I need help/advice on a resale

[Desnik]

I hope someone here can help me. DH and I are seriously considering buying a resale. We were going to wait and buy at the BCV because we like that area and resort, but 2 reasons are making us look into a resale. #1. The price of BCV being possibly between $80-$85 per point #2. We really rather not wait. We also love th BW area and resort. We have a trip planned in 12 days at the GF and are paying $3000, I would much rather use that $$ to buy a resale and just finance the rest. I called the timeshare store because I was interested in 2 BWV resales and spoke to Pat who was great and gave me so much helpful info. I am considering 2 and would like advice and opinions on what would be the best property financially because the both have a banked/borrowed situation. The first one is 150pts. at BWV with a June use year $65 per pt.($9750)and the person is firm on that price. 69 borrowed pts.currently available that have to used before 6/1/02 and due to borrowing only 33pts. will be available on 6/1/02, but they can be borrowed now. Pat told me to ask this person to pay the closing cost because I will be paying the dues on the 117pts they already used, or I can have them pay that and I pay the closing, it is about the same price. The other is also 150pts at the BWV with a Aug. use year $68per pt.($10200)194pts. available now, 44banked from 2000 that have to be used before Aug. What would you do in this situation? Which one is better looking at this financially?

 

[drusba]

You could offer to pay $65 for the that second deal you mention which is currently at $68. Just a thought.

Personal view is that the $68 per point deal is better than the $65 because you will have far more points to use in the next two years. Basically on a two year basis, the first contract has 102 points total. The second has 344. If you bought the second contract and just rented the difference in points for the two years at the going rate of about $10 per point you could gross about $2400. In other words the second contract at $10,200 has $2400 of value in it that the other contract at $9750 does not. Thus, even if you get the seller of that $65 per point contract to pay closing costs (about $500) the second deal is still better.

Also, consider your own desires for going. That first contract limits your ability to go during the next two years, the second does not.

 

[Cap]

I would layout a spreadsheet (or put on a piece of paper) three options:
Options 1 & 2 = the two resales you are considering
Option 3 = buying at WVL from Disney

I'd enter the following data for each of the three options:

Points available to use before Use Year Anniversary in 2002 (remember, Disney is probably selling a 2001 use year from earlier this year, so you would both get points immediately, and more in Apr or June or August 2002)

Points available after Use Year Anniversary in 2002 (you said one of the resales had already borrowed points from 2002).

Cost / point contract

Dues for 2001 (remember, Disney will prorate your dues from the date of closing, while resale may want you to pay the full year)

Closing costs (Disney = 0)

Any credits (e.g. if you use Disney Magical Beginnings, you could get $10 / point credit for selling your 2001 points, or some fraction of them, to Disney)

Down payment, if you are financing

Interest rate, if you are financing

Term, if you are financing

I'd then assign a value to any "banked" points of about $10 / point IF I thought I could use them before they expire.

Then I'd add up my total costs less credits and value for any banked points to do a comparison.

If you want to get sophisticated, forecast your payments each year if you finance, for a comparison.

Remember, in a resale, ANYTHING is negotiable. Just because the realtor says a seller is firm on price / point, doesn't mean they won't accept an offer of a dollar or two less / point.

Hope this helps

 

[Doctor P]

The second seems to be the better deal, but you need to decide which resort you want as your home resort. You might also consider that current maintenance fees/dues differ between the resorts (OKW is a bit cheaper, at least right now).

 

[robinb]

I don't know if you're planning to use DVC for your upcoming trip in 12 days, but there is no way that you would be able to close on a resale in that amount of time even if you bought it today . You might be able to swing it if you bought at VWL from Disney.

 

[Desnik]

Thanks everyone for your replies. To answer a couple of questions, I was not intending to use pts. for my trip planned in 12 days. I can cancell that trip and get my $$ back and was thinking of using it for the purchase and going in Dec. We both really would be happy with having BWV or BCV as our home resort. We like to "be in the middle of everything" and we think both kind of offer the same proximity to Epcot, and MGM and BCV is very close to the BW. It's just that price has me questioning buying there. We really don't like the WL, don't get me wrong it is nice, we did get to see the VWL but it is not our taste. We have a 3yr9mo old DD and we feel OKW wouldn't be a good option for us. We kinda got the impression it is more laid back and adult friendly, please correct me if I am wrong. We've never been there. I'd like to hear more opinions, anyone care to share?

 

[drusba]

Just note that purchasing a resale now and going in December will also be problematic. When you buy resale you cannot make a reservation until after you close, which usually takes 30 to 40 days after the contracts are signed. In other words you would likely not close until sometime in December. Then going anytime after that closing in December would depend on availability and there may not be any in December when you call to reserve.

 

[Snowgod]

DW and I discovered the DIS boards after we bought into DVC. We made a lot of mistakes and bought VB because it was close to MIL and planned on being able to get time at OKW, VWL and BW. DW loved BWV and wanted to stay there all the time. As BWV was sold out, we didn't understand that we might have trouble getting into BWV when we called at 7 MO. We just finished an Add-on to VWL so we could use the 11 mo. window (DW loves WL as do I). Buy where you want to stay and you will have an easier time getting the reservation you want. I you love BCV then wait. If you want a vacation before then, rent some points or buy now and add-on later when BCV starts to sell. Good luck and hope to welcome you home soon.

