What is up with Grand Floridian and Cal prices?

[dvc lover 1970]

Why are the resale prices so high there? Yes resale is high on all resorts, but the prices for the Floridian and the Cal are eye popping.

 

[Lorana]

Why are the resale prices so high there? Yes resale is high on all resorts, but the prices for the Floridian and the Cal are eye popping.

For VGC, at least, it’s because the DVC is so small and it’s the only DVC in California. If you want to stay at Disneyland via DVC, it’s your only option. It’s dues are also fairly low AND it’s an amazing resort, with a private entrance to CA and a quick walk to DL, so it’s really nice to own.

I am really glad I got my contract when it was “only” $195/point though at the time I remember cringing at how much that was. I doubt we’ll ever add on despite wanting more points because of the cost. But if I sell, I’m golden.

 

[vnovabri]

GFV are over priced, I think reseller companies are trying to artificially increase the price. You know they are over priced when there are more GFV contracts available than AK. It's too bad really but unless you really want GFV it's not a great buy when you can get a better deal on RIV direct.

 

[Pens Fan]

VGC is tiny. It you want to stay there for more than the odd day here or there you need to own there. I know there are exceptions (we actually snagged one night in a room there at about 2 months out to add on to an ABD trip), but if staying in a DVC villa in CA is a priority it makes sense to own there. Supply and demand. Hopefully when the new DVC tower at the DL Hotel is built prices at VGC will normalize a bit.

As for GFV? I have no idea. You can buy direct at Riviera for about the same price or even less in some cases. I know some folks just really love GFV, and want to make sure they have the 11 month booking priority, but I would never pay those prices for a resale contract. But then, while it's a nice resort the GFV isn't really our style. Obviously others feel differently and it's worth it to get that 11 month booking window. To each their own!

 

[kes601]

GFV are over priced, I think reseller companies are trying to artificially increase the price. You know they are over priced when there are more GFV contracts available than AK. It's too bad really but unless you really want GFV it's not a great buy when you can get a better deal on RIV direct.

Based on a report earlier this week on these message boards, there is a waitlist for every use year for GFV if buying direct from Disney. So that will drive resale prices up....

 

[Ruttangel]

Someone may confirm - I don't think VGC can be bought direct at $295 due to a waitlist? Which is weird as Disney is not buying back contracts here. that is pushing the resale price near direct
They are buying back VGF around $150 and the few listings that are available are way too high - I would still think it makes sense at $160 but listings are nearer $180 at the minute, direct at $255 is putting this resort above direct price of neighbors PVB and BLT

 

[EM Lawrence]

I was listening to an old podcast episode the other day, and a resale broker from this board’s sponsor was one of the guests. He casually mentioned that they usually have 500-600 listings on their website. As of this morning, they only have 266 listings, of which only 122 are active. If I was a broker, and my listing inventory was reduced to half of it’s normal volume, you can bet I would be doing everything in my power to drive the up the prices of the scant inventory that I did have!

 

[davidl81]

GFV are over priced, I think reseller companies are trying to artificially increase the price. You know they are over priced when there are more GFV contracts available than AK. It's too bad really but unless you really want GFV it's not a great buy when you can get a better deal on RIV direct.

How can a price be "artificially" raised? That would imply that collectively sellers were all okay waiting an extend period of time for there contracts to sell because they were priced too high relative to the market. Brokers are seeing how fast contracts are moving, what prices they sell at, where demand is etc and they are pricing them at the best price for the seller. Just like any real estate, the market will always dictate the actual price. So if brokers are trying to artificially raise the price, then buyers will just move onto other properties. These prices are what they are because people are buying them at that price point.

 

[vnovabri]

How can a price be "artificially" raised? That would imply that collectively sellers were all okay waiting an extend period of time for there contracts to sell because they were priced too high relative to the market. Brokers are seeing how fast contracts are moving, what prices they sell at, where demand is etc and they are pricing them at the best price for the seller. Just like any real estate, the market will always dictate the actual price. So if brokers are trying to artificially raise the price, then buyers will just move onto other properties. These prices are what they are because people are buying them at that price point.

I disagree. A lot of the GFV contracts have been sitting a lot longer than they have over the previous year, so I disagree. If the broker is telling people this is the price then they will trust that and it will take time for people to reduce the price because mentally they have already prepared themselves to sell at the higher price. Last quarter the prices were in the 160s, there was not some big change in supply and demand that drove prices up $30pp over a month or two.

 

[davidl81]

I disagree. A lot of the GFV contracts have been sitting a lot longer than they have over the previous year, so I disagree. If the broker is telling people this is the price then they will trust that and it will take time for people to reduce the price because mentally they have already prepared themselves to sell at the higher price. Last quarter the prices were in the 160s, there was not some big change in supply and demand that drove prices up $30pp over a month or two.

Where are you seeing contracts that are sitting for "a lot longer"? Timeshare store has 0 GFV listings, dvcresale has 13, but none more than 28 days old. Fidelity has 1 listing, dvcsales has 1. There is in no way "lot of the GFV contracts have been sitting a lot longer than they have over the previous year".

 

[Bjaiken77]

Based on a report earlier this week on these message boards, there is a waitlist for every use year for GFV if buying direct from Disney. So that will drive resale prices up....

I hope this isn’t true. I was thinking about adding on 40-50 points direct to VGF. I guess I’ll have to call and find out.

 

[kes601]

I hope this isn’t true. I was thinking about adding on 40-50 points direct to VGF. I guess I’ll have to call and find out.

Here is the post from the thread:
https://www.disboards.com/threads/direct-add-on-timeline.3832755/post-62861355

 

[Bjaiken77]

Here is the post from the thread:
https://www.disboards.com/threads/direct-add-on-timeline.3832755/post-62861355

Thanks. I’ll have to call and find out for myself. I doubt this last for long. If Disney can snag these at ROFR for 170, 180, or even 190 per point, there is a lot of profit to be made on selling them at $255/pp.

 

[_auroraborealis_]

Thanks. I’ll have to call and find out for myself. I doubt this last for long. If Disney can snag these at ROFR for 170, 180, or even 190 per point, there is a lot of profit to be made on selling them at $255/pp.

Less than you'd think, actually.

 

[paults]

We own BWV and would have liked to get GFV but now that they got rid of the band they won't have my business.

 

[Bjaiken77]

Less than you'd think, actually.

Really? I’m confused. Grab a
200 point contract at $170 and sell it for $255 plus fees. That sounds like an easy $17K to me. I may be missing some of the behind the scenes stuff. Keep in mind, they already profited on the original sale. This is just gravy. That’s how I look at it, at least.

 

[_auroraborealis_]

Really? I’m confused. Grab a
200 point contract at $170 and sell it for $255 plus fees. That sounds like an easy $17K to me. I may be missing some of the behind the scenes stuff. Keep in mind, they already profited on the original sale. This is just gravy. That’s how I look at it, at least.

When they take via ROFR they also have to close and do all that stuff around the title, to start. There is considerable staff overhead in the process throughout as well. So it's not just straight margin.

I'd add that it's easier in Florida than California. California has additional hoops to jump.

 

[Gf77]

ㅤ

 

[dboules]

I've been watching GFV for almost a year. The prices have always been higher than the surrounding resorts (BLT, Poly, BR, ...). This has had me on the fence for a while and I just can't justify the prices. I'll keep my BR and AK points and be happy I bought waayyy back when prices were much more reasonable.

 

[Heather07438]

They are relatively small and very popular. You need to be flexible and lucky to find a stay at 7 months. For people who don’t want the hassle or disappointment, paying the higher cost is worth it. The dues are decent so that helps offset the initial cost over the years.