Resale questions

[mb168]

Yet another newbie. I have been cosidering buy a timeshare for a while now and went on the DVC tour last Labor day. I didn't buy then and have been on a Fairfield since and came real close to buying but kept DVC in the back of my mind. So after cruising the resale sites and wearing the buttons out on my calculator, I've decided to buy a resale but still had concerns. I found 70 pts at OKW through the Timeshare Store and am set to close by Septemberish. I thought 70 pts would be a way to "ease" into it and check it out without too much $$ outlay and add points later. When I went on the tour, and in following research I figures I would like about 200 pts. So now I'm wondering how to get there and what is the best way? I've seen where people buy them direct from Disney where they have opted to buy them back. But how do you do it through a reseller. My use year will be August. Should I be trying to find more Aug pts? The other part is it would probably be difficult to find someone with 130 pts to make mine 200 but I read somewhere where Disney has bought other peoples back and split them. Can someone split there own points through a reseller? Say someone selling 500 pts that would prob have a harder time selling them all could sell to multiple people? I would assume that it would definitely be best to stick with buying for the same home resort? Also, when buying multiple times through resellers, does it matter that you would have different contracts? I assume the biggest deal would be to buy in the same resort with the same use year? Thanks

 

[RobDoc]

If you really want 200 points, you'll probably be better off looking for a 200 point resale contract.

Resales can sell only the exact contract they own. It is a deeded property interest and may not be divided easily. For a small (70 point) contract, you will likely overpay, since there will still be closing costs involved. Those contracts are rare anyway and often have a higher asking price for that reason.

Multiple contracts are fine, but do require a little more record keeping to track your point usage.

Disney has the right of first refusal, which means they will review every offer made to purchase and can purchase it themselves if desired. Once they have regained the points, they can resell them in whatever form they wish, but a contract of 500 points cannot be broken up by the member to sell. (Sort of like trying to sell JUST the basement of your house). Since these are recorded deeds, there are some legal requirements to be met with any sale.

Good Luck!

 

[mb168]

I agree that the closing would make it higher per point on average but it is less to close based on points size. as far as price per point I'd rather not say yet since it hasn't gone through yet but it's less than $70 a point and within the range of what I see others asking per point.

 

[WDWalways]

I also wanted 200 points per year -- I just put a deposit on a resale for 100 points and plan on doing an addon directly with Disney for the remaining 100 once I am all confirmed and in the system. I figured out that if I bought the 200 directly from Disney it would have cost me over $1000.00 more in the long run -- doing 1/2 resale and 1/2 direct with Disney was a good choice for me I think. I would do all resale but I was only able to afford 1/2 cash -- I had trouble getting financing for a 200 point resale but was able to do 100 points cash -- doing the remaining 100 with Disney directly I can put down the 20 percent and finance the rest so it works out for me better that way since Disney is pretty lenient with their financing.

 

[mb168]

Where are you buying the resale and where will you be nuying the add ons at? I think it would be best if they were all the same resort and I don't know how easy it is to add at OKW. I have paid the deposit for the 70 already. I guess I could cancel now and get it back and wait for the 200. It would suit me fine though to continue with the current one if I could add easily though. Just trying to get ideas.

 

[kem330]

You'll have to be very patient for a 130 point Aug use year OKW resale. That amount doesn't come around every day. You may have to settle for 150 points as an add on. In the long run it is going to cost you more as smaller contracts usually go for more $/point and closing fees would be at least $350 I believe. So you have added $5/point to the cost of your 70 point purchase and 150 points would be at least $400. You should be able to find a 200 point contract with closing of $450 , all at the same resort and use year for $65 or less per point.

 

[Bexx]

So can I just check - if I was selling a contract I couldn't split it up to sell it to several people, but if Disney took up their first refusal and bought it from me, they could then split it up however they wished? Could several people wanting points in the same resort with the same use year contact Disney and asked them to split a contract up into the amounts wanted by each person?!

Becky

 

[kem330]

Highly unlikely that it would be feasible- Disney doesn't take that many back- so far they are not in the resale market- many may be defaults or deaths perhaps. They also have a waiting list for points at sold out resorts which I would hope they worked off of first.

 

[Dean]

Originally posted by Bexx
So can I just check - if I was selling a contract I couldn't split it up to sell it to several people, but if Disney took up their first refusal and bought it from me, they could then split it up however they wished? Could several people wanting points in the same resort with the same use year contact Disney and asked them to split a contract up into the amounts wanted by each person?!

Becky

You've got it. You can actually split some contracts when there are add ons involved. Lets say one wanted a 100 pt contract at BCV. Once could buy OKW resale, add on the 100 pts at BCV then sell the OKW contract and keep the 100 pts even if less than the 150 pt minimum we usually discuss.

