First RIV resale contract sold for?

[TexasChick123]

Something no one has pointed out is that there are quite a few CCV points sitting in the market. This is the most recently opened property which isn’t moving super quickly despite being able to trade into the L14. Riviera hasn’t even opened yet, so I am not surprised that people are hesitant to buy into a property via resale where the rules have changed restricting you to one resort. I think it’ll sell fine once the resort opens. At what price it will sell still remains to be seen. Until then, I think it’s too early to list your Riviera points.

 

[Hjs33]

Call up DVC and just say your not going to use the contract and not going to pay the financing either.

I don't think you take to big a hit on your credit score either. Chances are DVC will just foreclose on it.

I would be absolutely shocked if you could default on a real estate loan and have it foreclosed on and not have it impact your credit score. Plus how is anyone willing to make these loans if they take all the risk and there is no risk to the buyer. I’m not sure about Florida real estate law, but in some states the banks can even come after your other personal assets if you default on a real estate loan.

I would be very careful about making a statement like that unless your sure because someone might read it and do it.

 

[emilymad]

One thing to consider - When I bought my first resale contract at BLT, the price per point was 57% of what it was selling direct. 57% of $188 is around $107. I bet there are a lot of people (especially people who already have unrestricted or L14 points) who would be happy to buy a RIV contract for $107 and *only* be able to use it there.

But that is comparing direct to resale. A RIV resale contract would be compared to an L14 resale contract. $107 is still way high for only being able to use it at RIV compared to what some of the other L14 contracts go for.

 

[Raven01]

Call up DVC and just say your not going to use the contract and not going to pay the financing either.

I don't think you take to big a hit on your credit score either. Chances are DVC will just foreclose on it.

Bad advice. Generally, refusing to pay the financing, deeds in lieu of foreclosure, and foreclosure are credit hits that are on the credit report for years. The law can vary from state to state and I would check with the specific state.

If you walk away from the contract with Disney, even without the financing issue, Disney could sue for breach of contract. I would be shocked if Disney did not include clauses in their contracts for that scenario.

Don't sign the contract if you are not prepared to pay.

 

[kboo]

But that is comparing direct to resale. A RIV resale contract would be compared to an L14 resale contract. $107 is still way high for only being able to use it at RIV compared to what some of the other L14 contracts go for.

I am comparing RIV direct to RIV resale. Not BLT resale to RIV resale.

 

[zavandor]

Plus how is anyone willing to make these loans if they take all the risk and there is no risk to the buyer.

Financing is done by Disney itself. They don't really move real money, they transfer some numbers from one balance sheet to another balance sheet in a different business unit.
Disney doesn't risk anything financing DVC. If the owner repays the debt, they acquired a customer for 50 years. If he foreclosures, they pocket the down payment and get the contract back to sell it again. It's a win in either case for the Mouse.

 

[The Jackal]

Something no one has pointed out is that there are quite a few CCV points sitting in the market. This is the most recently opened property which isn’t moving super quickly despite being able to trade into the L14. Riviera hasn’t even opened yet, so I am not surprised that people are hesitant to buy into a property via resale where the rules have changed restricting you to one resort. I think it’ll sell fine once the resort opens. At what price it will sell still remains to be seen. Until then, I think it’s too early to list your Riviera points.

CCV has some of its own issues with very few studios and all those points for the Cabins. Studios need to booked at 11 months. The hard 4 limit on studios and 1 bedrooms pushes a family of 5 to a 2 bedroom. SSR refurb will have 5 sleeping surfaces in a 1 bedroom. But at least they can get rooms at the other L14 resorts.

 

[mjlash22]

Financing is done by Disney itself. They don't really move real money, they transfer some numbers from one balance sheet to another balance sheet in a different business unit.
Disney doesn't risk anything financing DVC. If the owner repays the debt, they acquired a customer for 50 years. If he foreclosures, they pocket the down payment and get the contract back to sell it again. It's a win in either case for the Mouse.

This is a valid point, but legally, they can go after that person for breach of contract and get even more money, keep the contract, and resell it for full price. Not to mention someone who goes this route could very well be banned from Disney for life.

 

[ELMC]

This is a valid point, but legally, they can go after that person for breach of contract and get even more money, keep the contract, and resell it for full price. Not to mention someone who goes this route could very well be banned from Disney for life.

If I'm understanding you correctly, are you suggesting that if someone defaulted on their DVC payments and was forced to turn the contract back over to Disney that they could be banned from Disney property for life?

