Why so many SSR resales?

[Connears]

Just looked at Timeshare Store listing of dvc resales and Saratoga Springs is overwhelmingly the most listed with 82 listings! Overall there is a large list, but OKW listings are 46 and BCV 29. (I am OKW owner from 1994 and added on at HHI in 2002 to get 11 month for summers-payed cash-no financing). I am wondering if the large SSR resales is because of current economics....can't make financing or annual dues?

Connears

 

[FARBRI]

I Think People Did Not Know What They Were Getting In To Or Like Myself They Don't Like The Resort. When We Bought We Were Under The Impression That We Would Have No Problem Getting Into Any Of Th Eother Resorts. Well That Was A Big Fat Lie. However We Are Not Selling And Just Hope Fo Rthe Best Everytime We Make A Reservation

 

[Chuck S]

I think some people that bought last year didn't figure the cost of dues into the equation and the bill arrived last month. Plus, SSR being a new resort, it would have more folks paying on loans, and with the economy being what it is, they may be choosing between SSR and their home mortgage.

 

[ldo]

I would think that the "live high on the hog" days vs. reality check has set in for a fair number of buyers who bought in the past 3 years and have now seen their home equity plummet---but, also SSR is, by far, the largest resort, and so, just by sheer numbers, you'll have more resales.

 

[tomandrobin]

Percentage of resales of each resort, to percentage of owners is not that out of whack. If anything they are probably right where they should be.

 

[tjkraz]

SSR has almost twice the number of points as OKW, so it stands to reason that there would be more contracts available.

Also, of the resorts listed in the original post, SSR is the only one being actively marketed by DVC. Most of the people looking to buy OKW or BCV go resale while those buying SSR can do so via either DVC or resale. It just so happens that DVC has been offering pretty competitive incentives over the last 3+ months, which makes buying resale that much less attractive.

 

[Connears]

SSR has almost twice the number of points as OKW, so it stands to reason that there would be more contracts available.

Also, of the resorts listed in the original post, SSR is the only one being actively marketed by DVC. Most of the people looking to buy OKW or BCV go resale while those buying SSR can do so via either DVC or resale. It just so happens that DVC has been offering pretty competitive incentives over the last 3+ months, which makes buying resale that much less attractive.

If SSR has the most resale at Timeshare Store AND it is still be activley marketed by DVC, then your statement does not make sense to me. You would expect to see fewer resale, if dvc is still marketing? Am I confused by your statement? You can only buy OKW and BCV, BWV, VWL on resale, yet there are fewer of them listed for sale. It just seems like a greater % of SSR owners are trying to sell via resale. Are you saying that more people are buying SSR from dvc than by resale?


Connears

 

[Chuck S]

If SSR has the most resale at Timeshare Store AND it is still be activley marketed by DVC, then your statement does not make sense to me. You would expect to see fewer resale, if dvc is still marketing? Am I confused by your statement? You can only buy OKW and BCV, BWV, VWL on resale, yet there are fewer of them listed for sale. It just seems like a greater % of SSR owners are trying to sell via resale. Are you saying that more people are buying SSR from dvc than by resale?


Connears

I'm not tjkraz, but I think what he is saying is:

SSR is almost fully sold out, the resorts has 1260 possible rooms.
OKW, the next largest resort, has 761 possible rooms. OKW is 60% the size of SSR.

So if the same percentage of owners, say 5%, have their ponts up for sale, then at any given time OKW would have about 38 contracts, and SSR would have 63 contracts, just to be even as far as pecentages.

Then add the fact that SSR would also have a higher percentage of active loans (as most OKW contracts would be paid off by now) that may go into default with the current economy...then it is easy to see why SSR would have more resale offerings than other resorts.

 

[Jimdvc]

Then add the fact that SSR would also have a higher percentage of active loans (as most OKW contracts would be paid off by now) that may go into default with the current economy...then it is easy to see why SSR would have more resale offerings than other resorts.

DVC marketed SSR to people who couldn't afford a time share, and bought SSR thinking it would give them the keys to the front door of the Beach Club, and the Board Walk.

That is the hard cold fact of the matter.

