Sell DVC back to Disney?

[debloco]

Hi all,
My DH just asked if you can sell your contract straight back to Disney or if you must try the resale route and have a buyer before Disney gets involved with the whole ROFR thing. What's the scoop?
Thanks!

CLC Tiger Pom Mom

 

[Happy Birthday Cat]

You have to go the resale route. Disney only buys back if you already have an offer and it meets their criteria (whatever that is) for ROFR.

HBC

 

[pumpkinboy]

Originally posted by debloco
...you must try the resale route and have a buyer before Disney gets involved with the whole ROFR thing...

There's your answer. To save on a timeshare brokerage commission, you might come to some private deal on the rent/trade board which would be acceptable to you and to the potential buyer, then submit it to Disney for ROFR, expect them to excersize it. If Disney does not ROFR, then see about finding a closing agent and make the deal with the potential buyer. I think the strategy with this would be to maximize the fees and such on the buyers end of the deal, so that if and when Disney ROFRs, you just get cash and no hassles. I would think you would also want to maximize the $$ received in the transaction, so you would want to put the price on the higher end of recent ROFRs (maybe $71 for OKW and perhaps $75 for the other WDW). Avoiding the 9% or 10% broker's commission could really enhance your yield I would think.

Of course for a more painless process, I would think having the timeshare resale broker representing you in the transaction could be very helpful. But this would come at a price. If you are setting yourself up for ROFR, you will improve your net proceeds by going independently.

 

[Simba's Mom]

I can verify this also because I recently talked with our guide about doing that. We were interested in selling and buying at a different resort. However, he said Disney doesn't get involved with that, so we would have to try to sell, then buy.

 

[lillasmom]

Originally posted by pumpkinboy
To save on a timeshare brokerage commission, you might come to some private deal on the rent/trade board which would be acceptable to you and to the potential buyer, then submit it to Disney for ROFR, expect them to excersize it.[/i]

Can you do that? I am looking to sell a HH contract and buy at another resort next year, but didn't think that's what the Rent/trade board was for?

 

[Dean]

Originally posted by lillasmom
Can you do that? I am looking to sell a HH contract and buy at another resort next year, but didn't think that's what the Rent/trade board was for?

The rent/trade board is not for sales at all, it's against the policy to post any sales.

 

[Canadian Tom]

Hello: If you wish to sell/give your points to a family member(son or daughter) what costs are involved? Can Disney exercise ROFR? Thanks

 

[kaw1106]

good question, I am curious to that as well. What if you wanted to sell or give the timeshare to someone in the future. Would you be able to do that even if they were not a relative?

 

[Dean]

Originally posted by Canadian Tom
Hello: If you wish to sell/give your points to a family member(son or daughter) what costs are involved? Can Disney exercise ROFR? Thanks

As I understand it DVC allows a streamlined Right Of First Refusal process for gifts to immediate family members. Otherewise (to sell or give to others), you'd have to go through the full ROFR process. Regardless, you're looking at a new deed, closing, recording and LIKELY a $100 transfer fee. You can add them as an assoicate member and let them take over controll if you want. They will not get a membership card though. Min price about $50 plus the transfer fee and that assumes you're willing to submit for ROFR yourself, do the deed yourself (either quit claim or warranty) and work directly on the closing with Orange Co. A reasonable in between is timeshare transfers who will to it all for $250 plus the transfer fee if applicable. You should talk to member admin. about this situation.

 

[debloco]

Okay...just for clarification-we are not thinking of selling, we are actually just about to sign our closing papers for our points at the VWL. The issue came up today because our broker called us with another contract at the VWL to see if we were interested as our first contract was not quite as many points as we wanted. The seller is asking $76.66 per point and closing costs. Needless to say, we passed on this one. If they were the original buyers they paid $72 per point and no closing costs. Now she expects to make $4.66 more than she paid even though she has used the contract for 2 to 3 years (yes, I realize she has to pay the brokers commission) but that just seemed excessive. Anyway, my DH just wondered if you HAD to go through the whole process of the resale or not. We are thrilled about becoming DVC members soon and are already thinking about an add-on! Just trying to decide if we should do Boardwalk or more points at VWL.
Thanks for the info!

CLC Tiger Pom Mom

 

[pumpkinboy]

Well then, I am sure I will be wishing you and DH a big:
Welcome Home very soon then.

Our strategy has been to concentrate our points at our home resort (BWV), so we maximize 11 month reservations power there. Of course this is especially practical for us at BWV bcs the low-points Std View rooms and highly prized BW view rooms book up quicky. Our concentration there does allow us to get these room, but then leaves us at the mercy of 7 month availability at VWL or BCV. But then, that's what the waitlist is for, and we're OK with that.

Good luck with the inevitable add-on-itis you will be catching once you get that first contract.

 

[Dean]

Originally posted by debloco
Okay...just for clarification-we are not thinking of selling, we are actually just about to sign our closing papers for our points at the VWL. The issue came up today because our broker called us with another contract at the VWL to see if we were interested as our first contract was not quite as many points as we wanted. The seller is asking $76.66 per point and closing costs. Needless to say, we passed on this one. If they were the original buyers they paid $72 per point and no closing costs. Now she expects to make $4.66 more than she paid even though she has used the contract for 2 to 3 years (yes, I realize she has to pay the brokers commission) but that just seemed excessive. Anyway, my DH just wondered if you HAD to go through the whole process of the resale or not. We are thrilled about becoming DVC members soon and are already thinking about an add-on! Just trying to decide if we should do Boardwalk or more points at VWL.
Thanks for the info!

CLC Tiger Pom Mom

What one paid has nothing to do with what it's worth. I've bought timeshares for pennies on the dollar and paid more than the original retail buyer for others. The question is what is it worth on the open market and what is it worth to me. Whether a contract is worth $76 pp depends on the size and accounting of the contract as well as the home resort. But using the price paid by the seller is not at all appropriate if your serious about purchasing. I could sell you any one of my eight timeshares. All would be a good deal at far more than what I paid. Some would be more than the original retail price, others far less.

 

[debloco]

Dean,
I see your point about the difference between what was paid and what it's worth. But for me personally, it rankles a bit when I look just at what she paid vs. what she's trying to sell for. I did not mean to comment on "what it is worth". What it is worth is what the market will bear and if it's worth over $76 per point to someone-more power to 'em. In looking for a contract for ourselves the past few months we have seen many in the $70-$74 per point range, so I would stand by my assessment that this contract seems a little pricey. While I am serious about adding on, it does matter to me (whether it makes sense or not) what the original buyer paid. It may or may not matter to anyone else. As always, thanks for your input.

CLC Tiger Pom Mom

 

[RobDoc]

Please remember that you can offer what you feel the contract is worth- without regard to what the seller paid for the contract. If you feel the offered price is too high- for any reason- just offer what YOU are willing to pay for the contract. The worst that can happen is that your offer will be refused (or that Disney will exercise ROFR).

Good luck with your decision!

 

[debloco]

Hi Doc,
Yes, I did try the counter-offer route when I spoke with the broker. The seller refused, but I let the broker know that if she changes her mind that our offer stands. Who knows what might happen. In the meantime we'll keep looking and trying to decide between VWL and BWV. Thanks!

CLC Tiger Pom Mom