Would like some advice: buying first contract

[XcaliburGirl]

The last time I was on this board, I was about to sign a contract for about 170 SSR points at $99 per point, who knows what use year, direct from Disney, financed over 10 years. Thanks to everyone on this board who dissuaded me! It was painful, but I'm really glad we backed out. I've learned a lot since then, just from lurking here.

I'm now looking at DVC again, with the expectation that we will have the cash in hand in the next 6 months, we plan to vacation at WDW next year, then Hawaii (Aulani, perhaps), then WDW either the next year or the year after and generally continue our WDW every other year pattern.

We have settled on BCV. We haven't stayed there yet, but we have walked through the resort and Stormalong Bay. My husband loves water slides and lazy rivers. We dislike the bus and we go to EPCOT twice as much as any other park.

I planned out the next 8 or so years and 85 points would be perfect for what we need, assuming we always stay in a studio at BCV for 8 nights at the least expensive season every other year, with that one-time Aulani trip thrown in. I'm wondering if we need some extra points though for if 1B rooms are the only thing available or they shift the point requirements around.

My husband is leaning towards direct because he feels more comfortable dealing with Disney, he doesn't want the hassle or the disappointment of resale and ROFR, and he wants to go on a DVC members' cruise. I go back and forth between agreeing with him and feeling like a sucker for considering buying direct.


My questions are:
1. Should we build a little buffer into our points or get exactly what we need? If we can get exactly 85 points via direct, the extra maintenance fees would eventually make up much of the extra cost for direct (assuming it would be easier to find a 100 pt contract vs 85 pt), but if we end up wanting more points anyway, that wouldn't matter.
2. If we buy direct from Disney are there closing costs? (We plan to ask our guide that question, but wondering if anyone knows off the top of their head.)
3. Are 85-100 pt contracts in UY Jun-Sept for BCV difficult to find resale and get through ROFR?
4. If Disney has 2 people on the waiting list mean that resales for BCV are more likely to be taken by ROFR over the next few months?
5. Is there somewhere I can read more about valuing resale contracts? For example, I keep hearing about stripped contracts going for less money. If the 2012 points are gone but the 2013 points are available, since we aren't planning on using points until after the 2013 use year, should that matter to us?

 

[DizBub]

My questions are:
1. Should we build a little buffer into our points or get exactly what we need? If we can get exactly 85 points via direct, the extra maintenance fees would eventually make up much of the extra cost for direct (assuming it would be easier to find a 100 pt contract vs 85 pt), but if we end up wanting more points anyway, that wouldn't matter.
2. If we buy direct from Disney are there closing costs? (We plan to ask our guide that question, but wondering if anyone knows off the top of their head.)
3. Are 85-100 pt contracts in UY Jun-Sept for BCV difficult to find resale and get through ROFR?
4. If Disney has 2 people on the waiting list mean that resales for BCV are more likely to be taken by ROFR over the next few months?
5. Is there somewhere I can read more about valuing resale contracts? For example, I keep hearing about stripped contracts going for less money. If the 2012 points are gone but the 2013 points are available, since we aren't planning on using points until after the 2013 use year, should that matter to us?

Welcome!!

I would definately get more points rather than "just enough" for right now. Point requirements tend to change slightly. Now I'm not saying get 300 if you need 85 but I think 100 points would be apropriate.

Yes, Disney does charge closing costs now but are minmal compared to resale.

BCV contracts are available with resale, you just have to wait for the right one. I am currently in ROFR for a 160 point contract. Small contracts are very desirable and tend to go quickly. Our resale is costing us $72 pp versus $115 direct from Disney. Closing costs are $450 w/resale. Our contract is somewhat loaded. I'm hoping our combination of price and payment of closing and Member's Fees will get us past ROFR.

If they have people on the waiting list for a particular point/UY and a contract that crosses their desk fits, I think that's when they may ROFR the resales.

There is a ROFR board here that is an excellent resource to check out. http://www.disboards.com/showthread.php?t=2661661

Good Luck!!!

 

[permavac]

...My questions are:
1. Should we build a little buffer into our points or get exactly what we need? If we can get exactly 85 points via direct, the extra maintenance fees would eventually make up much of the extra cost for direct (assuming it would be easier to find a 100 pt contract vs 85 pt), but if we end up wanting more points anyway, that wouldn't matter.

