Agree 100%
That’s likely because we are over half of the way through the year and most people have either gone on their spring break/summer trip or have a delayed close until after their holiday trip.
Oh I would totally do that if I were planning on selling. Even selling for a slight discount is worth using as many points as you can beforehand.
If you look, you’ll notice a lot of those stripped contracts priced at or above median recent prices have been sitting there a looooooong time.
Hmmm. This is an interesting point and not something I had thought about before. Playing around with the site sponsor's pricing tool as a bit of a rough proxy, it would appear they generally suggest a $24 pp spread between a fully loaded contract and a fully stripped contract. Unless you're renting your points out yourself at a highly desirable time of year with confirmed, hard to get reservations, I doubt you're going to be getting $24 pp renting them out - and, just setting aside whether that is something that should/is permitted, it is something that requires more work than just renting through a broker. Then, I would think a buyer of a stripped contract is much more likely to demand the seller pay for current and/or next year's dues, so let's say that's another $8-$18 pp you might lose selling a stripped contract in the total amount you receive. Then, I also think a fully loaded vs. a fully stripped contract also attracts different potential buyers - I have to think a fully loaded contract is more likely to attract your uninformed buyer just looking to buy into DVC with some extra points for a nice vacation next year and also could attract a more savvy buyer who has just been waiting for the right contract.
Seems like another potential downside to selling stripped contracts. This all also reminds me of a conversation I had with one of the site sponsor's brokers when I first started considering resale. I was like, I'm trying to think about how I should value extra, banked points - I said, I see they can typically be rented out for $16-$18 pp, so shouldn't I only be willing to pay no more than that for each extra point over one that didn't have them? The broker appreciated my analysis, but suggested that, for most buyers, the extra points are about taking another magical vacation with your family next year and so it's hard to put a precise value on them. Very smart marketing on their part - focus on the warm fuzzies, not the math.
Just look at the listings. Of course listings doesn’t necessarily mean they sell at those prices, but I find hard to believe most buyers are heavily negotiating those. Even in the ROFR thread you’ll see a lot of users “overpaying” stripped contracts.
Correct. Even if I know in two years from now the stripped contract will be worth having bought at a lower price I simply can't bring myself to purchase something that is of no use to me for years. It's like looking at a nice car that's priced at say 50,000 and the dealer says ok pay me 40000 now but you can't drive it for 2 years. Sure I'd save money 2 years from now but why would I want to save the 10000 now and not get to drive the car! Also that 10000 in savings is not really 10000 because like you mention that 40000 I plunk down now can make way more money in 2 years.
