When you buy resale.....

[MinniesYooHoo]

Do you have to place a down payment? Who pays closing costs?

 

[LouisianaDisneyFan]

Yes, a down payment is held by the closing agent until the property passes ROFR... and it doesn't seem to be based on the amount of the contract. We've have four resale contracts so far:

50 points -- down payment $1000 (through DVCbyresale.com)
100 points -- down payment $1000 (through **********.com)
110 points -- down payment $500 (through Fidelity)
150 points -- down payment $1000 (through **********.com)

I'm uncertain how they decide what the down payment will be, so check with your agent. If Disney does not waive ROFR on the contract, then your deposit is returned. If Disney does waive ROFR and you do not complete your end of the transaction, the deposit is forfeited. Typically, the buyer pays all closing costs, which do vary by the total negotiated price of the property.

 

[Husurdady]

Do you have to place a down payment? Who pays closing costs?

Down payment [ deposit ] is 10% from resale. buyer pays C-cost,again from resale, plus there is a $50.00 fee for ROFR.

 

[LouisianaDisneyFan]

Down payment [ deposit ] is 10% from resale. buyer pays C-cost,again from resale, plus there is a $50.00 fee for ROFR.

Which company just asks for 10% on a resale? Our contracts certainly weren't for $10,000 each, but in the majority of cases, we were required to pay a $1,000 deposit.

 

[extremesoccermom]

This is my second resale transaction through Fidelity. They require $500.00 deposit but you can do up to $1000.00 if you want (I like to go with 1000.00 because they allow credit cards for the down payment - Diseny rewards).
The closing cost and yearly dues are negotionable. Our first one at SSR for 50 points we split the cost with the seller. The current one did not want to pay any of the closing so I will be paying all of it. But we are still negotiating because they points available in the contract are incorrect.

 

[MinniesYooHoo]

Ok, what is ROFR?

 

[LouisianaDisneyFan]

Ok, what is ROFR?

In all new sales from Disney, they include a clause that gives Disney the Right of First Refusal on any resale. In other words, when you find a contract that you want, that contract must first be submitted to Disney. Disney has 30 days to say "Oh, we like that contract, so we're buying it ourselves!" Or, Disney can refuse the contract and then you get to complete the sale. There is a thread with a summary of past sales that have either passed or failed ROFR here on Disboards (maintained by Donald #1), so you can take a look at what prices historically have passed or not passed First Refusal by Disney. Here's a link to that thread: http://www.disboards.com/showthread.php?t=1960185

 

[tammymacb]

I think The Timeshare Store asks for a 10% downpayment.

I'm in the process of a second add on with **** and I've put down a $1000 downpayment for both of those.

For closing, I didn't know better and offered full price and paid closing for the first two contracts. Contract #3 I offered full ( great ) price and asked the seller to pay closing. They accepted. For the 4th contract I expected to negotiate. I offered $5.00 per point less than ( very low ) asking, asked the seller to pay '10 MFs and they'd used 2/3rds of them and asked to split closing costs. No counter, they accepted. That contract hasn't come back from ROFR yet.

 

[LouisianaDisneyFan]

I think The Timeshare Store asks for a 10% downpayment.

I'm in the process of a second add on with **** and I've put down a $1000 downpayment for both of those.

For closing, I didn't know better and offered full price and paid closing. Contract #3 I offered full ( great ) price and asked the seller to pay closing. They accepted. For the 4th contract I expected to negotiate. I offered $5.00 per point less than ( very low ) asking, asked the seller to pay '10 MFs and they'd used 2/3rds of them and asked to split closing costs. No counter, they accepted. That contract hasn't come back from ROFR yet.

Sounds like we are cut from the same cloth. For the first resale, I jumped on it as soon as it hit the market... paying WAY more than I should have. It was a 50-pointer at BWV and I stick out like a sore thumb on the resale list on Donald #1's thread... just look for the highest price per point on that list!

I got a bit more savvy by the next contract, made an offer, the seller countered, and I accepted the counter. The price for this 100-point contract was $15/point less than I had paid for the first contract. I didn't try to negotiate on closing costs or MF's as the seller was being fair with those... prorated.

Third and fourth contracts, I again made offers below the asking price, but did not ask for a break on the closing costs or MFs. My offers were accepted for both of these. I'm still awaiting ROFR on one of these.

To the OP, look over the thread linked above and see what you think would be a fair price. Then make an offer. Don't let the asking price sway you from a possibility. Just make an offer for what you are willing to pay (and what you think is fair based on the available points) and go from there.

Good luck! Evey =)

 

[JimMIA]

Ok, what is ROFR?

As explained above, it's Disney's Right of First Refusal. To a seller, ROFR doesn't matter -- they get their money from Disney, or if you pass ROFR, they get it from you.

Before you make an offer, be sure you have looked carefully at that ROFR thread and are pricing your offer HIGH ENOUGH that it will pass ROFR. Be an informed consumer, but don't be too cute. You don't want to lose a contract that would have been perfect for your family for $1-2 per point.

We've seen that happen dozens of times over the years when Disney exercises ROFR and the prospective buyer ends up with nothing but their deposit back.

 

[tammymacb]

IMO, in this market, I'll test it and see what I can get.

