What's the point status of your contract?

Taking a quick look at some resale listings, I see a 50 point contract with no points until June selling for $81. Another 50 pointer with no points until December asking $85. $83 doesn't seem like a crazy price, but it's possible you could buy today for a few bucks cheaper than what you paid.

 

[lisaviolet]

Hmmm, no, they are not down. I noticed you only have 3 posts. Are you new to all this?

Really nuts? I've been scanning lately. On all three big sellers. And BCV is definitely down. No more high 90s that I'm seeing. But then I'm not on all the time. Geez, I think in it's big time there were some small ones wanting $100. There have been a few HHs in the low $60 range. Etc. I've never seen HH so consistently low. And SSR is down from when I sold some. There are quite a few contracts going for $79/$80 and when I sold none were listed quite that low. Small changes yes. But changes.

And I agree with the PP. Be careful when comparing. Small is almost always a higher price.

 

[dvc at last !]

subscribing to read later...

 

[LisaS]

Be sure you are comparing apples to apples. Small contracts (like your 75 point one) are always more expensive than larger contracts. And contracts with banked and/or current points are more expensive than contracts where the points are striped. What's the point status of your contract?

I agree. Contracts at or below 100 points usually sell for a lot more per point than larger contracts with the price per point going up as the size of the contract goes down.

 

[pinnocchiosdad]

Hi-- I just (almost) bought 75 points at OKW for $83 per point in February. I have to mail a check this week. I checked online and the DVC resale prices seem to be much lower now--in the low to mid 70s. Is that normal?

I'm disappointed now because for less than $2,500 more I could have gotten 120 points instead! That's 70% more points. I'm worried now that we made a mistake by signing when we did. Eleven dollars less per point is a lot (I think) for the same resort. I thought that we got such a great deal and now I'm just bummed.

Do not forget about ROFR. Just because a contract is priced low, does not mean it will sell for that price!!!

 

[doconeill]

Do not forget about ROFR. Just because a contract is priced low, does not mean it will sell for that price!!!

Well, it WILL sell for that price, but not necessarily to the person making the offer to buy, but to Disney instead...

 

[DebIreland]

I've been keeping an eye on OKW resale prices for over a year and I disagree that they're going down. Almost every time I've checked the resale lists on the Timeshare Store's website they have OKW contracts with points for sale in the mid 70's. This has been consistent for a long time. If you check out the ROFR thread here you will see a history of contracts sold for OKW, many of which had points priced at 74/75/76 right up to mid 80s. As ZekeKelso said, smaller contracts might cost more per point - you'll see quite a few smaller OKW contracts on the list in that thread with points sold at 82/84 etc.

I guess it's like house selling - even two identical houses in the same area can go for very different prices depending on the specific needs/wishes of the buyers looking at that time.

 

[fzssyv]

To answer as many questions as possible, I have been lurking on the boards since my first post in February. We researched extensively for several weeks but decided to buy thr 75 points because there are very few contracts for 75 and 75 met our needs nicely.

I kept a spreadsheet of all the different contracts in our points range (50-130) that we were interested in and the lowest point value was 77/point. Of course, we were excited and maybe should have waited a little longer. However, 75 points seems pretty rare and we didn't want to lose out.

I guess we should have/could have offered a lower point value or negotiated the closing cost and maintenance fees (we are paying all) but given that were no other 75 point contracts available, we jumped on it.

I think that we will console ourselves with the fact that although we may have paid more than we could have, we soon will own our very own piece of Disney magic!

 

[pinnocchiosdad]

Well, it WILL sell for that price, but not necessarily to the person making the offer to buy, but to Disney instead...

True, Disney can buy for the low prices, but the general public can not. IMHO

 

[Pennyguy23]

To answer as many questions as possible, I have been lurking on the boards since my first post in February. We researched extensively for several weeks but decided to buy thr 75 points because there are very few contracts for 75 and 75 met our needs nicely.

I kept a spreadsheet of all the different contracts in our points range (50-130) that we were interested in and the lowest point value was 77/point. Of course, we were excited and maybe should have waited a little longer. However, 75 points seems pretty rare and we didn't want to lose out.

I guess we should have/could have offered a lower point value or negotiated the closing cost and maintenance fees (we are paying all) but given that were no other 75 point contracts available, we jumped on it.

I think that we will console ourselves with the fact that although we may have paid more than we could have, we soon will own our very own piece of Disney magic!

True but on a small 75 points contract you would have saved 200$ ? Not much to lose any sleep over. IMO

 

[DebIreland]

We researched extensively for several weeks but decided to buy thr 75 points because there are very few contracts for 75 and 75 met our needs nicely.

Exactly! You got the contract you wanted. I agree it's rare to see a low contract like that. I'm already thinking that when we buy (eventually ) we will probably settle for a few points over or under our ideal amount as it's so hard to get the exact one you want or if the one we want is priced a little higher than the average we'd go ahead and buy it too I think. (*Any future DVC sellers reading this, that last line was a joke, I won't go a penny above asking! )

Congrats on being a DVC member!!! Very exciting. And I think Old Key West looks gorgeous!!

