Confused about resale dues...?

[melanieewr]

I have been researching dvc and dh and I have decided that it is for us. I have found a large contract that will have all it's 2001 pts beginning Oct. 1. To me it seems that I should only owe dues for Oct, Nov, Dec to the owners and then all of the dues to paid by me beginning Jan. 1, 2002 since I did not have any use of the pts before Oct. 1. Am I just not getting the whole concept of the resale or what? Please explain if you can.

Deeply Appreciative of These Boards!
Melanie

 

[CarolMN]

When you purchase via resale, everything is negotiable (including who will pay the dues). If you purchase via Disney, annual dues are prorated. Beginning date for the prorate is the date you sign the purchase agreement.

Again, the actual price paid for a resale will be whatever you and the seller negotiate. The seller may argue that whoever will actually use the 2001 points (you) should pay the dues. Since you don't get any points until October (although you could borrow them after the sale closes and gets into DVC's system), you can argue that you shouldn't have to pay dues for the first nine months of 2001. That's how Disney works it when you buy from them.

Good luck with your negotiations! Hope to be able to welcome you home soon.

 

[rbuzzotta]

We paid the dues for the whole year. We really couldn't complain because we also had a full year of banked points. It was worth it to us!!!!!!!!!

 

[deerh]

I think that is a little inaccurate. The dues (if purchased thru Disney) are prorated, BUT, the day you call and say you want to add-on or buy till the end of the year. A LOT weird if you ask me, but I see why, because you can make ressies that day, so it is the day of the call till Dec 31. Just wanted to clarify it.
deerh

 

[melanieewr]

If there were banked pts I would be more than happy to pay a full years dues plus the prorated difference of the previous year. I was just made to feel that I should pay the full years dues because they had not borrowed any pts and due to the fact that I am not willing to pay the full asking price for the pts. I will be buying dvc but I don't mind waiting for the right price for a large contract of say 350 pts or more. I really can't see paying more than $65 pp which I think should include prorated dues and commissions. I may be be way out of line here considering current escalated prices but I will hold-off buying until I can find something close to what I am willing to pay.

I have been considering dvc for several years but really thought that with the high yearly dues that it was not for us. Reading these boards for the past 3 months has totally changed my mind about dvc and has allowed me to put on paper the "numbers" that also convinced dh that when we go to WDW we should be "going home"...Thanks Everyone!

Melanie

 

[Doctor P]

I agree with you that you should not have to pay the full year's dues when you will have no points until October, borrowed or not. However, I think you are being grossly unrealistic on $65 per point including dues and commissions with no borrowed points. BWV and OKW have limited availability because they are no longer for sale through Disney, and the Disney direct price for the other resorts is $75 per point. At over 3.00 per point for dues and 4-6.00 per point for the commission according to the figures reported on these boards, you are talking about a seller netting about $55 per point. If you add your closing costs into your expected price, I think you are even more realistic. Just depends on whether you really want to buy. Let us know how you come out.

 

[melanieewr]

Doctor P;

By prorating the dues my share would come to about $1 per point. We haven't even discussed broker fees but I hope that broker fees are a set fee and not based upon the number of points. Basically, I am hoping to pay $60 pp plus my prorated share of dues plus broker fees. Does this sound reasonable?

Thanks to everyone who has responded.

Melanie

 

[Doctor P]

Melanie,

I understand and I wish you the best of luck. I was giving you the seller's side of the transaction. On the seller's side, they have already paid the dues from 2001 and have not yet used the points (I don't agree fully with that interpretation, but that would be the seller's view I expect). Dues will therefore be a 3.00-4.00 per point "loss" in their mind. Broker's fees, as reported on this board, have a floor (I think it was recently reported that the floor is $1500 and then it does go up for the larger contracts, of which I suspect 350 points would be a larger contract). I just looked at some recent posts and a 15% broker commission was mentioned--that would mean a $9 per point commission on a $60 per point sale price. Plus the $1+ that you will pay in typical closing costs. Thus, on top of the net price for the points, the seller could be seeking to get roughly another $14.00 per point to cover the costs of the transaction. For someone who bought in early, you might be able to find a distressed buyer who will meet your conditions, but I think you might have a challenge ahead if the market stays the same or better. Once again, good luck. I hope you find the resale you want for the price you want, and I hope I am wrong about your chances in the near future.

 

[WebmasterDoc]

I am hoping to pay $60 pp plus my prorated share of dues plus broker fees

Broker fees are usually paid by the seller. Some are fixed- some are a % of the purchase price. I think they often start out at $1500.

You should figure out what you are willing to pay for the contract in total and make an offer a little less than that. YOu will then have some room to bargain.

Good Luck!