Buying resale from disney

[itutorfortravel]

A friend of mine told me that sometimes Disney buys contracts during the ROFR process and then re-sells them themselves amd that these resales don't have restrictions. My question is how do Disneys resale prices compare to resale prices through non Disney companies?

Thanks!

[Missyrose]

Originally Posted by itutorfortravel

A friend of mine told me that sometimes Disney buys contracts during the ROFR process and then re-sells them themselves amd that these resales don't have restrictions. My question is how do Disneys resale prices compare to resale prices through non Disney companies?

Thanks!

There's no such thing as a resale contract through Disney. Disney will sell you a contract for any DVC resort (even the so-called sold out resorts). But they'll charge $115 per point for BWV, while the resale contracts for that resort are going for $50-$60 per point.

[Caren90]

Disney details those ROFR'ed points up like new, and then sells them at the "new point smell" prices. In other words, they become direct points with all of the bells and whistles.

[Saaz]

I checked into buying resale and ended up buying direct because I wanted the same use year and only needed 50 points(have 160 already). These deeds are hard to come by. If deeds go up for resale and there is a person waiting for those same points at a DVC property, DVC will buy them using ROFR, and sell them to the person waiting for them. My guide told me this is the biggest factor in whether DVC invokes ROFR. It makes sense. If they can buy the points for half price and then sell them for full or near full price to a buyer who is just waiting to get them, it's a no brainer.

[disneynutz]

ROFR contracts are stripped and resold as a new contract. DVD does have a business relationship with Fidelity Real Estate Agency, Timeshare Division. I'm not clear on the extent of the relationship but I have noticed that Fidelity tends to have a large inventory of smaller contracts but at a higher price. I have also been told that Fidelity kicks back 50% of their sales commission on sellers referred to Fidelity by Disney.

Bill

[JimMIA]

Originally Posted by disneynutz

ROFR contracts are stripped and resold as a new contract.

DVD does have a business relationship with Fidelity Real Estate Agency, Timeshare Division. I'm not clear on the extent of the relationship but I have noticed that Fidelity tends to have a large inventory of smaller contracts but at a higher price. I have also been told that Fidelity kicks back 50% of their sales commission on sellers referred to Fidelity by Disney.

Correct in all respects, but these are two completely different concepts.

ROFR'd points are sold by DVD directly, at very high prices, and carry all the benefits (which can be taken away with one swipe of the Mouse's pen) of direct points.

DVD also has a business relationship with Fidelity in which they refer owners wishing to sell their contracts, and in return receive a share of the commission (which I have been told by someone in a position to know -- who declined the same deal -- is 50%). Those referrals come about when DVC owners contact DVC about "taking their contract back."

Any points purchased through Fidelity are, of course, resale points which would NOT carry any of the direct point "benefits."

Many folks here, myself included, do not think the "benefits" of purchasing direct are worthwhile at all -- much less so beneficial that they justify paying double the price.

In fact, one of the cooler heads here even thinks DVD did prospective purchasers a FAVOR by placing restrictions on resale points -- because it forces buyers to focus on the real benefits of DVC ownership. Which, of course, is using DVC points at DVC resorts only.

[JimMIA]

Originally Posted by Saaz

If deeds go up for resale and there is a person waiting for those same points at a DVC property, DVC will buy them using ROFR, and sell them to the person waiting for them. My guide told me this is the biggest factor in whether DVC invokes ROFR. It makes sense. If they can buy the points for half price and then sell them for full or near full price to a buyer who is just waiting to get them, it's a no brainer.

Keep in mind that there is no such thing as a "guide." They are timeshare salesmen, and although DVC timeshare salesmen are relatively ethical (for the industry), they say all sorts of things -- and, in particular, express all sorts of things that they really have no information at all about.

If you are not completely sure whether information from anybody's timeshare salesman is accurate, there is a simple test. Get them to put it in writing.

If they can't, or won't, ignore it.

[heynowirv]

Originally Posted by disneynutz

ROFR contracts are stripped and resold as a new contract. DVD does have a business relationship with Fidelity Real Estate Agency, Timeshare Division. I'm not clear on the extent of the relationship but I have noticed that Fidelity tends to have a large inventory of smaller contracts but at a higher price. I have also been told that Fidelity kicks back 50% of their sales commission on sellers referred to Fidelity by Disney.

Bill

I'm not sure about the pp price of their contracts being higher. We bought from them a 25 point contract in March 2011 SSR and i believe we paid $63 pp which was quite reasonable @ the time.

Haven't looked lately(haven't developed add-on ititis).

Irv