Sell Contract Back to DVC

[dvcdisney]

I hope this is okay to post. Sorry if it's not.

I was just wondering if anyone had any experience with selling their contract back to DVC.

Just a couple of questions:

Who would I need to contact to do this? Is it my guide or the sales centre or another department all together?

Do you find that they offer a good price for the contract?

Do they purchase all contracts brought to them or do they select? For instance, if a contract is stripped or is not a "sought-after" resort, will they refuse to purchase it back or do they just offer low?

I'm not familiar with the resale end of things, so any assistance is very much appreciated.

 

[Nikisha421]

Can you sell a contract directly back to Disney???

 

[Starr W.]

I remember reading back when they banned smoking in the units, someone posted that their parents called DVC about buying back a unit. It was some really low number like around $55/pt take it or leave it.

I think you would do better if you went resale, have no clue on how long it would take to sell.

 

[moredisneyplease]

I'm interested in learning more here..............anyone??

 

[chalee94]

I'm interested in learning more here..............anyone??

from what i've read, there is no more to learn. starr w explained it all.

DVC doesn't generally buy back contracts. if you have a nice BCV contract or something and want to sell it back, they will most likely lowball you around $55 per pt...much less than you could get resale, even after fees and commissions. if you have HHI pts, they will most likely not even offer you that.

deciding to sell your contract back to DVC is a decision made by those who don't care how much money they receive to get rid of their contract. it's just not worth pursuing...

 

[RobDoc]

Originally, DVC had a policy NOT to buy back contracts. In the last couple of years there have been a few (very few) reports that DVC would buy back contracts at a few resorts (like BCV, VWL) at a low pricing - ~$55 per point.

Apparently there have been some resorts where they have not been interested in a direct buyback - even though they will use ROFR at those same resorts at times.

 

[kid-at-heart]

Have you asked your family and/or friends if they are interested in buying your contract? Just this month, our neighbor sold his contract resale - and we bought a contract resale. It worked out for both of us but we would have been happy to have bought his contract - if we had known he was planning to sell...

 

[dvcdisney]

Thanks everyone for the info.

I wasn't sure if this was an option. I thought I remembered reading somewhere that they sold their contract directly back to DVC. But maybe there was some type of special circumstance.

It is not a necessity. I just found that we have not used these points as home resort reservations and would rather sell them in order to purchase more points of our other home resorts.

I suppose the best strategy would be to just try the resale route.

Thanks again.

 

[dvcdisney]

Have you asked your family and/or friends if they are interested in buying your contract? Just this month, our neighbor sold his contract resale - and we bought a contract resale. It worked out for both of us but we would have been happy to have bought his contract - if we had known he was planning to sell...

We have offered it to our family members. No one is interested in purchasing at this time.

I just thought it would be easier to sell it back. But I guess getting low balled would not benefit us.

I'll be looking into the resale market.

Thanks.

 

[dvcdisney]

Originally, DVC had a policy NOT to buy back contracts. In the last couple of years there have been a few (very few) reports that DVC would buy back contracts at a few resorts (like BCV, VWL) at a low pricing - ~$55 per point.

Apparently there have been some resorts where they have not been interested in a direct buyback - even though they will use ROFR at those same resorts at times.

I thought that they had always been able to purchase them back. But I agree, they probably would not be offering market value. But I figured if it wasn't too much less, we would be fine with it to simplify the process. I figured that if I processed it through our guide, I would just purchase add ons with him at the same time. I thought maybe this would allow some negotiation. Since I would be selling a contract for less than the market value of the new resorts. I guess that probably wouldn't make any difference. Oh well.

 

[Dean]

I thought that they had always been able to purchase them back. But I agree, they probably would not be offering market value. But I figured if it wasn't too much less, we would be fine with it to simplify the process. I figured that if I processed it through our guide, I would just purchase add ons with him at the same time. I thought maybe this would allow some negotiation. Since I would be selling a contract for less than the market value of the new resorts. I guess that probably wouldn't make any difference. Oh well.

They've always had the option, just not the willingness. And as noted, it's only been HIGH demand resorts for bottom dollar when they have offered to buy a contract directly. From DVC's standpoint, $50-55 a point likely is wholesale market value.

 

[Tamar]

I called Member Admin about a year ago to ask if they would buy our HH contract back, and they said "thanks but no thanks". However, they ROFR'd it at a much higher price than I would've asked if they would've just bought it direct from us.

 

[Cruelladeville]

Most of the time Disney uses the ROFR to pick and choose which contracts they decide to buy back. It depends upon if there is a need for points for your resort or use year, and what price you might have agreed upon with your buyer. If your price was too low, they will buy back your points. That's how they keep the market price up to a certain level.

Several years ago my DD gave us her contract, and under "selling price" I put $0. Disney called me, and suggested that I change that to accurately reflect what we did give her(the cost of a divorce lawyer) so someone in their offices wouldn't mistakenly exercise ROFR on us!

 

[tjkraz]

If you're desperate to sell, just list with a resale broker for a price significantly lower than the going rate. If BWV generally sells around $85, list for $75.

You'll probably get an offer quickly from someone willing to take the chance. Even if it gets ROFRed, you still get your money from Disney.

 

[lisaviolet]

Do you know about this? Just making sure. All non-US citizens will automatically, immediately at point of sale, have a 10% withholding tax taken off their sale. And then if you didn't make a profit you have to apply to get it back.

http://www.irs.gov/individuals/article/0,,id=120219,00.html

 

[fkj2]

Did you consider calling your guide to see if there'd be an opportunity to switch your points for the resort points you really desire? DVC may not do a straight on trade but it couldn't hurt to ask.

 

[bookswin]

Do you know about this? Just making sure. All non-US citizens will automatically, immediately at point of sale, have a 10% withholding tax taken off their sale. And then if you didn't make a profit you have to apply to get it back.

http://www.irs.gov/individuals/article/0,,id=120219,00.html

The resale brokers can explain this and similar quirks. I once saw a BWV contract at an astonishing low price and it sold in minutes, if not seconds. I asked the broker why so cheap and she said the owner DID NOT WANT a profit, because of some tax/real estate law in his country.

Inane.

 

[dvcdisney]

Do you know about this? Just making sure. All non-US citizens will automatically, immediately at point of sale, have a 10% withholding tax taken off their sale. And then if you didn't make a profit you have to apply to get it back.

http://www.irs.gov/individuals/article/0,,id=120219,00.html

Yes I do. (But I didn't know about this before we purchased into DVC).You have to file a short version of a US income tax specifically for international sales. They want to make sure you didn't make any money on your sale.

Thanks.

 

[dvcdisney]

Did you consider calling your guide to see if there'd be an opportunity to switch your points for the resort points you really desire? DVC may not do a straight on trade but it couldn't hurt to ask.

Thanks, that's a good idea. I will try that.

 

[dvcdisney]

If you're desperate to sell, just list with a resale broker for a price significantly lower than the going rate. If BWV generally sells around $85, list for $75.

You'll probably get an offer quickly from someone willing to take the chance. Even if it gets ROFRed, you still get your money from Disney.

I'm not desperate to sell, but I know I cannot make a profit since I would be taxed. I'm a Canadian resident.