Why NOT buy resale?

[worldfamous]

In looking at the prices, it looks like I could buy 200 points for the same price as 160 pts through Disney (approx).

I know there are incentives; but if I forego those, I'd have 40pts. more per year for 40+ years...right?

 

[mel&me]

Well yea, if you bought 200 instead of 160 you would have more.
Resales are usually less to buy but you need your own financing and you have to pay closing.
People go thru Disney because they either don't know about resales; they need the financing from Disney or are trying to get a particular home resort.

 

[mel&me]

Added note the amount of years depends on where you buy.
All Home resorts end in 2042 except SSR, and AKV

 

[rigsby25]

We originally bought 160 SSR points, but I cancelled the sale when we returned home due to a merger announcement at work. I wasn't sure if I would have a job or not. Being home we researched a little and found these boards. We learned everything we could and wound up buying a 210 point resale contract at OKW for about the same amount of money. We have stayed everywhere now except for boardwalk. All of the resorts are wonderful. I love the less points per room and bigger rooms at OKW. But every resort has something nice. We bought (2) 50 point contracts at AKV because we like it there and because of the extra years. I don't know how long it will be until AKV hits the resales.

 

[bobbiwoz]

Sometimes the resale is stripped of current points and even sometimes the next years points, you can get a better deal going through Disney. This is especially true of BCV now.

Resales take longer to close because of the ROFR process. Also, because of ROFR, the good deal may disappear to Disney! We tried a VWL resale first, it was taken, then we jumped into BWV from Disney because of the buying in deal that they had.

We have successfully added on twice via the resale process since that initial time.

Bobbi

 

[Coach81]

I can give you two good reasons why people go through Disney- STRESS & TIME! If you go through resale (which we are closing now on our first resale ) you have to submit the contract, wait for the other party to submit. Then you have sweat out the 2 - 3 weeks waiting to see if Disney will steal it from you (ROFR). Our first deal did not pass and we were heartbroken : ( So I quickly resubmitted another contract (for more money per point), and it went through. Long story (and time) short- it will have taken us about 2.5 - 3 months to get this deal done from planning to- "in" the Disney system (that part is coming soon, we can't wait)

If you go through Disney.. you call and you are basically in.. much less stress, and much faster!

If you want more info on our experiences, send me a PM.

Good luck,
Coach

 

[vwlvette]

Don't assume that most resale contracts are stipped. We purchased a 300pt VWL contract in Jan, We received 300 2006 points which we banked, getting all 300 2007 points in Nov. The seller payed the 2006 MF we paid 2007 + closing costs. we purchased for $87 a point. Remember we got 300 free points! If you look around you can find very good resale contracts. If I figure our closing costs into the additonal 300 points for 2006, the 300 points cost me about $3 a point. Not a bad deal.

good luck with whatever you decide, looking forward to welcoming you home!

 

[Anthony1971]

For the resorts Disney is selling a lot of times you get a better deal through Dinsey with the incentives. Resale - you may end up for the majority saving a few dollars a point if that providing the seller is willing negoitate closing and Mait fees but you will most likely sacrifice the extra points you in general get from Disney.

 

[tjkraz]

In looking at the prices, it looks like I could buy 200 points for the same price as 160 pts through Disney (approx).

I know there are incentives; but if I forego those, I'd have 40pts. more per year for 40+ years...right?

I think you're probably looking at different resorts.

To buy 160 thru DVC you're going to pay about $15,040 (that 160 x $94). That's the lowest price for points at Saratoga Springs.

In order to get 200 points for the same money, you would have to buy resale for $75 per point. You're not going to get SSR for $75 per point. You might be able to find a contract for $80pp, but $82-83 is more likely--especially for one with current points available (which is what DVC will give you.)

So, you might be able to get around 180 at SSR via resale for the price of 160 direct.

If you're comparing to other resorts on the resale market, note the shorter contract durations others have mentioned.

