Sell now, buy again later???

[momtofour]

I am considering selling a couple of my DVC contracts. With banked points and the current marketplace, I feel that they will sell quickly. I really have no need for these points for a good year or so. Assuming prices spiral downward after the 20th, is anyone going to sell and then jump back in when the need for points arises? Any thought as to how these changes will affect prices?

 

[JWG]

I think you'll lose on this deal and obviously will lose perks if you buy resale later.

Keep in mind, it's not the loss of the current perks that I'm bothered by on a resale. It's the differentiation that now exists so they can take away other more important perks later.

I could live with the resale perks as of 3/21/11. I just don't know I can live with whatever may come after that now that they're differentiating. I don't think this is the end of the changes between direct and resale.

 

[DVCconvert]

I'm sure some may try this, but my opinion is that prices aren't all that likely to fall much more if any after the 20th.

If you look at the prices that sellers are now accepting, and that DVC isn't taking by ROFR I think resale pricing (absence any other use restrictions) is about as low as it will go for the immediate future.

But, time will tell.

 

[Sandisw]

If you have points now that you know you won't need any longer, than I would sell.

If you only think that you won't need them for a few years and will want them back, I think it is a real gamble.

Remember, if you sell now, you have to pay the 10% commission on the sale. That means you would need the prices to drop at least 10% to "make" any money, unless you own something that you will replace with cheaper points.

For example, if I decided I wanted to sell one of the smaller BLT contracts I own to buy BWV points, I would be able to do this because even if I cleared $85.00/ppt by selling now, I can probably pick up BWV for less than that.

However, if I sold BLT now, and then in a few years, wanted BLT back, it probably wouldn't be worth it in the end.

 

[TisBit]

I am also of the opinion that prices will not fall or plummet. You have to keep in mind that DVC will always hold the trump card of ROFR and if the resale market takes a huge hit with the rules change, those buyers will be going direct to DVC for their points.

A normal every day buyer will not change their mind on buying DVC because of the rule change, the difference is that they will look at the direct vs resale argument differently than they have in the last couple of years. If resales dive and DVC can pick up those contracts and resell them, even at a huge discount, it is still a plus for DVC. If they they don't crash and burn, well DVC just lets it keep going without ROFR and allow people to make their choice.

 

[bobbiwoz]

I wouldn't sell now to buy later. Also, it seems that people are selling now at prices that are very low. Your contracts may not be worth what you think they are. However, if you have an "extra" contract, one that you don't think you will be needing anymore, well, then I would offer it now, and be firm. Banked points ARE worth something. We've bought 3 contracts with banked points over the last year and a half, and those points have been well uesd!

Bobbi

 

[McCrae]

I wouldn't sell now to buy later. Also, it seems that people are selling now at prices that are very low. Your contracts may not be worth what you think they are. However, if you have an "extra" contract, one that you don't think you will be needing anymore, well, then I would offer it now, and be firm. Banked points ARE worth something. We've bought 3 contracts with banked points over the last year and a half, and those points have been well uesd!

Bobbi

Have you considered renting your points?

 

[DisDad07]

I hope the prices will stop falling. I think DVC will let these sales on the low end of resales to clean up inventory. Then DVC can ROFR after March 21 to keep prices closer to their market selling price.

 

[bobbiwoz]

Have you considered renting your points?

No, we're always borrowing. We are the DGP's and thoroughly enjoy spending time with the family at WDW!

 

[Dean]

I am considering selling a couple of my DVC contracts. With banked points and the current marketplace, I feel that they will sell quickly. I really have no need for these points for a good year or so. Assuming prices spiral downward after the 20th, is anyone going to sell and then jump back in when the need for points arises? Any thought as to how these changes will affect prices?

For a year or 2 it makes no sense. With closing and the other variables there's no way to come out ahead unless one would be several years down the road before buying back in.

 

[SanDeeKath]

I am considering selling a couple of my DVC contracts. With banked points and the current marketplace, I feel that they will sell quickly. I really have no need for these points for a good year or so. Assuming prices spiral downward after the 20th, is anyone going to sell and then jump back in when the need for points arises? Any thought as to how these changes will affect prices?

Remember you have to pay about 10% commission in order to sell so you won't really see much difference in price of points. You can try to sell yourself but in that case it is not likely to "sell quickly." I am also seeing the "frenzy" dying down as we approach the deadline... The contracts are sitting much longer now on the main reseller sites...

Katherine