 

[javamom]

I believe that he is also factoring in the fact that DVC is currently offering incentives to purchase SSR through them, so that would make the resale offerings a bit less attractive (to buyers that would rather get the incentives instead of a lower per-point cost in a resale).

 

[Chuck S]

DVC marketed SSR to people who couldn't afford a time share, and bought SSR thinking it would give them the keys to the front door of the Beach Club, and the Board Walk.

That is the hard cold fact of the matter.

I don't think DVC specifically marketed SSR to "people who couldn't afford a timeshare", they marketed it to everyone, just like all the other DVC resorts. Disney has always had pretty liberal policies about granting the mortgages, no matter which resort they were selling.

 

[wildernessDad]

Percentage of resales of each resort, to percentage of owners is not that out of whack. If anything they are probably right where they should be.

I agree with this one. SSR is very big.

 

[Jimdvc]

I don't think DVC specifically marketed SSR to "people who couldn't afford a timeshare",

Nor do I. But I think their marketing process now reaches out to that demographic more so then in the past.

I would enjoy seeing an accurate study of what the typical OKW or BWV owner who bought from DVC direct, looked like from a demographic standpoint, VS the current people buying into DVC. I think, but obviously have NOTHING to back this up other then observation, that you would see quite a seperation of the 2 from a demographic stand point.

But then again I thought Dan Quayle would have made a fine Pres. so what the heck do i know.

 

[rsinj]

.

 

[rsinj]

.

 

[snowbunny]

Disney/DVC was no different than any of the others who were taking advantage of easy money and catering to those who had questionable financial means. We'll see lots more resales hitting the market in the coming year or two. TSS listings will be huge and buyers will be able to get very good deals for as low as DVC will set the ROFR bar.

We haven't seen the worst of our economic problems.

Very well said.

 

[Starr W.]

Very well said.

I agree with you both. It's not going to be pretty.

 

[tjkraz]

If SSR has the most resale at Timeshare Store AND it is still be activley marketed by DVC, then your statement does not make sense to me. You would expect to see fewer resale, if dvc is still marketing? Am I confused by your statement? You can only buy OKW and BCV, BWV, VWL on resale, yet there are fewer of them listed for sale. It just seems like a greater % of SSR owners are trying to sell via resale. Are you saying that more people are buying SSR from dvc than by resale?


Connears

In addition to what Chuck said, if you want to buy at SSR, you have two avenues available: both direct from DVC AND via resale. By comparison, if one decides to buy at BCV, BWV, etc., the only avenue available is resale. (Yes, DVC will sell points at these resorts to new buyers but the price is much higher than resale, there is often a wait for points, and they will usually only do-so with a great deal of arm twisting.)

Right now you can buy SSR direct for $94 per point and get a set of Developer's points from DVC. If we value those extra points at $10 each, the buyer is paying an effective price of about $84 per point. The lowest resale contract at TTS is $78 per point, for a difference of just $6 pp savings via resale.

For BCV, DVC's price is $101 per point. On TTS there is a listing for $85 pp. The net savings there buying resale over direct is $16 per point.

To save $16 per point, you absolutely go resale. But with DVC's attractive promotions now on SSR and AKV, it doesn't make as much sense to buy resale. That causes a slowdown in resale demand for the properties DVC is also selling. The same thing has happened the last two winters when DVC offered aggressive pricing.

In less than a year SSR should be sold out. Then most people will turn to the resale market to buy there as well. The size of the resort will still likely result in higher listing numbers than other locations (SSR is 4x the size of BCV), but maybe not in the numbers we see today.

 

[tjkraz]

It is even more interesting when you consider that most SSR owners only purchased within the past 2 to 3 years at most.

Sales began a little bit further back than that. We bought into SSR 4 1/2 years ago.

It seems impossible to know if someone selling now is doing so after owning for 4+ years, 2 years, etc.

We also have no way of knowing their motivation. Are some selling because they prefer AKV? DVC has run some nice incentives in recent years. Some people received cut-rate prices, Developer's Points, additional freebies like Annual Pass vouchers. I know for a fact that some people bought add-on contracts at select times just to take advantage of the promotions and then re-sell the contract a short time later.

But I'm sure there are also others experiencing financial hardship. TTS has three listings for AKV and that resort has only been selling for a year now.

 

[rsinj]

.