 

[mjlash22]

If I'm understanding you correctly, are you suggesting that if someone defaulted on their DVC payments and was forced to turn the contract back over to Disney that they could be banned from Disney property for life?

By no means a fact, but a possibility I am guessing.

 

[Pyotr]

CCV has some of its own issues with very few studios and all those points for the Cabins. Studios need to booked at 11 months. The hard 4 limit on studios and 1 bedrooms pushes a family of 5 to a 2 bedroom. SSR refurb will have 5 sleeping surfaces in a 1 bedroom. But at least they can get rooms at the other L14 resorts.

True about CCV however a 1 bedroom preferred at The Riviera is more points than a 2 bedroom at CCV. With only 25% of the rooms being standard, most people will be forced to book a preferred.

 

[Bearval]

This is a valid point, but legally, they can go after that person for breach of contract and get even more money, keep the contract, and resell it for full price. Not to mention someone who goes this route could very well be banned from Disney for life.

The person who defaulted at a minimum would be liable for the legal costs associated with the default the commission DVC paid to the agent who sold them the property, any and all fees that DVD incurred to market the property. They could even go after the difference of what they paid for the property and what the average resale price is when they defaulted .

 

[The Jackal]

True about CCV however a 1 bedroom preferred at The Riviera is more points than a 2 bedroom at CCV. With only 25% of the rooms being standard, most people will be forced to book a preferred.

I know RIV is very point hungry. People who end up buying a small 25-50 point resale contract at RIV will be going once every 2-3 years for most seasons less than a week in a studio. We will never own there. MF’s should be much lower due to the high number of points it takes to use them, like at BLT, VGF, VGC and PVB. All use a lot of points and all are in the $6 pp range. RIV is starting out at $8.30. That’s about $2 more pp than those above.

 

[Boomatt]

Just an update. Both the 100 and the 125 point contracts are still up at Fidelity. Haven’t moved... maybe I should offer my $50/pp again...?

 

[Madame]

For good or bad the bar has been set at sub $100 by the first contract

 

[Bing Showei]

For good or bad the bar has been set at sub $100 by the first contract

I think it may be more that the $/pt difference between what potentially underwater sellers NEED to sell at today, and what buyers can pay for retail are far too close (even ignoring the differences in the two products). $170 vs. $188? No-brainer if I wanted Riviera.

Anyone who is familiar with the sale which shall not be named knows it was not reflective of any free market forces -which is not to say the resale process is either, but this one was even less so.

 

[Madame]

I think it may be more that the $/pt difference between what potentially underwater sellers NEED to sell at today, and what buyers can pay for retail are far too close (even ignoring the differences in the two products). $170 vs. $188? No-brainer if I wanted Riviera.

Anyone who is familiar with the sale which shall not be named knows it was not reflective of any free market forces -which is not to say the resale process is either, but this one was even less so.

Sure, but now as a buyer, one knows that a contract went for $100, & mentally, paying more seems unreasonable. No matter the circumstances of the first resale.

 

[TexasChick123]

I think all Riviera resales will struggle until the resort opens. It’s just too soon to list them. People have/had a hard enough time, myself included, purchasing direct before a resort opens. To purchase a resale contract with these restrictions before the resort opens is pretty tough. You have to know you want to stay there and only there. How can you know that before it is opens?

Regarding that one resale purchase, it honestly makes me very angry how the whole thing was handled. What a sham. I don’t plan to ever use them after this. What a disservice to those of us who bought Riviera directly, trying to make a completely controlled sale look like something in the free market which can influence the resale price is just wrong. Thanks for nothing.

 

[Bing Showei]

Sure, but now as a buyer, one knows that a contract went for $100, & mentally, paying more seems unreasonable. No matter the circumstances of the first resale.

I can see that, I guess. And to your point, judging by the willingness by those on this board to put in offers $100 and below, that is probably in play here. I suspect time will adjust all of that. The resort opening will be a big part of that.

 

[Sandisw]

I can see that, I guess. And to your point, judging by the willingness by those on this board to put in offers $100 and below, that is probably in play here. I suspect time will adjust all of that. The resort opening will be a big part of that.

I agree. Again, those that are DVC members already who have points for stays elsewhere, once they get a chance to stay at RIV, May decide to purchase a resale there based on experience.

I am working hard to convince my DH to let me add 100 more point at BLT, specifically to book and stay there for my year.y Dec trips. While it will have trading power, I will be using it like it’s restricted. So I can see someone who feels like this about RIV once it’s open paying a little more to have those points.