resale question

[csmommy]

Has anyone had, or heard of problems buying resale?

It not like I'm buying a car, & I think it would save some $ to buy this way.

Any thoughts?

Thanks.

 

[Dean]

There are potential problems and risks buying resale. Most resales do go through easily however. One must verify the points, ownership and the like. It also can take longer to close a resale and you can' t make reservations until it's closed and DVC has you in their computer.

 

[csmommy]

I probably should have said more.

If the resale is from a reputable company like the Timeshare Store, & Disney does not use their option to repurchase, are there other problems I should be aware of?

Thanks

 

[lacool]

I bought resale thru Jaki at atimeshare.com. She had excellent references, many from this board. I had no problems at all, she answered all of my questions and concerns quickly and thoroughly. The wait for closing felt interminable, especially since folks who bought thru Disney could make reservations immediately, BUT ... I got a contract with banked and current points for a better price than I could have directly from Disney at a resort they weren't offering at the time, so overall I am beyond satisfied. I hope that helps!

 

[momsully]

We purchased DVC through Pat Spell at The TimeShare Store and had no problems. Everything went great and we were very happy with the contract and saved some money! It does take longer though. We made our offer March 13th, received our closing papers April 21st and we made reservations for a 2004 trip on May 6th! If you are not in a hurry it could be a good option.

 

[RobDoc]

You can also have the closing expedited for an additional fee. it will speed up the process by a week or two. We did this for one thru the Timeshare Store with Pat Spell.

Good Luck!

 

[Dean]

Potential problems include:

1. That the points per year will not be the same number as advertised
2. That the points accounting will not be as advertised.
3. If it's multiple contracts (add ons), that the closing costs will be increased over expected.
4. That DVC will buy it back.
5. That the closing will take longer than expected.
6. That points that are available will not be usable or bankable by the time one is official.
7. That one will not be able to get the desired reservation once the closing is complete and DVC is notified.
   [/list=1]
   All of these are possible. Many are less risky if working through a reliable broker. Even if things don't work correctly, the broker can make the difference in many cases. There are ways to minimize most or all of these risks. Make sure all is clear and spelled out in the contract. Talk to DVC about the points and accounting or otherwise get documentation. This will require a letter from DVC, a three way call with the buyer, seller and DVC or permission from the seller for DVC to give out info to the buyer (in writing). Then it's just establshing reasonable expectations on closing and points usage.

 

[yasuern]

I have bought two resales through the Timeshare Store both with Jerry Sydow and both without ANY problems I HIGHLY recommend him and this company without any reservations.

 

[icydog]

We too are in the process of waiting for a response from Disney on a contract with the Timeshare store and Jerry Sydow. He seems to know his stuff and gives good advice.
Dean is right about a few things though. We had to buy Vero now from Disney usning MB in order to book our Spring 2004 vacation in a beach Cottage. Also,the contract we are buying resale has 143 points that have to be used by September and there is no way we will do this.( I guess we could rent them cheap). Otherwise the resale contract for 200 Vero points comes with 200 banked points and all 2oo regular points coming in September. It is a good deal but of course the ROFR may very well come into play here.

 

[icydog]

Originally posted by yasuern
I have bought two resales through the Timeshare Store both with Jerry Sydow and both without ANY problems I HIGHLY recommend him and this company without any reservations.

I have a contract out with Jerry as well. We are worried about ROFR. May I ask which resorts you purchased, what the packages were and what ballpark price? We are trying to get Vero for 200 pts with 200 banked and 143 to be used before Sept. for $62.50 a point. Does this sound like something Disney will let pass??

 

[disneyberry]

Originally posted by csmommy
If the resale is from a reputable company like the Timeshare Store, & Disney does not use their option to repurchase, are there other problems I should be aware of?

just because the resale is being sold by a reputable broker doesn't guarantee that there won't be any problems on the seller's end.

to add to the list Dean provided, the following could also happen:
8. the seller can back out even though you've signed a contract. unless you plan to pursue it by going to court, you might just be out of luck and have to go resale shopping all over again. (and basically end up having wasted months of time)

9. there can be complications/delays if there are any deliquencies such as unpaid dues, or unpaid mortgage etc. plus traditional problems w/ any sale transaction such as complications arising from sellers' involved in divorce or bankruptcy.

and just have to reiterate as another #:
10. the contract could be misrepresented. i know the closing company i used made me sign a document where i agreed i would not hold them responsible if the points accounting was not represented accurately. i don't know if it's the same w/ the broker, if you can legally "hold them responsible" or not.

these issues of course are rare, and the risks did not stop us from going ahead and buying resale (we also used The Timeshare Store). but just want to make sure you understand that there are all these things that could potentially happen.

hope this helps. good luck!