2. If we buy direct from Disney are there closing costs? (We plan to ask our guide that question, but wondering if anyone knows off the top of their head.)

3. Are 85-100 pt contracts in UY Jun-Sept for BCV difficult to find resale and get through ROFR?

4. If Disney has 2 people on the waiting list mean that resales for BCV are more likely to be taken by ROFR over the next few months?

I'll answer all 4 of these preceding questions at once. If you have limited funds for buying direct and only want 85 points, then I would go with 85 points. Right now, DVC will allow you to buy up to 24 points per year to use on a reservation for $15 per point so if you find you are short points for a reservation, you could go that route without owning the extra points. Of course, you can only buy those points at 7 months out (not 11) and they could take this benefit away, but it's there now so... You could also look to get a transfer of points into your account from another DVC member and, again, this gives you the ability to complete your reservation without owning those points and paying the MFs every year. You can only get one transfer in per use year and you need to find another member you are willing to trust to do the transaction (on this board or another they have these types of classifieds).

Yes - there are closing costs through Disney but they seem to be pretty cheap. Hopefully someone else can give you the exact figure but I heard around $100. Via resale you are paying closing costs plus current use year maintenance fees - unless you negotiate otherwise. Still, resale can be much cheaper than direct, but that decision is yours and with only 85 points you won't save as much via resale as with 200 points so you have that consolation

Yes - DVC will definitely ROFR a contract with the right use year and minimum number of points and sell it to you directly if you are on a waitlist with them which means you probably shouldn't go on a waitlist with Disney and then make an offer for your "perfect" contract via resale. Also, buying a "sold out" resort (i.e BCV) via direct is not a slam dunk when it comes to timing. If you have to go on a waitlist, you could be waiting nearly as long as you would going resale or you could get it within a week - there really is no way of knowing. Your best case scenario is DVC actually having the inventory right now for you if you go direct.

5. Is there somewhere I can read more about valuing resale contracts? For example, I keep hearing about stripped contracts going for less money. If the 2012 points are gone but the 2013 points are available, since we aren't planning on using points until after the 2013 use year, should that matter to us?

The ROFR thread is a good place to start. FYI - smaller contracts do go for a premium and while 85 points is not as "small" as a 50 point contract, you will be in a quasi-small point $ range (for BCV in particular since their value has held up better). 85 points via resale may go for close to or at asking price (just make sure that asking price is in line what other contracts of similar size are going for on the ROFR thread).

Good luck with your decision. I want some BCV points at some point too!

Terri

 

[Brian Noble]

If you have limited funds for buying direct and only want 85 points, then I would go with 85 points.

Which would be great, but the minimum purchase for a new member buying at BCV directly from Disney is 160 points.

http://www.dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

 

[permavac]

Which would be great, but the minimum purchase for a new member buying at BCV directly from Disney is 160 points.

http://www.dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

This is not true anymore. There is a thread here somewhere with anecdotes (that others have corroborated) that the "new" minimum direct through Disney is only 50 points for any of the resorts.

I haven't done it myself, but I have no reason to believe that it isn't true.

Terri

 

[XcaliburGirl]

Welcome!!

I would definately get more points rather than "just enough" for right now. Point requirements tend to change slightly. Now I'm not saying get 300 if you need 85 but I think 100 points would be apropriate.

Yes, Disney does charge closing costs now but are minmal compared to resale.

BCV contracts are available with resale, you just have to wait for the right one. I am currently in ROFR for a 160 point contract. Small contracts are very desirable and tend to go quickly. Our resale is costing us $72 pp versus $115 direct from Disney. Closing costs are $450 w/resale. Our contract is somewhat loaded. I'm hoping our combination of price and payment of closing and Member's Fees will get us past ROFR.

If they have people on the waiting list for a particular point/UY and a contract that crosses their desk fits, I think that's when they may ROFR the resales.

There is a ROFR board here that is an excellent resource to check out.

Good Luck!!!

Thanks for the input. Yes, I think 100 would be doable if we buy resale. Not too much more as far as MF, but a little extra breathing room and more available for a splurge. I'll keep watching the ROFR board.

