Why so many resales?

[bxhappy]

I've been looking into the DVC for a bit now and I'm just wondering why there are so many resales out there? I was quite shocked when I googled 'DVC resale' and so many different links popped up. I browsed thru a highly recommended site and I couldn't believe the number of listings...why is this? I am trying to figure out whether this is a good plan for my family and I so when I saw the number of available resales it made me wonder if this is such a good idea after all...all info appreciated.

 

[cmwade77]

I think that it's the economy mostly, I know we had cutbacks at work, but it won't affect our DVC, but I would imagine for some it will.

 

[DVC SSR Owner]

I think the economy is the main reason too. Also, some people may not want to do Disney for 15 or more years when the kids outgrow it. Also, people's vacation habits change and there are a kit of expenses with a Disney trip if you go to the parks!

 

[papamouse1]

Totally agree with PP's about the economy, but these are some thoughts you should keep in mind.
Keep in mind 2 things....

1) The number of resales is actually just a tiny amount of the actual contracts that are out there. There really isn't a large percentage looking to sell.

2) Unlike other types of timeshares, there actually is a resale market for DVC. I would imagine if you were to see the numbers of people trying to get out of their various timesahres it might just boggle your mind

 

[epd0407]

Or the other controversial subject. People are trying to unload while they can still get a decent price per point. If your thinking about buying in and dont care about th three collections taken away wait until March 21 to buy.

 

[Mjasp]

Or the other controversial subject. People are trying to unload while they can still get a decent price per point. If your thinking about buying in and dont care about th three collections taken away wait until March 21 to buy.

Interesting, do you really think the prices are going to drop that much after March 20th?

 

[CWO4DVC]

Ditto on the Economy. I do not think most of DVC owners are aware of the new DVC usage requirements starting in March....

 

[wdrl]

Totally agree with PP's about the economy, but these are some thoughts you should keep in mind.
Keep in mind 2 things....

1) The number of resales is actually just a tiny amount of the actual contracts that are out there. There really isn't a large percentage looking to sell.

2) Unlike other types of timeshares, there actually is a resale market for DVC. I would imagine if you were to see the numbers of people trying to get out of their various timesahres it might just boggle your mind

I agree with papamouse1. There are a lot of DVC contracts out there, so the number of resales on the market is a tiny fraction of the total DVC membership. Just at AKV and BLT, Disney has sold 27,148 deeds and 27,244 deeds, respectively, to date. Even at OKW, a "sold out" resort, Disney has sold 868 deeds since March 1, 2010.

 

[bxhappy]

O wow--there are that many people who have interest vested in the different resorts--wow. I didn't realize that there were so many. I guess looking at it that way the ratio of sellers to owners is less than I originally thought.

Thanks for all of the replies!

 

[epd0407]

Interesting, do you really think the prices are going to drop that much after March 20th?

I guess yes... How much will be seen!

 

[ChiSoxKeith]

If the economy still lags, prices will continue to drop.

I believe we will have a hard time quantifying how much the resale restrictions have on the market if the economy stays down.

If the economy picks up, then prices will go up with them.

 

[jar]

I think March 20 is irrelevant to the # of resales on the market. I don't see any noticeable difference between resales today and a month ago. And I think that the "benefits" they are taking away from future resales are things that are completely uneconomical in the first place (ie, who would want to spend points for a hotel room at Caribbean Beach resort that can get a 1 bedroom at the Beach Club instead) that I cannot believe that the loss of this benefit is driving prices.

I agree with the prior posters that the # of contracts is reflective of (1) the economy and the fact that some owners are not traveling as much and (2) the fact that DVC has a huge # of members. On a percentage basis, I would say that sellers are miniscule. It looks overinflated relative to other time shares not only because of the # of DVC owners, but also because a point is so fungible. For example, if you were looking to buy a week -- at resort xyz, maybe you'll find one or two on the market and thus it will appear that nobody is selling. But for DVC, you can make a week -- vacation from points from any owner so supply looks bloated.

 

[Sammie]

I think the economy is somewhat responsible but I also think many do not understand DVC until after they buy.

For one, it is not the least expensive way to see Disney World. Also it can be restrictive for those that can not plan a trip 11 or 7 months out.

Dues can become a problem if there is a loss or reduction in income.

 

[hollis]

I think it is very true that "many do not understand DVC until after they buy." Just like anything, the more you use it, the more you know the ins and outs about it. Like most DVC owners, I think buying DVC has been a good decision for me.

As others already pointed out, the percentage of resales is not that high. DVC's resale value is also better than many other timeshares.

 

[Kymm1111]

I agree with pps about people understanding how it works.
When we sat through the sales pitch- my dh was grilling the poor woman on every little thing and I was figuring numbers on scrap paper. I figured what we had paid for our trip and knowing the type of accomodations my dh likes, what we were likely to pay in the future and the math made sense for me.
It has been totally worth it for us.

 

[Chic]

Interesting, do you really think the prices are going to drop that much after March 20th?

The price per point will absolutely drop after March 20, 2011. This will happen because buyers will be getting less for their money once the new resale restrictions go into effect.

 

[phelps]

The economy is so bad right now and so many people are out of work. It is a shame so many people have to give up things they love, just to survive.

 

[LouisianaDisneyFan]

There are other sellers out there who understood the program when they purchased, made full use of it and feel they got their "money's worth"... but now they are in a different stage in their lives. Imagine the families who purchased back in 1995 while their children were young. They may have purchased add-ons along the way to meet their changing travel needs. Now their kids are grown and perhaps scattered geographically. This family's travel needs have changed. Also, it can be a lot harder to plan a trip 11 months out when you have grown children or extended families traveling rather than just the mom, dad and kids (let's face it, WE set the travel dates when the kids are young!!!). I see a lot of folks who sell one or two of their add-on contracts but retain their original... or perhaps sell their original and keep one of their smaller ad-ons. Several of the contracts we picked up via resale were from owners who retained other contracts and still travel to Disney often.

 

[crisi]

There are also people who just reach the "end of usability" on their contracts.

If you bought BWV when it opened because your kids were young and you were going to take kids every year, you now have college students. You may be looking at Disney at this point and saying "you know, I COULD keep this for my grandkids - but who knows when or if that will happen - that might be ten years out." And you might decide to turn your DVC investment into college tuition.

For some people Disney is a "lifestyle choice" I know there are plenty of regulars on this board who don't go "for the kids" and will go every year for the rest of their lives. But a bigger proportion of owners aren't in it for the long haul - they want an easy vacation for the kids for a while, then they will sell. That period can be a LOT shorter than some people anticipate. We bought in 2002, our kids are 11 and 12 now, and honestly, wouldn't be THAT disappointed if we sold in favor of other destinations.


Take all the members - a few hundred thousand, if I remember right. A certain number of them will become disillusioned with the offering and sell - including a percentage that fell for a pitch on a lovely vacation, get home, and post the cancellation period, revisit their decision and discover it wasn't a good one for them. A certain number will have financial difficulties and sell. A certain number of them will face a major life event - illness, death, divorce - and sell. A certain number will just decide that, while it was a good deal for them, its outlived its value in their lives....and sell.

 

[cally533]

It will be interesting to see how much the prices drop. Using DVC points at non-DVC resorts is usually not a very cost effective use of them anyway. I'd be surprised to see a big drop in resale values simply because of the inability to use points elsewhere.

The resales should still cost considerably less than buying direct.....guess we'll have to wait and see.