Why are small point contracts in demand?

LAX

DIS Veteran
Joined
Mar 13, 2016
Great points! We're adding small contracts with retirement in mind. I think you need to be at a certain age to think like this about DVC LOL! @LAX gets it regarding aging "gracefully" as a DVC Member! :rolleyes1
I can't take credit for it. I read it somewhere here on DIS during my research on DVC when I bought a couple of years ago.

LAX
 

Yinn

DIS Veteran
Joined
Sep 4, 2019
Still looking for my first DVC resale contract.

I'm wondering why 25 pt contracts are so in demand even though the price is way high.

For example, the average resale price at Saratoga Springs is about $110 per point.

- 25 points contracts are listed from $129 to $145 per point.
- Add closing cost of about $500 ($20 per point)

So I could end up paying between $149 to $165 per point.

I would buy only if the price is near the average resale price.

So why would anyone pay such a high price for a small contract? Maybe they know something I don't.
DVC members get some DVC and they swear they're good. I've done the math, I know exactly how many points I need. I'll only use it once a year, I've got it under control.

But it's not soon after that they find they're itching for the next trip. Or the next bedroom size up. Or that sunset savanna view... If I only had 25 more points, it's just 25 points. I still have it under control. The dues are cheaper than a stay at a value. The giraffes..have you seen the giraffes? They're worth it.

But soon after, we find that well if we stretch our points maybe we can go twice a year. and if you go twice a year, you get an annual pass. And if you get an annual pass...it just makes sense to get more points. 100 points? Oh no, I don't need that many. I don't have a problem here. No way, I can make my current points work. But I'm just shy of being able to cover two trips..maybe another 25 point contract. I've got this under control....
 

DVCSunDevil

DIS Veteran
Joined
Mar 1, 2020
DVC members get some DVC and they swear they're good. I've done the math, I know exactly how many points I need. I'll only use it once a year, I've got it under control.

But it's not soon after that they find they're itching for the next trip. Or the next bedroom size up. Or that sunset savanna view... If I only had 25 more points, it's just 25 points. I still have it under control. The dues are cheaper than a stay at a value. The giraffes..have you seen the giraffes? They're worth it.

But soon after, we find that well if we stretch our points maybe we can go twice a year. and if you go twice a year, you get an annual pass. And if you get an annual pass...it just makes sense to get more points. 100 points? Oh no, I don't need that many. I don't have a problem here. No way, I can make my current points work. But I'm just shy of being able to cover two trips..maybe another 25 point contract. I've got this under control....
BAHAHAHAHAHA! Maybe there is a rehab facility that chronic DVC purchasers can attend.
 

supersnoop

What time is the three o'clock parade?
Joined
Nov 13, 2013
Is it easier to sell a DVC membership without or with a broker?
I am contemplating selling a 50 pt contract.
From a buying perspective, there is no benefit to avoiding a broker, but there is a whole lot of increased risk. On a 50 point contract, a seller might net $500 more, but would have to handle a lot of the work, along with some increased risk.
 

Yinn

DIS Veteran
Joined
Sep 4, 2019
Is it easier to sell a DVC membership without or with a broker?
I am contemplating selling a 50 pt contract.
From a buying perspective, there is no benefit to avoiding a broker, but there is a whole lot of increased risk. On a 50 point contract, a seller might net $500 more, but would have to handle a lot of the work, along with some increased risk.
As long as one still goes through a closing agent/titling agency, the risk is still minimal. The funds are escrowed, official contracts, etc. It's the same as selling a house via a real estate agency or selling it by owner.

If you just cut out the broker, that's a 8-10% savings. On a 50 pt contract for $100/pt, that's $400 total savings. $200 of which could go to the buyer - that's $4/pt. The savings would increase as the price per point goes up. The seller would still have to do a lot of the work and find a buyer, but that could work out for both parties.
 

supersnoop

What time is the three o'clock parade?
Joined
Nov 13, 2013
As long as one still goes through a closing agent/titling agency, the risk is still minimal. The funds are escrowed, official contracts, etc. It's the same as selling a house via a real estate agency or selling it by owner.

