ugh - stuck! Resale or DVC Direct - INPUT PLZ

[GAPeach531]

ok heres the deal. I found 130 SS points (95 '09 banked, DEC UY) for $68 a point. I was set, until the contract came down for approval and the seller has a points vacation on Labor day and cant close until after that. WELL, i have a trip for labor day that i want to cancel and rebook with my NEW DVC points.....

so, with that on one side.... i talked to DVC tonight.

I am going to pay more per point but no closing costs, no waiting, Aug UY....
but i only get 111 points (maxin out the budget). Do I wait out DVC and see if they'll give me some more points? i have until mid july to cxl my other reservations..... i really wanted at least 120 points. is 111 enough points to get started effectively in DVC?

all input is welcome. i need help.

thanks.

 

[CPTJAK]

can the seller book a reservation for you for labor day as part of your contract?

Ask them to book the vacation in your name (if they have the points) and than close after labor day

 

[GAPeach531]

I presented that idea to the broker. We shall see.

 

[GAPeach531]

promising developments.....

 

[Crystal_27]

I think that in very few situations does it make sense to buy SSR direct versus resale, but you definitely might be that rare case. If you can book on points the Labor Day vacation that you were intending to pay cash for, then that cost should cancel out the difference in the price per point. But, I would make sure to run the numbers and see where you really fall and, of course, if you can get the seller to book you a vacation using her points, that sounds like it would be the best scenario. Good luck!

 

[nolanboys]

We bought SSR through resale - 200 pts at $68. I would go the resale route. I am new to this, but you may have a hard time getting a reservation for Labor Day so late in the game. Disney has some great deals right now, including free dining and room discounts, so you should be getting a good discount on your trip. We went the resale route so we could get more points for future trips. Good luck on your decision.

 

[Sandisw]

I presented that idea to the broker. We shall see.

Just my 2 cents, but I would be cautious with this. If something happens, and the deal falls through (ie: Disney exercises ROFR), then your reservation could be cancelled as you would no longer be the buyer.

In terms of Disney, did you know that you can use a Disney Visa to pay and get 6 months, 0% interest? I know you said you wanted 120 points, which is only 9 more than the 111 so thought maybe having 6 months to come up with the extra money might work.

It did for us last year. I adjunct at the college level and knew that I would have the money by the end of the Fall semester. But the deals were good in June. I was able to purchase my 50 point add on then and defer until January, enough time to pay for it in cash.

Whatever you decide, good luck!!!

 

[JimMIA]

Just my 2 cents, but I would be cautious with this. If something happens, and the deal falls through (ie: Disney exercises ROFR), then your reservation could be cancelled as you would no longer be the buyer.

Disney can only exercise ROFR with exactly the same terms the buyer agreed to. If the buyer agreed to closing on or after Sept 10 (just as an example), I don't think Disney could arbitrarily move the closing up and cancel the reservations. That is changing the terms of the sale.

However, I would be concerned that something else could happen to cause cancellation -- owner changes their mind, disagreement over some issue, etc.

My preference would be for a straight-up purchase agreement. There are lots of contracts on the market.

 

[JimMIA]

As for your larger question - direct vs resale - about the only excuse I can think of for buying direct right now is if the purchaser absolutely had no alternative but to use Disney financing.

And if that were the case (which I realize is not your situation), I'd sure wonder whether they should buy at all in this economic environment. For some families, I'm sure financing is okay but I'd sure be careful financing an asset that's going to drop in value $20 per point the moment of closing.

 

[Sandisw]

Disney can only exercise ROFR with exactly the same terms the buyer agreed to. If the buyer agreed to closing on or after Sept 10 (just as an example), I don't think Disney could arbitrarily move the closing up and cancel the reservations. That is changing the terms of the sale.

However, I would be concerned that something else could happen to cause cancellation -- owner changes their mind, disagreement over some issue, etc.

