When Direct Prices and Resale Prices Increase - What Does that Mean to Me?

[hayesdvc]

I wanted to write this post about the increases of prices of for both market places (Direct and Resale). Over the last several years (which includes a good economy) the prices on the resale market have increased as a percentage more than in recent memory. When you stalk the various resale brokers, many of the listed prices (many stripped contracts) makes you do a double take at the cost.

If you are currently wanting to become a DVC member or like me recently, want to add more points/different resort to your portfolio, do not fret. If you are using this site for research and information, you are already ahead of most that is in the same place as you; knowledge is power.

As 2018 begins, my two pieces of advise are the same as in 2017; buy where you want to stay and be patient. PS. This was the advise I was initially given .................... it has not changed. Did I mention, buy the majority (if not all) of your points in the resale marketplace.

We were all newbies at one time. The ROFR thread with its wide range of samples maintained by pangyal in this forum is arguably the most important thread for potential resale buyers. This thread gives you the actual amounts being paid entered by the actual buyer for current contacts. Remember, the "real" market price is only for sold contracts, not contracts for sale. My family wanted to add HHI. Points added to my membership last week. Paid less than $57 per point for partially loaded contract.

There are so many great users on this site that have helped me so much over the years. There are just too many to name because I will leave someone out ................... but I am going to try.

dean, kat4disney,scrapyap,jimmia,pangyal,carolmn

Thank you to the Disboards !

 

[kmorlock]

Ditto - your info has been invaluable in our purchase. One year later from most recent purchase and I can't even find a similar contract and price is way up.

 

[TeresaNJ]

Totally agree with you. We were originally direct buy DVC owners, had BCV & VWL from inception. Sold both contracts in 2014 due to buying a new home. Purchased a resale at AKV last February at 73pp, owner paid all 2017 dues, and closing costs. Was recently looking at resales and holy smokes!!! There is no way in hedoublehockeysticks I'm paying those kind of resale prices! I'll wait it out, or just be satisfied with what I have. Thank goodness I was patient when buying my resale last year. I looked for about six months, saw the awesome contract, gave my offer, which I really thought would be laughed at & couldn't believe it was accepted, at a resort I love with enough points for what I needed. Patience & knowledge is key when buying resale, definitely!

 

[ELMC]

As 2018 begins, my two pieces of advise are the same as in 2017; buy where you want to stay and be patient.

I'd like to start by saying that personally, I completely agree with this statement. We want to stay at BWV during Food and Wine and BLT other times of the year. So we bought those two resorts and book 11 months out to the day. But there is another school of thought, buy where you wouldn't mind staying. If you can be comfortable with this, there is the potential to save a lot of money. If you wouldn't mind staying at SSR but would like to test availability at the 7 month mark, you could do very well by buying SSR.

 

[pangyal]

I wanted to write this post about the increases of prices of for both market places (Direct and Resale). Over the last several years (which includes a good economy) the prices on the resale market have increased as a percentage more than in recent memory. When you stalk the various resale brokers, many of the listed prices (many stripped contracts) makes you do a double take at the cost.

If you are currently wanting to become a DVC member or like me recently, want to add more points/different resort to your portfolio, do not fret. If you are using this site for research and information, you are already ahead of most that is in the same place as you; knowledge is power.

As 2018 begins, my two pieces of advise are the same as in 2017; buy where you want to stay and be patient. PS. This was the advise I was initially given .................... it has not changed. Did I mention, buy the majority (if not all) of your points in the resale marketplace.

We were all newbies at one time. The ROFR thread with its wide range of samples maintained by pangyal in this forum is arguably the most important thread for potential resale buyers. This thread gives you the actual amounts being paid entered by the actual buyer for current contacts. Remember, the "real" market price is only for sold contracts, not contracts for sale. My family wanted to add HHI. Points added to my membership last week. Paid less than $57 per point for partially loaded contract.

There are so many great users on this site that have helped me so much over the years. There are just too many to name because I will leave someone out ................... but I am going to try.

dean, kat4disney,scrapyap,jimmia,pangyal,carolmn

Thank you to the Disboards !

I completely agree with your points and think it’s important to maintain an aggregate of what people are actually paying, especially as brokers see dollar signs with prices heading upwards and inflate the costs to a sometimes ridiculous degree. It also reminds me that I need to start the 2018 thread tomorrow and that once again, I want to thank Scubacat for his hard work on that amazing ROFR tool!

Now, for my unsolicited two cents- I’ve heard people tossing around the expiration dates of the 2042 resorts as a counter argument to “buy where you want to want to stay”. I’d just like to gently point out that 24 years is a LONG time to “settle” for a different resort if it’s solely for the reason that there is concern about the end dates. Heck, that’s like 96 more ROFR threads! A very long time to borrow trouble, as the old saying goes.

 

[Wakey]

Buy where you want to stay is often stated as gospel, and often wrong. Many people buy DVC for the 1 beds. Many people also buy only intending to travel quieter times like summer. If that is you, buy where you want to stay could be spending a lot more monetly than is necessary.

 

[Bing Showei]

Buy where you want to stay is often stated as gospel, and often wrong. Many people buy DVC for the 1 beds. Many people also buy only intending to travel quieter times like summer. If that is you, buy where you want to stay could be spending a lot more monetly than is necessary.

When it comes to 1-BR and low DVC demand times this is absolutely true today.

The caveat there is that, as others have pointed out, DVC is a long term commitment. Your travel patterns today may change in three, five, ten years. Many lament today what they used to be able to do just three years ago. DVC popularity is on the rise and if you're interested only in staying in specific resorts, or traveling between November and March (high demand DVC season), you need to be ok with your home resort.

People are presently walking 1BR VGF at the 11-month mark for early December, and Thanksgiving is gone, for example.

One specific scenario that would support "buy where you want to stay" is if in the future there is some rebalancing or reallocation of points between studios and 1BRs. Today, 1BRs are nearly 2x the price of a studio. If that were to ever shift where 1BRs became cheaper as studios went up, you'll find an 11 month advantage to 1BRs of greater value than they are today.

 

[Wakey]

When it comes to 1-BR and low DVC demand times this is absolutely true today.
.....if you're interested only in staying in specific resorts, or traveling between November and March (high demand DVC season), you need to be ok with your home resort.

People are presently walking 1BR VGF at the 11-month mark for early December, and Thanksgiving is gone, for example.

Totally agree with that.

Re shifting demand, possible, but unlikely. The points rebalancing would have to be extremely significant. 1 beds (apart from AK Club, BLT 1 bed standard) are very easy to get non busy times, often can get them 6, 5 months. I could have even booked AKV value 1 bed next July for 2 successive weeks. Point is, 1 bed availability at 7 months is not teetering on the edge, it is wide open during quieter DVC periods.

As stated, I totally agree with your points copied above, in those circumstances buy where you'd like to, or wouldn't mind staying. But this mantra is often quoted as gospel, when it can in some circumstances be the wrong advice. It should be remembered not everyone wants a studio mid September to early January.
Cheers.

 

[hayesdvc]

Thanks for all the great comments.

Hoping your DVC vacations and purchases will be exactly what you want in 2018.

 

[ckb_nc]

Paid $70 at SSR 3 years ago almost exactly - I think I might be able to resale and end up with a net zero in costs across three years with 15 nights or more of accommodations. Never would have ever guessed that. Want more points but can't make the math work