resale

[Jrpbabe2003]

What are the disadvantages to buying resale? Once you are a member can you still buy points from resale?

Thanks

 

[chalee94]

once you are a member, you may buy either directly from DVC (an "add-on") or by resale.

resale buyers currently are identical to direct purchasers with regard to perks and benefits.

more info, stolen from DVCMike:

Initial Purchase from DVC

• You can get the exact number of points that you want (although you must buy a minimum of 160)
• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• You can pay with a Rewards credit card and get points/cash back
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• If you don’t want the resorts they are currently selling (AKV/SSR), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale

• You may not get the exact number of points you want
• You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may lose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Just be aware of “stripped” contracts on the resale market.
• Easier to pickup large point packages at any of the older DVC resorts.

 

[Jrpbabe2003]

What about when the deed expires (I dont know much about that, do they all expire at the same time, or does it depend on when the buyer bought it?) I have been hearing about 15 year extensions and was thinking it might be a disadvantage to buy resale since you get the deed for a shorter time.

 

[chalee94]

except for OKW, they all expire at the same time.

OKW+extension = 2057
AKV = 2057
SSR = 2054
all others = 2042

doesn't matter when you buy it or who you buy from.

OKW42 contracts are cheaper, but you can find OKW57 contracts available for resale (they are just currently more rare.)

 

[itsreally4mommy]

Why did they only offer extensions for OKW?

About how long does it take to process a resale?

 

[chalee94]

Why did they only offer extensions for OKW?

no one really knows. maybe demand for OKW was flagging and they needed another selling point...which extending the expiration provided. (it's also a way to generate revenue without having to provide anything in return for 35 more years...so if people will buy it, why not?)

some have speculated that it was a "trial run" so if the OKW extensions were successful, DVC may offer to extend the other 2042 resorts.

OTOH, the other wdw DVC resorts that expire in 2042 are attached to hotels, so there may be other complicating factors with extending those.

About how long does it take to process a resale?

as stated above, resales typically take 6-8 weeks...depends on the seller getting the paperwork done quickly and how long DVC holds it before deciding whether to ROFR it.

 

[tink'smom2B]

I am speaking from experience. Our first purchase was resale in 2004. The process was simple. We bought and the sellers sold. It only took about 8 weeks, start to finish. This last purchase is different. We bought on 2/26. Then the contract # was incorrect. Disney OK'd it on 3/26, but the sellers dragged their feet sending the closing info back. As of today, they still haven't sent the closing documents to TTS. We are about to throw in the towel and buy direct from Disney. Their incentives are tempting! Buyer beware!