Thinking (again) about Buying DVC - Need Advice

[iankh]

I know that a lot of this is going to seem basic and dumb, but here goes ...

I am thinking again about buying into DVC. The first time was about 3 years ago, but that met with some resistance at home. Now, that we are planning another trip to WDW, the embers have been rekindled. It seems like we go down there between every 12 to 24 months anyway.

I called Disney for an information package. The guide, Julie, said, "Oh, I helped you several years ago, when you were considering buying." Now THAT was scary. What a database!

I am considering both buying directly from Disney and resale. I understand that Disney is offering $10 off a point, or something like that. I am sure that the package that Julie is sending will have the details.

My questions are about resale. I have bought and sold real estate a few times, and am very familar with a house/condo purchase, but am not at all familar with something like DVC.

1. Doing a Google, I have only been able to find at most 3 resale agents. Is there something I've overlooked in terms of finding listings?

2. I know when I've bought property, I've made an offer below the asking price. Is there the same latitude on a DVC resale? Should I try to negotiate on price?

3. Do banked points count towards dues? That is, if the resale comes with some banked points, should I anticipate that I might have to pay dues on them until I use them?

4. Is there anything else I should know about when considering buying a resale?

5. If buying directly from Disney, do they negotiate on any points? (have you stopped rolling around on the floor laughing from this question?)

6. Are there any other buying tips you might have, be it directly from Disney or resale.

Thanks for your input. This is a BIG step for us, but I figure that with what we seem to be spending, this might be a good long term plan.

 

[CarolMN]

I can help with some of your questions (none of which seemed "dumb" to me):

...(snip)......2. I know when I've bought property, I've made an offer below the asking price. Is there the same latitude on a DVC resale? Should I try to negotiate on price?

Pretty much everything is negotiable when you buy resale. Just keep in mind that even if the seller accepts your offer, Disney has ROFR - Right of First Refusal. In other words, they can buy the contract for the same terms you negotiated and there isn't anything you can do about it.

3. Do banked points count towards dues? That is, if the resale comes with some banked points, should I anticipate that I might have to pay dues on them until I use them?

Dues are based on the calendar year. For example, if a contract has 150 points, the owner pays dues on 150 points each calendar year - doesn't matter if he/she banks or borrows points. Dues must be paid every year.

That said, many sellers will expect to be reimbursed for dues they paid on banked points since they didn't get to use them. It's entirely negotiable.

5. If buying directly from Disney, do they negotiate on any points? (have you stopped rolling around on the floor laughing from this question?)

No.


Good luck with your decision!

Best wishes -

 

[tjkraz]

1. Doing a Google, I have only been able to find at most 3 resale agents. Is there something I've overlooked in terms of finding listings?

You will probably find a handful of contracts on eBay. Also try the timeshare site www.tug2.com.

2. I know when I've bought property, I've made an offer below the asking price. Is there the same latitude on a DVC resale? Should I try to negotiate on price?

As Carol said, yes. Just be aware that if you are interested in points at either BCV or VWL, and BWV to a lesser extent, it's pretty much a seller's market. I can't see someone going down from their asking price, unless they start out extremely high. With the other resorts, you may be able to do some negotiating.

4. Is there anything else I should know about when considering buying a resale?

Ideally look for a contract that has current year points available AND some banked points. Generally speaking folks here value points at $10 per point, per year. If you can find a contract with '04 banked points and '05 points coming, you will definitely NOT pay $20 per point more than a contract that is borrowed into '06.

Also realize that if you buy a resale you need to pay cash or provide your own financing. If you buy from DVC they will finance the purchase over as many as 10 years.

 

[amandaC]

1. Doing a Google, I have only been able to find at most 3 resale agents. Is there something I've overlooked in terms of finding listings?

2. I know when I've bought property, I've made an offer below the asking price. Is there the same latitude on a DVC resale? Should I try to negotiate on price?

3. Do banked points count towards dues? That is, if the resale comes with some banked points, should I anticipate that I might have to pay dues on them until I use them?

4. Is there anything else I should know about when considering buying a resale?

5. If buying directly from Disney, do they negotiate on any points? (have you stopped rolling around on the floor laughing from this question?)

6. Are there any other buying tips you might have, be it directly from Disney or resale.

1. Yes, there are 3 big ones that I check frequently. I just bought an add-on from this site's sponsor and have been very happy with them!

2. There is some latitude, depends on the property. Lately, BCV has been going for the asking price in minutes. There is more wiggle room in HHI, VB, and OKW. You need to be aware that if your accepted offer is low, Disney may pick it up under ROFR.

3. That is negotiated at the time of offer. Usually, if the current years points are available you will be paying the dues.

4. Buy where you want to stay. That being said, where you want to stay now may not be where you want to stay 10 years from now- look at the big picture. We bought at SSR and although it isn't always my 1st choice to stay now, when my DSs are older, it will be.

5. No. (And yes, I did chuckle.)

6. Take everything into consideration. Financing is easy through Disney if that is what you need. Closing costs are $400 and up with resale but not an issue with Disney. It is definitely easier through Disney but it all depends on where you want to call HOME.

Good luck!
Amanda