DVC resale compared to other timeshare resale

[Anthony1971]

I was recently looking into purchasing a “non Disney” timeshare as we would like to vacation other places as well. It seems that in general the only resale that presently holds its value is DVC. Some of the better names may get a 40% return on the retail at best but it is questionable as to what was paid to start with. What concerns me more is that there seems to be a large number of timeshares, some point based systems similar to how DVC works, that people can not sell period and they turn into a liability. If the Timeshare is used year after year this is not an issue but they may come a time when you have to sell. Some of the problems seem to be aging resorts mismanagement and best of all it seems that re-sales loose some perks and their terms can be changed at any time. For example with a point based system re-sales may only be able to book at the resort owned at—this is extreme and most likely will not occur but it could.
After looking at all of this I am happy to own DVC but wonder why it truly maintains such a high re-sale as other systems have ROFR as well and (sorry) nicer resorts than Disney but of course not DVC location or extras…..

 

[bwvBound]

After looking at all of this I am happy to own DVC but wonder why it truly maintains such a high re-sale as other systems have ROFR as well and (sorry) nicer resorts than Disney but of course not DVC location or extras…..

"Location, Location, Location" is sure to play its part -- but I believe that Disney's aggressive ROFR is a strong factor in DVC's high resale prices.

FWIW, an eBay auction for a non-DVC timeshare closed yesterday for 3x what I paid for a similar resale several years back. The resale value of this particular product with its "grandfathered" features sells well above the Developer pricing for new sales. Color me pleased.

 

[bwvBound]

Ah, my first line above should probably include "Name, name, name" ("Branding, branding, branding") as part of DVC's allure.

 

[Amy5000]

I was recently looking into purchasing a “non Disney” timeshare as we would like to vacation other places as well. It seems that in general the only resale that presently holds its value is DVC. Some of the better names may get a 40% return on the retail at best but it is questionable as to what was paid to start with. What concerns me more is that there seems to be a large number of timeshares, some point based systems similar to how DVC works, that people can not sell period and they turn into a liability. If the Timeshare is used year after year this is not an issue but they may come a time when you have to sell. Some of the problems seem to be aging resorts mismanagement and best of all it seems that re-sales loose some perks and their terms can be changed at any time. For example with a point based system re-sales may only be able to book at the resort owned at—this is extreme and most likely will not occur but it could.
After looking at all of this I am happy to own DVC but wonder why it truly maintains such a high re-sale as other systems have ROFR as well and (sorry) nicer resorts than Disney but of course not DVC location or extras…..

In my opinion it's the fact that Disney exercises ROFR. If Disney ever decides to stop exercising ROFR, I think you would find prices to be quite a bit lower.

 

[Anthony1971]

In my opinion it's the fact that Disney exercises ROFR. If Disney ever decides to stop exercising ROFR, I think you would find prices to be quite a bit lower.

While I do agree that ROFR has a big impact there are other companies that do have ROFR and do seem to excercise it form time to time.... However if Disney could not sell the timeshare or it was a difficult sell than they would not keep the ROFR so high and consistant...

 

[bwvBound]

I'm still waiting for the perfect, undervalued, 2BR EOY at the Bay Club of Waikoloa or a desperate seller offering one of the early 3-weekend flexshares at the Manhattan Club.

There are at least a few timeshares holding established, relatively stable, resale values. Each is desirable and fairly unique in its market.

 

[bwvBound]

I was recently looking into purchasing a “non Disney” timeshare as we would like to vacation other places as well.

So, knowing that many timeshare lose their value quickly -- what is your position in searching for the next timeshare? Is this knowledge holding you back or spurring you forward?

Would it bother you to pick up a great vacation tool for the cost of maintenance fees?

 

[chalee94]

In my opinion it's the fact that Disney exercises ROFR. If Disney ever decides to stop exercising ROFR, I think you would find prices to be quite a bit lower.

i tend to agree with anthony that it's the other way around. DVC exercises ROFR because they are doing a lot to market DVC points anyway, and so they are in a great position to ROFR points and resell them at a profit. that there is a ready market for those points suggests they are selling at roughly their "real" price or a fair market value.

demand and inflation contribute to the "real" prices of contracts but as their points are used up, eventually those "real" prices will decline...and DVC will have to cut off or adjust ROFR or else wind up with a large pool of DVC points that they can't sell...

but IMO, it's unlikely that DVC is using ROFR to artificially "prop up" the point values (to benefit members?) - rather, it's just a question of profit motive. if there are owners willing to sell at below-market prices, DVC wants to be the one to benefit...but i could be mistaken...

 

[Anthony1971]

So, knowing that many timeshare lose their value quickly -- what is your position in searching for the next timeshare? Is this knowledge holding you back or spurring you forward?

Would it bother you to pick up a great vacation tool for the cost of maintenance fees?

This was not meant to discuss other TS as there are other boards for that... My concern is not being able to sell it in the case that I would have to. There are many reports of people now paying to rid themselves of a timeshare see the TUGBBS.com for more info --
making a timeshare a liability
even the Manhattan club does not fair well as it seems a platnium Jr. Suite annual week sold on eaby for under 5,500 I am sure the owner paid considerably more.... the dues are $$$$$$ making this a bad option to buy if I want to trade but I am sure this will maintain a value but being I live in NYC I would not even consider this.


