unbelievable!! Can't afford this! Please help

[CaptDadSparrow]

Originally Posted by JimMIA

What an incredibly inaccurate assumption!

AKV is selling on the resale market for about 1/2 what you are paying with your "discounted" price.

The price has been dropping since AKV first appeared on resale. In fact, I think AKV has probably fallen faster than any other resort.

What an incredibly nice thing to say. Thanks.

Can you show that the resale price per point has gone down? Prices go up and down for 3 general reasons 1. Scarcity 2. Perceived value 3. Market control (a monopoly or the economy)

If prices on direct are going up yet prices on resales are going down one of these reasons has to be. Is there more people flooding the resale market with akv contracts? Is Disney raising direct prices because of higher demand or to create the illusion of a higher perceived value than the year before?


I could go on, but since you are so confident in your knowledge that you don't mind being a little rude, I'll let you have the floor and the final word to enlighten this fairly new forum poster as to why direct prices going up are lowering resale prices. I don't mind being wrong as much as I do mind arrogance and unnecessary rudeness. After all is it really that INCREDIBLY INACCURATE OF AND ASSUMPTION TO BE CALLED CRAZY? No, crazy assumptions are that the world is 6,000 years old or that cigarettes are not the leading cause of lung cancer.

Again I don't mind being wrong, and I prefer to be educated with good info.

[merina888]

We don't own DVC yet, but my husband and I went to the presentation in August and points for AKV were selling at $165 pp direct from Disney. I imagine they will keep going up as do most from Disney. As previous posters said, I think resale is half of that. And a point is a point, they all have the same value so if you rent it should be the same whether it's OKW or AKV.

[DizBub]

Originally Posted by CaptDadSparrow

Again I don't mind being wrong, and I prefer to be educated with good info.

Jumping in here. Scroll up to the top of this page and click on the banner the says the Timeshare Store. Click on Animal Kingdom Villas and read the resale listings. There are at least 3 other reputable resale agencies with similar listings. Of course a seller can ASK for what they want for a contract but there are so many out there no one will give a high priced one a second look.

[vinmar4]

Originally Posted by bumbershoot

The dues would be the same. How would that help?

yes, but we would not have the loan

[vinmar4]

Originally Posted by DizBub

Sorry, resale value will most likely remain the same, about $60-$65 for AKV. Rentals will run between $10-$12. A broker charges $13 and the renter gets $10.

OP, for what you would end up selling for and paying all the fees to the selling agency you could be in the hole, depending on the outstanding balance of your contracts. Again, I would seriously consider renting.
If you do decide to sell don't forget that a "loaded" contract will be much more attractive to buyers than a stripped one.

Thanks, we are going to see if we can rent some of our points. We will have to pay out of pocket close to 6000.00 at closure if we were to sell them all.

[DizBub]

Originally Posted by vinmar4

Thanks, we are going to see if we can rent some of our points. We will have to pay out of pocket close to 6000.00 at closure if we were to sell them all.

Ouch!!

We have 470 points, 310 at BLT bought direct and 160 at BCV bought resale. We will be hit with about $2300 in dues this year so I understand what you are going through.

Hopefully things will go well for you renting your points for now and you can continue to enjoy your membership.

Best of luck!!

[robinb]

Originally Posted by vinmar4

Thanks, we are going to see if we can rent some of our points. We will have to pay out of pocket close to 6000.00 at closure if we were to sell them all.

I think that's the best choice for you.

[vinmar4]

I really want to thank the people that took the time to answer my post.
We are going to look into learning how to rent as it seems like a good option and we may also just sell one of our contracts so the anual dues will decrease and also our monthly payment if needed. We may also just transfer one of my contracts to my sister if we can so she can use the points but we will have to find out how that goes and if it's even possible. So many things to think about but we may just do it after Christmas because I don't need the extra stress now with the holidays, but we received a lot of good ideas!
thanks again you guys!
as you can tell, I'm feeling a little better

[staceymay00]

Originally Posted by CaptDadSparrow

As of Dec 19Th I think AKV is going to $150 per point.

What I would then assume is the resale and rental value would also be going up per point. If that's true, you may be surprised to see you are not in a bad position to sell or rent with out to much loss at all.

I am no expert, but I don't think AKV resale prices will increase. We bought a resale contract a few years ago and while I don't check resale prices weekly, I do take a look from time to time. I'm pretty sure resale prices at all the WDW properties have fallen since we bought, even as direct prices for the same resort go up. The issue I see with AKV is that it is a large resort and many others are now in the same position as the OP, or they simply realize they don't want to continue vacationing at WDW any longer even though cost is not an issue. I can see resale prices getting a bump at a small resort (with few resale contracts available) when direct prices go up, but that is not the norm.

Sent from my iPad using DISBoards

[vinmar4]

Originally Posted by DizBub

Ouch!!

We have 470 points, 310 at BLT bought direct and 160 at BCV bought resale. We will be hit with about $2300 in dues this year so I understand what you are going through.

Hopefully things will go well for you renting your points for now and you can continue to enjoy your membership.

