Tell me about buying resale!

[dizneefamily5]

A little background. We are fairly new members (joined June '08). We have just recently decided to add more points. I had all but decided to purchase from Disney then started to look at the resales. There are some amazing prices out there! SO, what are the cons to doing this? Also, the pros (beside the obvious price savings). We were planning to buy either BLT or HHI but the prices on some of the other resales have us considering OKW, SSR, or others. I'm begging for advice from the experts. I don't want to screw this up

 

[LindaBabe]

make sure what ever contracts you buy have the same 'use year' as your existing contract.

Should you ever need to unload it, small contracts could be easier than big ones.

 

[dizneefamily5]

See, already something I didn't consider. The contract I was looking at did have a different use year. Would it just be too complicated to have two seperate use years??

 

[Golden Rose]

We bought our first contract from Disney (AKV) and our second resale (BWV.) Resale saved us a couple of thousand dollars... we also bought more points than we had intended to buy, since we found a great resale contract. (We were planning to get 100 or 125 BWV points, but we found a 150 point fully loaded contract with all the previous years points banked and all current points for a good price, plus it was our UY.)

The disadvantages were that it took longer, and we had to pay closing costs. (However, even paying closing costs, we saved almost $2000 over buying the same number of points from Disney _plus_ we got banked points.) You make an offer, then you wait for it to be accepted, then you wait for ROFR, then you wait for closing, then you wait to get into the computers so you can use those points. From when we made our initial offer to when we could book was, if I remember corrently, just about 2 months. I have heard of it going faster for some people, but it didn't for us. We also had some concerns about them correctly linking our two contracts, but it all worked out in the end.

The broker we purchased from wasn't very good about keeping us informed about where we were in the process (for example, we had no idea when we passed ROFR), but we didn't really need much handholding, so it wasn't a huge problem for us. She could have made it a little less stressful for us, and she didn't, but the transaction ultimately was successful. I would use her again, or any of the well known brokers on these boards, to buy a contract I wanted. I get the impression that some of the major DVC brokers are a little more responsive than others, but I think they are all honest.

So I would say it was a little more of a hassle, a little more stressful, and quite a bit cheaper to buy resale. I would, and probably will, purchase resale again if the contract and the price were right. I would also purchase directly from Disney again if the incentives were good enough and what I wanted wasn't readily available yet resale.

 

[Sandisw]

When you buy a contract with a different UY, you will have a new member # and each will be considered a master contract. In order to combine points, you would have to complete a transfer.

I have bought both resale and directly through Disney. Buying resale will certainly save you money if the home resort you are interested in is available via resale, especially the contracts for SSR. The MF's are low, the expiration isn't until 2054 and the price per point is passing ROFR in the high 60's!

I started out resale so that I could become a member and then added on at BLT. It allowed me to get into BLT with less than the 160 minimum. But BLT is where I really want to be so I was willing to pay the additional price so that I can have the 11 month booking advantage.

However, if you would like BLT, but would be okay with not necessarily getting it every time--and I do think there will be availability at 7 months most of the time--then I would seriously consider resale.

My experience with TSS was wonderful and efficient. It only took me 28 days to go through the process--although, I am hearing that ROFR is taking almost the full 30 days now. I am speculating that there are a lot of contracts selling via resale, because of the good prices, and they just have so many to review, that they need the time. So, a resale experience will probably take you 2 months where Disney might have points for you almost immediately. If you are in no rush, then resale is a great option!!!

Good luck!

 

[dizneefamily5]

Wow, thank you both! The advice is so valuable to a newbie. I'm definitely going to need to list out the pros and cons.

Any others?

 

[work2play]

Be careful when you value the resale contracts. Be sure to consider what points they come with. If the resale does not have any points until 2010 UY, then be sure to take that into account when comparing to buying through Disney. People are renting points for $8-$10 per point, so if you look at a 100 point resale contract and the cost is $70 per point but has no points until 2010, I would add $8 per point to the price when comparing to what Disney would sell it to me for.

Good Luck!

 

[chalee94]

here is a comparison of resales vs. direct, as stolen from DVCMike:

Initial Purchase from DVC

• You can get the exact number of points that you want (although you must buy a minimum of 160)
• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• You can pay with a Rewards credit card and get points/cash back
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• If you don’t want the resorts they are currently selling (SSR/AKV/BLT/GCV), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale

• You may not get the exact number of points you want
• You can purchase fewer than 160 points for your initial buy-in to DVC (Disney won’t let you buy fewer than 160 points - except for a recent deal at AKV).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may lose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive than buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Just be aware of “stripped” contracts on the resale market.
• Easier to pickup large point packages at any of the older DVC resorts.

