Why so many resales

[spider211]

Went to WDW 1st of Feb took the tour and now believe we want to purchase but am concerned as to why so many resale properties. Is it because owners buy, go, and then realize it is not worth it or for them? Just wondering.

 

[DrewT]

I think people sell for a variety of reasons, personal, financial, etc. We purchased resale in the 90's when our children were small, when they got into high school and other activities we sold in 2004. We now have grandchildren and just repurchased so that we can go with our grown children and grand children.

I think that the number of resales available are probably a very small percentage of the total number of dvc owners.

 

[spider211]

Thanks Drew, We too only have grown kids with grand kids and thinking of doing the same as you have. I just hope I can stay young enough to enjoy my time there. Brain thinks I am 30 but body says slow down pal you are 60!

 

[Carlnne]

I was forced to sell during my divorce- almost harder to let go then my house. Now six years later I am waiting on disney to pass on my resale. In my mind it was always something I missed and wanted to get back.

 

[DizBub]

I don't think anyone who buys DVC thinks they will have to sell but stuff/life happens. Loss of a job, kids going to college, divorce, change of vacation habits, death, illness, a lot of reasons.

The best thing about DVC is that it's unlike a traditional timeshare in that you can sell it if you need to. Lots of people sell and get back into it once their circumstances change. I think that speaks very well of DVC.

 

[chukdotcom]

That is kind of like asking "Why are there so many houses for sale". Life changes.

 

[Nabas]

To ease your mind, WDW has over 47 million points at its 8 DVC resorts.

At any one time, about 100,000 points are listed through resale.

So, only a tiny fraction of DVC points are being resold at any one time.

 

[disneynutz]

Many buy without fully understanding the product. Others may have life changes or have become dissatisfied with Disney or the DVC and all of the constant changes.

I am not happy with DVC's direction, member services has really taken a turn for the worse and I just don't understand what the executives are thinking.

Bill

 

[spider211]

WOOOOO! So if there are 47 Million points sold at only 8 DVC resorts it sounds as though it would be difficult to get the dates you wanted even with an 11 month reservation.

 

[Noelle]

I think many people have added on to contracts over their years of membership and due to life circumstances or financial reasons they decide to sell. As many people have mentioned, the original purchase price is just the starting cost. Our annual dues increase every year and as I would suspect for some people the fees at some point outweigh their usage. Just like anything else...if you don't use it, why continue to pay for it?

 

[brandigregory]

We rented points this year at $11/pt. that seemed reasonable to me. Maybe one day soon we can buy but not yet

 

[Nabas]

WOOOOO! So if there are 47 Million points sold at only 8 DVC resorts it sounds as though it would be difficult to get the dates you wanted even with an 11 month reservation.

It's usually possible to get something, even on short notice. However, options are limited.

I just happened to be looking at a stay at the end of June and the only resorts available for my dates were Saratoga Springs Resort (SSR) and Old Key West (OKW).

Many resorts and rooms are available at 7 months but the most popular rooms disappear right at 11 months.

Your Home Resort can be extremely important if you want a popular room.

 

[z28wiz]

Many buy without fully understanding the product. Others may have life changes or have become dissatisfied with Disney or the DVC and all of the constant changes. I am not happy with DVC's direction, member services has really taken a turn for the worse and I just don't understand what the executives are thinking. Bill

They are to worried about the $$$&$$$$$$ , it seems all they care about is the most profit they can make. Sent from my iPhone using DISBoards

 

[Nabas]

We rented points this year at $11/pt. that seemed reasonable to me. Maybe one day soon we can buy but not yet

At $11/point for rental, it could take over a decade to reach the break-even point, even with a resale. Don't be in a rush to buy. At $11/point, you are doing well.

 

[brandigregory]

At $11/point for rental, it could take over a decade to reach the break-even point, even with a resale. Don't be in a rush to buy. At $11/point, you are doing well.

So I shouldn't get conned into buying on this trip?? Good to know! As long as I can keep finding awesome DVC people to rent from I will be a customer for life

 

[HokieGCC]

Your question is a good one mainly because it is not one Disney would want you to be asking. My guess is you won't buy until you have it all figured out which is really pretty important unless you have so much money you don't know what to do with it all. Disney is flat-out big-time expensive for one vacation let alone for a lifetime of them.

