Does anyone think there is still a market for BWV? Questions about selling.

[msdis]

Partially as a result of recent tragedies and partially for other reasons we are thinking about selling part of our BWV points. We had been going "home" 2-3 times a year and will cut that back to once a year or longer stays every other year. I have checked into a resale company and their fees take off about $8.00 per point which really cuts into the price. Does anyone think that BWV still is a strong interest? Also, what about buy backs from Disney and first right of refusal? Anyone had them buy back a contract and what was the price? It makes sense to me if Disney will buy back at the same net I will get with a broker to sell it back to them at that price with no hassles and wait time. Will they do that or do I have to have a contract with someone else? What would prevent me from drawing up a contract with a relative with the intention of Disney buying it back? I'm not trying to do something sneaky here, but I bought thru Disney because I wanted hassle free and I want to sell it the same way esp. if going thru a broker is not going to benefit me financially. Any insight is greatly appreciated, Don't really want to sell as we've only had a couple of years at this, but I really feel we will no longer be needing all of our points and I don't want to take a great loss on this either. Any ideas? Thanks!!!!

 

[drusba]

Personal belief is that recent events will put a damper on sales, at least for a while. Disney's right of first refusal applies only to contracts already agreed to by a buyer and aseller. In other words you need one of those to present to Disney before it will even consider exercising the right and thus you are not going to escape broker fee by escaping the need to do a sale first. Also, Disney seldom exercises the right and will do so only when it believes price is too low (like below $55 a point and even then it might not do so). As a result trying to do a psuedo sale to a relative does not mean Disney will purchase. Moreover, if it discovered there was a scheme to get it to repurchase you could face legal ramifications.
Selling without a broker is possible but they generally provide contracts and attorneys and title companies for the the closing. Without a broker, you would need to prepare a valid contract that meets all the requirements for resales under Florida Timeshare laws (special provisions are required even beyond the typical arcane real estate contract) and you would need a title company and a lawyer. Then after you have all that you would need to find a buyer (and thus market the property and deal with inquiries).

 

[wdwendyd]

Here is a link to a thread with some ideas about selling:

http://www.disboards.com/forums/showthread.php?s=&threadid=94453

I think Boardwalk is still very desirable even with Beach Club Villas becoming available soon because the cost per point will probably be around $80 and the points per night will most likely not have a standard view for lower points option. IMHO, I think a BWV resale could sell for in the upper $60's. Hope this helps!

 

[Cap]

If you have BWV contracts in small chunks (e.g. 50, 100, 150 points), then I think there will be a reasonably ready market IF you are willing to net $55 - $60 / point, which would mean contracting at about $63 - $68 / point, and probably advertising at no higher than $68. This is for a clean contract with all points for the use year available - not borrowed.

I believe that there will be demand for domestic vacations where people can drive to the site in about 1 1/2 days. That would let people leave Friday after work, check in Saturday evening or Sunday, and check out Saturday morning for return. There is a lot of the Central and Eastern US in this zone.

I also think that people will pay some premium, up to $3 / point, to have their "home" be where they can walk to Epcot, MGM, or go to the Boardwalk. Until BCV starts selling, BWV is a good option.

The reason I said contracts in small chunks, is that people can more easily do a 50 - 100 point add on or 100- 150 point initial purchase for that size contract.

With recent events, I don't think Disney will be doing buy back for inventory unless the contract price is under $55 / point.

 

[mikek]

i'm no real estate agent, but i'd say hold on there for a little while. THings are very volatile right now - even right now the Dow is up a few hundred points from friday's close. It might drop another 10% or maybe gain another 10%.

I would imagine real estate is similar also- So I wouldnt do anything in a hury. Wait for things to calm down so you dont get caught selling at an extremely low spot.

Why not rent out or bank the extra points you have right now- that gives you 6, 12 or more months to see how things turn out. Maybe you'll decide you want to keep them- if not I think historiucally the value has only gone up.

 

[WebmasterDoc]

Please remember. FOR SALE posts are NOT allowed on the DIS.

Posts on this thread suggesting contact to sell points have been removed.

Please, NO FOR SALE posts or offers to buy allowed.

Thanks!

 

[sgtpet]

BWV resales will have to be lower since disney has essentially lowered the point value for new sales.

 

[Jimbo]

BWV resales will have to be lower since disney has essentially lowered the point value for new sales.

I assume you're referring to the new MB program. If so, I'd have to say that's incorrect, or maybe misleading. MB simply lets you <u>sell your points</u> to Disney at $10 per point. It doesn't really reduce the cost of your purchase; it simply makes cash available at the time of purchase.

There's been lots of talk about the value of a point, but most people are able to get at least $10 when they sell them. So suppose I buy a resale, and for simplicity's sake assume it doesn't have banked or borrowed points. Then I turn around and sell the current year's points at $10. I would have "rolled my own" MB program, but I don't think that I would say that I reduced the cost of my resale, though.

The only difference is Disney's MB lets you use the money at the sale. That can be a big advantage if you need the money for your down payment, of course. But it's not like Disney's giving you something for nothing. When have they ever done that?

 

[sgtpet]

It is a guarantee to sell your points. In essence if you do not want to travel in 2001 then it works out to being 65pp. There is no guarantee that you can sell all of your points. Plus it lowers your financing responsibilty.

Plus the attacks, which is my guess for why MB improved, will cause demand for DVC to decrease hence lower price pp.

 

[Dean]

Originally posted by sgtpet
It is a guarantee to sell your points. In essence if you do not want to travel in 2001 then it works out to being 65pp. There is no guarantee that you can sell all of your points. Plus it lowers your financing responsibilty.

Plus the attacks, which is my guess for why MB improved, will cause demand for DVC to decrease hence lower price pp.

First, to say that the MB will lower the price to $65 is not quite correct. It will lower the price by $10 pp sold back minus the maint fees paid on those points and you lose the points. So depending on the maint fees charged by DVC on the points sold back, the price pp will be more than $65 by the amount of the fees charged. Also, if one were buying a resale with the same points accounting, you could rent the points yourself and essentially do the same thing. I know that DVC has at times charged for only part of the maint fees by charging only the remaining fees for the calendar year so the difference may be less than the actual yearly maint fee for the resort in question.

While I anticipate a temp slow down, I suspect overall, DVC will stay popular. CRO tells me they really haven't had any cancelations and what they have had were more than taken up by demand from those that decided to stay in the US rather than go overseas. We've seen on this board members still on the wait list and hoping to get a reservation.

The other question I had was whether msdis could sell part of her points or not. You would need to have a base contract and add ons or more than one base contract to sell a portion of the points as you cannot break up the points in a contract. She may meet these criteria, I just didn't know.