 

[dizneefamily5]

Thank you all so much! This is so helpful for us! I'll keep you posted on the decision.

 

[gchiker]

We purchased 100 points (Sept UY) at BCV last month through TTS. They handled everything in an efficient, professional manner. No complaints! And we passed ROFR in 2days! We even closed ahead of schedule.

 

[CMOORE185]

Alot of good advice. My 2 cents. I own at HH and although resale price is very low, MF's are 2nd highest next to VB. I think the best value comes buying SSR resale because it sells for the least, except for HH and VB, and its MF's are second lowest only to BLT. Besides that SSR is one of the newer resorts that does not expire until 2054.

 

[Mtnman44]

If I was in the market right now for more points, I don't see how I could look anywhere else than the resale market. So many comparitive "bargains" out there, especially SSR and OKW points. OKW resale right now is the DVC best deal in my opinion, esp if you can find an "extended" contract. Also, SSR for ~ $75 per point is hard to beat unless you really want to stay at another specific resort all the time. Obviously you have to make sure you are comparing apples to apples with resales re: available and used points, etc.

 

[PSC]

One con of adding onto DVC via small resales is that the one you are looking for may take a while to appear and when it does, somebody else snatches it up before you! For some reason, the UY I'm looking for seems to be one that never goes up for sale in a smaller points amount. If you are an instant gratification type of person, waiting for the contract you want may be annoying. Of course if its a sold out resort, Disney may make you wait a long time as well. . .

Look on the bright side. The longer you wait for that perfect resale, the more money you can set aside. You might find that the 50 point contract you desire hasn't been available, but now you've got the money for a 100 point contract. You can tell your spouse - "I was going to buy more points anyway"!

 

[mj2vacation]

If I was in the market right now for more points, I don't see how I could look anywhere else than the resale market. So many comparitive "bargains" out there, especially SSR and OKW points. OKW resale right now is the DVC best deal in my opinion, esp if you can find an "extended" contract. Also, SSR for ~ $75 per point is hard to beat unless you really want to stay at another specific resort all the time. Obviously you have to make sure you are comparing apples to apples with resales re: available and used points, etc.

Not too sure I agree, but we all have different perspectives.

BLT w/ an add on of at least 125 is $96 a point and no closing costs ($112-$16 member add on special).

If you factor in closing costs and the extra 5 year worth of points (not even taking into acccount the potential for better resale rates if you ever have to sell, just look at bcv vs okw or ssr resale)

Over the term over the 45 years, ssr will cost you more that $4000 more in dues on the 125 points (not including inflation in either resort). Any other resort will cost you even more.

Giving up 5 years of 125 points (@10 per point rental in 2009 dollars) $6250

Closing costs on a resale run $200-$600 Disney does not charge members closing costs.

Owning a resort right next to the Magic Kingdom.... PRICELESS!

Either way, good luck, and make your decision based on your own goals.

 

[CMOORE185]

Not too sure I agree, but we all have different perspectives.

BLT w/ an add on of at least 125 is $96 a point and no closing costs ($112-$16 member add on special).

If you factor in closing costs and the extra 5 year worth of points (not even taking into acccount the potential for better resale rates if you ever have to sell, just look at bcv vs okw or ssr resale)

Over the term over the 45 years, ssr will cost you more that $4000 more in dues on the 125 points (not including inflation in either resort). Any other resort will cost you even more.

Giving up 5 years of 125 points (@10 per point rental in 2009 dollars) $6250

Closing costs on a resale run $200-$600 Disney does not charge members closing costs.

Owning a resort right next to the Magic Kingdom.... PRICELESS!

Either way, good luck, and make your decision based on your own goals.

SSR is selling for at least 28 per point less than BLT right now, that is a saving of $3500

Although resale value is nice you probably should not buy if your thinking about resale, plus BLT will drop in value just like the others as new resorts are built.


MF's change every year, In 5 years BLT MF's could be higher than SSR, when I bought at HH they where the lowest MF's, now they are one of the highest. Plus this extra cost for MF's is spread over 45 years.

To me the extra years you get with BLT is not much of a factor considering my age when it expires.

closing costs are negotible, especially in the current market, alot of sellers are paying the closing costs, and sometimes even the MF's for the 1st year.

Guess what I can use BLT too!

 

[mj2vacation]

SSR is selling for at least 28 per point less than BLT right now, that is a saving of $3500

Although resale value is nice you probably should not buy if your thinking about resale, plus BLT will drop in value just like the others as new resorts are built.


MF's change every year, In 5 years BLT MF's could be higher than SSR, when I bought at HH they where the lowest MF's, now they are one of the highest. Plus this extra cost for MF's is spread over 45 years.

