Thinking of selling my small contract, please help

[emmababy]

I need some Dis advice.We have contracts at two DVC resorts. We are a family of 5 (all little ones.)

We love DVC and have been 8 times since we joined...

This is my dilemma- my daughter started school and as the others do- I don't think we will be seeing the mouse as often....

So, I am thinking of selling one contract (or seeing if it will even sell with the new rules about resales.)

I am sick of the maintenance fees and as Disney gets more expensive for our family- I don't see us going as often. Right now, we only have to pay for 3 tickets, when we have to feed 5 and pay for 5- it will get crazy. Plus, heaven forbid, we want to go other places....

So, I am looking for some feedback on whether I should sell this, hold it, switch into RCI???

I know I won't make a ton of money selling it, but it will pay off our balance, give us a few bucks and I wouldn't have to pay maintenance fees of $1200 per year...

TIA

 

[GoofItUp]

If this is a financial strain, then I would say sell. If not, then there are more things to think about.

If you think you will want to go every other year or every 3rd year and you would like to stay for 10 days or 2 weeks, you might keep the 2 contracts. You could allow yourself more space to spread out in a 2-bdrm, stay in a better view room, and/or travel at peak times and use your 750 points fairly quickly.

You also could rent points out to help offset the mf of the contracts. If you rent out your 100-pt contract, you will almost pay for your mf on both contracts and still have 150 pts to use for your own vacations. Again, you could bank/borrow the 150 pt contract if you didn't want to go as often.

Buying and selling DVC contracts is not an inexpensive thing to do, so think very carefully through future changes and plans before you do either. If your little ones are pre-schoolers, will you want to take them through elementary school years so they can experience and remember more? It would be a shame to sell and then realize in a couple of years that you wished you would have kept it.

 

[emmababy]

I could always buy again if I think that. I don't think we would do 2 br, just 1 br. I figured we could do a week each year, no need to do 2 weeks per year like we have been doing....

My plan was to get an AP- and use twice. Then take a break and go to the beach and repeat...

My only concern is that I currently have a reservation and didn't realize that I would forfeit those points right away. I thought those points just weren't used in the sale.

 

[DVCconvert]

I can see why you'd consider this. If however, you purchased direct....you're going to take a loss on the sale. It will sell if priced right.

I've never done the RCI thing, but you'd still have to use those points within 2 years, and that won't do anything to reduce your MF's.

Another option to consider is to rent the points out, both David's and The Timeshare Store now do this and you'd likely earn enough to pay the MF's plus some.

HTH

 

[DVCconvert]

My only concern is that I currently have a reservation and didn't realize that I would forfeit those points right away. I thought those points just weren't used in the sale.

you can specific a date afterwhich a closing could take place, and therefore be able to keep your ressie.

 

[Aunt Michelle]

You could use your points every other year at Vero Beach and meet your "let's do something else" requirement using an exchange. Just a thought.

 

[emmababy]

Thanks everyone for your thoughts! I never thought about renting before. Guess I was afraid we would get screwed out of money.

Money is a little tight now, so it would be nice. Even though its technically a loss, we took 5 vacations on those points, so in my mind it is at least a break even.

Renting would be nice because when we need the extra few points, we would have them....Crap, now I am more confused!!

 

[csharpwv]

I think keeping one almost entirely to rent it would help you pay for your other vacations if you go every 2-3 years and get into a bank/use/borrow every 2nd or 3rd year you would be good to go! Money for tickets and meals - and points for lodging - surely you'll want to go to WDW every 3rd year... right?

 

[emmababy]

How much do contracts rent for?

 

[JimMIA]

How much do contracts rent for?

The rental prices generally are in the range of $10-$12 per point. If you rent through David's service, he rents for $13 and you get $10 unless the points are "distressed" (about to expire). The Timeshare Store also offers rentals, but I don't know what their pricing structure is.

 

[JimMIA]

I don't think any of us here have enough information to really give you very good advice.

What's good advice depends on your financial situation, security of your job(s), and many other factors. And as others have mentioned, if you purchased directly from Disney, you'll likely take a substantial loss on any sale.

Personally, I would not recommend keeping DVC to use for RCI exchanges. Those exchanges are limited and probably not an efficient use of points most of the time. And...if you want a timeshare to exchange with (normally not a great bet with ANY timeshare system), there are many others which offer a LOT more for a LOT less than DVC.