 

[PKS44]

Everyone is giving good advice and counsel. No matter where you buy, resale or Disney, it seems possible that you might still be shut out of making a reservation at BWV or VWL in December. It is just too short notice even if you closed tomorrow with Disney. Resale closing will take 5- 8 weeks before you can make a reservation.

Total all the points available over the life of the contract and divide by the total price.(closing and everything you have to pay now that is not maintenance) You will then have a handier reference on the "true" cost per point what with all the borrowed and banked points. It will be around $1.65/point or whatever I just don't think those $65 or $68 or $75 have as much meaning. With the current buyback of points that you may want to take advantage of- VWL can be very attractive price wise. But if it's not where you want to be I would not buy there.

We bought a resale, paid the closing, not the dues- definitely not the dues on any points that we could not use- and we ended up with BWV at a total price just a bit less than what Disney wanted for VWL. Did we get a Great deal? No. Maybe we paid a few hundred dollars more than we had to if we had just negotiated or shopped around more. I don't think we could have saved more that a few hundred dollars more. Did we get what we wanted? Yep. Those few hundreds spread out over 40 years mean nothing to us.

Buy where you want to stay. Negotiate, but with BWV contracts there are not as many and the demand seems a bit higher, even in these times. I would expect the value of BWV to go up with BCV since the location is similar. (What is it they say are the three most important things in real estate--location, location, and location?) You have to be ready to pay nearly as much as VWL is going for...

Best of luck.


Paul

 

[chris1gill]

I agree with everything Drusba said... That first package has no points for basically two years, stay away from it!! If the seller thinks you should pay for his dues on points he already used, he's sadly mistaken AND because there are no points from two use years essentially, he should expect to eat the closing costs...

I don't think there's any way, even if you bought today that you could close the deal & get a reservation for December, I think you're too short on time....

You might also contact Jaki Apetz, maybe someone has her website address? I think it's www.atimeshare.com

Good luck!

 

[Dean]

Both contracts are priced too high but the first one worse than the second. I'd say the first contract at around $60 pp with the seller paying closing and the fees for next year would be about right. For the second, $65 pp plus closing and no reimbursement for fees but you will pay the fees for next calendar year when they come due in Jan would be the most I'd consider.

This thread demonstrates a common misconception that many have about buying DVC and I have seen this as a problem with the TS as well. They believe if you get the points, you pay the fees. The trouble is that the yearly fees are on a calendar year and not on a use year basis. When the fees come due in Jan, you are paying for Jan through December, not the next allotment of fees. That means that on the first contract, the fees you would pay this Jan would be for 5 months of the 2001 points and 7 months of the 2002 points. In Jan, 2003, you'd pay another 5 months of the 2002 points. That means that for 100 points, you'd pay around $800 in yearly fees or around $8 pp. If you paid $65 pp as the price, $8 pp (800/100) yearly fees and another $3 pp closing cost total comes to around $76 pp and you still don't have the points to use.

You might look closely at WLV for now. $75 pp but no closing, might be able to get in for December and you can take advantage of the Magical Beginnings if you chose to do so. If your set on BC, I'd wait. If you're just as happy with BW, keep looking and something will come along.

 

[colleen mcmaster]

Here's my two cents since we recently purchased resale through the Timeshare Store: First, there is a once in a lifetime banking option which you may or may not know about. Find out if it's ever been used on whichever contract you buy - if it hasn't, you can use it now or save it until later. Also, we ended up buying at OKW because we found a good deal and the maint. fees are cheaper. We had no problems using the 7 mo. window for ressies at VWL and Boardwalk for February. So maybe you shouldn't limit yourself to just Boardwalk properties if you can find a better deal elsewhere. I'd say try to get a contract that has points you can use now - once you buy in you'll

 

[stlrod]

I agree with the earlier posters that you should stay away from the first contract and believe you have gotten some very sound advice from all (I do value Dean's opinion on getting the best deal.) My approach would be to take a deep breath, let out a sigh and WAIT! Something better (perhaps another property at BWV or even BCV) which will work for you. I've assumed your upcoming trip is for a week or less. If so, don't pay $3000 for the GF when there are so many better deals available right now (I must admit a a personal dislike for this hotel.) You can rent a 1BR at BWV for a week for a little over half that amount using the codes at www.mousesavers.com. Plan your week so that you aren't spending so much now, leaving extra to go towards the DVC purchase. I just bought and will be taking 2 disney vacations in the next two months (one to Anaheim and one to WDW.) In both cases, I'll be paying cash rates which right now are a much better value than using points. As a result, I don't feel bad about not using my points. This is not a decision into which you should rush for the sake of one vacation. Take your time. If you decide to go with the second one, I would offer to rent all available points at a certain price per point and ask to have them make the reservation now. I would require at closing that the full amount of the rental price be applied to the amount you owe at closing (kind of like a lease-purchase). This gets you the reservation now rather than have to wait for what may be a slow closing.

 

[colleen mcmaster]

Sorry - computed died on last post. I was saying that once you buy in you'll probably want to go ASAP so buy something with points available. Lastly, you can pay an expedite fee (about $40 I think) to move things along more quickly. We went from start to finish in 3 weeks and it would have been even faster if the seller had sent their docs back sooner. Good Luck!