To me the extra years you get with BLT is not much of a factor considering my age when it expires.

closing costs are negotible, especially in the current market, alot of sellers are paying the closing costs, and sometimes even the MF's for the 1st year.

Guess what I can use BLT too!

That is what is nice about choices.

The on site resorts typically have lower dues. They typically all rise roughly in order. HHI and VB and wildcards.

Anyone who purchases anything should have an exit plan, just in case. Residual value should be part of the equation.

Look at resale values. BCV has the highest resale value of any of the resorts. Why? Small resort, walk to Epcot, SAB, and a popular resort.

While BLT lacks SAB, it has many things going for it from a purchase standpoint, taking into account other factors.

Sometimes the cheap comes out to be expensive. Just like I would not purchase VB, I would steer away from the larger more generic resorts, but that's me.

 

[CMOORE185]

That is what is nice about choices.

The on site resorts typically have lower dues. They typically all rise roughly in order. HHI and VB and wildcards.

Anyone who purchases anything should have an exit plan, just in case. Residual value should be part of the equation.

Look at resale values. BCV has the highest resale value of any of the resorts. Why? Small resort, walk to Epcot, SAB, and a popular resort.

While BLT lacks SAB, it has many things going for it from a purchase standpoint, taking into account other factors.

Sometimes the cheap comes out to be expensive. Just like I would not purchase VB, I would steer away from the larger more generic resorts, but that's me.

What you have to remember is although lets say SSR is worth alot less than BLT you are also buying it for alot less, so when going to resell it, it is really apples to apples.

I still think MF's are a wildcard for all resorts, when purchasing resale you are getting an up front savings.

 

[robinb]

When you buy a contract with a different UY, you will have a new member # and each will be considered a master contract. In order to combine points, you would have to complete a transfer.

I had two different use years for about 10 years, so I can address this point. When you have the same UY under the same master contract (something that you must request when you buy a resale, I don't think it happens automatically) you may mix and match points within the 7 month window to book your reservation. Only have 5 points left in your SSR contract? No problems ... you can combine it with the 7 points in your OKW contract and book that studio. When using contracts in different UYs you may still use both contracts to book a reservation, but you must book in WHOLE DAYS. Only 5 points left in your SSR contract? Sorry, that's not enough to book a day. You will have to borrow enough points for a day or you need to transfer those 5 points to your OKW contract as Sandisw suggests. Transferring works, but you are only allowed a single transfer in or out of a contract per year and you have now burned both contracts' ability to transfer with one transaction.

I booked vacations that way for 10 years before I sold one of my contracts (both of which were purchased on the resale market) but I have to say that if I were to do it again I would wait for a contract with the same UY. Keeping track of 2 different UYs and juggling points in reservations was a total PITB. I would avoid it if you can.

 

[gray52]

My 2-cents. If we were adding low pts (25pts - 50pts), we would probably just buy through Disney. Once you add closing costs to a resale, the price isn't that significant. However, if we were buying 100pts or more, we would never buy through Disney. No matter the closing costs. No matter the "hassle" (our resale contract was about as hassle free as you can ask, 40 days offer to close), buying a larger contract through resale is a money saver. Period.
The deals you can get on SSR and OKW right now are incredible.

 

[kapeman]

I had two different use years for about 10 years, so I can address this point. When you have the same UY under the same master contract (something that you must request when you buy a resale, I don't think it happens automatically) you may mix and match points within the 7 month window to book your reservation. Only have 5 points left in your SSR contract? No problems ... you can combine it with the 7 points in your OKW contract and book that studio. When using contracts in different UYs you may still use both contracts to book a reservation, but you must book in WHOLE DAYS. Only 5 points left in your SSR contract? Sorry, that's not enough to book a day. You will have to borrow enough points for a day or you need to transfer those 5 points to your OKW contract as Sandisw suggests. Transferring works, but you are only allowed a single transfer in or out of a contract per year and you have now burned both contracts' ability to transfer with one transaction.

I booked vacations that way for 10 years before I sold one of my contracts (both of which were purchased on the resale market) but I have to say that if I were to do it again I would wait for a contract with the same UY. Keeping track of 2 different UYs and juggling points in reservations was a total PITB. I would avoid it if you can.

I have a quick question about the different UY issue and transfers.

Assuming same resort, but different UY:

Once you transfer the points don't they basically become one and the same as the points on the contract you transferred in to?

You still maintain the 11 month booking advantage, but you just use up your transfers. Isn't that the only down side?


I am asking because I am thinking about picking up an add-on, but haven't been able to find any contracts for sale that match my UY/number of points requirements.

If the transfer issue works like I think it does that issue would be resolved and give me a LOT more options.


Thanks!