Selling DVC Resale: Price vs. Time on the Market

Filed in Disney Vacation Club, DVC Resale, Grand Floridian, Saratoga Springs, Selling DVC

2 Comments
Disney's Grand Floridian Resort

Every seller ideally wants the most money and the fastest sale.  However, often times these come at a trade-off.

Through DVC Resale Market’s Broker Price Opinion Tool (patent pending) and Instant Sale program, there are several different ways to arrive at the best listing price for a seller’s needs.

The graph below illustrates the trade-off of price vs. time on the market, dividing the selling options into 4 tiers:
Price vs. Time on the DVC Resale Market

1: DVC Resale Market’s Instant Sale

This program is designed for those sellers that do not want to spend any time on the market and essentially want an immediate guarantee of sale.  The Instant Sale will never be as high as the recommended price DVC Resale Market would list a contract at, however, for a seller who wants an immediate sale at a likely sacrifice to price, this may be the answer.

2: Between the Instant Sale price and Market Price

On the Instant Sale page, the results display not only the Instant Sale, but also the recommended Market Price.  The reason for this is twofold. First, DVC Resale Market does not want anyone to take advantage of the Instant Sale option without knowing what the recommended Market Price would be.  Second, a seller may decide to go to market over the Instant Sale option, but at an aggressive price in between the Instant Sale and Market Price.  This option may not be instant, but usually results in a short time on the market.  For more details on approximate market time expected please see the table at the end of this article.

3: Market Price

The DVC Resale Market Broker Price Opinion Tool provides an automated recommended listing price taking into consideration resort, size of contract, point availability as well as other miscellaneous factors.  This price is considered the top Market Value a seller can typically expect.

4: Above Market Price

Going above the recommended market price are for those that have plenty time to wait and are willing to risk the chance of no sale.  If the market appreciates those that list above the market price could find themselves in a good position if they have time.  Also, they could get just the right buyer who needs that contract perhaps because of use year and lack of other contracts similar to it on the market.

However, if the market stays relatively flat or drops, listing above market could easily result in a failure to sell or a need to drop price in the future and possibly loss of unrealized money.  If the market is declining the seller that listed above market could find themselves chasing the market down and missing out on a better price they could have obtained sooner. This phenomenon was observed during much of the Summer and Fall of 2016.

 

Differences between Disney Vacation Club Resorts

At the bottom of this article is a table displaying typical days on the market based on a seller’s strategy and what resort they are selling.  Outside of the Instant Sale none of the days on market displayed in the table are guarantees, but rather estimated ranges composed from data and experience from selling thousands of DVC resale contracts.   Market conditions are always changing so please consult with one of the friendly professionals at the DVC Resale Market for the most up-to-date advice on selling strategy and estimated timeline.

Different resorts can expect different timelines when it comes to selling.  The 6 DVC resorts mentioned below with the fastest timelines are the same 6 resorts that topped Sharket.com’s list in 2016 of Top Timeshare Resorts.  Sharket’s ranking from 1,400 resorts was based on “saleability”, which was formulated using volume of sales and sales price.  This is not to say that resorts towards the bottom of the table below are not great resorts or even the best resorts, it just means they typically take longer to sell when compared to other DVC properties.

Disney's Grand Floridian kid's pool

A great example of this is with The Villas at the Grand Floridian (VGF).  VGF typically takes longer to sell, because the audience is smaller.  Often, when someone is buying Grand Floridian it is because they need home resort priority at VGF, which is a great reason as VGF is the flagship resort of Walt Disney World, a monorail ride away from Magic Kingdom and the timeshare only has 147 rooms.   The popularity combined with very few rooms, especially when compared to some of the larger DVC properties makes home resort priority at VGF very important and continues to help sustain a high resale value for the resort.

However, someone that is wanting to stay at many different DVC properties and wanting to buy the lowest cost option is going to have a hard time justifying the resale price of Grand Floridian in the 130’s to 140’s per point when options such as Saratoga Springs sell in the 70’s to 80’s per point.  On a 150 point contract, this gap in price can be as much as $9,000.  Granted, Grand Floridian has 10 more years when compared to Saratoga Springs (2064 vs. 2054 deed expiration dates), but it also has higher dues as well ($5.90/pt. vs. $5.60/pt.).

Disney's Saratoga Springs family pool

Typical Days on the Market:

Resort Instant Sale Between Instant Sale & Market Price Market Price Above Market Price
Saratoga Springs 0 1-7 1-30 30+
Bay Lake Tower 0 1-7 1-30 30+
Animal Kingdom 0 1-7 1-30 30+
Boardwalk 0 1-7 1-30 30+
Beach Club 0 1-7 1-30 30+
Old Key West 0 1-7 1-30 30+
WL: Boulder Ridge 0 1-14 1-45 45+
Hilton Head 0 1-14 1-45 45+
Vero Beach  0 1-14 1-45 45+
Grand Californian 0 1-14 1-45 45+
Grand Floridian 0 1-30 1-60 60+
Polynesian 0 1-30 1-60 60+
Aulani n/a* 1-30 1-60 60+
  • Currently, DVC Resale Market does not offer an instant sale option for Aulani

Comments

Post a Reply