This Crazy Resale Market...

[DenLo]

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.

People are willing to pay the higher so why should Disney ask for more. Do you think that if someone selling a hot property resale wouldn't ask for if they could get it? Just look at the smaller contracts, they sell for more dollars per point and it's because the sellers can sell them despite the higher price per point.

Now why DVD raised the cost of AKV and SSR to $120 per point is beyond me.

 

[DizGirl20]

OP - thanks for posting the link - I had no idea Fidelity had so many contracts - holy cow - seems like anything you want you can find (ummmmm, maybe this is not such a good thing for those of us who never seem to have enough )!

 

[dbs1228]

At one time Fidelty charged a fee to the buyer, 195.00 I believe. I am not sure they still charge this fee. I put an offer in on a contract back in March 2010 and they seemed to be good. The problem I ran into was the seller never signed the papers and after 14 days of having my deposit DVC ran a new promo and it cost us about 200.00 more to go direct and get all 2009 points/same UY so we backed out of the resale and got a prompt refund. Fidelty was very prompt and did understood that we were tired of waiting.

 

[Sammie]

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.

TJ, I completely agree with all of this. That said, don't you think this would be a very good reason for DVC to stop expansion for the time being and focus on selling what they have and taking care of what is already built.

 

[FindingFigment]

At one time Fidelty charged a fee to the buyer, 195.00 I believe. I am not sure they still charge this fee. I put an offer in on a contract back in March 2010 and they seemed to be good. The problem I ran into was the seller never signed the papers and after 14 days of having my deposit DVC ran a new promo and it cost us about 200.00 more to go direct and get all 2009 points/same UY so we backed out of the resale and got a prompt refund. Fidelty was very prompt and did understood that we were tired of waiting.

I wrote to Rachel at Fidelity today and asked about the 195.00 admin fee and she said they no longer charge that.

 

[ABE4DISNEY]

At one time Fidelty charged a fee to the buyer, 195.00 I believe. I am not sure they still charge this fee. I put an offer in on a contract back in March 2010 and they seemed to be good. The problem I ran into was the seller never signed the papers and after 14 days of having my deposit DVC ran a new promo and it cost us about 200.00 more to go direct and get all 2009 points/same UY so we backed out of the resale and got a prompt refund. Fidelty was very prompt and did understood that we were tired of waiting.

Sounds just like what we had--we also just put an offer in exactly for the asking price. The seller will not communicate with our broker. What's that all about?? Why list it if you don't want to sell it?? Anyways, we are off to looking again. I'm just hoping it doesn't take another 5 months! I had my heart set on a summer trip.

Thanks for the info. I think that I will add my name to their email list.

 

[tjkraz]

TJ, I completely agree with all of this. That said, don't you think this would be a very good reason for DVC to stop expansion for the time being and focus on selling what they have and taking care of what is already built.

For the most part, that seems to be what they are doing. Resort construction has a lead time of 3 years or so, so the earliest we would see another resort open at WDW is very late 2013 or 2014. Bay Lake Tower appears to be on course for a sell-out in the next 6-9 months. That leaves them another two years to sell the remaining SSR and AKV points before any other WDW-based option is available.

 

[nyck]

SSR is sold out now anyway. I just went to a DVC presentation last week and the only ones for sale is AKV, BLT, and Aulani. My friend wanted SSR for the 11 month window for the treehouses and my guide told her it was sold out. Plus why buy something that expires in 40 years versus 50 years for the new ones? I happen to agree, and I own at SSR and BCV. The SSR I would sell (since I just use the points there to stay at the Treehouses and everywhere else BUT there) but BCV I LOVE and would never get rid of it. BLT is expected to have yet another price increase before it sells out in 6 months (so they say). So it makes their job pretty easy. If you want to stay at WDW buy BLT or AKV, if you plan on going to Oahu alot buy Aulani. DVC makes money, period. And there is no recession when it comes to Disney. Even when they say "we loss money", that just means they are not in the black as much as they would like. I don't ever think they are in the negatives, even with their lowest season. The international vacationers keep that place doing just fine, and that Aulani is taping into the Japanese market which is just genius. If you look at it from a business perspective, why stop building?

 

[tjkraz]

SSR is NOT sold out. I cannot begin to fathom why a DVC salesperson would even say that.

Regardless, your friend can find SSR points on the resale market for 30% off DVC's prices. Better to go that route anyway.

 

[eagle29]

The prices are pretty amazing! I'm glad I am not in the market right now! I was fortunate enough to get into BWV @ $67/point and BCV @ $70 & $74/point. Not quite the $51 or $54 a friend got in at Old Key West (when free park passes were included for 10 years I think). Paying over $120/point would be a tough sell...But like that which has been said before, the true value of any timeshare is the value of use and creating great memories!

 

[shellspb]

We are fairly new to DVC and didn't realize how many people are selling points right now. So my understanding is these are their personal contracts that people are trying to get out of and not just sales for a one time vacation? What happens if people can't make their yearly maintenance payment, do the rest of us suffer?

 

[nyck]

The prices are pretty amazing! I'm glad I am not in the market right now! I was fortunate enough to get into BWV @ $67/point and BCV @ $70 & $74/point. Not quite the $51 or $54 a friend got in at Old Key West (when free park passes were included for 10 years I think). Paying over $120/point would be a tough sell...But like that which has been said before, the true value of any timeshare is the value of use and creating great memories!

I agree. I wouldn't have my friend buy SSR, even on the 2nd market since she can just use mine. I paid $19,800 for 300 points at BCV when I bought it. If I sold it today I would make a PROFIT on it, which is nuts. But I love that place and will never sell it anyway. I know I paid $90 something for SSR, but not over $100. Between SSR and BCV I have more than enough points. I glad I bought when I did. $120 per point is insane, even with the incentives. And the fact they keep raising the price proves they make money. That place had plenty of people signing contracts when I was there last week.
I think people finance and buy directly through Disney due to how easy it is and the fact the APR isn't going to be any less at their local bank since it an unsecured loan. Plus Disney is giving you last years points and you can start booking right away. Some people don't want to wait a month on the secondary market and some of those contracts don't have last years points on them. Plus people on vacation like the idea of just buying it now because the deal goes away when they go home, so some is emotionally driven. No amount of emotion is going to make me pay $120. LOL

 

[nyck]

We are fairly new to DVC and didn't realize how many people are selling points right now. So my understanding is these are their personal contracts that people are trying to get out of and not just sales for a one time vacation? What happens if people can't make their yearly maintenance payment, do the rest of us suffer?

I think in order to sell you have to be current on your dues anyway, at least they ask that when you list with the timeshare store. If not, at closing, I am sure the dues amount would come off the selling price (just like if you owe utlities or condo fees when you sell a house).
Now if you aren't paying your fees and you are not selling, Member accounting will not let you book or transfer or bank points, and can cancel any reservations you have until it is caught up. I don't know what they do if you are months behind

 

[mittelst]

Not that I regret buying when I did, but at today's prices, I could have almost 2x as many points for what I paid for HH resale back in 2006 :-(.

Wish I had some liquid $ now to add on! Damn that college fund (just kidding)!

 

[dizfan]

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.

The higher base price helps Disney on the financing side. Higher base price results in a higher down payment for those financing.

If people are willing to pay with fewer incentives, it makes sense for Disney to raise the price. When there are fewer buyers, increase incentives.

Besides, it was just over a month ago that BLT (Black Friday promotion) was selling for as low as $92/pt.