 

[bookwormde]

I am glad that I am not the only one with a spreadsheet (for me a geek thing I guess). The one I have made adjusts for banked points, missing current year points, borrowed points (at $10/pt) and adjusts for who pays maintenance fees, as well as deferential in closing costs between the brokers. I have only been doing it for about 2 months but have back loaded some old sales. What I have seen in some increase in BCV (to the point where in most cases purchasing from Disney is just as cost effective), with slight drops in WLV and BWV , A couple of $ drop in OKW but a substantial drop in SSR. AKL seem very stable and in most cases unless it is a small initial contact is also just as effectively bought from Disney. I guess I will have to add a new category when OKW 2057s come on the resale market

I find this makes it easy to make “value” based offers (yes I am very cheap). I am still working on my initial purchase. You cannot make good comparisons between contracts of significantly different sizes; people pay a high premium for small contracts.

It also allows me to make a good technical analysis for ROFR, however Disney does not seem to use the $10/pt number that I use, it seems more like $4-6 per pt. Of course this does not help with the intangible issues that go into Disney’s decision like general market conditions, effect on current new sales, inventory levels, inventory needs like resort and use year. Not to mention how they happen to be feeling that day. Disney does have 1 big advantage with the contracts that they take into inventory; they can move points around to make full contracts (this may also have an effect on which contract they buy back).

It does sound like they have the system working more efficiently lately with a lot of decision coming back in the 2-week range.

Yes I would sweat over paying $200 too much but that is not most people. I am sure the time I have spent doing this is probably worth about $0.50 per hour but I find it fun.


bookwormde

 

[the who #3]

i have purchased several resales and don't feel as tho i have paid less or more than the value. i consider the value to be what it is worth to get the one i want. i have also purchased from disney direct at 2 different resorts. if the one i really want goes on the resale boards i will offer the asking price or not too much under that since they are usually very close to being in line. if i make an offer that is too low the seller may turn me down and someone else will get the one i want or i may get knocked out with rofr. the difference is usually just a matter of less money than you think and can mean many years of time at the resort you love and will end up calling your home.

if you are sticking to a really tight budget the price you pay may be more important than the resort home you purchase. in that case it would be worth it to try biding the price you can pay and if that does not go thru try again on another. you would probably find the right contract at the right price sooner or later. you just need a little

 

[Princess Amy Lyn]

Just to add to all the info...we just passed ROFR with Disney. WE bought 270BCV points at $84 a point through GMAC. UY March...All points intact. Everyone said Disney will not let that pass...it is too low an offer. I asked Gmac what they thought and they said even $83 a point at BCV is getting by... If we would of waited on the list at Disney for this we would of paid $104 a point... a $5400 difference!

 

[bookwormde]

WOW! That was quite a bargain, even if you figure in the higher closing costs and fees at GMAC.

I guess you found one that everyone assumed was stripped and it tuned out it was not (since GMAC does not publish the details of the contacts they have for sale).

I don’t enter 250+ contracts on my spreadsheet, since that is not the market I am in.

Congratulations

bookwormde

 

[Laxmom]

I am glad that I am not the only one with a spreadsheet (for me a geek thing I guess). The one I have made adjusts for banked points, missing current year points, borrowed points (at $10/pt) and adjusts for who pays maintenance fees, as well as deferential in closing costs between the brokers. I have only been doing it for about 2 months but have back loaded some old sales. What I have seen in some increase in BCV (to the point where in most cases purchasing from Disney is just as cost effective), with slight drops in WLV and BWV , A couple of $ drop in OKW but a substantial drop in SSR. AKL seem very stable and in most cases unless it is a small initial contact is also just as effectively bought from Disney. I guess I will have to add a new category when OKW 2057s come on the resale market

I find this makes it easy to make “value” based offers (yes I am very cheap). I am still working on my initial purchase. You cannot make good comparisons between contracts of significantly different sizes; people pay a high premium for small contracts.

It also allows me to make a good technical analysis for ROFR, however Disney does not seem to use the $10/pt number that I use, it seems more like $4-6 per pt. Of course this does not help with the intangible issues that go into Disney’s decision like general market conditions, effect on current new sales, inventory levels, inventory needs like resort and use year. Not to mention how they happen to be feeling that day. Disney does have 1 big advantage with the contracts that they take into inventory; they can move points around to make full contracts (this may also have an effect on which contract they buy back).

It does sound like they have the system working more efficiently lately with a lot of decision coming back in the 2-week range.

Yes I would sweat over paying $200 too much but that is not most people. I am sure the time I have spent doing this is probably worth about $0.50 per hour but I find it fun.


bookwormde

That is interesting stuff but I wouldn't have had the patienct to do that myself. Thanks for posting it.

 

[crisi]

A couple of $ drop in OKW but a substantial drop in SSR. AKL seem very stable and in most cases unless it is a small initial contact is also just as effectively bought from Disney. I guess I will have to add a new category when OKW 2057s come on the resale market

Its been my perception that recent contracts (people would have only started buying AKL a year ago or so) have a high resale value - my guess is people can't afford to let them go for significantly less than they paid for them. After a few years on the market, people seem willing to sell - even if its at a slight loss.

When we bought, we paid $63 in 2002 for a BWV resale. Disney was selling for, IIRC, $75 at BCV. We were very interested in VWL which Disney wasn't selling (publicly) - but it was selling for $70+. Within a year, VWL points had dropped in price, BWV had inflated. Now, six years later, BWV points usually sell for a few dollars more than the VWL contracts.

So if I wanted an AKL resale, I'd think I'd need to wait at least another year, and maybe longer, to see prices drop.