 

[mb168]

So is there much downside to buying two contracts at the same resort? I assume you would at least like to have them in the same year but is it a problem using points for 1 stay from two contracts? I havent read any posts frm people who did add ons through resale regardless of where original purchase was. I assume if someone was selling 70 pts, they had done an add on direct from Disney for the 70?If you o an add on though, does it not become a part of your original contract and end up with "seamless" points? I just don't know how someone could sell 70 pts if you can't split your own pts. I just figured it was an easy way into the DVC for less than $5K and then add on later. I just don't know yet how to do it.

 

[kem330]

Maybe I misunderstood this, but the question by Bexx is: If some one wants to sell their contract and it is one complete contract(no add ons) can they just sell it back to Disney and then Disney will divide it up to sell into smaller contracts to sell. No one knows if Disney will indeed exercise their ROFR so that is not a given- they will not just buy a contract from you so you shouldn't count on it. Of course you can sell off add ons separately and yes mb168 that 70 point would have to have been an add on as only an add on could have that point value. It just seems we need some clarification here. An initial contract is a purchase of 150 points or more and an add on can be as little as 25 points. You can not split a contract. Each purchase after your original purchase with Disney is a separate contract so it can be sold as such. Most add ons will be the same use year and yes it is seamless with points they can all be combined effortlessly as long as they are the same resort and use year. If they are same resort and different use year than you are limited by when the points are available. If they are different resorts and same use year, you have 11 month priority only for the amount of points at the particular resort. Many people own at different resorts and bank and borrow to alternate stays each year or choose to use a small contract for a couple extra nights stay at a different resort. The problem with 70 points is that you don't have much to work with and it may be more difficult to get the precise resale that compliments your contract. You will pay twice the closing costs and potentially open yourself to more headaches. Then again it could work perfectly, you never know! It will certainly be easier to find 150 - 200 point resale than a 130 point one- so you may get stuck buying more points than you originally intended but hey that's a problem we all seem to run into DVC pointitis- you can never have enough!

 

[RobDoc]

I assume if someone was selling 70 pts, they had done an add on direct from Disney for the 70?If you o an add on though, does it not become a part of your original contract and end up with "seamless" points? I just don't know how someone could sell 70 pts if you can't split your own pts.

The only way a 70 point contract could be available is if someone purchased 70 points as an add-on from Disney originally and later sold it.

You can NOT break up a contract. Add-ons of less than 150 points will have the same master contract number as your original, but will have a different suffix ( xxx.001, xxx.002, xxx.003). It will count towards banking deadlines and may be used "seamlessly" for reservations, but that contract will still be recorded as a separate deed with the county and may be sold separate from the master contract (or vice versa).

Disney will not buy back a contract unless a bonafide offer has been made to purchase the points. They will review the offer and decide at that time if they will exercise their right of refusal.

 

[mb168]

thanks kem330. I think I've decided that having 220 pts by buying a 150pt contract would not be such a terrible thing!!!
I just was uncertain as to using multiple contracts for one stay. I didnt know an add on wa a new contract. So, I guess it really doesn't matter if you buy two or more through resale or whoever? It will be the same as doing an add on through Disney? I also didnt know what the odds of doing an add on through Disney if the only place they will sell points is BCV. I thought I had read where others had bought add on at other resorts that had been closed to "new" purchases. The only thing it looks like will cost me more would be the extra closing though if I buy more resale? Other than that, it's still cheaper than buying 220 direct from Disney at $80 a point..... I'm a more laid back person anyway and will probably stay at OKW more anyway. I've eaten at Olivias but only stayed at WL and VWL on site so I'm ready to try something else..

 

[Bexx]

I didn't mean to confuse the issue when talking about Disney buying back points - I certainly don't want to sell mine just yet!!! I just wondered what they could do with them once they were back in their possession for whatever reason

At some point I would like an add on at OKW which is my home resort (bought resale) rather than buy at the latest resort on offer e.g BCV. I can go on the Disney wait list for my 40 points, but if someone else wants 60 points for the same resort and use year, can we ask if they (Disney themselves) can split a 100 point contract if one becomes available, to increase both our chances?!

Apologies if my question has already been answered and I didn't understand!!

Becky

 

[mb168]

I guess what I'm seeing here, other than paying 2 closings and waiting for one in your month at the same resort there is no downside to buying them seperate?

 

[RobDoc]

You won't have to ask DVC to do anything, as they can offer any points they reclaim however they'd like. I don't think they actually repurchase too many resales, but do end up with some points thru reposession when a member just stops paying dues or mortgage. Most timeshares experience these issues and I'm certain DVC is no different in that regard.

If you call your guide and ask to be contacted if/when points become available at a specific resort, you will be on their list. That will work for existing members only however, as they won't sell OKW, BWV or VWL to prospective members.

Good Luck!

 

[CarolMN]

Even though I've read posts that say Disney will allow resales for less than 150 points (the minimum number to purchase DVC through Disney), I have to wonder if they will let a contract of 70 points go through to a first time buyer. 70 points will not even get a week at OKW in Adventure Season. I will be curious to see if this sale actually gets completed.