Shorter Contract: Benefits V Detriments in Resale V Direct

[Trixi Mouse]

We need help!
We have decided to get a 2nd contract because why not just put ALL of our travel monies into Disney (YOLO!). Our most desired property has a shorter contract, which we're actually OK with. We don't want to be paying multiple association fees into our retirement years (heck, we'll be - gods willing - into our 90s when our original contract is up). We also plan to add-on a bit to our original contract as our fam is getting a bit crowded in our studio stays.
The points on our "future property" will be going up soon, but we have an agreement that locks us in at the old rate IF we purchase direct by EOM. HOWEVER, there are a couple of current resale contracts out there that are more points (20 - 25 more pts than we had planned) for a reasonably lower price. We have a fixed dollar amount for these purchases, so whatever we 'save' on one purchase will go towards the other.
Here are our points (heh) of ...question...?
*The BIG point dump at the beginning of the contract if purchased direct (last years and this years point allotment). My husband wants to use it for a BIG stay in the fall. One of the resale contracts has double points for next use year (guessing they were put into holding at some point this last year), so it seems to be an even deal there if we go with either. I feel like there could be a catch there where the Resale contract is concerned.
*The work that our rep has put in for us already. Seems sneaky to just say 'thanks, but never mind' after the work she's put in for the last few months.
*My husband wants to use our points for future world travel, but is buying resale going to impinge on that?
*Risk. If Disney takes ROFR, and we lose the resale contract (with the prices going up Direct in minutes), then we are out both the opportunity to buy at current price Direct AND the good (not GREAT) deal on the Resale.
*The ease of just getting a Direct contract v. whatever added costs and headaches there might be in a resale contract.
*We don't care about RIV (plus, we still have our original contracts points that we could use there)
*We already have the Blue Card, but obtained it right before the criteria changed reoint allotment.
*We don't want to be locked-out of an opportunity for an extended contract if our 2nd property were to make that offer in the future.
Yeah - my brain is mush after swishing this info around.
Thank you for your time

 

[gregskellington]

Disney will not, and I'm willing to bet my contracts on this, offer extensions on any resort ever again. OKW was the trial run and that didn't go according to plan.

My biggest question would be "Do you really need to own at a 2042 resort?". BWV and BCV you should own only if you want to own there. From a cost analysis perspective, I can't be convinced it makes more sense than renting or getting a room from Disney.

What do you mean by using your points for world travel? Using am exchange like II might be a nice incidental benefit, but you're truly throwing money in the trash buying DVC to exchange it for other stuff.

 

[RoseGold]

We don't want to be locked-out of an opportunity for an extended contract if our 2nd property were to make that offer in the future.

Whoever put this idea in your head sniffed some pixie dust. I really hope Disney didn't even suggest this. OKW was a complete cluster.

You don't have to buy direct because an employee did their job at Disney. That's their job. There are a few dozen just sitting at kiosks right now, trying to do the same thing. It's not "sneaky" to ask how much things cost.

Double resale points is a big deal, and it can flip the math. The big point here to me is that you want "future world travel." Locking down an expensive FL timeshare with an expensive theme park is not compatible with this goal. But selling your resale in 10 years is. If you plan on exiting even somewhat soon, I wouldn't even consider buying direct.

 

[smmora]

What is the $ difference of the price change if the resale is taken in ROFR?

Are they other resales available - if you lose this one can you make an offer on another one

I just did closed 1 resale and am waiting on the contracts for the 2nd - doesn't seem to be any "headache" or trouble other that waiting (which I hate)

tried for a 3rd this morning, was disappointed I missed it - a Subsidized Aulani that someone grabbed last night

 

[Trixi Mouse]

What is the $ difference of the price change if the resale is taken in ROFR?

Somewhere in the neighborhood of $6k - $12k.

 

[UKJay]

Currently i am buying 2 resale no major headache apart from 1 recanted on an agreed offer and i had to pay them a higher price. ! sent to ROFR today and awaiting the 2nd to go. Takes between 60-90 days no biggie as i cant use points until 2024 anyway lol. Good luck on your choice.

 

[Sandisw]

You mention a fall trip. By the time you go through the resale process, it may be tough to get what you want..keep that in mind as with direct you get points same day.

I think it’s a tough call..but in your case, I’d probably lean towards direct given how much those resorts are rising.

If it was a $6 increase like RIV and AUL are getting, then it may be worth the gamble. But $6 to $12k? I’d have a hard time with that one.

 

[KAT4DISNEY]

Reality is that a direct purchase can be pushed out far enough that you could know if you passed ROFR or not.

Resale points can be used for exchange into II, the new exchange program for using it worldwide if you feel that is important. You already have a Blue card and you have points to stay to stay at Riviera or any new resort should you wish and you can get a fully loaded resale contract. I'd go ahead and try for the resale.

As others have mentioned I also sincerely doubt an extension will be offered however, if it is, DVC would likely make that offer to all, it might just be a little different to those who own non-qualified points.

A $6-12K difference in waiting? That must be a huge amount of points as the prices aren't increasing that much per point.

Oh - and on a resale listing they'll state if the points are in holding. If that isn't mentioned then they are not and are just banked points that will expire at the end of the UY.

 

[Trixi Mouse]

Thank you all so much for the thoughtful and helpful information!
Sorry - I was not very clear in my OP.
There would be a $10k difference between the Resale and the held Direct contract. The Direct is being 'held' at the old price for us for 14 days as we make a decision. I'm concerned that if we pursue the Resale and it falls through, we'll have then shot ourselves in the foot by letting the Direct 'deal' slip through our fingers. The loss of the current deal will be the tune of an additional 6k...(ish).