If you just cut out the broker, that's a 8-10% savings. On a 50 pt contract for $100/pt, that's $400 total savings. $200 of which could go to the buyer - that's $4/pt. The savings would increase as the price per point goes up. The seller would still have to do a lot of the work and find a buyer, but that could work out for both parties.
Discounting the cost to the buyer only increases the chances of ROFR. The buyer should be negotiating the price regardless of whether it's a private sale or through a broker; a buyer wouldn't see any discount.
 

LAX

DIS Veteran
Joined
Mar 13, 2016
Discounting the cost to the buyer only increases the chances of ROFR. The buyer should be negotiating the price regardless of whether it's a private sale or through a broker; a buyer wouldn't see any discount.
Do non-monetary gifts need to be disclosed to DVD in a private transaction? Perhaps the "discount" can be in the form of park tickets to the buyer. When a broker is not involved, I imagine one can get creative with discounts without worrying ROFR.

LAX
 

supersnoop

What time is the three o'clock parade?
Joined
Nov 13, 2013
Do non-monetary gifts need to be disclosed to DVD in a private transaction? Perhaps the "discount" can be in the form of park tickets to the buyer. When a broker is not involved, I imagine one can get creative with discounts without worrying ROFR.

LAX
Yes, anything of value would have to be disclosed with an associated monetary value to ROFR. Sure, there are lots of way to get away with fraud without a broker, but, again, what's the benefit to the buyer?
 

Jodi Gross at DVCRM

Earning My Ears
Approved Advertiser
Joined
Jan 1, 2021
At that price per point, you can buy some resorts like Hilton Head, Vero Beach, OKW and Saratoga Springs direct from Disney. Granted I believe you would need to buy more than 25 points, but you would get the benefits of buying direct. I know because I was just looking at add-ons last night.
Hi there,

The issue with this is that VB and HH expire 12 years earlier than say, Saratoga Springs and the dues are $4 more pp. and as you mentioned, Disney will not sell 25 pts as a master contract. This is why small contracts on the resale market sell for a premium and within minutes usually.
 

LAX

DIS Veteran
Joined
Mar 13, 2016
Yes, anything of value would have to be disclosed with an associated monetary value to ROFR. Sure, there are lots of way to get away with fraud without a broker, but, again, what's the benefit to the buyer?
What fraud? If I disclose the value of park tickets as a discount to the buyer, DVD would have equal opportunity to take the same deal. The potential benefit to the buyer would be a better price without worrying about ROFR (unless DVD takes the deal with park tickets). Just because people get creative doesn't automatically mean it has to be illegal. :rolleyes1

LAX
 

DVCSunDevil

DIS Veteran
Joined
Mar 1, 2020
What fraud? If I disclose the value of park tickets as a discount to the buyer, DVD would have equal opportunity to take the same deal. The potential benefit to the buyer would be a better price without worrying about ROFR (unless DVD takes the deal with park tickets). Just because people get creative doesn't automatically mean it has to be illegal. :rolleyes1

LAX
Exactly. Just because something might be a "poison pill" in a contract doesn't mean it is illegal.
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
What fraud? If I disclose the value of park tickets as a discount to the buyer, DVD would have equal opportunity to take the same deal. The potential benefit to the buyer would be a better price without worrying about ROFR (unless DVD takes the deal with park tickets). Just because people get creative doesn't automatically mean it has to be illegal. :rolleyes1

LAX
I'm grateful I don't know enough about FL timeshare law to be able to argue this. But... if this were true, why wouldn't you just pay for all your DVC in shares of Universal to get past ROFR? I'd think ROFR can just jump in with the cash equivalent.
 

supersnoop

What time is the three o'clock parade?
Joined
Nov 13, 2013
What fraud? If I disclose the value of park tickets as a discount to the buyer, DVD would have equal opportunity to take the same deal. The potential benefit to the buyer would be a better price without worrying about ROFR (unless DVD takes the deal with park tickets). Just because people get creative doesn't automatically mean it has to be illegal. :rolleyes1

LAX
I remember hearing a story about someone including a boat in the sale. They had to provide an appraisal of the value and it got taken in ROFR based on the cash equivalent. You said you could "get creative with discounts" which sure smells like you're trying to hide the value of consideration in the contract.
 

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