Why Is Ssr Resale Priced So Low?

[CMOORE185]

Why do you think SSR resale sells for so low? I can understand it selling lower than AKL and BLT but it is selling lower than anything other than HH, VB, and some of OKW. Its dues are lower than most resorts and it's one of the newer resorts. Do you think it's because it is the largest resort and the resale market is flooded with it?

 

[WeLoveAriel0505]

It's a combination of several items........

Original buy-in price

Supply and Demand.....size of resort

Current resale market.

We love SSR so we always suggest to people to check it out as you may save some money on DVC buy-in via resale through SSR.

 

[Mickey'sApprentice]

There is usually availability at SSR during the 7 month window.
That makes the home resort advantage less appealing.

 

[CMOORE185]

What about having only a limited amount of tree house units available though, I thought this would make SSR more appealing. Is there no excitement for the tree houses?

 

[bobbiwoz]

What about having only a limited amount of tree house units available though, I thought this would make SSR more appealing. Is there no excitement for the tree houses?

There is excitement over the treehouses, and many have booked them. However, there are so few of them, relatively speaking that it's not a major selling point, imo. We don't own at SSR, I'm excited about them, but when it came down to buying SSR particularly for the treehouses, we passed. The resale prices are good, great actually, but still, we haven't bought there, maybe we will.

Bobbi

 

[LisaS]

What about having only a limited amount of tree house units available though, I thought this would make SSR more appealing. Is there no excitement for the tree houses?

There is excitement about them but not everyone has a large enough group to need one or wants to stay somewhere that is so far from the main part of the resort. DH and I travel alone so even though I think the tree houses look very cool, I wouldn't spend all those points to book one for the two of us. I would much rather stay in a boardwalk view 1BR at BWV or a Concierge studio at AKV, two examples where having the 11 month booking window is very helpful.

 

[JimMIA]

I can think of two other factors which help make SSR resale one of the best deals available right now.

The first is that there were some very good promotions with SSR.

When we bought our SSR add-on, we bought 120 points for $83 with the incentive (15% off) plus we got 100 free points. We used the free points very early and have continued to just bank many of our SSR points into the next year, so we effectively got 220 points for the cost of 120. Because of that promotion, you'll see a lot of <150 point contracts for sale now.

The other reason is that DVC was selling SSR during the buildup of the big debt bubble.

They were literally financing anyone who had either respirations, or a detectable pulse. The obvious strategy on DVC's part is that they could always foreclose and not really be out much because they have the option of reselling the points or adding them to their CRO inventory.

In reading DIS threads over the past 2-3 years, I've been appalled by some of the folks who were going into a major luxury purchase they clearly could not afford. And, to be honest, there are still some latecomers to that party nibbling here on the DIS now.

I think the DVC debt bubble is deflating now, and people who can't pay their loans are desperately trying to sell their DVC interest. The problem is, of course, many of them bought at $98 and are selling at $70, so they will be upside down and won't get enough to even fully pay off the loans. Unfortunately, they are going to learn a bitter lesson.

 

[Chuck S]

I think the DVC debt bubble is deflating now, and people who can't pay their loans are desperately trying to sell their DVC interest. The problem is, of course, many of them bought at $98 and are selling at $70, so they will be upside down and won't get enough to even fully pay off the loans. Unfortunately, they are going to learn a bitter lesson.

I agree, I think some SSR owners are pricing low to get their points sold quickly. They may be trying to avoid bankruptcy, or simply have a better, more immediate, use for those funds. They don;t really care if the points make it through ROFR, as they get their $$ either way. They make just want to get the $$ and run, even if it means losing a little, or just breaking even and not having a monthly loan/dues payment.

 

[JimMIA]

On the bright side, SSR resales are clearing ROFR at $70.

 

[culli]

On the bright side, SSR resales are clearing ROFR at $70.

YUP and for me it is good news. Fully loaded contract has me sitting on my deck at DWL drinking my blue moons waiting for dinner!

At a discount of about $35 pt of BLT or AKV I think it is a steal. I also don't mind SSR if I can't get another resort at the 7 month window. In the last year I have stayed at BWV, DWL, BCV and we have BLT for our Oct trip.......oh yeah the MF are fairly low too.

I was suprised for Oct BLT was open but no treehouses, I'm sure it is a combo of things to include most BLT owners have to use their DP.

