There are more than 222,000 Disney Vacation Club (DVC) members. With so much competition out there, it can be difficult to close on the perfect point package, no matter what stage in the process you’re in.
What you want to do is make sure that you’re first comfortable with the actual DVC cost. Then, you want to utilize a method based on one of our top DVC resale buying and selling tips.
This way, you’ll be able to close on the right Disney property at the perfect price. So keep on reading and we’ll walk you through the top DVC resale buying and selling tips that you need to know about!
1. Target DVC Listings with Banked Points
One of the biggest advantages to buying DVC resale that a lot of people don’t know about is the chance to buy point packages. And some that include banked points.
Banked points are basically bonus vacation points.
As a DVC member, you’ll have the chance to “bank” points. This means that these points can be saved and used for a future use year.
However, when the Disney Vacation Club property is put on the resale market, the price is going to be determined by the standard annual allotment. Any banked points will be given to the purchaser at no extra cost.
You will need to use banked points within the use year that they’ve been reserved for. The points can’t be banked for a second time.
As a purchaser, you basically get a one-time points bonus along with your purchase of a standard point package. Some sellers, to offset the extra points, might expect a slightly higher price per point. They also might ask that the purchaser cover other closing costs.
This isn’t as big of an issue for the purchaser. The extra points will still come at a much lower cost than if you bought them on the retail market. And these points can be rented out for big returns.
Banked points offer a lot of value to the purchaser. Because of this, the sale of these point packages can be very lucrative and competitive.
When you come across an attractive DVC resale listing with banked points, you should make a serious offer soon, before that property gets snatched up by someone else.
2. Navigate First Right of Refusal with Caution
Disney has the chance to buy any Disney Vacation Club resale package under the company’s Right of First Refusal policy. For a future DVC purchaser, this means that the sale might be picked up by the Mouse House even after a contract has been written up and the sales price has been agreed upon.
When this is the case, the future buyer won’t have a choice but to go back to the market and look for a different point package that’s for sale.
Disney stays quiet about all of the criteria that they use to decide which Disney Vacation Club resale package will be bought by the company. However, the price per point is definitely an important factor.
A contract in which the sales price is lower than the average market value is particularly vulnerable to getting poached by Disney for a slightly higher price.
It’s important that you research the current average DVC listing prices and make appropriate offers. You can take a chance with a low offer. But even if the seller agrees on the price, Disney may very well swoop in and buy the property instead.
It’s not the end of the world if you end up a casualty to the Right of First Refusal clause. However, it will set you back by about one month because that is the typical length of Disney’s review process. It will also make you look for a different listing.
In order to avoid this kind of issue, you should make offers that are competitive and discuss the offers in advance with a licensed broker.
You should also consider the different DVC resale markets that are available to you. For example, there are Old Key West resale opportunities that you might not be considering.
3. Balance Price Per Point With Other Costs
You’ll want to employ some diplomacy in order to come up with a successful offer. For example, you should consider the Right of First Refusal.
You likely have an idea of the cost you’re willing to pay per point. Remember that there are other expenses that you need to consider, such as the closing cost of the property.
DVC purchasers usually pay the closing cost of a DVC resale sale. This might be reversed if the seller really wants to get rid of the property.
Next, you want to think about annual dues. There are always going to be open for negotiation.
If most or all of the vacation points for the current year have been used already, then the seller will usually pay the yearly dues.
Even if the points haven’t been spent, budget limits might play a role in convincing the seller to pay for this cost.
The Importance of Knowing DVC Resale Buying and Selling Tips
Hopefully, after reading the above article, you now have a better idea of the best DVC resale buying and selling tips out there. You should now be able to find and close on a property with more confidence.
Are you looking for other helpful real estate articles like this one? If so, make sure to read our other articles on the subject!