Resale Purchase Help

[B and B]

Thinking of purchasing a resale and have some questions I can't find answers to in previous posts (perhaps don't know how to do the search thing).
1) Can you offer less than the asking price? If so, how much less?
2) How long does it take for an answer?
3) How long for closing?
4) Do resale folks do financing? If so, what kinds of terms?
5) Better to pay cash or finance?
6) Live in Florida...so, to start is 210 a good size? Folks have posted smaller amounts are easier to resll
resell later.
7) Perhaps someone who has been through this recently will summarize their experience.


Please, if all this can be found somewhere, then point me in that direction.
Thanks in advance!

B and B

 

[RobDoc]

1) You may offer whatever you are willing to pay. This is a real estate transaction and the seller may be willing to accept less than he is asking. How much less is the hard part, as you'll never know how much less is acceptable until you've offered.

2) Usually the brokers will get a response the same day from the seller. They are eager to complete the sale also.

3) Closing can take place within a few weeks usually. Some realtors offer an expedited closing (for an extra fee) where the process can be moved a little faster.

4) Do resale folks do financing? If so, what kinds of terms? Most brokers can suggest financing, but you will often do better to look locally for your resale financing. Try a home equity loan. (If the loan is secured by the property itself, the interest may be a deductible expense.- Check with your tax advisor.)

5) That is certainly up to you. No answer here which applies to everyone.

6) I wouldn't base a purchase decision on my ability to resell later. You should figure out how many points you need and use that as starting place. You can look at the <a href="http://www.wdwinfo.com/resort/dvcpoint.shtml">DVC Point Calculator</a> here at DIS to help figure how many points will serve your needs.

The resale market has changed drastically within the last 6 months. When OKW and BWV both sold out and DVC raised it's purchase cost above $70 (almost at the same time)- resales which were going for $50 per point jumped also. The available number of resales is also relatively small- thus the resale costs are going up.

Good Luck! Please feel free to ask more questions here also.

 

[Ed T]

Dear B & B

Buying DVC through resales is a totally negotiable transaction. There is a sellers price and then there is the buyers price. With Disney recently going to $ 75 a point resales are becoming pricy as well but you still have the opportunity to save a few $$. There is closing cost involved with a resale however this is negotiable as well. It all depends on how motivated the sellers are. I will say that if you are interested in a resale you should be prepared to act immediately since they don't stay on the market very long
As for accepting the offers. this can happen immediately. Depending on the sellers turn around time. It is very similar to selling real estate. THe sellers may get a few different offers to consider at the same time. Once the offer is accepted the closing can happen in 3 - 4 weeks depending on the turn around time of the paper work and the broker you are using.
Cash is the better way to go at least it was for us.
230 pts are about average if you are looking to trade out of DVC.
You can email me directly since I have done both, buying through Disney and resale. I can also suggest a very good resale broker as well who helped us with our transaction.


Good luck

Ed
DVC 1994

 

[TrudyZ]

Hi:

Yes, price is negotiable; but the market has changed quite a bit in the lsat 9-12 months. I just closed this week, I would be happy to give you the details--just email me direct.

Regards,
Trudy

 

[alexx]

Hi B and B

I am in the last strech in the process of buying 230 points in OKW.

My timeshare broker said last month, that Disney buy back at around $58.00.

Like Doc said, there is few resales, then, it is a seller market. I bought at $65.00/point on an offer of $68.00 and the broker said that it was suprising that the seller accept lower than the asking price. Six months ago, some had a deal at $55-60/point.

Since the incrase of the Disney's price I am sure that the resale will follow the same tendency.

alexx (The check is arrived monday and I will surely be one someday)

 

[mickeyc]

All the information offered above is excellent. I would add one additional issue. Check the number of points that are currently available. For instance, if a resale contract is 200 points, selling for 70 per point, and you have to barrow from the 2002 or 2003 it may not be such a good deal. You would be able to buy direct from Disney VWl and you would have all the points available this year. You need to evaluate whether buying a resale contract makes sense under those circumstances. Many resales come with the current points and some with even the previous year's points. In the example I noted above you would not want to pay the maintance fees because the points would not be available to you. If you are patient something will become available. It may also be to your advantage to ask the broker to place you on a waiting list. Good Luck! I am sure you will find something.

 

[mbkd]

Hi B and B,
We recently purchased a resale at OKW through the Timeshare store...They were great to work with( Chris and Shontell i think). We bought 230 points...the asking price was $65 a point...we offered $63 a point and they presented the offer and it was accepted at $63 a point..(we did pay closing costs..it was a Sept use year and had 218 points banked from 2000). I was happy at that price...i don't really know if it was great or not but i think it was in the range of deals at the time. We made the offer about March 1. In our case the seller was unavailable until March 12 so the offer wasn't presented until then. It was accepted. We did not finance through them as the rate was close to 14%. I paid cash and will finance myself locally. FYI, some banks will lend at about 3% over what they pay u on a CD. The CD serves as collateral for the bank...Not the wisest source of financing but forces you to repay yourself if you don't want to do a home equity loan and have the cash...Anyway, the closing took about a month.
I was not super fast on getting the paperwork back to them, i.e., I let it sit for 2 to 3 days. I did not pay for any "fast or expedited" closing fees. I think we were completely closed in 5 weeks...We scheduled our first trip right after we closed ( about April 25th) for Memorial Day Weekend and stayed 5 nights in a 2 bedroom at OKW..The ressie was no problem...I was surprised on such short notice!!! We had a great time... The unit was great. jWe were familiar with OKW and the BW so we knew where we wanted to be. I think the value is a
little better at OKW, but some swear by the location at
BWV. Either way good luck..hope this helped and any further questions let me know

 

[LIDisneyFan]

We're in the middle of an add-on through resale. We offered $2 less than the asking price, but ended up at the asking price - but all this years points are available, and almost all of last year's are banked - so it was a good deal for us.

Each sale is unique.