Why are small point contracts in demand?

[LAX]

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!

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]

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]

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.

 

[MICKIMINI]

BAHAHAHAHAHA! Maybe there is a rehab facility that chronic DVC purchasers can attend.

Why just attend? Perhaps they sell points at that rehab facility LOL! Buy as much as you need, stay as long as you want!

 

[DVCSunDevil]

Why just attend? Perhaps they sell points at that rehab facility LOL! Buy as much as you need, stay as long as you want!

LOL, totally! That would be a prime selling opportunity for DVC. "Come to get cured from your addonitis, leave with a new 500 point contract".

 

[Lorana]

LOL, totally! That would be a prime selling opportunity for DVC. "Come to get cured from your addonitis, leave with a new 500 point contract".

Isn't that just DISNEY? ;-)

 

[Heather Dominick]

Is it easier to sell a DVC membership without or with a broker?
I am contemplating selling a 50 pt contract.

 

[supersnoop]

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]

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]

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]

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]

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?

 

[The Jackal]

BAHAHAHAHAHA! Maybe there is a rehab facility that chronic DVC purchasers can attend.

It was supposed to be Reflections, but that resort is on hold for now.

 

[Jodi Gross at DVCRM]

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.

 

[4luv2cdisney]

It was supposed to be Reflections, but that resort is on hold for now.

That's what I like to hear.... on hold. Not cancelled. I'm gonna keep wishing.

 

[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?

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.

LAX

 

[DVCSunDevil]

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.

LAX

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

 

[DVCSunDevil]

That's what I like to hear.... on hold. Not cancelled. I'm gonna keep wishing.

I heard it was cancelled. I hope I'm wrong.

 

[RoseGold]

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.

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 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.

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.