 

[JimMIA]

I think THV is always going to be an 11-month window booking, just because there are so few of them. There are only 60 villas in THV.

 

[Chic]

On the bright side, SSR resales are clearing ROFR at $70.

Actually, SSR resales are passing ROFR at $65 a point. I just purchased a loaded 160 point contract this month. I think the price will go even lower before the economy starts recovering. I'll add more points if my prediction is accurate!

 

[Mississippian]

Why do you think SSR resale sells for so low? I can understand it selling lower than AKL and BLT but it is selling lower than anything other than HH, VB, and some of OKW. Its dues are lower than most resorts and it's one of the newer resorts. Do you think it's because it is the largest resort and the resale market is flooded with it?

I think it is because SSR is a virtual clone of OKW, except that OKW has really cheap point charts and giant units and SSR doesn't. When you consider the fact that the "extra years" are worth virtually nothing from an economic standpoint, then SSR points should trade at about 75 percent of what OKW points trade for.

So the only remarkable thing here is how high the SSR points have remained.

 

[gkrykewy]

I think it is because SSR is a virtual clone of OKW, except that OKW has really cheap point charts and giant units and SSR doesn't. When you consider the fact that the "extra years" are worth virtually nothing from an economic standpoint, then SSR points should trade at about 75 percent of what OKW points trade for.

So the only remarkable thing here is how high the SSR points have remained.

The gauntlet hath been thrown down . From a contrary point of view, SSR's facilities being 15 years younger has some value as well. Isn't OKW showing its age a bit?

 

[Mississippian]

The gauntlet hath been thrown down . From a contrary point of view, SSR's facilities being 15 years younger has some value as well. Isn't OKW showing its age a bit?

I agree, OKW doesn't look nearly as new and nice as SSR. But that is really the only difference. Give it another five years or so and you won't be able to tell which is newer.

 

[logan115]

Might be overpaying by a few points, but just got my offer accepted today on 160 SSR points, Mar UY, fully loaded with all 2008 points banked for $68.

Maybe I could've gotten it down to $65-$66, but I figure that the banked points are worth $8-$10 so I'm really paying more like $58-$60 - I can live with that for 45 years of trips We're also hoping to use our points for a May 2010 trip, so having gotten lucky finding a suitable loaded contract that we can hopefully be in the "system" with at 11 mos or less was also a factor.

Chris

 

[culli]

I think it is because SSR is a virtual clone of OKW, except that OKW has really cheap point charts and giant units and SSR doesn't. When you consider the fact that the "extra years" are worth virtually nothing from an economic standpoint, then SSR points should trade at about 75 percent of what OKW points trade for.

So the only remarkable thing here is how high the SSR points have remained.

Well depends on how you look at it.........I find it remarkable people are paying up to $35-$45 a pt higher for a 11 month booking window. At 7 months pts are pts worth the risk to many people for the cash savings.

 

[Buckeye Fan]

IMHO, Disney controls all of this for all of the resorts. Points will sell for as low as Disney allows them to go. If Disney was buying back SSR contracts for less than $80 a point, they would sell at $80 per point. Obviously, with SSR being as big as it is, Disney won't do that, but they absolutely have control over the floor.

You'll always have sellers (regardless of resort) who are willing to sell for well below market because they want or have to sell. It really doesn't matter what the seller is willing to take if Disney's going to buy it back. Just 2 -3 years ago, Disney was buying SSR back at $81 per point, and people were offering $83 - $85 just to ensure the contract passed. Different day, different time, different set of rules.

 

[Buckeye Fan]

Well depends on how you look at it.........I find it remarkable people are paying up to $35-$45 a pt higher for a 11 month booking window. At 7 months pts are pts worth the risk to many people for the cash savings.

While I LOVE SSR, I have to agree. Other than VB, I have had no issues booking any other resort (even at peak times) at the 7 month window! In fact, we're leaving for AKV in three weeks! I love to resort hop, though!

I have to own at SSR to balance out my fees at VB! Not sure whether to post a or a ! The way I have it figured out, the blended rate is about like owning all of my points at BWV. OT, though...

 

[CMOORE185]

SSR seems to be consistently passing ROFR below $70. I think tis economy is effecting Disney enough that they are buying back very few resales. In fact I haven't seen them buy back since 2008. Prices are going continue to drop until Disney decides to exersise their ROFR. How does everyone feel about this?