 

[KAT4DISNEY]

Thank you all so much for the thoughtful and helpful information!
Sorry - I was not very clear in my OP.
There would be a $10k difference between the Resale and the held Direct contract. The Direct is being 'held' at the old price for us for 14 days as we make a decision. I'm concerned that if we pursue the Resale and it falls through, we'll have then shot ourselves in the foot by letting the Direct 'deal' slip through our fingers. The loss of the current deal will be the tune of an additional 6k...(ish).

I am still trying to figure out how there could possibly be a $6K difference if you lose the current direct pricing vs only a $10K difference between resale and direct. The prices are going up quite a bit on a few of the sold out resorts but there's a much larger current gap between resale and direct than just $10k for the size contract to be looking at a $6k increase. If you're willing to share where you are looking and how many points that would help in understanding and offering any other suggestions - even some of the odds of ROFR on the resale contract.

 

[smmora]

Just ball park but either resort going up $20 with a 300 pt purchase is $6k diff

Any resale that is $33 less than the direct price a $10k diff

 

[bumbershoot]

You don't have to buy direct because an employee did their job at Disney. That's their job. There are a few dozen just sitting at kiosks right now, trying to do the same thing. It's not "sneaky" to ask how much things cost.

So true.

 

[KAT4DISNEY]

Just ball park but either resort going up $20 with a 300 pt purchase is $6k diff

Any resale that is $33 less than the direct price a $10k diff

Yep. But resale for Orlando resorts going up by $20 have closer to $80 difference resale to current direct on 300 point contracts. Even with the 25 additional points in the contract I was coming over $20k savings in resale right now. It would be closer to $60 for Hilton Head and VB even a bit closer. It might make a difference in recommendations that the OP receives.

 

[Trixi Mouse]

If you're willing to share where you are looking and how many points that would help in understanding and offering any other suggestions - even some of the odds of ROFR on the resale contract.

BWV.
I can't math :-D I was off with some calculations, but the difference is still of note.
ROFR is the stickiest bit. I don't want to start the process, only to lose out on both accounts.
Also - approx. how long is the overall process when buying Resale? I'm seeing wildly different time frames all across the board(s).

 

[Jimmy Geppetto]

BWV.
I can't math :-D I was off with some calculations, but the difference is still of note.
ROFR is the stickiest bit. I don't want to start the process, only to lose out on both accounts.
Also - approx. how long is the overall process when buying Resale? I'm seeing wildly different time frames all across the board(s).

Based on what I am seeing on these boards, your best case scenario is ~12 to 15 days for ROFR decision, and then ~ 4 to 7 days to close the contract and then ~12 to 15 days for Disney to upload the points. These are "best case scenarios" give or take.

However there are others who are seeing ROFR decisions come almost 30 days after submitting to Disney for a decision. Others are experiencing delays with Seller returning their docs so the closing is taking longer.

EDIT: The ~4-7 days to close estimate assumes that Estoppel was issued at same time of ROFR which seems to be common now.

 

[KAT4DISNEY]

BWV.
I can't math :-D I was off with some calculations, but the difference is still of note.
ROFR is the stickiest bit. I don't want to start the process, only to lose out on both accounts.
Also - approx. how long is the overall process when buying Resale? I'm seeing wildly different time frames all across the board(s).

Thanks. Yes, it must be either a much larger difference between direct and resale or the difference between buying now vs later isn't as big depending on how many points. Knowing that and that it still must be a fairly large contract you are looking at resale makes sense $ wise. The BWV resale would be in the range of a little less than 2/3rd's the cost of your contracted direct price or $80/pt less. You can rent points for $20/pt or less for the trip if necessary and still save thousands vs the direct purchase assuming you are looking at the 300 point contract range. Even if you are looking at 150 points it would be close to $10K savings even with renting for that next trip.

Resale goes in spurts but you should plan on 60 days from offer to closing and know it might even be up to 90 days. You could get lucky and have it go faster - there have been some recent ROFR passings taking a couple of weeks. Someone just posted on the ROFR thread that the ROFR waiver and the estoppel both came at once which means closing documents could be issued. Really how it should be but just a few months ago there could be a week or two after ROFR to get the estoppel.

 

[swaysui]

Currently i am buying 2 resale no major headache apart from 1 recanted on an agreed offer and i had to pay them a higher price. ! sent to ROFR today and awaiting the 2nd to go. Takes between 60-90 days no biggie as i cant use points until 2024 anyway lol. Good luck on your choice.

They can do that, recant on an agreed offer?

 

[Jimmy Geppetto]

They can do that, recant on an agreed offer?

I believe the Seller has the same 10 days as the buyer and can back out if they so choose.

 

[DonMacGregor]

Someone just posted on the ROFR thread that the ROFR waiver and the estoppel both came at once which means closing documents could be issued.

It looks like DVC Resale Market has added that "Disney DVC has waived your contract and has issued the Estoppel certificate in one fell swoop! " language to their boiler plate email (I saw the exact same language on my last ROFR and have seen at least two others as well), so maybe it has become more common of late.

 

[KAT4DISNEY]

They can do that, recant on an agreed offer?

It is odd for certain. I'd have to review previous sales agreements but I believed them to state once the seller agreed to the sale and/or signed the sales contract they were responsible for the sales fee to the broker. I don't know how many brokers would hold them to it though.