resale

[WDWorld]

Hi,

As you probably all know, I am going to become a member through a resale.

I have the following concerns regarding the price I should pay.

First, the per/point market value seems to be around 65$. But some people have banked points (or current year ones remaining) while some others have used all of their 2002 points and everybody asks for the same 65$.

I guess there are some "adjustments" when the sale is done... because if not a contract with 150 points in bank worth much more than one without any points !!!

Can someone explain me what will these adjustment be and also if there is a way to buy and don't pay for this adjustment ?

Looks like i'm only days away from making an offer

 

[TnRobin]

Caveot Emptor.

No there are no adjustment done at closing. You get exactly what is advertised in the contract. If there are banked points, they will be yours too. If the previous owner has borrowed points, well then you will be less those points when you are owner.

The price advertised is an offer, you can counteroffer a lower price if there are many borrowed points. In addition, you can negotioate the amount of money you will pay the previous owner for the dues he paid this year. You could even ask the previous owner to return to you a portion of your next year's expected dues for the points he has borrowed. Every thing is negotiable in a resale.

Keep in mind the cost of a point for each year would be only $1.63 ($65/40 years) Multiply that by the number of points borrowed/banked to get an idea of the effect banking and borrowing will have on the purchase price.

 

[rbuzzotta]

We paid asking price because it had a full year of banked points. The only thing we negoitiated was the downpayment. DH was skeptical of giving a larger downpaymnet so I think we only gave 10% opposed to 20-25%.

The key to resalees is Negotiation!!

Good luck.

 

[DebbieB]

Remember that closing costs are negotiable too. The advertised price assumes that the buyer will be paying the closing costs.

 

[WDWorld]

So, I can offer that I pay the asked price (or even less) but want the seller to pay the closing costs and maintenance fees for this year.

What, in your mind, is a good price for 150 pts at BWV or OKW ?

I love that board... and even more all the great people who come here and are willing to help me to become your neighbour

 

[WDWorld]

To be even more specific :

BWV - 150 pts - may - 150 pts of may 2002 available - 9900$

Would you consider this one to be a good buy for me ?

 

[Maistre Gracey]

WDWorld, as strange as it may sound, you don't want too good of a deal or DVD will buy the contract back on right of first refusal. A member here just bought a resale at BWV and paid $54/pt. While he got a great deal, I would not count on that being the norm.
Good luck!

P.S.- just saw your last post. That (in my opinion) looks reasonable. That looks to be at $66/pt. I see resales between $62-$72/pt. At $66, DVD's ROFR should not be a factor.

 

[EROS]

We've purchased two resales. I'd offer $60/point and negotiate from there. Most sellers will not pay maintenance fees on the coming year's points, but everything is truly negotiable. Much depends upon the seller's "need" to sell!!!!!!! If you can't get a good deal, then just wait until the next one.......

Good Luck,

 

[erikthewise]

WDWorld,

Case in point: a hypothetical resale of 150 pts at BWV for $65/pt, a popular price. Suppose that all 150 pts for the current year had already been used. If you value those points at $10/pt (controversial but not unreasonable), the value of the lost points is $1500, precisely the difference between $65 and $75 per point. So (before the price went up today) this resale could have been seen as offering no price advantage over a new purchase.

 

[Dean]

In your example, $66 per point for 150 points with no banked points, closing costs and assuming you pay a full years maint fees IS not a very good deal. If you're set on buying and it's exactly what you want, it may not be worth moving on though. I'd say in your example, $62 per point plus closing and half a years maint fees would be a good deal but not a great one. It'd have to be around $58 pp or have a lot of banked points to make it a great deal.

As for adjusting the price for available points, or lack of, you must also take into account the maint fees you are (would) pay and subtract those from the value of the banked points. Assuming your example and assuming you paid the dues for this year, you'd need about 65-70 points banked to 2002 to be a neutral contract from a fees standpoint.

 

[WDWorld]

hmmm... I thought it was a good offer since the majority of seller already have used their 2002 points but this one has them available...

Yes I would pay 66$ but I have this year's points available. If I compare to what I was offered at Disney last october, they were selling 75$ and giving 10$ for the 1st year's points so that was a net cost of 65 with no points for 1 full year.

I'll continue to search because where I looked for resales on the internet, the bests offers look like the one I mentionned. It's true that it is cheaper larger amount of points but considering the fact that I already have an exchange rate of 60% from CAN $ to US $, I had to change my mind on my 1st idea which was to buy around 200 pts. If it would have been easy to rent points, I would have bought one that I saw with lots of points in bank an a "net cost" after renting the points around 54$... but I'm a little affraid doing that.

The 3 places I looked for DVC resales are : A Timeshare Broker, The Timeshare store and Reid Resort Realty.

Any other recommandations ?

Thanks a lot !!!

 

[robinb]

Unless you really want to close right away, I think $9900 is too much for a 150 point contract with no banked points. The current Disney "buy back" is currently around $62 pp (Dean's fantastic deal of this week not withstanding ). The sellers know it, the agents know it and those buyers who do a lot of homework (like you) know it too.

I am closing this week on a 200 point contract with 100 banked points for $62 pp plus closing costs of about $500 and dues for this year since I am getting the full 2002 allotment. My contract went through the Disney ROFR after they raised the price from $58 to $62 in May. I valued the banked points at $10 each, which is the going rate for point rental since we plan on renting them. Having 100 banked points was like having a $1000 rebate off of our price.

There are plenty of 150 point contracts around. If this one falls through there will always be another one. Good luck!

 

[WDWorld]

Originally posted by robinb
The current Disney "buy back" is currently around $62 pp

For my information, does that mean that below this price Disney have more chances to use their right of first refusal ??

You know... sometimes it's hard for french speaking people like me to follow all those terms

Thank you

 

[WDWorld]

another one...

when you tell that the buy-back price is at 62$ pp, do Disney consider banked points in any way ?

 

[Maistre Gracey]

Yes, that is what it means. While this dollar figure is not a hard and fast rule, nor is it a policy set by DVD, it seems to be an average decision point for ROFR.
Good luck!

 

[crisi]

I don't think its a horrible deal - depends on how fast you are looking to make a deal. But you can buy through Disney at BCV for not too much more money (and less headaches). Use the $66 as a starting point, call the reseller, find out if the sellers are open to negotiating.