When buying resale, what do you not get?

[connorlevismom]

If you buy resale, what are the things that your do not get from Disney? Is there any reason to buy from Disney rather than resale?

Kristine

 

[RobDoc]

In terms of benefits, perks and services there will be no difference with a resale or purchase thru DVC.

The only things that might be different are small logo items sometimes provided by DVC to buyers - things like DVC tote bags. The purchase price of the resale, in most cases, will be far better than the value of the tote bag however.

 

[SSR]

Also, if you buy resale you pay closing costs ($300-600ish). With Disney, the closing costs are built into the higher price per point (or, as some say, there are no closing costs. I also think that sometimes if you buy direct from Disney they can work some "magic" on your initial reservation for you or otherwise sprinkle some pixie dust for you.

 

[Mtnman44]

Resale will take longer and there are some uncertainties such as ROFR or whether or not the sellers will back out or simply fail to mail in paperwork.

Buying direct is quite smooth and you have access to your points to make reservations almost instantly, well before official closing. For some, there is value in that. If you are in no hurry and find a good contract for sale, there is nothing wrong with resale.

 

[BEASLYBOO]

? Is there any reason to buy from Disney rather than resale?

Strictly a matter of savings, I personally could not afford to go through Disney. My sale with Jackie Apetz(?) took about 30 days from beginning to end. Not only that but I purchased a loaded contract with a prior years worth of banked points which I guess could equate to the 160 developer points some Disney buyers get.

 

[chalee94]

Also, if you buy resale you pay closing costs ($300-600ish). With Disney, the closing costs are built into the higher price per point (or, as some say, there are no closing costs.

actually, direct buyers do pay some closing costs - usually still less than resale - in their initial purchase with DVC. (later add-ons would be closing cost-free.)

 

[SSR]

actually, direct buyers do pay some closing costs - usually still less than resale - in their initial purchase with DVC. (later add-ons would be closing cost-free.)

Thanks for the correction, Charles. I was misinformed. Not the first or last time!

 

[jimaok]

I bought through Disney and got immediate use of my 160 points, plus 160 points from the previous year (no charge), the use year I wanted, NO CLOSING COSTS and I got a tote bag. (I bought OKW)

Chalee is WRONG- If you buy a previously sold out resort from Disney there are no closing costs. I know because I just did it in April 2009.

 

[DenLo]

When we bought our very first (initial) contract direct with Disney for BLT, we paid closing costs. When we purchased an add on contract at BLT through Disney there were no closing costs. We did not have immediate access to our initial points (had to wait until we were in the system), but on our add on contract at BLT we had access to the points that very afternoon.

So from my point of view chalee94 is correct.

I'm not sure why there is a difference for a sold out resort as jimaok says.

When we purchased a third contract at AKV via resale using the TimeShare Store there were closing costs.

 

[RobDoc]

Direct purchase of BLT, AKV and GCV will have closing costs for initial purchasers. The sold out resorts do not have closing costs with direct purchase (I suspect it is because they have previously been sold and reacquired by DVC). Add-ons (at all resorts) currently have no closing costs.

Originally, DVC did not include any closing costs with purchase. I think that initial purchases at OKW, VB, HH, BWV, VWL and even BCV had no closing costs associated with purchase from DVC. That was changed a few years ago for the resorts actively being sold, but the older resorts still do not currently have closing costs with direct purchases.

 

[logan115]

The biggest thing you don't get when buying resale is the opportunity to overpay for certain resorts

Chris

 

[lark]

If you need to buy into a brand new resort, like BLT or VGC, you get better inventory and choice of use years than waiting a couple of years before a choice of resale contracts is available on the market.

You also might get better financing terms, if you're planning to finance. I know there was a while during the credit crunch when people reported not being able to get financing for DVC resales, but I think that's freed up. Still, you should check rates carefully and be realistic about how long you will take to payoff the loan to get a full flavor of the financial decision.

Finally, as others have noted, you get your points immediately with direct, which is a benefit in year 1, but not really in subsequent years. And there are reports that if you have particular dates and times in mind when you buy, your guide may be able to get it for you if you purchase, even if it's otherwise "sold out."

 

[Crystal_27]

The biggest thing you don't get when buying resale is the opportunity to overpay for certain resorts

Chris

LOL- that's *exactly* what I was thinking.

 

[drusba]

The result of resale and purchase from Disney is the same: you are a DVC member/owner with the all the same rights, privileges, and obligations as others and are treated (or mistreated) by Disney the same.