My preference would be for a straight-up purchase agreement. There are lots of contracts on the market.

I know that the closing with Disney could not happen if it is delayed as part of the deal.

But, as a buyer, since they are not getting the contract, they would be paying for a reservation and not having that money going toward a purchase any longer or be in a situation to just walk away from the deal and end up with no reservation.

 

[Lil' Grumpy]

wow, i would advise you to slow down & re-think your
choices. [i went back & read your other responses & they
seem to indicate you are in the begining stages ].

a home resort is more important than making a
current vacation plan and/or saving a few dollars up front.

over & over, others have "preached"- buy where you want to stay
if you want to be happy in the future. i think because so many
feel this way, this is something very, very important to do.

i have seen/read many "buying in" & then losing money to get
rid of ssr to buy where they really want to be. then many
buying in, and expressing they never want to stay there.
[ i don't know exactly why they feel that way, but there
must be a reason.] do know when they but resales, they are
losing when they sale. another trend worth watching.

we started looking into this in 2002. we didn't buy until 2009.
when we evaluated our choice, we considered our overall family
needs & our future vacations. to us, dvc is a long-termed
investment based on what we will doing 25 years from now &
what we are hoping to "give" our children. a tradition to be
passed on.

also we came up with different factors that were important to us.
as for the booking advantage, currently it is 11/7 mos. one thing
to me, we don't have to be ready on all our vacations @ 11 mos.,
as we have up to the 7mos cut-off point before the others can
booked. just based on dinning alone, most are planning before this
cutoff point for a wdw vacation.

sure saving money is important to everyone. however, the
most experienced dvc'ers are going after the resorts where
they want the 11-mos. booking advantage. [ prior your choices
were wlv & bwv are "tough" bookings @ the 7mos. period.]

either way, good luck in your final destination.

 

[JimMIA]

You often hear "buy where you want to stay," and that cliche is often just accepted as common wisdom without really thinking it through. As the previous poster said, it's good to do a LOT of research, and for us part of that research was questioning some of the cliches to see if they really applied to us.

Home resort is important for a couple of reasons:

• because home resort determines the dues you will pay each year -- which will be far more than the initial purchase price over the term of the contract.
• You have the home resort booking window only at your home resort, meaning that you can currently book 11 months out at your home resort, and 7 months out at non-home resorts.

The dues issue may or may not be important to you, and the same is true of home resort booking advantage. The booking advantage is very important for some resorts at certain times of the year, for particular types of units (Grand Villa) or certain views. If you want to stay at Boardwalk or Beach Club during F & W, you'd better either own there or be very lucky.

Problem is, not everyone is able to make firm reservations 11 months out...or 9...or 7. If that is not realistic for you because of family or work reasons, then the booking window really doesn't mean much.

We can plan 11 months out, but rarely do. Actually, we've only done it once -- for an early December trip because that is a very, very busy period for DVC. I doubt seriously if we will book 11 months in advance unless we decide to go again in early December, or we want to get a Treehouse.

The other factor for us is that we really don't care that much about where we stay. For some people, where they stay is very important -- for us, no. If we want BLT and it's not available this trip...we'll get it next trip. We've gotten other resorts at various times as short as 3 months out with no problem...but your luck doing that will depend on where, when, and what kind of accommodations you are looking for.

So when we were looking, we went for the most points for the lowest cost and bought OKW resale. We've never been disappointed with that decision. We bought SSR for the same reason -- best deal available at the time when we were ready to add points.

That said, I would never advise anyone to buy a resort where you would be disappointed to stay. So rather than say "buy where you want to stay," I'd say "DON'T buy where you DON'T want to stay."

The other DON'T advice I'd give is don't buy non-WDW resorts if you intend to stay primarily at WDW. One strategy you can use is to book your home resort at 11 months and then try to get a different resort at 7 months. Obviously that only works for a WDW stay if your home resort is one of the WDW properties.

Do your research carefully, and good luck!