Now, I'm already an owner and have all my points in one resort so I'm not waiting to be able to make a reservation. But, somebody has to have the lowest passing price on the "waiting for ROFR thread". Why not me?

However, it won't be me. I offered exactly $1 dollar more than the lowest passed price on the thread. We'll see.

 

[godalejunior]

I paid ten percent down on my TSS resale last month, that is what was requested.

 

[MinniesYooHoo]

Wow! Thanks for all of the great info. I'm learning a lot! Be prepared to have more questions from me!

 

[LouisianaDisneyFan]

My personal belief is that Disney is currently passing on anything other than Beach Club contracts. Beach Club is a smaller resort and there are many folks who go directly to Disney for small add-ons there. So, to have ROFR waived there, you will need to make a very reasonable offer. But, from what I've been told about what is passing from two different agents, it's obvious that Disney is focusing on sales of existing inventory right now and not looking to acquire more contracts. My advice is, if you can find a willing seller at your desired price, go for it right now... before Disney rethinks their position.

 

[SassyLassy]

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!

 

[LouisianaDisneyFan]

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!

It's not really "failing" when Disney exercises their Right of First Refusal. Disney is simply purchasing the contract instead of allowing the intended buyer to purchase it. Disney maintains an inventory of points at existing resorts for those folks who want to add on to their existing contracts directly through Disney. Say someone owns at AKV and they want to add another 50 points there. Well, they could look for a resale contract for this amount, and hope to match their UY, or they could contact their guide and say they want to add on 50 points. Disney may have that contract already in their inventory, or there may be a contract going through ROFR that would match up with the member's request. In that case, Disney would exercise their right and purchase the contract, and then resell it directly to the person who made the request. It's a quick turnaround for Disney and keeps the members who go directly to them for points happy. The seller still gets the amount of money they agreed to sell for, but the original buyer loses in this scenario. The original buyer gets their deposit back, but they've wasted all the time and effort of negotiations and waiting for a decision on ROFR.

Disney is in active sales for several resorts right now, and it's my belief that they have sufficient current inventory to meet add-on demand at all sold-out resorts except Beach Club. Now is an excellent time to make a lower offer and have a hope of getting through ROFR.

 

[MinniesYooHoo]

It's not really "failing" when Disney exercises their Right of First Refusal. Disney is simply purchasing the contract instead of allowing the intended buyer to purchase it. Disney maintains an inventory of points at existing resorts for those folks who want to add on to their existing contracts directly through Disney. Say someone owns at AKV and they want to add another 50 points there. Well, they could look for a resale contract for this amount, and hope to match their UY, or they could contact their guide and say they want to add on 50 points. Disney may have that contract already in their inventory, or there may be a contract going through ROFR that would match up with the member's request. In that case, Disney would exercise their right and purchase the contract, and then resell it directly to the person who made the request. It's a quick turnaround for Disney and keeps the members who go directly to them for points happy. The seller still gets the amount of money they agreed to sell for, but the original buyer loses in this scenario. The original buyer gets their deposit back, but they've wasted all the time and effort of negotiations and waiting for a decision on ROFR.

Disney is in active sales for several resorts right now, and it's my belief that they have sufficient current inventory to meet add-on demand at all sold-out resorts except Beach Club. Now is an excellent time to make a lower offer and have a hope of getting through ROFR.

This is awesome advice. It certainly is helping me with my decision to do the low buy-in with Disney, or to go through resale. Thanks!!!

 

[SassyLassy]

Great, thanks for the info.

I wasnt sure if the price really was negotiable. I guess I will see for myself when we go down to talk to them. I am going to try to knowledge myself the best I can without "overstepping" I dont want to ask for say $5 off each point then be laugh off to Stormaway Bay!

I think we are steering towards BWV or VWL although depending on price we would consider others. I think all besides SSR and that mainly is because it seems lacking in theming. It may seem silly but being in the feel of Disney Magic even when we step out our doors is important.

Thanks again!!

 

[LouisianaDisneyFan]

Great, thanks for the info.

I wasnt sure if the price really was negotiable. I guess I will see for myself when we go down to talk to them. I am going to try to knowledge myself the best I can without "overstepping" I dont want to ask for say $5 off each point then be laugh off to Stormaway Bay!

I think we are steering towards BWV or VWL although depending on price we would consider others. I think all besides SSR and that mainly is because it seems lacking in theming. It may seem silly but being in the feel of Disney Magic even when we step out our doors is important.

Thanks again!!

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.

 

[Jason@dvcstore]

Do you have to place a down payment? Who pays closing costs?

When buying from The Timeshare Store, Inc.® typically a 10% down payment is required and the buyer normally pays the closing costs (although you can present offer where seller pays all or portion of closing costs). The buyer typically pays the purchase price (whatever buyer and seller negotiate), the closing costs and the annual dues on the points they are receiving for the current year and the seller is then reimbursed accordingly (some listings say "no annual dues until 2011" and on those you don't pay any dues until January 2011).

I hope that helps. Be advised that at The Timeshare Store, Inc.® we receive about 150 to 180 new listings every month. If you would like to be notified when those new listings are posted please email us at sales@dvcstore.com with your name.

I hope that helps.

Jason