Good luck getting through ROFR!

I'll answer all 4 of these preceding questions at once. If you have limited funds for buying direct and only want 85 points, then I would go with 85 points. Right now, DVC will allow you to buy up to 24 points per year to use on a reservation for $15 per point so if you find you are short points for a reservation, you could go that route without owning the extra points. Of course, you can only buy those points at 7 months out (not 11) and they could take this benefit away, but it's there now so... You could also look to get a transfer of points into your account from another DVC member and, again, this gives you the ability to complete your reservation without owning those points and paying the MFs every year. You can only get one transfer in per use year and you need to find another member you are willing to trust to do the transaction (on this board or another they have these types of classifieds).

Yes - there are closing costs through Disney but they seem to be pretty cheap. Hopefully someone else can give you the exact figure but I heard around $100. Via resale you are paying closing costs plus current use year maintenance fees - unless you negotiate otherwise. Still, resale can be much cheaper than direct, but that decision is yours and with only 85 points you won't save as much via resale as with 200 points so you have that consolation

Yes - DVC will definitely ROFR a contract with the right use year and minimum number of points and sell it to you directly if you are on a waitlist with them which means you probably shouldn't go on a waitlist with Disney and then make an offer for your "perfect" contract via resale. Also, buying a "sold out" resort (i.e BCV) via direct is not a slam dunk when it comes to timing. If you have to go on a waitlist, you could be waiting nearly as long as you would going resale or you could get it within a week - there really is no way of knowing. Your best case scenario is DVC actually having the inventory right now for you if you go direct.



The ROFR thread is a good place to start. FYI - smaller contracts do go for a premium and while 85 points is not as "small" as a 50 point contract, you will be in a quasi-small point $ range (for BCV in particular since their value has held up better). 85 points via resale may go for close to or at asking price (just make sure that asking price is in line what other contracts of similar size are going for on the ROFR thread).

Good luck with your decision. I want some BCV points at some point too!

Terri

Thanks, I was wondering what was considered small. Even the asking prices I've seen are putting us around $2500 less for resale vs direct.

Also, thanks for the info about the wait list and how long we might have to wait anyway. Plus, I think it would be irritating to see a contract not make it to ROFR posted on here and then have Disney sell it to us marked up. But, I guess that is what would be happening.

Which would be great, but the minimum purchase for a new member buying at BCV directly from Disney is 160 points.

The guide we spoke to told use the minimum was 50 pts. I read in another thread on here that they aren't very consistent. I kinda wish he had said 160, then we wouldn't really have a choice between direct and resale.

 

[Brian Noble]

Interesting. I'll let Tim know so that he can update his pages.

 

[permavac]

...The guide we spoke to told use the minimum was 50 pts...

Glad to hear that you got an honest guide (even if a dishonest one might have helped your case for buying resale )! As you said, some are not so forthcoming about the ability to make an initial purchase at 50 points - that's why there are still a lot of people out there who think that the initial buy in is much higher...

Terri

 

[chalee94]

captain obvious here:

just a reminder that BCV will expire in 2042 whether you buy direct or resale...

 

[Meggysmum]

This is not true anymore. There is a thread here somewhere with anecdotes (that others have corroborated) that the "new" minimum direct through Disney is only 50 points for any of the resorts.

I haven't done it myself, but I have no reason to believe that it isn't true.

Terri

I also have not done this myself but have heard that they seemed willing to sell very small contracts to people who were already members even if buying a different resort than to new members. Once again this is hearsay from friends but it seemed quite a likely scenraio.

 

[chalee94]

I also have not done this myself but have heard that they seemed willing to sell very small contracts to people who were already members even if buying a different resort...

right, for current members, they will sell you a 25 pt contract if you pay cash (you could also buy a 29 pt contract or a 42 pt contract, if you wanted.)

but for new members (and old members who want to finance), the current minimum seems to be 50 pts.

 

[AllieV]

If you do decide on resale, you may not have much choice. I don't remember the last time I saw an 85 pt contract. 100 is more common. I did see a 94 recently. Such a small contract probably isn't worth using within the disney collection, as it won't get you far at all, so why pay the extra money if you have cash anyway?