We pondered for 15 years before buying into DVC all while we took 1x to 2x per year vacations there. Our College age kids still love it and so does my wife and I so we finally bought (resale). What we settled on for now is 50 points at BWV. We will use it for a 5 night stay in our 2nd favorite resort every Jan right after New Years. This also got us the discount for season passes. We will also be going in May for a week the old fashioned way but armed with our season passes made cheaper from DVC. From here we may buy a lot more or sell the 50 points, or hold steady depending on where we retire to. If we retire next door to Disney we sell...

So, life happens and we could buy or sell still. I tell our story not that it should be copied but to provide a datapoint as each person and situation is different. The main thing is keep asking those good questions. The more you know the more precise your decision will be.

 

[spider211]

Thanks to all for the great information you have provided and to those yet to post thanks in advance.

 

[TeresaNJ]

We bought VWL in 2001 and BCV in 2002. We used the heck out of them! Between the two contracts, we had a total of 550 points. The reason we bought is because we like to stay in deluxe resorts, and our kids were getting older, wanted to bring friends with them, and to rent two deluxe rooms for a week was super expensive.

Having said that, we just sold our BCV contract, and are now in the process of selling our VWL contract. It took us almost 3 years to make the decision to sell. I felt like I was cutting off one of my arms! My DH wants to buy a house with a good amount of land, and start an organic hobby farm in his spare time , looking toward some income to supplement his retirement in oh, 25 years or so. He had a hard time convincing me to sell, so we could have the extra cash in the bank.

I finally agreed, as now that I've discovered resale, our plan is to hopefully buy back in in a year or so. We've got 3 grandsons, with a 4th on the way, so know we still have many Disney trips in our future.

 

[supersnoop]

In the single-family real estate market, at least where I've lived in Texas, I've been told to expect 12% of houses to sell each year.

Based on a popular DVC listing aggregation site, and point totals from 2011, it looks like an average around 0.25% of DVC points are currently on the market. So, I wouldn't be worried about "so many." In fact, when I would rather think, "why so few?" My number may be a little off, but the trend holds.

            Total Resale       Total       Percentage
Property  Points Available  Resort Points  Available
--------  ----------------  -------------  ----------
AKV            18,558         7,400,270     0.2508%
BLT            13,220         5,733,530     0.2306%
BCV             7,783         3,027,600     0.2571%
BWV            13,080         4,872,175     0.2685%
HHI             4,080         1,369,076     0.2980%
OKW            19,534         7,678,935     0.2544%
SSR            16,615        14,031,570     0.1184%
VWL             8,830         1,962,300     0.4500%

 

[Andrew015]

This answer is different for everyone, but if I were to venture a guess, I suspect that many who buy into DVC do not totally understanding the true, total cost of ownership. The "guides" do a great job of convincing you how much money you will save by "pre-paying" for your vacations at a locked-in, inflation-free price. However, what they fail to tell you about is the ever-changing (and never decreasing) cost of fuel, food, airfare, park admission, annual maintenance fees, etc. I think the "pixie dust" soon wears off for a number of "direct" buyers that begin to figure out that their "payback period" is nowhere close to what they thought it would be, especially if they find themselves not travelling to Disney as much as they originally anticipated. IMHO, I find it difficult to financially justify a "direct" purchase, unless you absoultely must have home-resort (11-month) booking preference at a given resort that is not widely available on the resale market, and plan to go there ever year. Resale purchases are significantly easier to justify due to the significantly reduced entry cost, but still, it takes a certain type of buyer (i.e. one who visits Disney once every 2 years or more in Deluxe accommodations) to justify such a purchase. Over time, I believe many families find themselves wanting to travel to different locations (let's face it, DVC's value is not in trading into RCI), or kids begin to lose interest, or quite simply, the money is better spent elsewhere.

Personally, I couldn't be happier as a DVC owner, and never intend to sell my stake. However, I think it's fair to say that DVC is not for most people (contrary to what the "guides" may tell you), and you really need to ensure that you "fit the mold" so-to-speak to avoid future remorse and $$$ out the window. I think #1 reason for people selling is they did not know 100% what they were signing up for, and #2 "Things change" (i.e. kids getting older, travel desires changing, financial responsibilities changing, etc.).