The main issues with buying resale are timing (takes 60-90 days to complete transaction and make first reservations vs. immediate booking when buying thru DVC) and financing (you either need to pay cash or have your own loan lined-up.)

 

[Maistre Gracey]

We currently have 10 contracts, all purchased directly from Disney.
Why? We like to pick our resort, get the exact number of points we want, get the same use year, not have to wait for ROFR (possibly multiple times), and have the option to finance. It's also just so easy to pick up the phone and order up some points. They're in your account within a day!

That said, there are many good things about buying resale. It just doesn't fit our particular purchasing patterns at this point in time.

We are currently selling one of our contracts through The Timeshare Store, and they are truly a great outfit.

MG

 

[TenThousandVolts]

It is pretty hard to find a contract that would compare apples/apples- but if you do find a great contract, you can save some decent $ on a resale. I bought direct from Disney because everytime I saw a contract that wasn't stripped, it had points that had to be used by X date, and was past banking the banking deadline- I just couldn't find a decent contract that fit my needs. ALso, back when I bought, points and closing costs through Disney were considerably lower than they they are now. I think now it makes more sense to go resale now than it did a year ago.

Just do your calculations carefully- depending on the points available, banked or borrowed on the resale contract, price per point, & closing costs you could end up paying more, less, or about the same as buying through Disney.

 

[crisi]

I think that people have made really good points -

Understand what you are buying resale - a stripped contract SHOULD BE cheaper - its missing a year (and maybe two) of points.

Understand the timing issues - a not uncommon issue around here seems to be "we just closed and now nothing is available for our trip in three months!" With Disney, you can make your reservations through your guide pre-closing - when they have your deposit. With a resale, you are completely waiting to get into the system - and you have very little control over the timing - you need to wait for the right contract, wait for ROFR, wait for the seller to return the paperwork, wait for closing and wait to get into the system.

We bought our contract resale and I'm glad I did, but I'd encourage you to understand both these issues.

 

[n2mm]

I love how educated everyone is on the DVC. Before I bought in these boards were great (of course they still are, I'm just more of a veteran now). The only thing I can say is that I thought that NEW DVC members had to pay closing. Only current members don't have to pay closing. Isn't that correct? I looked into resale vs disney direct. At my initial purchase disney direct was my best deal with the incentives (hubby was a CM at the time). I've since added on (a few contracts) and love that I can just call my guide and tell her what I want and she does all of the rest. She takes my cc and charges the $500 deposit and if the points are available, they are in my account within days. I think there are some good deals on resales, but agree, they are (or can be) time consuming and more work for the buyer and possible disappointing if Disney refuses your offer. It's a win win deal for everyone that all gets you to the same place.....a member of the DVC!

 

[CarolA]

Don't assume that most resale contracts are stipped. We purchased a 300pt VWL contract in Jan, We received 300 2006 points which we banked, getting all 300 2007 points in Nov. The seller payed the 2006 MF we paid 2007 + closing costs. we purchased for $87 a point. Remember we got 300 free points! If you look around you can find very good resale contracts. If I figure our closing costs into the additonal 300 points for 2006, the 300 points cost me about $3 a point. Not a bad deal.

good luck with whatever you decide, looking forward to welcoming you home!

But my FAVORITE stripped contract of all time is still on the TSS website. Listed several months ago. 1 2008 point. I think this was listed early this winter. And the SAME price as contacts with points in 2008......... If you want to wait until 2009 to use your contract this one's for you...

 

[JimMIA]

I would say the downsides of buying resale are time (usually 8-12 weeks from offer to making ressies) and the uncertainty of ROFR.

Regardless of how many points a contract has, you still have to pay a high enough price to pass ROFR. Although Crisi's comment about stripped contracts being priced lower is very logical, I've never seen lack of current points make any difference to Disney. So if you pay a lower price, you might lose the contract to ROFR.

Another downside is that you may have to wait a bit to find a contract on the resale market that is precisely what you want.

On the upside, you should save some money. When we bought our first contract, we saved about $4,000 on a 310 point contract...and got banked points in the bargain.

