What do you lose if you sell points and buy at the same price thru Timeshare Store?

[rutgers1]

Perhaps I should explain.....If I were to sell my 200 points at $75 a point through the Timeshare Store and then turn around and buy at another resort for the same price (same number of points, too), how much would I lose? I assume there are some transaction fees involved in both purchases. Aside from those fees, is there anything else that I am not considering?

If the loss was a negligible amount, I would consider it, as there is one resort that I really like and would love to have an 11 month booking window.

 

[lumpydj]

It would depend on the negotiations regarding member fees and closing costs on both sides (who pays, etc). However, closing costs would be around $400 or $500.

 

[Dean]

Assuming your scenario, neutral on fees, neutral on points accounting, you'd lose the commission on the sale plus the closing cost on the new contract. On 200 points at $75 a point, that's almost $2K. That same money would get you a 25 point add on. However, that's about the best case scenario. More realistically you should figure a spread between what you sell for vs what you're buying which adds to the "cost" of such a plan, esp since most people doing this are actually going from a lower per point cost to a much higher one. The exception might be as noted above, selling a higher demand resort and getting a lower demand one or if downsizing dramatically.

 

[rutgers1]

Actually, I just got an answer to my question by calling the Timeshare Store. The woman I spoke to (Jamie) was very nice and said that the main costs would be 10% commission on the sale, about $500 closing on my purchase, $70 to Disney, and then there could be some extra money either paid or received depending on points available for that year and money already paid in maintenance fees. If those last two fees were a wash, I'd be looking at about a $2,000 fee to swap my 200 points from one resort to the next.

I am not so sure that the cost is worth it, but this whole experience makes me wish that my guide was more open to allowing me to look at other DVC resorts when I was meeting with him. He made it seem like I couldn't buy at other previously sold resorts and that I had to buy at the one that they were currently marketing unless I wanted a world of stress and financial hardships (ok, I am exaggerating a bit, but not much). If he was completely being honest, he could have mentioned that it was possible and, while the incentives were very good for the new resort, one should really buy where they want to be. It was my fault that I didn't do my homework beforehand. I wish I did. Oh well....

 

[rutgers1]

Dean/lumpydj..It appears that we were all typing at the same time. Thanks for the replies!

 

[Dean]

Dean/lumpydj..It appears that we were all typing at the same time. Thanks for the replies!

There are ways to do this more cheaply in some situations. You could sell on your own and buy privately with a cheaper closing but as you found out, it's rarely worth it if one already owns.

 

[bookwormde]

If you could find another member to swap with you could probably do it for less than 1K

bookwormde