Tell your hubby to rest assured that licensed real estate professionals know all the paperwork that needs to be filed, they do estoppals, hold money in escrow, check the title for any liens, notify Disney and RCI, file with the county recorder, make sure any existing loans are paid before the seller gets any money, you both sign contracts, etc. It's just like buying a house using a real estate agent.

 

[disneynutz]

Disney will do what ever to has to do to make a sale. They offer different deals, different minimum buy ins and different UY's. Often they don't offer anything up front but if you know what you are doing they often back peddle to close a sale.

We have bought a different UY's than was being offered and received a better deal after walking away.

Disney cruises are expensive and member cruses are even more expensive because you pay for the "free" stuff. Many have reported that the member cruises a few years ago offered better entertainment. You also need to realize that DVD marketing puts on the cruise so you are attending a sales presentation while on board, low key but they are there to sell.

Bill

 

[XcaliburGirl]

If you do decide on resale, you may not have much choice. I don't remember the last time I saw an 85 pt contract. 100 is more common. I did see a 94 recently. Such a small contract probably isn't worth using within the disney collection, as it won't get you far at all, so why pay the extra money if you have cash anyway?

Tell your hubby to rest assured that licensed real estate professionals know all the paperwork that needs to be filed, they do estoppals, hold money in escrow, check the title for any liens, notify Disney and RCI, file with the county recorder, make sure any existing loans are paid before the seller gets any money, you both sign contracts, etc. It's just like buying a house using a real estate agent.

Thanks, I will tell him that. If we did buy resale, we would probably be able to get 100 pts for less than 85 pts direct.

Disney will do what ever to has to do to make a sale. They offer different deals, different minimum buy ins and different UY's. Often they don't offer anything up front but if you know what you are doing they often back peddle to close a sale.

We have bought a different UY's than was being offered and received a better deal after walking away.

Disney cruises are expensive and member cruses are even more expensive because you pay for the "free" stuff. Many have reported that the member cruises a few years ago offered better entertainment. You also need to realize that DVD marketing puts on the cruise so you are attending a sales presentation while on board, low key but they are there to sell.

Bill

I've been on one cruise with DCL and one with NCL, and the main downside I remember from both was that I felt like someone was trying to sell us something. On DCL I felt like they were constantly trying to remind us about what a great time we were having (luckily, we were having a great time). That big movie screen was showing basically DCL commercials when it wasn't playing a movie or cartoons. On NCL, it was acupuncture, Botox (or some such), and gemstones(Ammolite!).

 

[princessaloha]

SNIP

Tell your hubby to rest assured that licensed real estate professionals know all the paperwork that needs to be filed, they do estoppals, hold money in escrow, check the title for any liens, notify Disney and RCI, file with the county recorder, make sure any existing loans are paid before the seller gets any money, you both sign contracts, etc. It's just like buying a house using a real estate agent.

Just wanted to add for anyone just reading, that with our agency we had a choice to go with a deed only closing (cheap) or a full title search and title insurance closing (more expensive). I would highly suggest to go with the latter if you have the choice. Can't ever be to careful.

 

[MinneyME]

Just a thought, even though you like a particular resort you do not have to buy into that one in order to stay at it. We have never had a problem getting into a resort at the 7mth window. You might want to price out buying at other resorts, your money could go further.

 

[Missyrose]

Just a thought, even though you like a particular resort you do not have to buy into that one in order to stay at it. We have never had a problem getting into a resort at the 7mth window. You might want to price out buying at other resorts, your money could go further.

This can work. But as DVC adds more members, it gets harder and harder to get into other resorts at 7 months, especially the ones with park access. If OP knows they want to stay at BCV, they're better off buying at BCV. It's a small resort.

 

[mum2threemonsters]

Another consideration is I have been informed by disney in the past few days the new offer is buy 110 points (minimum is 110) and get $1300 off the price. Based on 110 points that still works out at $118.

This was for AKV though and not BCV but I am sure the offer will be similar.

Whilst I paid more per point for a smaller contract (100) I am still at almost a 50% saving!

Whilst the 'idea' of buying direct is good, financially I just dont see it as an option. Yes Id love to cruise and visit elsewhere but Id be more than happy renting my points out if neccisary and paying cash.