There are some differences of significance in the purchase process, such as:

1. Disney automatically provides purchasers with all the applicable public offering statements, lengthy books which contain all the details of how the timeshare works, rules, what Disney can do to make your life miserable, etc. With resale they are not usually automatically provided and you should specifically request the owner's copies so that you have them.

2. If you buy from Disney you can start making reservations immediately after agreeing to purchase, with resale you have to wait until after closing, which can be a month to two after the initial agreement to purchase.

3. Disney financing is very easy to get. With resale you have to find financing if you need to finance.

4. All things are negotiable in resale such as price and how closing costs ard dues for the year are divided. Disney does not negotiate the price and terms it offers.

5. With resale, the buyer will likely have to pay for dues for the calendar year, often pro rated from time of sale and those will have to be paid in full at time of closing. With Disney you also pay dues for the portion of the year remaining after date of sale but not until a month or so after closing and you can pay them in monthly installments if you set up automatic withdrawal from your checking account. A resale purchaser can also set up monthly payments for dues but only beginning for dues for the calendar year beginning after the year in which the sale is done.

6. Resale is subject to Disney's right of first refusal, meaning it can step in and purchase for the price agreed to between buyer and seller and become the buyer and eliminate you from the transaction, meaning you will get any deposit back but will need to go look for another resale and start over. Usually Disney does not exercise the right but it can and has occurred on many occassions.

 

[BEASLYBOO]

. Disney automatically provides purchasers with all the applicable public offering statements, lengthy books which contain all the details of how the timeshare works, rules, what Disney can do to make your life miserable, etc. With resale they are not usually automatically provided and you should specifically request the owner's copies so that you have them.

I purchased and closed on my resale withing 30 days and 15 days after that Disney automatically sent me my Disney DVC Membership card and the beautiful book that explained each resort, the point structure and the rules, yada yada!. Of course that was in 2000 when DVC was still somewhat of a secret, I don't know what the time frame is now for receiving your documents etc..

 

[drusba]

I purchased and closed on my resale withing 30 days and 15 days after that Disney automatically sent me my Disney DVC Membership card and the beautiful book that explained each resort, the point structure and the rules, yada yada!. Of course that was in 2000 when DVC was still somewhat of a secret, I don't know what the time frame is now for receiving your documents etc..

That was the annual members manual you received which has seemingly become less "annual" these days. The public offering statements, one for the resort and one multi-site and which don't have any pretty pictures in them, contain all the legalese and set out all the rights, obligations, rules, etc. that apply to DVC and the various Disney entities involved. Many a resale purchaser never sees those until they purchase an add-on from Disney.

 

[SSR]

The public offering statements, one for the resort and one multi-site and which don't have any pretty pictures in them, contain all the legalese and set out all the rights, obligations, rules, etc. that apply to DVC and the various Disney entities involved. Many a resale purchaser never sees those until they purchase an add-on from Disney.

As a resale buyer, this is my concern. How do/will I learn about all of the banking/borrowing rules/windows, etc.? I feel like we don't even know what we don't know.

 

[OKWNutt]

I recently signed a sales contract to purchase some points at OKW and am currently waiting ROFR (20 days so far - but who's counting)
I requested from my broker the public offering statements which I received and read thoroughly before returning my sales contact and deposit.
The bottom line is that all of this information is available and should be reviewed by a potential buyer prior to purchasing rather they are buying resale or directly from Disney.

 

[SSR]

I recently signed a sales contract to purchase some points at OKW and am currently waiting ROFR (20 days so far - but who's counting)
I requested from my broker the public offering statements which I received and read thoroughly before returning my sales contact and deposit.
The bottom line is that all of this information is available and should be reviewed by a potential buyer prior to purchasing rather they are buying resale or directly from Disney.

I asked for and got the initial offering statement. However, I was told they've been subsequently amended more than once, and the broker didn't have them. Were you able to get your hands on any subsequenct amendments? In a perfect world, I would have had those before we bought, but oh well, I live on the edge.

 

[carlbarry]

As a resale buyer, this is my concern. How do/will I learn about all of the banking/borrowing rules/windows, etc.? I feel like we don't even know what we don't know.

I am a brand new owner. The yearly guide, which was sent to me within 3 days of closing, has the details of banking/borrowing/etc. Also, when you book a vacation, the MS person who does it for you will tell you what happens if you cancel, if you cancel 31 days before the date reserved, day before, etc.