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

[Red Dog Run]

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?

 

[davidl81]

I think it depends on the number of points to an extent. 9% savings on a 100 point contract is not that much actual cash and it would make me look at direct for sure. 9% off say 500 points is a little different.
But overall I would say at least 20% savings versus direct is what I would be looking for to make it worth the time to go resale versus direct.

 

[Stargazer65]

I guess depends on contract size, but I think your offer is a reasonable discount at about 25% off. That's probably what I'd consider a threshold. Less than that, I may as well go direct. If it was a big contract I'd definitely want even more of a discount.

 

[Red Dog Run]

I guess depends on contract size, but I think your offer is a reasonable discount at about 25% off. That's probably what I'd consider a threshold. Less than that, I may as well go direct. If it was a big contract I'd definitely want even more of a discount.

I just don't see the point of buying at a near direct price. The only thing I can think of is that these contracts are geared towards people looking to purchase DVC for a small investment without the requirement of a set number of points to purchase.

 

[andyc83]

Smart move. I have a 220 point at AKV pending ROFR at $127. You can definitely get under $140. Good luck to them selling at $160.

 

[Happy2BMommy0812]

For us, not having restrictions on where we can use points is very important. Both our Poly and Riv contacts are direct. If we bought a 3rd, it would have to be a savings of at least 30-35% on a contact that was small or moderately sized. If we ever bought a big one, maybe we’d be willing to go under 30%, but I think I’d probably choose to buy less points and direct purchase benefits.

Now, if I had a resort I loved and only wanted to stay there, I’d buy resale no problem. But we love trying resorts and different views and room types.

 

[Red Dog Run]

For us, not having restrictions on where we can use points is very important. Both our Poly and Riv contacts are direct. If we bought a 3rd, it would have to be a savings of at least 30-35% on a contact that was small or moderately sized. If we ever bought a big one, maybe we’d be willing to go under 30%, but I think I’d probably choose to buy less points and direct purchase benefits.

Now, if I had a resort I loved and only wanted to stay there, I’d buy direct no problem. But we love trying resorts and different views and room types.

Totally agree that a resale must have some distance from direct to make it worth the purchase. The asking prices are very, very high when assessing the percentages saved.

 

[Stargazer65]

I'd consider some more SSR, but not resale unless they come down a lot. Direct price went up 15 dollars this year, but resales are asking an average of 40 dollars more than they were asking last year. I can't see that, I mean it's not like VGC where you can't get direct.

 

[MomOTwins]

I guess if you have a blue card, and are adding on because you want points for a specific resort, then you don’t care about direct benefits. But yeah, the inconvenience of ROTR and long closings alone is a reason for me to want a bit more price difference for resale.

 

[Red Dog Run]

I guess if you have a blue card, and are adding on because you want points for a specific resort, then you don’t care about direct benefits. But yeah, the inconvenience of ROTR and long closings alone is a reason for me to want a bit more price difference for resale.

I still don't have my points from a BLT I closed on last month. I agree.

 

[princesscinderella]

The big boast of the the resale brokers is save 30%, compared to direct prices. I actually use calculate if the savings on a contract is 30% or more and if not I won’t buy it. The restrictions aren’t worth it at a higher price IMHO.

 

[RoseGold]

There are a lot more brokers in town.

 

[T-i-double-guh-er]

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. That's only about 9 percent savings. My offer was only 12 percent savings, and to me, that's not really my goal either.

I'm confused by this math. Even accounting for higher closing costs with resale, it looks to me like $140 would be around 23% savings, not 12%, and $160 would be about 12% savings, not 9%.

For simplicity, these calculations are based on 150 points and closing costs are rough estimates based on my experience.


I have bought 3 resale contracts, saving between 20-40% off direct prices on each depending on contract size, resort, etc. Our AKV contract was only 50 points, but we saved about 23% after factoring in difference in closing costs.

 

[TinkB278]

I just don't see the point of buying at a near direct price. The only thing I can think of is that these contracts are geared towards people looking to purchase DVC for a small investment without the requirement of a set number of points to purchase.

I completely agree. I had been considering buying a resale contract to add to our direct contract. Resale prices have gotten so high that I can’t see any reason to buy resale anymore. I would rather pay a bit more and just buy more unrestricted direct points.

 

[Red Dog Run]

I'm confused by this math. Even accounting for higher closing costs with resale, it looks to me like $140 would be around 23% savings, not 12%, and $160 would be about 12% savings, not 9%.

For simplicity, these calculations are based on 150 points and closing costs are rough estimates based on my experience.
View attachment 590732
It was a 60 pointer and I based the price off of his asking and not on the actual direct. Good catch. After refiguring by only a single point, it is about 25 percent off. I'm changing my post based on your good catch.

 

[Red Dog Run]

I'm confused by this math. Even accounting for higher closing costs with resale, it looks to me like $140 would be around 23% savings, not 12%, and $160 would be about 12% savings, not 9%.

For simplicity, these calculations are based on 150 points and closing costs are rough estimates based on my experience.
View attachment 590732

I have bought 3 resale contracts, saving between 20-40% off direct prices on each depending on contract size, resort, etc. Our AKV contract was only 50 points, but we saved about 23% after factoring in difference in closing costs.

GOOD CATCH. THANK YOU

 

[T-i-double-guh-er]

(I think what I'm after is about 35 percent off if possible.)

What's the savings percentage that you shoot for?

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.

 

[Stargazer65]

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.

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???

 

[T-i-double-guh-er]

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.

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???

I think it's all about demand. Small contracts usually sell much faster, often with multiple inquiries the day they are listed. The demand is driven by a combination of factors, such as:

• There are a lot more people willing and able to spend $10,000 than $30,000 on a contract.
• For first-time buyers, the initial cost is more manageable, both financially and mentally.
• For those adding on, people may realize they need just a few more points than they initially planned. They don't want or need 300 more points.
• Some people have the budget that adding on 50 points at a good price can almost be an impulse purchase.
• Larger contracts get incentives for direct purchases, narrowing the price difference between resale and direct. Small contracts don't have this pressure.

Given the larger number of potential buyers and the speed at which small contracts often sell, it makes sense for sellers to ask more per point. That said, some of the prices I have seen recently for small contracts are bonkers. For someone adding on, it would make more sense to buy direct than pay some of the asking prices.

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.

 

[benedib99]

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?

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/