Best of luck!!

Thank you!

[vinmar4]

Originally Posted by rklives

Like one of the others recommended, i usually rent some points to help pay for my dues, i usually get around $10 PP.

Is it really complicated to rent?
and how long does it usually take to rent them?
thanks

[Dean]

Originally Posted by CaptDadSparrow

What an incredibly nice thing to say. Thanks.

Can you show that the resale price per point has gone down? Prices go up and down for 3 general reasons 1. Scarcity 2. Perceived value 3. Market control (a monopoly or the economy)

If prices on direct are going up yet prices on resales are going down one of these reasons has to be. Is there more people flooding the resale market with akv contracts? Is Disney raising direct prices because of higher demand or to create the illusion of a higher perceived value than the year before?


I could go on, but since you are so confident in your knowledge that you don't mind being a little rude, I'll let you have the floor and the final word to enlighten this fairly new forum poster as to why direct prices going up are lowering resale prices. I don't mind being wrong as much as I do mind arrogance and unnecessary rudeness. After all is it really that INCREDIBLY INACCURATE OF AND ASSUMPTION TO BE CALLED CRAZY? No, crazy assumptions are that the world is 6,000 years old or that cigarettes are not the leading cause of lung cancer.

Again I don't mind being wrong, and I prefer to be educated with good info.

I'm sure Jim didn't mean to be harsh, just honest

OP, Actually it is pretty far off base as I'm sure you're figuring out by now. I see several incorrect assumptions, these include that resale prices track retail and that market forces are broad enough to give a true value on the open market. Regardless, the market is as you see it, maybe a little over half of what you paid. Plus, if all of your contracts were financed, they likely were financed as a unit meaning it's unlikely you could sell one or two without paying off the remaining ones.

Your situation is one of a number of reasons why I try to press those looking to buy to make sure they understand the risks and negatives, to never finance and to not overbuy the number of points they truly need or the higher cost resort. I can't tell you what to do but for most people in this situation I think the first question is whether they can afford DVC (or even Disney) at all. Truthfully if $1800 a year gets one into trouble, the answer is likely no. For most the best decision is likely to sell all, pay the upside down amount and start saving for when they really can afford it so it'll be a blessing and not a curse. Let us know how it works out and what you end up finding out along the way, esp how it works with trying to sell part with a loan in place.

[JimMIA]

Originally Posted by CaptDadSparrow

Can you show that the resale price per point has gone down?

Sure, but you're going to have to drill down a bit.

Here's a link to the ROFR thread, Section V, which shows actual reported transactions (not asking prices) which either passed ROFR or which Disney took via ROFR. Section V only covers 2012 transactions, so you'll have to do some homework to get the full picture.

If you follow that back to about Section II, you will probably find the early resales of AKV in the $90 range. As the current report will show you, AKV is selling, and clearing ROFR, now in the low $60's.

[JimMIA]

Originally Posted by Dean

Your situation is one of a number of reasons why I try to press those looking to buy to make sure they understand the risks and negatives, to never finance and to not overbuy the number of points they truly need or the higher cost resort.

Dean, CaptDadSparrow is not the person in the trick bag here -- vinmar4 is. CaptDad is just in the process of buying in, as I understand it.

[shalom]

Originally Posted by CaptDadSparrow

Prices go up and down for 3 general reasons 1. Scarcity 2. Perceived value 3. Market control (a monopoly or the economy)

Remember that TimeShares are a long-term commitment with costs (MFs) that go up every year. The first few years of any point system, most owners are new and happy owners; the longer that point system lasts, the more people who will be living in a very different economic system from what they had when they first signed up, the more people who will have decided the TS isn't for them, the more people whose health or family situation makes it harder to make use of the TS, and the more people who want the most popular/hardest to get into resorts. So the longer the TS has been around, the higher the percentage of owners wanting to sell.

Plus Timeshares depend on their sales department much more heavily than most other purchases. Nobody needs to own DVC, and most people who buy DVC, buy because a sales presentation convinced them it was a good deal. DVC salespeople are a not so high pressure as your average TS salesperson, but they still count heavily on appealing to the buyer's emotions. Very, very few people buy DVC for purely rational reasons, because the purely rational approach would be to get bigger, nicer accommodations offsite, and then trade into DVC when possible. You buy DVC because you enjoy the magic and want to be part of it, and an amazing percentage of people buy DVC without doing much research at all.

All those people who buy into DVC without doing research are not part of the market for resales, so there's only a very small overlap. The usual market for Timeshare Resales, which is to say, people who already own and understand Timeshares, is a totally different market, and most of them think it makes more sense to trade into DVC anyhow. People buying on the resale market also do more research into which resort trades best, which MFs are higher, are more interested in minimizing costs, etc. than people buying direct from Disney.

Disney is selling DVC to a different market than people who are trying to resell their points are. There's also the fact that Disney can wait out tough economic times; many owners who are putting their points on the market need to sell those points, meaning they're much more willing to negotiate and much more likely to drop their price. Two different types of sellers, selling in two different markets, means two different sets of prices that are not very tightly connected.