Sell & buy larger resale contract or add-on thru Disney

[Melani]

We want at least 25-35 more points at BWV.

Would it be better to sell our small 70 point contract at BWV and buy a 100 pt resale BWV
or
just add-on 30 more points through Disney?

Other than closing costs, what else do I need to know when running the numbers?

 

[Disneycouple99]

For an add-on through Disney is 106/point and no closing cost.

Resale would have the difference from the sale price to the purchase price, closing cost plus commission on the sale, and don't forget the time factor.

 

[saintstickets]

We want at least 25-35 more points at BWV.

Would it be better to sell our small 70 point contract at BWV and buy a 100 pt resale BWV
or
just add-on 30 more points through Disney?

Other than closing costs, what else do I need to know when running the numbers?

Here's my 2 cents on the subject (and that's all it is worth!)...
Option 1 - You buy 30 pts at BWV through resale at $84/pt. Total cost would be approximately $2,870 ($84 * 30pts +/- $350 closing costs). Other assumptions are you get your desired UY and it passes ROFR.

Option 2 - You buy 30 pts at BWV direct from Disney at $106/pt. Total cost is $3,180. You retain same UY as your current 70 point contract and the transfer is done immediately.

Option 3a) - You sell your 70 point contract at $82/pt. Total receipt is approximately $5,166 ($82 * 70pts less $574 sales commission). Assumes 10% sales commission and purchaser pays closing costs. Option 3b) - You purchase a 100 pt contract at $80/pt. Total cost would be approximately $8,640 ($80 * 100 +/- $640 closing costs). Again assumes you get your desired UY and it passes ROFR. Total net costs = $3,474 ($8,640 - 5,166).

There are a lot of assumptions in these scenarios. Time is a big factor as well in buying & selling through resale. Option 3 where you would sell your existing contract and then purchase another larger contract would be the least desirable using the stated assumptions. Commissions and closing costs on both transactions hit hard. With that said, then the choice between Option 1 and 2 depends on whether it is worth the +/- $300 extra cost to purchase direct vs resale. IMHO, a direct purchase from Disney would be my choice (don't forget the 2 cent value of my opinion) so you can keep the same UY and avoid the potential frustration of ROFR plus the time difference. Good luck in whatever you decide.

 

[dis-happy]

I'd add on direct. Your UY will be the same too.

 

[LSchrow]

WOW
great, straight-foward explanation
nice job, bill

 

[Sandisw]

I would add on right through Disney. If you are in no huge rush, you certainly can keep your eye out for a small contract, but the price difference, when you are buying so few points, is really not that big of a deal, IMO.

For example, even if you can find a resale contract for $80.00 per points, with closing, it is around $84.00. That is only $22.00 per point difference from Disney. On 30 points, around $600.00 (and that assumes a low resale price--small contracts at BWV tend to be closer to the middle $80's).

While $600 is a decent amount, it might be worth it as you will have a good chance of getting current UY points with your contract and have them within days. To me, for that, the ease of going through Disney works out.

 

[Melani]

Here's my 2 cents on the subject (and that's all it is worth!)...

Option 2 - You buy 30 pts at BWV direct from Disney at $106/pt. Total cost is $3,180. You retain same UY as your current 70 point contract and the transfer is done immediately.

Option 3a) - You sell your 70 point contract at $82/pt. Total receipt is approximately $5,166 ($82 * 70pts less $574 sales commission). Assumes 10% sales commission and purchaser pays closing costs. Option 3b) - You purchase a 100 pt contract at $80/pt. Total cost would be approximately $8,640 ($80 * 100 +/- $640 closing costs). Again assumes you get your desired UY and it passes ROFR. Total net costs = $3,474 ($8,640 - 5,166).

There are a lot of assumptions in these scenarios. Time is a big factor as well in buying & selling through resale. Option 3 where you would sell your existing contract and then purchase another larger contract would be the least desirable using the stated assumptions. Commissions and closing costs on both transactions hit hard. With that said, then the choice between Option 1 and 2 depends on whether it is worth the +/- $300 extra cost to purchase direct vs resale. IMHO, a direct purchase from Disney would be my choice (don't forget the 2 cent value of my opinion) so you can keep the same UY and avoid the potential frustration of ROFR plus the time difference. Good luck in whatever you decide.

Well I had vaguely considered all these factors, but seeing them in black & white really clarifies things.
I guess I'll be giving my new guide a call.
We want to add-on at BLT too.
Is there a chance of getting a price break or is that only for the same resort?

 

[Disneycouple99]

Here is a link to current promotions http://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions. If you buy at BLT at 50 points you get 5 dollars off the 120 base price.

 

[AirGoofy]

Here's my 2 cents on the subject (and that's all it is worth!)...
Option 1 - You buy 30 pts at BWV through resale at $84/pt. Total cost would be approximately $2,870 ($84 * 30pts +/- $350 closing costs). Other assumptions are you get your desired UY and it passes ROFR.

Option 2 - You buy 30 pts at BWV direct from Disney at $106/pt. Total cost is $3,180. You retain same UY as your current 70 point contract and the transfer is done immediately.

Option 3a) - You sell your 70 point contract at $82/pt. Total receipt is approximately $5,166 ($82 * 70pts less $574 sales commission). Assumes 10% sales commission and purchaser pays closing costs. Option 3b) - You purchase a 100 pt contract at $80/pt. Total cost would be approximately $8,640 ($80 * 100 +/- $640 closing costs). Again assumes you get your desired UY and it passes ROFR. Total net costs = $3,474 ($8,640 - 5,166).

There are a lot of assumptions in these scenarios. Time is a big factor as well in buying & selling through resale. Option 3 where you would sell your existing contract and then purchase another larger contract would be the least desirable using the stated assumptions. Commissions and closing costs on both transactions hit hard. With that said, then the choice between Option 1 and 2 depends on whether it is worth the +/- $300 extra cost to purchase direct vs resale. IMHO, a direct purchase from Disney would be my choice (don't forget the 2 cent value of my opinion) so you can keep the same UY and avoid the potential frustration of ROFR plus the time difference. Good luck in whatever you decide.

Wow! That was impressive and probably the best explanation I've heard or read.

 

[Dean]

For this situation add on is the only way to go. Now if you had 70 & wanted 300, the reverse would be true OR you'd want to look at other options.