Buying/selling DVC?

[heathpack]

Is there a particular reason that most DVC contracts seem to be bought/sold via brokers?

Is the Disney ROFR process complex or the closing unique in some way?

Could one sell without a broker, just like any other timeshare?

 

[DisneyDenis]

The quick answer is yes, it can and has been done without brokers. It came up a few times on various Disney boards. However, it is very rare.

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[heathpack]

The quick answer is yes, it can and has been done without brokers. It came up a few times on various Disney boards. However, it is very rare.

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Why is it very rare? Because its too complicated, more complicated than other TS transfers?

 

[slum808]

I wouldn't think it's complicated if you still use a title company. The problem would be finding a buyer and having the buyer trust a non broker sale.

 

[DVCDisneyRunner]

I wouldn't think it's complicated if you still use a title company. The problem would be finding a buyer and having the buyer trust a non broker sale.

I agree.

It is hard to get the exposure and likely even harder to have someone trust the process without a professional broker to help secure the funds. I know you can use a closing company and an escrow company, but I do not believe the average buyer knows or would be willing to trust it unless they were getting a great deal. So, if the seller has to provide a better than average deal to get a buyer the seller is likely better off using a broker in the first place and not wasting time dealing with all the aggravation of trying to sell it on their own.

 

[rickandcindy23]

I would contact LT Transfers about the process of selling and closing a DVC contract. If it can be done, they have probably done the closing.

 

[heathpack]

I would contact LT Transfers about the process of selling and closing a DVC contract. If it can be done, they have probably done the closing.

Thanks! Good idea.

 

[ziravan]

It's rare and unusual for timeshares to use a broker but the rule for DVC for 2 reasons:

1. DVC contracts retain much more value than other timeshares. As a comparison, I paid $105 for my Wyndham Cypress Palms contract and for a similar number of nights, $21,750 for my BCV contract, both resale (and both very good deals). (I paid $84/point resale for BCV a few yrs ago and the current going rate is about $100.)

2. Much more important, there's no advantage to the buyer to not use a broker. Buyers tend to be more novice and a seller knowledgeable enough to navigate ROFR is going to be an expert. This puts the buyer in most cases at a very big disadvantage. Plus, the seller is going to save the money on the sale and a seller knowledgeable enough to save that money isn't likely to split the savings.

If I'm buying a $105 contract, where seller is paying all closing costs, then by all means they should save a buck because I am.

If I'm buying a $21,750 contract where the price is the same whether using a broker or not, I'd rather have someone who is working at least partly for me. And someone with whom I have recourse if things go sideways.

Unless the buyer is offering $5/point under current brokers, I'd use a broker (I did use one).

 

[heathpack]

I used a broker when I bought my DVC as well, but only because I did not otherwise know how to connect with a seller.

But for my Hyatt (which was the same expensive dollar am't as my DVC), I did not use a broker and I felt perfectly comfortable with that even though it was a lot of $. The Hyatt was my first TS purchase too, I had been reading TUG but its not like I was tremendously experienced.

However I do get it that in general DVC owners are the least savvy and the most paranoid of TS owners and many don't even believe they own a TS. Too much Koolaid drinking maybe.

So I understand the sociology of DVC purchases but just wasn't sure if there was something rational behind the use of brokers. Mostly I was wondering if I could connect with a non-paranoid DVC buyer (like someone on TUG who owns other TSs) was there something that made the transfer more complicated to the extent that it required a broker.

 

[elaine]

As a buyer, it never occurred to me to beyond a major DVc broker. As a seller, I used a broker b/c it was so easy and quick, given the high visibility that the DVc brokers have. I also did not want to deal with any of the ROFR, etc. I would guess 99% of DVC resales are via broker b/c of this. Elaine

 

[heathpack]

As a buyer, it never occurred to me to beyond a major DVc broker. As a seller, I used a broker b/c it was so easy and quick, given the high visibility that the DVc brokers have. I also did not want to deal with any of the ROFR, etc. I would guess 99% of DVC resales are via broker b/c of this. Elaine

If I recall correctly, the brokers get 10% of your sales price. Depending on what you're selling, this could be a decent amt of money.

I've never yet sold a TS but I guess it boils down to two things:
1. Find a buyer
2. Do the transfer

I don't have the impression that step 2 is that hard. Admittedly step 1 could be the issue. But if you don't need to sell quickly, I'm not sure you have much to lose by trying step 1 on your own.

 

[chalee94]

2. Much more important, there's no advantage to the buyer to not use a broker. Buyers tend to be more novice and a seller knowledgeable enough to navigate ROFR is going to be an expert. This puts the buyer in most cases at a very big disadvantage. Plus, the seller is going to save the money on the sale and a seller knowledgeable enough to save that money isn't likely to split the savings.

yep.

ordinarily you could sell-by-owner and everyone wins, the buyer and seller split some of the additional costs so that both end up with more money. but if ROFR discourages lower prices, then only the seller wins by selling their DVC themselves while the buyer takes more risks.

so while I have seen certain posters trying to promote their "DVC FSBO" websites, it doesn't make much sense for DVC. even as an experienced DVC buyer, I would (most likely) always stick with the brokers.

 

[elaine]

it's the find a buyer and deal with the buyer. For a $25K DVC, that's $2.5K, but the enormous exposure, plus not having to deal with anything but signing a few forms, makes the broker appealing, even with a 10% cut. My sale was much smaller, so it was a no-brainer for me.

 

[heathpack]

I find a lot of these comments very interesting, it really does help to see others' perspectives.

I guess for me, my primary consideration in buying would not be in trying to go for a brokered sale just for the safety that implies. I'd be most concerned about finding the contract that suits my needs- the right size & resort & UY. Then if I had confidence in the seller, I would not care one whit if a broker was involved. Maybe this is because I've obtained my three non-DVC timeshares from TUGGERS and I had no less confidence in any of them than I had in a DVC broker. But I also recognize that I'm not your typical DVC buyer, so what seems rational and find to me might not seem the same to most other people.

I get it too that it's easier as a seller to use a broker and maybe I'm just way underestimating how hard the process is. It just doesn't seem like that big a deal to me and I'm happy to keep using what I own indefinitely if it took awhile to find a buyer.

Anyway, thanks for the responses. It's appreciated.

 

[bendadin]

I have a 50 BLT that I really don't need. But it will be such a hassle to sell it through a broker that we will just keep it. But then again, at one point I will need to give away a WBC. I don't know how to close that one, either. So lack of knowledge is lack of knowledge.

 

[elaine]

it's no hasle to sell thru a broker. print off the forms they email you, sign and either fax or scan back, then sign and send back closing docs, get your check in the mail. you could likely get rid of your 50 point contract in 1 day via a broker (that's what I did). The price has likely gone up, so it would probably be a wash or small profit, even subtracting the broker fee.

 

[DisneyDenis]

it's no hasle to sell thru a broker. print off the forms they email you, sign and either fax or scan back, then sign and send back closing docs, get your check in the mail. you could likely get rid of your 50 point contract in 1 day via a broker (that's what I did). The price has likely gone up, so it would probably be a wash or small profit, even subtracting the broker fee.

One problem with buyers and sellers getting together (other than here!!) is that on some boards it is discouraged. I read a post on Dis about going about selling BLT privately. I answered that I would like more info. This was about 2 1/2 years ago. Both of us were hit with penalties and the posts deleted. Don't think Dis is doing penalty points anymore with its own tracking tab, but I could have lost posting privileges just publicly inquiring on this again or hinting that I might be selling privately.

What a coincidence, I just passed ROFR and am in estoppel on a 50 pt. BLT Feb contract.


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