When Will Resale Values Drop?

[RobDoc]

Originally posted by Tagrel
So, you think Disney will purchase back points at a high price, that they CAN'T resell at going rates? If they resell these points cheaply, then they would be competing with their own 'full price' sales OR have to pay maintenance on them. I'm not saying they are doing it for huge profit - but I doubt they'll want to take a big loss doing it either.

No, as I've already stated in this thread, I think there will be a time in the future when DVC stops using ROFR to prop up resale prices and allows then to drop as with most other timeshares. If there are some they feel are too low, they will purchase them with the thought of keeping them for rental themselves- but at some point they will not be able to resell ROFR contracts as add-ons and will allow the prices to drop to what ever the market will bear.

At the current time, as long as sellers/buyers/brokers know that Disney may exercise ROFR, asking prices will remain at the present level. Once buyers and brokers become aware that resale are going thru at lower rates, the prices will drop. Many sellers list their contracts now because they are in financial distress and want a fast sale. If they list it for $63- they are likely to get a quick offer and Disney will exercise ROFR and the traqnsaction wil go to completion quickly. If they ask $70- it may add a few weeks to the process for some resales.

When Disney starts allowing resales to pass ROFR at lower levels, word will get out quickly and will affect both future listings and offers. It is dependant on the motivation of the seller and the intent of the buyer in looking for a bargain.