Why are some resales cheaper than others?

[veenstra56]

I am new to the whole DVC world. My wife and I have spoken with a rep at Saratoga Springs and have also taken the tour. We were impressed; seems much more flexible than Marriot and Hilton (two other companies we have been in contact with).
My question is:
Why is it that on the resale boards that some resorts (Vero Beach) can be had for much less ($75 pp) than others (Beach Club $90-95pp)? I am assuming that there are benefits to owning the 'popular' resorts, such as the ability to reserve 11 months out as apposed to seven months for non-home resorts, but is that perk worth spending so much more? Are the other perks?
I thought that maybe it was because of the annual dues, but OKW is one the least expensive resales, despite the fact that it's annual dues are some of the cheapest.
As a novice, it seems to me that it would be best to purchase cheaper points and simply book the more popular resorts.

 

[CarolMN]

I am new to the whole DVC world. My wife and I have spoken with a rep at Saratoga Springs and have also taken the tour. We were impressed; seems much more flexible than Marriot and Hilton (two other companies we have been in contact with).
My question is:
Why is it that on the resale boards that some resorts (Vero Beach) can be had for much less ($75 pp) than others (Beach Club $90-95pp)? I am assuming that there are benefits to owning the 'popular' resorts, such as the ability to reserve 11 months out as apposed to seven months for non-home resorts, but is that perk worth spending so much more? Are the other perks?
I thought that maybe it was because of the annual dues, but OKW is one the least expensive resales, despite the fact that it's annual dues are some of the cheapest.
As a novice, it seems to me that it would be best to purchase cheaper points and simply book the more popular resorts.

Don't underestimate the value of the 11 month vs 7 month booking feature - especially if you want to stay at one of the WDW DVC resorts with your points. It is getting more difficult to get a reservation for the smaller DVC resorts - BCV, VWL & BWV at the 7 month mark. The peak times for the DVC resorts are not always the same as peak times for the parks, either. BCV is very popular because of the pool complex - people are willing to pay a premium to be able to book there at 11 months.

Buy VB if you plan to stay there most of the time, if you wouldn't mind staying at SSR when you go to WDW (it's the largest and will be the easiest to get at 7 months) or if you can't plan at least 7 months ahead. Take a look at the VB dues - they are the highest of the DVC resorts and likely to remain so.

Best wishes -

 

[jekjones1558]

As a novice, it seems to me that it would be best to purchase cheaper points and simply book the more popular resorts.

If you are not fussy about where you stay, this approach will work. If you want to stay at one of the smaller resorts, especially at popular times, you will be disappointed in not being able to book these smaller resorts on a consistent basis. Many on these boards agree that as more DVC points are sold at larger resorts, it will become increasingly difficult to book the smaller resorts.
Since all of the DVC resorts are lovely in different ways, you can save money by buying where points and dues are cheapest. Just understand that you will need to be very flexible about your resort reservation choice and be willing to stay mostly at your home resort or one of the large resorts.

 

[Dean]

Contracts will vary in price based on the home resort, number of points available, size of the contract, knowledge and desperateness of the seller. Unless one is VERY flexible it's possible to make the none home resort 7 month window work in most cases. The problem with VB & HH is that you can't book on property at all until 7 months out where with say OKW and SSR, you can lock in your weeks, try at the 7 month window and wait list if necessary and hold out even until actual check in for possible success. Generally HH and VB would be over priced at $75 per point unless there were a ton of points available extra and favorable terms otherwise. IF one wanted to stay at either VB or HH part of the time though, it still might be a great option.

 

[crisi]

Many on these boards agree that as more DVC points are sold at larger resorts, it will become increasingly difficult to book the smaller resorts.

I think you are nuts to pay $90-95 for BCV (or $85-90 at VWL or BWV) if you are happy at OKW for $75 a point or don't care where you stay - so I sort of doubt these BCV contracts are being resold to people who aren't going to use their home resort advantage every opportunity they have.

 

[abner1776]

If you are very flexible with your schedule and you have not fallen in love with one particular DVC resort, then I would suggest buying the cheapest contract available. The smaller resorts command a higher price, but why pay it if you don't care to stay at those resorts.

If you always travel in Sept or Jan, then why pay the extra $$$ for the 11 month booking advantage when you could book at 7 months generally without a problem. Once yout get to 7 months, any member can book at any resort.

When buying resale, it is sometimes difficult to compare two contracts as one may be loaded with current points and the other one stripped. I good rule of thumb is that current points are worth $10 each since that is the going rate on the rental board. So, if you were looking at two 100 point BWV contracts and one was priced at $85 with no 2006 points but the other one was priced at $90 with all 2006 points, the $90 contract looks like a better deal. Obviously, the are other considerations such as who pays the dues, closing costs, etc. when making the final decision.

 

[crisi]

When buying resale, it is sometimes difficult to compare two contracts as one may be loaded with current points and the other one stripped. I good rule of thumb is that current points are worth $10 each since that is the going rate on the rental board. So, if you were looking at two 100 point BWV contracts and one was priced at $85 with no 2006 points but the other one was priced at $90 with all 2006 points, the $90 contract looks like a better deal. Obviously, the are other considerations such as who pays the dues, closing costs, etc. when making the final decision.

You also need to be concious of when the points expire. For instance, if the 2006 points are Feb points, and you don't make an offer until July, those points are six months from expiration. If you take three months to close (a long close resale, but not unheard of), you won't have access to make a reservation until early October. Now you have to travel within four months or rent out those points - they aren't worth $10 anymore - unless you had a January trip planned anyway.

Buying resale isn't mindless, if you are looking for the best deal.

 

[Plutofan]

Always remember that when you go resale everything (cost per point, who pays closing costs and who pays maintenance fees) is all negotiable. What ever you offer you need to make sure that it will pass Disney's ROFR. If you are patient usually you can find a good deal. You should factor in the annual dues when you make your decision. If you do a search on "dues increase summary" you can find a table showing a history of dues by resort by year. The dues are by far the largest cost.