Navigating the DVC Resale Market: Tips for New Buyers

So you’ve decided that DVC is right for you, and now it’s time to search for the perfect contract!  What should you know when browsing the resale contract listings?  Here are some tips for new buyers as they navigate the resale market for the first time.

Check the Latest Market Trends

As a new buyer, you may not be sure what price per point to include in your offer.  Check the DVC Resale Market’s blog for the monthly reports on average sales prices and Right of First Refusal (ROFR).  The average sales price report shows the average sales price of each DVC resort for the month while the ROFR report shows the highest price at which a contract was bought back during ROFR for each resort.  Combined, these reports give you an idea of what is a fair price to offer for a contract and what price is more likely to help you pass ROFR.  Of course, you can always speak to one of the DVC Resale Market’s agents for advice!

Don’t Snooze on Making an Offer for Rare or More Competitive Listings 

Some types of contracts tend to sell faster than others.  A few examples are:

Small Contracts

• • • Small contracts, such as those with 100 points or less, are more approachable since they are more affordable.  They tend to sell more quickly than larger contracts.

Double Points Contracts

• • • Each contract has a set number of points per year, and DVC Members are able to bank unused points to use them the next year.  If a DVC Member decides to sell a contract that has a full year’s worth of banked points, it’s considered a double points contract since it will have two year’s worth of points available to use.  
    • With double points contracts, the previous year’s dues are always paid by the seller.  For example, if you were to buy a 200-point Animal Kingdom double points contract, you would save $1,816 on dues!
    • This allows the new owner of that contract to upgrade to larger accommodations or more trips that first year.  If the new owner can’t use those extra points, they can always choose to rent out those points and put the income towards annual dues.  

Contracts with Subsidized Dues

• • • Contracts with subsidized dues pay lower dues than normal contracts.  You’ll find these contracts at Vero Beach and Aulani, but they are rare and clearly very desirable for their lower dues.  
    • For Vero Beach, subsidies were offered to owners who purchased prior to the decision to forgo the development of a second phase of the resort.  Initially, lower dues were calculated based on the original plans for the larger resort.  With more villas, there would have been more owners to help cover the maintenance costs.  
    • For Aulani, these subsidies were offered to set right an accounting error from when Aulani first opened in 2011.  The dues were miscalculated and then later increased after being corrected.

Guaranteed Weeks

• • Also referred to as Fixed Weeks or Favorite Weeks by DVC, these are contracts that are specific to a certain week of the year like a more traditional timeshare.  For example, if you had a Guaranteed Week 52 at the Grand Floridian for a Lake View Deluxe Studio, Member Services would book a Lake View Deluxe Studio at the Grand Floridian every year for Week 52 (7 consecutive nights, Sunday to Sunday).  This is done before the 11-month window opens, so you are guaranteed to get your reservation without going online or calling Member Services!
  • The great thing about Guaranteed Weeks is that if you don’t want to visit that week, you can opt out of your week and use the number of points on your contract for a different time of the year.  Those points would still maintain the 7- to 11-month home resort priority.  
  • These contracts were offered at Aulani, Grand Floridian, Polynesian, Copper Creek, and Riviera but aren’t as common as regular contracts, so they tend to sell for a premium.  

If you are interested in one of these contracts, don’t wait too long to make a move!

Courtesy of Disney Tourist Blog

Consider Negotiables Other Than Price Per Point

Typically, the buyer will pay for the closing costs, and who pays the annual dues depends on how many points are available in the current Use Year.  However, you may be able to negotiate having the seller pay for the closing costs if the seller is in more of a hurry to sell the contract.  If there are few points available to use in the current Use Year, it may be worthwhile negotiating to have the seller pay the annual dues.  

Have Patience

The resale contract process can take some time.  The process from making an offer to having your points available to book trips can take around 60 days, including ROFR, which has taken about 21 days lately.  However, the decades of magical vacations that you’ll get with your contract are well worth the wait!

Ready to find your DVC contract?  Access all available Disney Vacation Club resale listings, or learn more about buying and selling with DVC Resale Market.