Sell or rent out Points then sell??

[Northwoods]

We need to sell our DVC and currently have almost two years (banked and just recieved) worth of points available now for the next year.

My question is - are we better off to rent out some of these points for $10 and then sell? It seems like we get more money. But there is the added hassle of having to rent and then wait to sell until after the rentals have occurred.

Or how much to you increase the point price for a loaded contract?

Any advise?

 

[JimMIA]

First of all, sorry to hear you need to sell.

Yours is an interesting question. I think I'd be tempted to rent the banked points, provided I could transfer them to another DVC owner. The math on that is pretty simple -- you'll get $10 per point for a year's worth of points, and there is no way banked points are going to add $10 per point to the selling price.

(Don't forget, any reservations are cancelled at closing, so you'd have to retain ownership until a rented reservation had been used. That makes a transfer to an existing owner your best option.)

I think you'll get the best price with all of your current year's points intact, however, so I wouldn't strip it.

 

[JimMIA]

Now that I think about it, I'm not sure you can actually transfer banked points.

However, you could transfer the current year points and keep the banked points and the result would be the same. You'd still be selling a contract with the full complement of this year's points.

 

[doubletrouble_vb]

I would strip the contract via some form of rental then sell it. A couple of ways to do that with minimal impact to yourself.

a) point transfer.

b) rent to people looking to travel in the near future so that the sale isn't tied up for a year. This doesn't mean rent at distress prices if you have the time to delay. Go ahead and get $10 but look for people traveling Presidents week or over Spring Break.

The way I look at it is...let assume you've got a OKW contract. You probably could sell it intact in the high 70's since its got points. Lets say $78. If you stripped it the contract might take longer to sell but you'll still get at least $72 for it. So without stripping you get an extra $6 per point. With stripping you lose the $6 but gain another $20 since you rented two years of points. Then I guess you have to subtract off the current years maintenance fees but seems to me you are still ahead.

 

[jekjones1558]

Another consideration is that you will almost certainly get a faster sale if your contract is not stripped. If the speed of the sale doesn't matter, stripping it is probably fine. But if you would prefer a quicker sale, best to leave at least some of those points for the buyer, IMHO.
The resort may matter as well. Seems like BC and BWV are easier to sell than VB, for example.

 

[Maistre Gracey]

*I could be 100% wrong here*, but I thought I read that once a contract is sold, all reservations made with that contract were cancelled.

Oh ya, did I mention that I wasn't sure about that?

MG

 

[CarolA]

I think MG is correct. Transferring title cancels all pending reservations.

I would NOT use the current year points. I just sold a small OKW and I think one of the reasons it moved fast and for a good price (at least for mE) was that I had all current use year avaiable.

 

[Northwoods]

Do you think it being a large contract has any impact on the decision?

The easy thing to do is not rent - you are right that you can't transfer banked points and the sale would cancel any exisiting reservations. So renting is a pain.

But I keep thinking that the difference in having the contract loaded with banked points or just some or all current year does not have a $10 per point selling difference. So money wise we should rent them.

 

[CarolMN]

Do you think it being a large contract has any impact on the decision?

The easy thing to do is not rent - you are right that you can't transfer banked points and the sale would cancel any exisiting reservations. So renting is a pain.

But I keep thinking that the difference in having the contract loaded with banked points or just some or all current year does not have a $10 per point selling difference. So money wise we should rent them.

How important is it to sell quickly? Large contracts seem to sell more slowly than smaller ones. Banked points and a full complement of current year points will make it much more attractive.

If you don't need the money for awhile, my advice is to rent the points you cannot use. Maybe by the time your rental is completed, you won't want/need to sell.

Good luck with whatever you decide to do.

Best wishes -

 

[klh]

You can ask more for your price with the banked points. Also it will sell faster. I would not buy a resale unless it had banked points.

 

[CarolA]

I think the thing to do is contact a broker and ask them....(If you plan to use a broker)

 

[Northwoods]

I guess contracts with banked points do sell quicker. Ours was posted on the broker website yesterday and we had a buyer at the asking price by noon today.

 

[Hootiss]

Wow, that was fast. Sorry you had to sell, but congrats on a fast sale.

 

[CarolMN]

I guess contracts with banked points do sell quicker. Ours was posted on the broker website yesterday and we had a buyer at the asking price by noon today.

Thanks for letting us know.

Sorry you have to sell.

Best wishes -