Resales a bit high- What's your savings percentage threshold?

Honestly, sometimes I don’t totally understand why a small contract costs so much. I mean I guess it's partly because the buy-in is less overall? But other times it almost seems like a logical fallacy. :rotfl:

Q. Why does it cost so much for a small contract?
A. Because later you can sell it at a higher price than a bigger one.
Q. But why CAN I sell it at a higher price than a bigger one?
A. Because you paid more for it.
Q. Oh, okay. Wait...what??? :confused3
One threshold I apply is to NEVER offer more than the average price per point in DVCRM's prior months post:
https://www.dvcresalemarket.com/blog/dvc-resale-average-sales-prices-for-june-2021/[/QUOT

That's exactly what I offered. I went to the site and offered the weighted average.
 
How many points are you looking to buy? Contract size and whether the contract is fully loaded with points, stripped, or somewhere in between, make a big difference in how much discount off direct is reasonable to expect.

I think currently, 35% off direct for AKV is right around the number where it's at risk of being taken back by Disney's Right of First Refusal, but it might get through.

If you're looking for a small contract, or you find one loaded with points, I think it would be tough (but not impossible) to find a seller willing to meet you at that price. If you're looking for a big contract and/or it's stripped, I think that's a totally reasonable goal - but you may end up negotiating a great deal for Disney and wasting several weeks in the process.
About 50 to 60. I just need a couple more for a 1 bedroom 2 extra nights in my UY. I like a split stay of 3-4 days per resort.
 
Offered $140 for AKV Oct. Was turned down because I was too far off of the asking price. Considering that the asking price was $160 and direct is $186, I don't think $160 is in my resale mentality. (I think what I'm after is about 35 percent off if possible. )



What's the savings percentage that you shoot for?
At least 33%
I took advantage of COVID Prices and bought resale:
225 Points - SSR at $89PP - Direct = $165PP (46% Savings) -$17,125
30 Points - BCV at $140PP - Direct = $245PP (43% Savings) -$3,150
160 Points - AKV at $125PP - Direct = $186PP (33% Savings) -$9,760
Total Net Savings over Direct = $30,035

I already had BLUE Card benefits from our initial Direct Buy in 2011(210 Points at SSR for $99/PP)

The Percentage Savings for the AKV points was much lower than the BCV points,
but the net $$ saved was much greater, AND the contract was loaded with 120 Banked Points.

I'm amazed at how the prices for Direct & Resale have rebounded in 2021, especially for the 2042 resorts! o_O
 
Resales a bit high -

Considering that the asking price was $160

A bit high???? Yikes! $160 seems insane to me for AKV resale. I'm really glad I bought when I did in 2019 ($105pp) and added on early enough in 2020 ($100pp) before the prices started skyrocketing.

We're considering one more add-on in the next year and leaning toward direct unless the resale market comes back down. If the difference between resale and direct narrows any more, we can make up the difference on food/merchandise discounts alone in a few years and have unrestricted points for the future.
 


VGF is one of my home resorts, where the average resale price is now $197. I plan on buying 300 points direct when VGF2 goes on sale. Even if they have an initial price of $250, which I don't think they will, I think incentives will get me near $225. Or even $201 if initial price is $225.

So it seems crazy to purchase any VGF resale points right now. Considering that the direct points will probably be unrestricted, and I'll be able to use them at Riviera and any other new resorts down the line, I think even buying VGF resale at a lowball price, say $170, is still not a good deal.
 
Honestly, sometimes I don’t totally understand why a small contract costs so much. I mean I guess it's partly because the buy-in is less overall? But other times it almost seems like a logical fallacy. :rotfl:

Q. Why does it cost so much for a small contract?
A. Because later you can sell it at a higher price than a bigger one.
Q. But why CAN I sell it at a higher price than a bigger one?
A. Because you paid more for it.
Q. Oh, okay. Wait...what??? :confused3
The reason why small contracts cost more is pretty simple. There are not many of them. For most resorts sold DVC had a higher minimum buy in. Some of the newer contracts for sold out resorts they allowed a buy in of 50 points. That is now gone and minimum buy in is now up to 150 for new members. Some people do not have a need for 150 points or have the $30,000+ for DVC. So, a contract of 25-50 points is an add on contract. Most of those have blue card benefits attached to them. People do not want to lose blue card benefits. So there are very few small point contracts and if you are not a DVC member you cannot buy a 40 point contract to bank the points to do a weeklong stay once every 2 years. So you are stuck between a rock and a hard place. It’s supply and demand. Lots of demand, very little supply. It would not surprise me if some small contracts sell for more money than what DVC sells points for.
 