When we faced a similar situation back in 2010, we sold an SSR contract and purchased Wyndham for pennies on eBay. But we bought Wyndham to use within the Wyndham system (+/- 70 resorts), not for exchanges via RCI.

Many Wyndham properties have lower MFs than DVC, but I would not recommend that option to anyone who is stretching to make their MF payments now.

If you think you should sell -- permanently, not sell now, maybe buy back in later! -- I would sell and explore all of the vacation options out there.

Don't limit yourself to timeshares, because there are many other optoins. Those include renting timeshares from other timeshare owners, renting vacation homes, and a whole raft of other options. In the WDW area, for example, you can typically rent a Wyndham Bonnet Creek TWO bedroom for way less than $1,000 for a full week (usually +/- $700).

If you think your situation is a temporary one, renting your DVC points (or some of them) is a viable option for a short time. But if your vacation needs are changing for whatever reason (rapidly increasing cost of Disney tickets, airfares, dining, ets; kids growing a little older and interests changing, etc.), I'd be looking for a way out with as little loss and angst as possible.

If you decide to sell, I highly recommend The Timeshare Store (longtime sponsor of these boards). Professionalism really DOES matter.

 

[Deb & Bill]

We used to go two, maybe three times a year. Plus paid a whole bunch in member fees. We wound up selling two of our five contracts, reduced the amount we needed to pay Disney and still got to go for one nice trip of ten days or more each year. One of the better things we have done.

 

[disneynutz]

IMO you should sell. Sounds like you will be busy with the kids for several years so to me it makes sense to sell and simplify your life plus the resale prices continue to fall so now is the time.

Renting is a option but do you really want to deal with that? I also feel that Disney has noticed the increase in the number of owners renting out their points and I wouldn't be surprised if we don't see some type of renting rule change.

Bill

 

[wishicouldgomoreofte]

The rental prices generally are in the range of $10-$12 per point. If you rent through David's service, he rents for $13 and you get $10 unless the points are "distressed" (about to expire). The Timeshare Store also offers rentals, but I don't know what their pricing structure is.

I've rented through David's service, and I recommend him. It is so easy, you don't have the hassle of renting yourself, which with 3 little ones, you don't have the time to do anyway. Good luck. I hope all goes well for you.

JimMIA, I looked at the Timeshare Store's site, and don't see anywhere about them renting points. How did you find that?

 

[DVCconvert]

..... I looked at the Timeshare Store's site, and don't see anywhere about them renting points. How did you find that?

That was announced here when it started, plus, if you get TTS's emails of offers it's now always included in that - they aren't offering this service "on line" you need to phone them - either to rent or to offer points for rent.

 

[chunkygal]

everytime I think we probably won't use them as much we need abreak and end up using them. don't forget about hilton head!

 

[DVCconvert]

The Timeshare Store also offers rentals, but I don't know what their pricing structure is.

I actually emailed at TTS broker this morning and was told "typically an owner is paid $8 per point".

 

[OrangeCountyCommuter]

IMO you should sell. Sounds like you will be busy with the kids for several years so to me it makes sense to sell and simplify your life plus the resale prices continue to fall so now is the time.

Renting is a option but do you really want to deal with that? I also feel that Disney has noticed the increase in the number of owners renting out their points and I wouldn't be surprised if we don't see some type of renting rule change.

Bill

Kind of off topic, but I agree. I think we are probably due some 'renting rule/ change. There is no way you an convince me that having 'brokers' is not going to hit Disney as "commerical" I think they are just trying to figure out HOW to cut them out of the game.....

 

[BWV Dreamin]

I actually emailed at TTS broker this morning and was told "typically an owner is paid $8 per point".

That is not true for all brokers. IMO, TTS pays extremely low. Check it out with other brokers, ie: David's.

 

[queendarvet]

You mentioned that you would always do 1 bedrooms. We are a family of five, with older kids (young adults, late teen) and could not imagine not having atleast a 2 bedroom. As the kids age it gets harder to have them share beds, much less bedrooms. So you may only be a few years from when you may need larger accommodations and these take up a lot of points. Perhaps renting points out in the interim may help until you really need all the points from both contracts.