This Crazy Resale Market...

[GoofItUp]

DH and I are looking at doing an add on (resale) so I have been looking over listings for several weeks. We've even made 2 or 3 offers, but haven't found one yet. (Price is a big factor, so we'll have to wait for the right one to come along.) Anyways, I am always a little aghast at the price differences on contracts. On one particular website, there are SSR contracts listed in the mid- to high- $50's up well into the $90's per point! I realize there are a lot of factors -- stripped vs loaded contracts, contract size, etc. -- that factor into pricing. But I always wonder what those people in the $90's are thinking. Do they really think their contract has a chance of selling at that price? Do the agents advise them that it's most likely going to be sitting VERY long term? Maybe those people have loans and have to have that much to cover their debt, but it just seems crazy to me.

Just as an added note, since it is one of the resale companies that gets discussed on here from time to time, Fidelity now has their listings on-line. You can check them out here.

 

[bookwormde]

Chances are they need $90 to have enough after commision to pay off their loan.

Thanks for the new Fidelity link (it is about time they got their act together)

 

[Sandisw]

Thanks for the link. I don't think we are going to be adding on soon but you just never know.

We considered it last week when a small BWV contract came up for sale with our UY for DH to maybe do every year for F & W. But, it showed sale pending by the time we decided to seriously call.

 

[littlestar]

Thanks for the link. Interesting.

 

[nolanboys]

Thanks for the link. I've never really looked at Fidelity before. They had some good contracts. I thought I remember reading before that Fidelity had higher closing costs. Is that correct?

 

[disneynutz]

DH and I are looking at doing an add on (resale) so I have been looking over listings for several weeks. We've even made 2 or 3 offers, but haven't found one yet. (Price is a big factor, so we'll have to wait for the right one to come along.) Anyways, I am always a little aghast at the price differences on contracts. On one particular website, there are SSR contracts listed in the mid- to high- $50's up well into the $90's per point! I realize there are a lot of factors -- stripped vs loaded contracts, contract size, etc. -- that factor into pricing. But I always wonder what those people in the $90's are thinking. Do they really think their contract has a chance of selling at that price? Do the agents advise them that it's most likely going to be sitting VERY long term? Maybe those people have loans and have to have that much to cover their debt, but it just seems crazy to me.

Just as an added note, since it is one of the resale companies that gets discussed on here from time to time, Fidelity now has their listings on-line. You can check them out here.

What's crazy is that the resale market crashed and that Disney stopped buying through ROFR.

Another crazy thing is that people still buy direct from Disney. You can buy BLT direct today for $117 per point and sell it tomorrow for $98, a $19 instant loss.

Bill

 

[culli]

What's crazy is that the resale market crashed and that Disney stopped buying through ROFR.

Another crazy thing is that people still buy direct from Disney. You can buy BLT direct today for $117 per point and sell it tomorrow for $98, a $19 instant loss.

Bill

Buy almost any other TS direct and you will experience a 99.9% loss - aka Wyndham. Most people have no clue about resale and if they have heard of it get intimidated. One nice thing about going Disney direct is they really do make it pretty easy.............to strip my money from me

But for DVC now resale is pretty low, especially some of those SSR contracts. Still not many BCV contracts out there compared to the rest of the resorts, and yes I know it is also the smallest.

 

[Dizny Dad]

The smaller the contract, generally the more per point can be charged. It is hard to sell a 300 point contract, so the point value is low. Notice that there are no 50 point contracts listed. These are sold immediately to the wait listed people the resellers have, and never hit the internet. You can bet they are higher than the big contaxct point values listed on the internet site.

 

[LaurenT]

What's crazy is that the resale market crashed and that Disney stopped buying through ROFR.

Another crazy thing is that people still buy direct from Disney. You can buy BLT direct today for $117 per point and sell it tomorrow for $98, a $19 instant loss.

Bill

lol...your post made me laugh! While it's true, you could also buy westgate today for $22,000 and sell it tomorrow for $99 and instant $21,901 loss....at least you don't lose all of your value with DVC

 

[disneynutz]

lol...your post made me laugh! While it's true, you could also buy westgate today for $22,000 and sell it tomorrow for $99 and instant $21,901 loss....at least you don't lose all of your value with DVC

I'm reflecting on how different the DVC was just three short years ago verses today. Doesn't seem like such a good deal now.