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Offered $140 for AKV Oct. Was turned down because I was too far off of the asking price. Considering that the asking price was $160 and direct is $186, I don't think $160 is in my resale mentality. (I think what I'm after is about 35 percent off if possible. )



What's the savings percentage that you shoot for?

Anyone who actually pays 160 for AKV is to blame for the prices being that high. Seems like brokers are pushing it high and seeing what they can get away with. There was a VGC that was listed for like 320 and sold. Not sure if it sold for asking or not… but once brokers know they can get away with that price, expect it to become the new norm… then eventually Disney will raise direct pricing to keep their profit margins over what they pay for ROFR and that will lock in the new normal… bummer.
 
One threshold I apply is to NEVER offer more than the average price per point in DVCRM's prior months post:
https://www.dvcresalemarket.com/blog/dvc-resale-average-sales-prices-for-june-2021/
This just reflects their sales, and as a major instigator in rapid price escalation, I would say their numbers are skewed at best. I quoted their own report when making an offer on one of their listings that was $12 over their average. They didn’t seem to care too much about their facts, or their sellers didn’t. I just struggle to believe all the unrealistic sellers congregate at the same broker.

Like someone said, there are many other brokers. That worked for us, paid $23pp less elsewhere. Oh, but I didn’t get concierge service, whatever that is.
 
This just reflects their sales, and as a major instigator in rapid price escalation, I would say their numbers are skewed at best. I quoted their own report when making an offer on one of their listings that was $12 over their average. They didn’t seem to care too much about their facts, or their sellers didn’t. I just struggle to believe all the unrealistic sellers congregate at the same broker.

Like someone said, there are many other brokers. That worked for us, paid $23pp less elsewhere. Oh, but I didn’t get concierge service, whatever that is.
I mean as a seller, id definitely use them, they some how manage to get top dollar. (Thats assuming their sellers commission % is inline with other brokers) As a buyer, might be better to look elsewhere if looking for a "deal".
 
For new members though, Disney no longer offers contracts smaller than 150 points. Used to be that you could buy 50, 75, etc. points, and just not get the blue card. Now they are saying the minimum to buy for new members is 150, period. That means the lowest buy-in at a WDW resort is about $25,000 now. Anyone looking to spend less than that is left to fight over the small contracts on the resale market.

I have what is probably a dumb question. If you are already a member can you add on a smaller than 150 contract?
 
I have what is probably a dumb question. If you are already a member can you add on a smaller than 150 contract?
Yup, you can add-on in smaller increments, i think the minimum add-on is 25 points. The 150 min only applies to new members making their first dvc purchase.
 
I’m looking for 30-40% vs. direct at the time of purchase. Otherwise, I’ll just buy direct.
 
I mean as a seller, id definitely use them, they some how manage to get top dollar. (Thats assuming their sellers commission % is inline with other brokers) As a buyer, might be better to look elsewhere if looking for a "deal".

They got me a lot more for my BLT than I thought I would get so I can not complain (and it sold in less than 4 hours). So, as a seller, I would not hesitate to use them again.
 
I love the comments about brokers “seeing what they can get away with” like there is a conspiracy. Brokers are going to recommend listing a contract based on what the seller is asking. If the seller wants to sell it quickly they may price it lower, if the seller is in no rush then they may price it a tad higher. But ultimately they will price it based on what they think a buyer will actually pay for it. Like any transaction. Don’t blame brokers, I guess blame resale buyers if you want to blame anyone.
 
I love the comments about brokers “seeing what they can get away with” like there is a conspiracy. Brokers are going to recommend listing a contract based on what the seller is asking. If the seller wants to sell it quickly they may price it lower, if the seller is in no rush then they may price it a tad higher. But ultimately they will price it based on what they think a buyer will actually pay for it. Like any transaction. Don’t blame brokers, I guess blame resale buyers if you want to blame anyone.
Are you a broker? 🤣
 
I mean as a seller, id definitely use them, they some how manage to get top dollar. (Thats assuming their sellers commission % is inline with other brokers) As a buyer, might be better to look elsewhere if looking for a "deal".
Same but I wonder how long it'll last. I have gotten to the point that I rarely check their site because the pricing is too rich for my blood. I'm sure I am not alone in that.
 

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