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View Full Version : Buying DVC points from Disney vs. Re-sale



fletch1027
07-10-2007, 01:16 PM
Does anyone have any experience buying points from someone else (permanent point buy as opposed to renting for a 1 time trip), as opposed to buying them directly from Disney?

We are considering becoming DVC members, and were looking for options... :)

DVC Mike
07-10-2007, 02:14 PM
Check out The Timeshare Store (TSS)

http://www.dvc-resales.com/

GusMan
07-10-2007, 03:27 PM
Check out The Timeshare Store (TSS)

http://www.dvc-resales.com/
Did you buy through them or know someone that did?

DVC Mike
07-10-2007, 06:38 PM
Did you buy through them or know someone that did?

I know folks who have used TSS (http://www.dvc-resales.com/) or DVC by Resale (http://www.dvcbyresale.com/).

efoxx
07-13-2007, 06:59 AM
our first purchase was through Disney, our subsequent points came through a resale. the experience was good, although we sweat ed through waiting for Disney to pass on the deal.

ChuckC
07-15-2007, 02:38 AM
our first purchase was through Disney, our subsequent points came through a resale. the experience was good, although we sweat ed through waiting for Disney to pass on the deal.
What does Disney consider when they "pass on the deal" that causes a person to sweat?:confused: I don't imagine its a credit check if a person is already a DVC member.

I'm considering purchasing 75 to 100 points at BWV or BCV and already have 250 at SSR.

Drince88
07-15-2007, 04:56 AM
Disney has Right of First Refusal on any outside sales. Basically, (as I understand it) they want to make sure that the price on the resale market doesn't get too low. If they think it's too low, they'll purchase the points at the price the seller and buyer agreed upon. The seller gets the same amount, but the buyer has to start all over finding another buyer. These are the points that Disney they uses as resale on their sold-out properties.

DVC Mike
07-15-2007, 06:21 AM
Here is a summary of some of the pros and cons of buying through DVC versus resale.

Buying from DVC

If an add-on, there are no closing costs (there are closing costs on your initial purchase into DVC)
Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
More expensive cost per point than the resale market
You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.Buying Resale

If an add-on, you will have to pay closing costs (DVC doesn’t charge them for add-ons)
It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
Resale is typically much less expensive then buying from DVC
You can’t finance through DVC, although most resale brokers will recommend a finance company
A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Be wary of “stripped” contracts on the resale market.
You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).

DVC Mike
07-15-2007, 06:23 AM
What does Disney consider when they "pass on the deal" that causes a person to sweat?:confused: I don't imagine its a credit check if a person is already a DVC member.


When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise its Right of First Refusal (ROFR).

If you find a contract you like and you and the seller agree on a purchase price, the agreement to sell the points is submitted to DVC for review.

If the price is too low, Disney will step in and exercise their ROFR, which means DVC will purchase the property themselves at the terms agreed upon by the seller and the original buyer. DVC then becomes the buyer. The seller instead gets its money from Disney and the buyer loses the contract.

If DVC exercises ROFR, the original buyer can’t come back and make a higher offer. There is no second chance; the resale contract is lost to Disney. There is no financial hardship on the potential buyer — they will receive a refund on any down-payment that may have been part of the deal. But the buyer will have to go back to square-one and try to find another deal.

ROFR allows Disney to keep resale prices comparable to their own "new" prices. Disney has up to 30 days to review the contract and decide whether they will exercise ROFR, but it usually takes less time than that.

ChuckC
07-15-2007, 07:39 AM
Disney has Right of First Refusal on any outside sales. Basically, (as I understand it) they want to make sure that the price on the resale market doesn't get too low. If they think it's too low, they'll purchase the points at the price the seller and buyer agreed upon. The seller gets the same amount, but the buyer has to start all over finding another buyer. These are the points that Disney they uses as resale on their sold-out properties.

Thanks.

ChuckC
07-15-2007, 07:54 AM
When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise its Right of First Refusal (ROFR).

If you find a contract you like and you and the seller agree on a purchase price, the agreement to sell the points is submitted to DVC for review.

If the price is too low, Disney will step in and exercise their ROFR, which means DVC will purchase the property themselves at the terms agreed upon by the seller and the original buyer. DVC then becomes the buyer. The seller instead gets its money from Disney and the buyer loses the contract.

