Thinking about selling

[delilah]

I have three different point contracts at two different resorts. I am thinking of selling one with 150 points with a February use year. There are no points for the 2014 use year, and 133 coming in February for the 2015 use year. So, when is a good time for me to offer it for sale, so that people won't feel that I am trying to short-change them? I don't have any vacations planned using the points. It's all paid up for this year. I would like to sell before dues and such are assessed in January. Do you think anytime now would be OK?

 

[disneynutz]

I have three different point contracts at two different resorts. I am thinking of selling one with 150 points with a February use year. There are no points for the 2014 use year, and 133 coming in February for the 2015 use year. So, when is a good time for me to offer it for sale, so that people won't feel that I am trying to short-change them? I don't have any vacations planned using the points. It's all paid up for this year. I would like to sell before dues and such are assessed in January. Do you think anytime now would be OK?

It doesn't matter what others think, only that you find a buyer willing to pay your price. I would sell it now so you will be done with it before the new year.

Bill

 

[DVCMomBLT]

I have three different point contracts at two different resorts. I am thinking of selling one with 150 points with a February use year. There are no points for the 2014 use year, and 133 coming in February for the 2015 use year. So, when is a good time for me to offer it for sale, so that people won't feel that I am trying to short-change them? I don't have any vacations planned using the points. It's all paid up for this year. I would like to sell before dues and such are assessed in January. Do you think anytime now would be OK?

Yes, anytime is fine. The buyer will make their own value judgement. For me, it goes like this:

Full current year points = x
No current year points = x-6
Banked last year points = x+6

 

[nono]

I would get the ball rolling now. The sooner you are on the market, the sooner you may have a match for your contract. We listed our February contract last year in the fall, and it was well after the New Year before we were through settlement. Having the first deal fall apart didn't help the timeline...

Best of luck!

 

[Dean]

I have three different point contracts at two different resorts. I am thinking of selling one with 150 points with a February use year. There are no points for the 2014 use year, and 133 coming in February for the 2015 use year. So, when is a good time for me to offer it for sale, so that people won't feel that I am trying to short-change them? I don't have any vacations planned using the points. It's all paid up for this year. I would like to sell before dues and such are assessed in January. Do you think anytime now would be OK?

There's no reason to wait. As a rule stripped contracts sell for more in the final analysis than loaded ones.

 

[LoveToDisney]

There's no reason to wait. As a rule stripped contracts sell for more in the final analysis than loaded ones.

That's quite interesting. Care to explain further?

 

[Dean]

That's quite interesting. Care to explain further?

Here's my thinking. If you want to sell, put it up for sale. You'll lose nothing by doing so and at worst you'll get around what you would have gotten considering you would be paying the dues in the interim. Of course if there's a trip planned using that contract, you'd need to wait for that so it wouldn't be canceled. I put the value of a future point at a minimum of $10 a point, same with any current points that have enough time life to complete the transfer then use them. That includes the dues on them. I add a minimal amount for banked or borrowed points but that situation I look at it individually. That would put the true value for a Feb UY (same home resort, etc) for a loaded contract at around $16 a point more or more specifically your contract would return a value of a full $16 a point less to the buyer. I reach that price by taking $5 a point for no points banked from 2013 to 2014 and $10 a point for no 2014 points banked/bankable to 2015. I further adjusted for $10 for the 17 points not there next year and averaged that to $15 or $1 pp on the 150 point contract. I further suspect that if you wait until after you've paid the dues, you're more likely to end up paying part of them in the contract where if you close prior to the due date, you likely won't. Plus you're then trying to sell at a time that tends to be a little lower. The sales prices for stripped contracts do not reflect the true loss of value as a rule IMO but it'll be a full year and a half before you're have a mostly loaded contract.

If you were to sell now you'd have no dues reimbursement, get a lower price (compared to loaded) and likely end up paying closing or at least part of it. If you wait 6 months, you'll likely get a small % less pp or about the same, likely pay part of closing and possibly get less dues reimbursement. Plus the money is worth less with inflation (6 months isn't that much I know) and you may have missed a buyer in the process. You've gained nothing and potentially lost some. In addition it's my opinion that we're in a somewhat temporary upswing to you take that risk as well if you wait.

 

[Msmithmd]

I agree with Dean that if you look at the resale market in aggregate, it undervalues banked points and overvalues stripped contracts, relative to the objective $11pp value easily attainable via a rental broker.

Since that reality is true among all DVC resale brokers, I know that if I were ever to sell a contract, I would try to do it relatively stripped.

I would advise you to do the same.

 

[LoveToDisney]

Thanks Dean for taking the time to type all the info up. I appreciate the analysis you have made. I always assumed a loaded contract was a better plan for selling. You have definitely challenged that mindset.

 

[Dean]

Thanks Dean for taking the time to type all the info up. I appreciate the analysis you have made. I always assumed a loaded contract was a better plan for selling. You have definitely challenged that mindset.

Glad to help, good luck with your quest.

 

[mwwagner]

I have three different point contracts at two different resorts. I am thinking of selling one with 150 points with a February use year. There are no points for the 2014 use year, and 133 coming in February for the 2015 use year. So, when is a good time for me to offer it for sale, so that people won't feel that I am trying to short-change them? I don't have any vacations planned using the points. It's all paid up for this year. I would like to sell before dues and such are assessed in January. Do you think anytime now would be OK?

If you decide to sell, I may be interested? Im in ROFR now but I am not overly optimistic that I will pass. What's your home resort? Would a PM be in order to see if we might be able to save you the commissions?

 

[Deb & Bill]

If you decide to sell, I may be interested? Im in ROFR now but I am not overly optimistic that I will pass. What's your home resort? Would a PM be in order to see if we might be able to save you the commissions?

DIS won't allow private sales on the DIS.

 

[mwwagner]

DIS won't allow private sales on the DIS.

Ahhh, thank you! I'm new and didn't know this was the case. Didn't mean to step on any toes but now that you meniton it, I probably should have assumed that was the case!

 

[JimMIA]

Ahhh, thank you! I'm new and didn't know this was the case. Didn't mean to step on any toes but now that you meniton it, I probably should have assumed that was the case!

There are venues where direct sales are permitted, but not the DIS. Try TUG (tugbbs.com) and Redweek. I believe paid memberships are required by both.