Would you assign a discount for a lg contract?

[kdzgon]

When evaluating a price on a resale, would you be willing to pay more for a small contract and/or discount the price of a large contract (300 pts or more)? Seems to me the smaller contracts are more saleable thus would have more value, or am I looking at this wrong?

 

[calypso*a*go-go]

You are correct, the smaller contracts sell much faster. Plus, the minimum to buy into DVC directly is 150 pts., so for people looking to buy in for less than that...resale is their only option. As for receiving a discount on a larger contract, the price is still going to be controlled through the ROFR process. Because of that, no one can really negotiate a "smokin' good" deal as Disney would buy it back.

 

[spiceycat]

you are right - however 300 is not a large contract, now the 1,000 points are definitely a large contract.

if you are buying 300 or more from DVC - ask them to be small contracts - so if the worst happens you won't have to sell your entire contract.

of course dvc is also saying that for new members they will charge a closing. So getting several contracts vs one will cost you more. but if something happens might be worth it.

 

[JimMIA]

As the others said, contracts of less than 150 points (especially <100 points) often sell at premiums. And, if you have a lot of points, it is better to have multiple smaller contracts than one big contract because contracts cannot be broken up and big contracts are harder to sell.

However...in considering buying a BIG contract at a discount in the resale marketplace, the per point purchase price is not the main thing you have to look at. The most important number in resale is the price that will be necessary to clear ROFR.

On all resales, Disney has the Right Of First Refusal, meaning they review each resale contract and have the option of buying it themselves at the exact terms agreed upon by the buyer and seller. If you price a contract too low, the seller gets their money just the same, Disney gets the points, and you get your deposit back...but no points. You have to start all over again.

 

[kdzgon]

Thanks for the responses. I have learned so much on this board, so I already knew much of what has been posted here. I know ROFR can be a tough hurdle, especially if the seller is in a tenuous financial position with Disney (one of those "unknown factors" from the buyer's viewpoint). I really was asking opinions from the view of evaluating a contract price and desirability. The reason I referred to 300 pts as "large" is many people advised breaking up a 300 pt purchase into smaller pieces, even 75 or 50 pt contracts.

From our point of view, we are looking at the possibility of passing this on to our children. In that case, purchasing one 300 pt contract would mean we'd have to sell & buy smaller contracts down the road if we wanted to do separate transfers. While that is a definite negative for us, we ultimately decided the large # of added points sufficiently offset that negative, and we went ahead and made an offer.

BTW, according to our guide if you buy multiple contracts at the same time from Disney, only the first contract will have closing costs.

 

[Caskbill]

BTW, according to our guide if you buy multiple contracts at the same time from Disney, only the first contract will have closing costs.

Thank you for that information. It does make sense since they don't charge closing costs on add-on contracts. So they might as well do it up front when someone makes their initial purchase and not require they wait for the original contract to close before allowing the Add-On contracts. Most here probably just assumed you had to wait to buy the add-on's later which is apparently not the actual case.