I think the broker you use makes a world of difference in a resale. We used TTS and highly recommend them.

 

[Caskbill]

Don't assume that most resale contracts are stipped. We purchased a 300pt VWL contract in Jan, We received 300 2006 points which we banked, getting all 300 2007 points in Nov. The seller payed the 2006 MF we paid 2007 + closing costs. we purchased for $87 a point. Remember we got 300 free points! If you look around you can find very good resale contracts. If I figure our closing costs into the additonal 300 points for 2006, the 300 points cost me about $3 a point. Not a bad deal.

good luck with whatever you decide, looking forward to welcoming you home!

Actually you paid the maintenance fees on most of those 2006 points.

Maintenance fees are paid by the calendar year, NOT by the Use Year. You purchased a November contract. November contracts are still in their 2006 use year, up to Oct 31st, 2007.

Of the 2007 calendar year maintenance fees you paid, 10/12ths of them are associated with your 2006 use year points, and only 2/12ths of the annual fee are applicable to your 2007 use year points.

When the seller paid the 2006 calendar year fees, 10/12ths of the fee applied to their 2005 use year points, and only 2/12ths of the fee applied to the 2006 use year.

BTW, if someone purchased a November UY at SSR direct from Disney today, they also would get all 2006 UY points. Disney gives you 'current' points. June 2007 is in Use Year 2006 for those with November contracts, so 'current' points are 2006 points.

 

[tink_about_it]

It took 2 months for us through TSS, but we got a fabulous deal!

230pts @ OKW for $80pp

225 pts. remaining from 2005, 230 pts. from 2006, and 230 coming on DEC.1!

 

[vwlvette]

Actually our UY is sept, sorry for the confussion, what a I was referring to was that the seller wanted us to pay the 2006 & 2007 MF. We agreed on just the 2007, Using calandar year since MF are paid in Jan. My point was that we did not pay for the 2006 Caladar year MF.

I was under the impression that MF and UY have nothing to do with each other, that MF are paid 1/1 - 12/31. It really doesn't matter, I believe that we purchased a good deal. We took posession of the contract in Jan of 2007.

I do not think that I could purchase a 300 pt contract through Disney for less then 27k

Thanks for you insight.

Actually you paid the maintenance fees on most of those 2006 points.

Maintenance fees are paid by the calendar year, NOT by the Use Year. You purchased a November contract. November contracts are still in their 2006 use year, up to Oct 31st, 2007.

Of the 2007 calendar year maintenance fees you paid, 10/12ths of them are associated with your 2006 use year points, and only 2/12ths of the annual fee are applicable to your 2007 use year points.

When the seller paid the 2006 calendar year fees, 10/12ths of the fee applied to their 2005 use year points, and only 2/12ths of the fee applied to the 2006 use year.

BTW, if someone purchased a November UY at SSR direct from Disney today, they also would get all 2006 UY points. Disney gives you 'current' points. June 2007 is in Use Year 2006 for those with November contracts, so 'current' points are 2006 points.

 

[salmoneous]

BTW, if someone purchased a November UY at SSR direct from Disney today, they also would get all 2006 UY points. Disney gives you 'current' points. June 2007 is in Use Year 2006 for those with November contracts, so 'current' points are 2006 points.

Interesting. Can you clarify exactly how this works?

Could somebody call DVC today and ask to buy, say, 200 points at a sold out resort with a September Use Year (assuming Disney has the points). Would they get 200 points now, and then another 200 points on September 1st? And how would maintenance fees work - would they pay a full year or pro-rated year in 2007 (I assume a full 2008 dues would be owed on 1/1/2008).

Thanks for the info,
Sal

 

[schwaja3]

Hi, I'm a newbee to the DVC boards. We are looking at purchasing and found out a friend is thinking of seeling their points. So, If I make a deal with her, since we are friends, is the process the same?

In fact, what would the process be? Also, what is ROFR?

Thanks,
Jack