If DVC exercises ROFR, the original buyer can’t come back and make a higher offer. There is no second chance; the resale contract is lost to Disney. There is no financial hardship on the potential buyer — they will receive a refund on any down-payment that may have been part of the deal. But the buyer will have to go back to square-one and try to find another deal.

ROFR allows Disney to keep resale prices comparable to their own "new" prices. Disney has up to 30 days to review the contract and decide whether they will exercise ROFR, but it usually takes less time than that.

Thanks for the info. I'm puzzled, tho. I have looked at some of the offerings on the resale market and the prices seem attractive, like $85 a point for 150 points at BWV. Now, I would think that the offeror would be aware that Disney is looking over his/her shoulder and price the points accordingly so the sales would not be negated.

Why would the offeror price points so low that Disney steps in? Or is he or she trying to force Disney to purchase the points? The points will be sold---to the offeree or to Disney. The only person who gets the short end of the stick is the potential buyer. Too bad that Disney doesn't give us a clue as to what the "actual price" of the points are.

DVC Mike
07-15-2007, 08:37 AM
Thanks for the info. I'm puzzled, tho. I have looked at some of the offerings on the resale market and the prices seem attractive, like $85 a point for 150 points at BWV. Now, I would think that the offeror would be aware that Disney is looking over his/her shoulder and price the points accordingly so the sales would not be negated.

Why would the offeror price points so low that Disney steps in? Or is he or she trying to force Disney to purchase the points? The points will be sold---to the offeree or to Disney. The only person who gets the short end of the stick is the potential buyer. Too bad that Disney doesn't give us a clue as to what the "actual price" of the points are.

The person that is selling the points really doesn't care who buys it -- Disney or anyone else. They're just pricing it to sell.

A lot of sites publish stats based upon data available to the public as to when Disney exercises or passes on ROFR. Anyone interested in buying resale should check the stats to ensure their offer will pass ROFR.

For BWV, it looks like $85-86 a point for BWV should probably pass ROFR.

ChuckC
07-15-2007, 10:01 AM
The person that is selling the points really doesn't care who buys it -- Disney or anyone else. They're just pricing it to sell.

A lot of sites publish stats based upon data available to the public as to when Disney exercises or passes on ROFR. Anyone interested in buying resale should check the stats to ensure their offer will pass ROFR.

For BWV, it looks like $85-86 a point for BWV should probably pass ROFR.

Thanks.

efoxx
07-18-2007, 01:16 PM
one other reason that Disney can, and has exercised ROFR is current owners wishing to buy additional points for their home resort. Disney doesn't keep in stock any points from sold out properties, but get requests from owners to increase their points. If Disney sees enough requests they will often buy up some points and resell them for a profit. for instance two current owners at WL come and request 100pts each. At that same time Disney has in their hands an offer for 200pts @ $86/pt. Disney exercises ROFR buys the points and resells them @ $103/pt. And yes they have done this more then once, we have some friends who increased their pts. at a sold out OKW this way. when we bought our second set of pts we were told the then high price of $74/pt would be ok, but Disney had recently bought back some BCV pts at $75. the threshold goes up and down slightly depending on current market requests. I have wondered from time to time who has the job to make these kind of decisions, and how he got said job.

I do disagree with the notion that the seller doesn't care who buys their pts. sometimes the decision to sell comes at a great deal of pain, and the price may be set by someone wishing to accommodate someone else's budget because they wish for them to have the points, or because they wish to pass on a particular blessing to someone else.

Consider this scenario... a couple with a terminally ill child buys a DVC because said child is always happiest when at WDW. after three or four long years their child passes. the parents now have no desire to go back to a place that has such memories, but along the way the have met another couple with a terminally ill child and wish to pass their blessing along to them. because of bills and such the new couple can only afford $75/pt. so an agreement is made. but profit minded Disney sees $$$ and snaps up the contract only to resell the pts to some overpaid VP of a fortune 500 company thereby increasing that persons pts to 850. so now his kids have someplace to spend spring break every year, and he still can take his 22 yr old (3rd) trophy wife to the food and wine festival on the corporate jet every fall.

my point is ROFR is not a bad thing, I just think that it does have the potential (and I am sure it has been abused) to be a bad thing.