Bill

 

[Brian Noble]

The value in *any* timeshare is almost never the "resale value". It's in using the thing.

While it is true that most people buying direct could probably do better buying on the secondary market, getting full use out of an ownership can still deliver value. So, for those who discover resale "too late", well, spilled milk, etc. Just enjoy what you own!

 

[Disney Todd]

It's interesting how Disney generally prices the resorts the same initially, but the resale market sure sorts out which resorts are most cavorts. Most glaring example is BCV vs SSR.

 

[tjkraz]

I'm reflecting on how different the DVC was just three short years ago verses today. Doesn't seem like such a good deal now.

Bill

Unfortunately Disney can't control the economy. If not for millions of people losing jobs and otherwise having their finances turned upside down, there wouldn't have been so many contracts hitting the resale market. The supply wouldn't have skyrocketed and demand may have been such that DVC could continue to ROFR.

But what happened, happened.

Declining prices was an inevitability. People aren't going to pay the same price for 30 years' use of a product as they will for 50 years' use.

The current price disparity between BLT direct and resale is to be expected. We saw similar numbers with every resort while in active sales.

It's interesting how Disney generally prices the resorts the same initially, but the resale market sure sorts out which resorts are most cavorts. Most glaring example is BCV vs SSR.

Demand is only half of the equation. Supply is also a consideration and there are about 5x as many SSR points as there are BCV.

 

[toniosmom]

What I find the most interesting is how Disney keeps increasing the price per point of BLT. I guess as long as people continue buying in at that rate, they will continue.

 

[disneynutz]

Unfortunately Disney can't control the economy. If not for millions of people losing jobs and otherwise having their finances turned upside down, there wouldn't have been so many contracts hitting the resale market. The supply wouldn't have skyrocketed and demand may have been such that DVC could continue to ROFR.

But what happened, happened.

Declining prices was an inevitability. People aren't going to pay the same price for 30 years' use of a product as they will for 50 years' use.

The current price disparity between BLT direct and resale is to be expected. We saw similar numbers with every resort while in active sales.

Demand is only half of the equation. Supply is also a consideration and there are about 5x as many SSR points as there are BCV.

Don't you think that Disney is a major contributer to the poor resale market. Not exercising ROFR and continuing to build new resorts is increasing the supply and not giving the demand a chance to catch up.

Bill

 

[kristenrice]

I checked out the HHI listings on the Fidelity link and I got excited when I saw two contracts in my point range. One was 26 points and the other was 30 points. (I'm looking for about 35 right now). Then, I saw that they are asking $80/point. That is the same price that DVC is selling them for direct! I guess their targeted buyer would be a non-member. Anyway, thanks for the link. I needed to add myself to yet another mailing list.

 

[tjkraz]

Don't you think that Disney is a major contributer to the poor resale market. Not exercising ROFR and continuing to build new resorts is increasing the supply and not giving the demand a chance to catch up.

Bill

Given the fact that DVC is still selling around 2000 "new" contracts per month, there certainly seems to be ample demand. But that demand mostly for the newer resorts. Sales of BLT and Aulani points are far eclipsing SSR and AKV.

When DVC already has thousands of SSR and AKV points in inventory--resorts which they have been selling for 4 and 7 years now--I don't see how you could justify re-acquiring even more points just to help prop up the resale market.

 

[kaffinito]

I bought DVC at BLT with a 200 point contract and two 25 point contracts. I bought in when they had a "deal" on BLT, and sold the 200 point contract a few months ago for only a slight $ loss. Especially when you consider the times I used the contract and the free stay I had with the original purchase.

But I was expecting to get more than 95.00 on my points, and I did. BLT is a hot commodity, and the buyer got a good deal on my contract. (Not stripped).

I am using the rest of my points, only 50 now, for a stay at OKW in March.

 

[chalee94]

Don't you think that Disney is a major contributer to the poor resale market. Not exercising ROFR and continuing to build new resorts is increasing the supply and not giving the demand a chance to catch up.

exercising ROFR was never about propping up resale prices...just ask the VB owners...

that's just a(nother) myth that timeshare salespeople made up.

 

[ABE4DISNEY]

Not to hijack this thread or anything. . .but I see a contract that I might be interested in on the Fidelity link. Has anyone personally dealt with them and are closing costs higher as someone mentioned?? Thanks!!