DVC has made its owners $ even if I were to sell what I bought in 2005 I would almost break even AFTER paying Commission to an agent andagain my question is why are people willing to pay this much for Disney as the market does have control over this as well.

example is Bonnet creek part of which is on Disney property-- sells retail for 13,000 or ??? dependening on how well you can haggle..... re-sale around 1,000 for the same points

 

[Dean]

It varies from each system and each resort to the other. I'd say the name brands like Hilton Hyatt Westin Marriott and the like do much better. Certainly compared to retail prices no one quite matches Disney. One could look at that as a negative but to me I see that as a positive because it gives me the chance to buy something else at a much cheaper price. It really depends on which side of the isle stand. If you bought retail for some were like Blue Green or Fairfield, you have given away lot of money. On the other hand one can buy into those resorts for a very inexpensive price and at a fraction of what would be retail.

 

[Anthony1971]

It varies from each system and each resort to the other. I'd say the name brands like Hilton Hyatt Westin Marriott and the like do much better. Certainly compared to retail prices no one quite matches Disney. One could look at that as a negative but to me I see that as a positive because it gives me the chance to buy something else at a much cheaper price. It really depends on which side of the isle stand. If you bought retail for some were like Blue Green or Fairfield, you have given away lot of money. On the other hand one can buy into those resorts for a very inexpensive price and at a fraction of what would be retail.

Dean
Fairfirld is the one that scares me but aslo seems to have the most driving options for NE people including a resort at Hershey.. It seems a lot of the locations are in bad shape and if you buy the wrong one it can become a liability... I am sure this can be overcome with research...
But I still wonder why DVC does so well.... as above Bonet creek retail --I did look into this myself-- is starting in the mid-high 12's when you are done?? resale is around 1000 I am sure this would be a decent trader... but do I want 2 timeshares at Dinsey if FF decides to change its resale policy system.. and it is on Dinsey Property (somewhat) so why the bad resale?

 

[Dean]

Dean
Fairfirld is the one that scares me but aslo seems to have the most driving options for NE people including a resort at Hershey.. It seems a lot of the locations are in bad shape and if you buy the wrong one it can become a liability... I am sure this can be overcome with research...
But I still wonder why DVC does so well.... as above Bonet creek retail --I did look into this myself-- is starting in the mid-high 12's when you are done?? resale is around 1000 I am sure this would be a decent trader... but do I want 2 timeshares at Dinsey if FF decides to change its resale policy system.. and it is on Dinsey Property (somewhat) so why the bad resale?

Each system has it's good and bad points. The systems like Fairfield and Bluegreen may offer the most negatives for those that buy retail but the most opportunities for those looking at resale. Disney Vacation Club does well for number reasons can these include location, quality, right the first refusal and the name. I think systems like Marriott Hilton Hyatt and Westin offered good options for DVC members simply due to their name recognition and system quality. They are not the cheapest options however. Each one has it's unique advantages and disadvantages and one needs to learn enough about them in to know what fits with their personal situation. For the novice time share person, which includes most Disney Vacation Club members, I would like to see them buy something they will use and trade part of the time even if this somewhat more expensive.

 

[Mamiamjo]

I've owned timeshares in Lake Tahoe and Cancun. I bought all my timeshares (even my DVC) resale, so I didn't pay what the developers were charging anyway. These were all 5 star II resorts that traded very well.

When I sold my LT weeks, I lost a bit of money (around $1,500) compared to what I originally paid. I sold my Royal Mayan week and made a few dollars. The 3 Royal Sands weeks that I still own, I paid less altogether than what DVC would charge me for enough BCV points to stay a week in a 2 BD every year duing Magic Season (or in Dream Season for that matter). I can most likely sell these weeks for more than I paid for them (which was much less than developer prices). So there are definitely nice resorts that can be purchased a lot cheaper and traded, but I still hold to the whole DVC mantra of "buy where you want to stay" because let's face it you may end up staying there some time. Buy somewhere that you like at a respected resort & buy resale.

Good Luck,
Mike

 

[Anthony1971]

I am certianly leaning towrds the better names Like Marriott. I do not think FF or?? is a good option for me at this time in my life. I need something more stable like DVC I guess the truth is DVC is a no brainer as far as buying retail or resale it does not make all that much of a difference --with some exceptions--
I did look into FF before I bough DVC..........
I never looked at the FF resale until recently...
I now need to decide on a destination that I would be happy going to frequently and that still has a good trade value in a system that I can feel comfortable with...
I guess I need to take more vacations and rent before I decide

 

[JimC]

If you are going to look outside DVC; spend time on the Timeshare Users Group site.

 

[littlestar]

Dean
Fairfirld is the one that scares me but aslo seems to have the most driving options for NE people including a resort at Hershey.. It seems a lot of the locations are in bad shape and if you buy the wrong one it can become a liability... I am sure this can be overcome with research...
But I still wonder why DVC does so well....

Scary is right. I thought about Fairfield until I read about the Bluebeards Castle resort fiasco and what happened with the Equivest points owners when Fairfield/Wyndham bought them. Not good. We can't even trust our local and state government in Indiana right now (there is a huge property tax mess going on), so the last thing I want is an ownership/relationship with somebody or something else I can't trust to have integrity.

We've decided to keep only one other timeshare besides DVC - a VRI managed resort. VRI also gives us discounts for owning at a VRI managed resort. Here's a link to some of the resorts they manage around the country:

http://www.vriresorts.com/Destinations.html