When you buy resale.....

[JimMIA]

What is a common reason that Disney will "fail" them? (I have been researching us finally being DVC members and this point always confused me)

Thanks!

1. The resale price is too low for Disney's liking. They use ROFR to try to maintain a reasonable price level of resale so buyers don't flock to resale rather than buy from them. Truth is, most people who buy direct don't even know the resale market exists!

2. Sometimes they seem to buy up smaller contracts (<100 points). The theory is that the administrative costs of a small contract are about the same as a large contract and DVC is better off with those smaller contracts out of their system. Recently, however, DVC themselves have reversed course and started selling small contracts due to sales pressures.

There are no guarantees, but you can gain some protection against ROFR by a) doing your own research here on the DIS, and b) using an experienced reseller who sells a lot of contracts and has a good feel for ROFR prices.

In pricing, it's important to price your offer so that you have a good chance of success. It would be a shame to lose a perfect contract to ROFR for $200, but it happens all the time. A little research and some good professional help will make that less likely.

 

[SassyLassy]

Sassy, price is negotiable with resale, but not when you purchase directly from Disney. Are you planning to purchase direct from Disney or did you plan to talk with a local resale agent when you go down to Orlando? Sometimes the incentives Disney offers are increased, but the base prices for points at sold-out resorts (like BWV and VWL) directly from Disney are considerably higher than resale.

I did even think ppl did this. I thought that I would just go through The Timeshare Store or DVC by resale.com. It will be interesting to see what incentives might be going on right now, I figure they would have to be good to steer us away from the better price point of resale but we are exploring all options.

1. The resale price is too low for Disney's liking. They use ROFR to try to maintain a reasonable price level of resale so buyers don't flock to resale rather than buy from them. Truth is, most people who buy direct don't even know the resale market exists! <--I was thinking this. It doesn't make sense to me why people would buy directly from Disney (I'm sure there are the exception) when the it seems as though resale has the better price point. A few dollars difference but when I look at resale vs buying from Disney its a HUGE difference!

2. Sometimes they seem to buy up smaller contracts (<100 points). The theory is that the administrative costs of a small contract are about the same as a large contract and DVC is better off with those smaller contracts out of their system. Recently, however, DVC themselves have reversed course and started selling small contracts due to sales pressures.

There are no guarantees, but you can gain some protection against ROFR by a) doing your own research here on the DIS, and b) using an experienced reseller who sells a lot of contracts and has a good feel for ROFR prices.

In pricing, it's important to price your offer so that you have a good chance of success. It would be a shame to lose a perfect contract to ROFR for $200, but it happens all the time. A little research and some good professional help will make that less likely.

Would someone lose it by asking for a lower price point per point. For example, if there was a resale up for $68 per point but I said I would pay $60 or even $62 I can see someone rejecting that or "losing" the contract.


Lots of great information and I thank you for all the knowledge you are helping me gain. Sometimes how to become DVC members can get a bit overwhelming and head-spinning when I try to research!

 

[JimMIA]

did even think ppl did this. I thought that I would just go through The Timeshare Store or DVC by resale.com. It will be interesting to see what incentives might be going on right now, I figure they would have to be good to steer us away from the better price point of resale but we are exploring all options.

Unlike other timeshare companies, DVC salespersons will not usually directly lie to you (mine has on a couple of occasions). However, they will certainly put their product in the best possible light, and if you ask about resale, they're liable to say just about anything to get you to buy from them. Most of the time, they'll just try to make you feel uncomfortable buying from "someone you don't know" as opposed to Disney, but sometimes they'll just flat lie about resale.

I would not believe a word any DVC guide says about resale. Folks here on the DIS will tell you the truth.

Also, if a guide starts bad-mouthing resale brokers, just remember that most of the resellers have been in business as long as DVC and they have to follow exactly the same strict Florida laws and regulations that govern DVC. Florida's real estate market is very tightly regulated and very safe.

<--I was thinking this. It doesn't make sense to me why people would buy directly from Disney (I'm sure there are the exception) when the it seems as though resale has the better price point. A few dollars difference but when I look at resale vs buying from Disney its a HUGE difference!

Today, there is a huge difference, but it has not always been so. We bought resale first, but then there was a great promotion on SSR and we bought direct. However, at that time, there were very few SSR contracts on the resale market and the direct price was actually better. For most resorts, that is not the case today.

Would someone lose it by asking for a lower price point per point. For example, if there was a resale up for $68 per point but I said I would pay $60 or even $62 I can see someone rejecting that or "losing" the contract.

Resale prices are negotiable -- you can offer whatever price you want.

However, you have to understand that it makes no difference to the seller who buys their contract. As long as a seller gets a price they are comfortable with, they don't care whether the check comes from you or Disney. If the sale doesn't pass ROFR, that just means Disney took your place as the buyer at the same terms the seller had already agreed to, so the seller gets the same amount of money either way.

Over the years, we've seen many prospective buyers make lowball offers and get ROFR'd for just a few dollars. In some cases, people have been ROFR'd 3-4 times on contracts that would have been perfect for their family before they learned their lesson.

So you want to get a good price -- but don't lose it in the lights by trying to nickel and dime a seller. As one wise person posted once: "The best deal is the one with your name on it!" meaning yours, not Disney's.