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Uncovering Disney’s Best Kept Secret – The Disney Vacation Club
Issue 6
I’m sold. Now what? – Part 2
Broker…..Disney…..Broker…..Disney
I hope you have decided which way to go. If you have decided to use a broker, there are a couple of things you need to consider. (I have also listed a couple of brokers at the end of the blog. This is just a list of ones that I am familiar with, not a recommendation.)
1) Make sure that you are working with a licensed broker in the state of Florida. There are many companies that will try to sell you DVC but the licensed ones will have the best supply and knowledge about the system. They are also regulated by the state so they have accountability.
2) Find one that does significant or exclusively DVC. Most time share brokers will have some DVC but there are many that do 80 – 100% of their business with DVC. This gives them a significant advantage based on supply and knowledge of Disney red tape.
3) Don’t ever pay an upfront fee for anything! Good brokers make their money off of a fee or percentage of the sale. If one asks you for a fee up front to buy or sell, go somewhere else.
4) Check out their website. The good brokers have an extensive website that will also list their supply of contracts so you can see what is available.
5) Talk with them over the phone. It will give you a chance to get to know them. They also may have information on new listings or reduced listings that are not on the website yet.
6) Talk with more than one broker. Find the one that you are most comfortable. We all have our different needs and each broker has different strengths to fit those needs.
7) Ask for references. A good broker will have no problem at all giving you dozens or even hundreds of references of people they have helped.
8) Spend time on DVC discussion boards. You don’t even have to post anything. There are many discussion boards and many of them are sponsored by DVC brokers. Take some time and read what they post about, read what others are saying to them, and see how active they are on the boards. If they post a lot, that is one sign that they are active in the Disney and DVC community.
9) Check them out with the local BBB or state regulatory agency. If they are a good broker, they will have no problem helping you find this information. They have nothing to hide.
10) Consider the fees but don’t make that the final decision. Most of the brokers will charge fees to either the buyer, the seller, or both (that’s how they make their money). The fees will be part of the final contract but should be disclosed to you ahead of time. They vary depending on the contract size but you should be able to get a range of what they will be ahead of time. Don’t pick just the lowest fee. Pick the person that you feel most comfortable with that has reasonable fees.
11) Make sure they have a process in place to make sure that you get all of the legal paperwork taken care of (i.e. title search, title insurance, lien search, etc.) You will need to get this checked since this is a real estate transaction. A good title agency will be able to handle this for you. Many brokers have title agencies they work with that know DVC but you are not required to work with their people.
12) A nice perk would be if the broker has an established relationship with a lender. DVC (time shares in general) are more difficult to lend to because many banks don’t understand that it is a real estate transaction. A broker that has a lender they work with regularly will be an asset to you. Don’t use their lender unless you believe that they are giving you a fair deal. Also, look at as many other alternatives as you can to be sure that you are not spending more on fees and interest than you have to. Be sure to consider all sources of funds before making any decision.
13) Have all contracts check by a lawyer. Unless you are a lawyer, make sure that the contract says what you think it says.
OK, broker chosen. Disney chosen. What ever.
Now it is time to pick your resort. We seem to have run out of time for this blog so come back for Part 3 of “I’m sold! Now what?” where we will discuss home resorts.
DVC Resellers:
Kinn Tutas – www.Resalesdvc.com
Jason – www.dvc-resales.com
Shontell Crawford – www.dvcbyresale.com
NOTE: We do not recommend any of these brokers, nor do we sponsor or are sponsored by any of these brokers. These are only provided as references and we can not be responsible for any transactions on these or any other DVC rental sites.
If you would like to comment on this blog, please join us on the DVC Message Boards at Walt's Basement. If you are not a member of Walt’s Basement, just contact us at waltsbasement@charter.net and we will get you signed up.
If you are interested in more information about joining DVC, please drop me a note and I will get you connected with my great DVC rep. To be fair, I do get a gift when I recommend people to DVC.
Showing posts with label Walts Basement. Show all posts
Showing posts with label Walts Basement. Show all posts
Saturday, September 27, 2008
Sunday, August 17, 2008
DVC Blog - Issue #5 - Now what? Part 1
Uncovering Disney’s Best Kept Secret – The Disney Vacation Club
Issue 5
I’m sold. Now what? – Part 1
Time to join the family. Great! Just as you took time to consider your options when deciding to join, you need to weigh your options in how to join. When it comes to joining there are really 2 options. Purchase a contract from Disney Vacation Club or purchase a contract on the open market. There are plenty of pros and cons for both options. Either way though, you become a full fledged member of the DVC family.
Let’s look at buying from DVC first. When you buy directly from DVC you are getting the direct contract and direct pricing without any extra fees or time wasted. One big benefit is that you are usually buying the whole 50 year contract. Most contracts on the open market have many years used already. Also, Disney usually runs some type of special that will give you bonuses. They frequently have discount on points ($3-5 off regular price) and other times they will give you free, one time use points so that your first vacation is free. They also have the ability to finance the contract through their company. This can be a benefit if you are not sure if you can finance it outside. Finally, if you purchase through DVC, you know that you are going really getting the contract. (See ROFR in next paragraph). A couple of drawbacks are obvious. You will be paying more for the points since you get all, or most of, the 50 years and there is no real market competition for these new points. You are also limited to what your “home” resort can be. There are rumors out there that Saratoga Springs and Animal Kingdom are very close to, if not already, sold out. That leave the new Bay Lake Tower at the Contemporary (coming soon) and the Grand Californian Villas at Disneyland. If you don’t want those as your “home” you will have to go on the open market.
When considering buying on the open market, keep in mind that the process can be more involved and you need to be patient. You can look around online and find people that are trying to sell their contracts directly and there are also people that make their living off of selling only DVC contracts. I would personally recommend using a broker. It will cost a bit more as they add broker fees, but it will save you a lot of headaches as they know the system and will walk you through the rough spots. (See next week’s blog for tips on how to choose a broker)
There is a lot of upside in buying and existing contract. For starters, it will be a lot cheaper than buying through DVC. You can usually save about 20% or so off the DVC price. Even with the broker and transfer fees, you are still going to come out ahead. You also have the ability to choose your “home” resort. There is almost always someone from every resort looking so sell and if you are patient, you can find the exact contract you want. The major drawback of buying a contract is Disney’s “Right Of First Refusal” (ROFR). The DVC contract states that if you ever want to sell your contract, DVC has the right to match the offer that the other person has made. I believe that ROFR is DVCs way of making sure that prices on the secondary market don’t go too low. So you may work for weeks to find the contract you want, negotiate a good price and then find that DVC wants the points and you have to start over again.
So decide for yourself if you want to got DVC way or use a broker to buy a contract, but don’t start yet! Come back for Part 2 of “I’m sold! Now what?” We will discuss how to choose a home resort and a couple of tips for those that are looking for a good broker.
If you would like to comment on this blog, please join us on the DVC Message Boards at Walt's Basement. If you are not a member of Walt’s Basement, just contact us at waltsbasement@charter.net and we will get you signed up.
If you are interested in more information about joining DVC, please drop me a note and I will get you connected with my great DVC rep. To be fair, I do get a gift when I recommend people to DVC.
Issue 5
I’m sold. Now what? – Part 1
Time to join the family. Great! Just as you took time to consider your options when deciding to join, you need to weigh your options in how to join. When it comes to joining there are really 2 options. Purchase a contract from Disney Vacation Club or purchase a contract on the open market. There are plenty of pros and cons for both options. Either way though, you become a full fledged member of the DVC family.
Let’s look at buying from DVC first. When you buy directly from DVC you are getting the direct contract and direct pricing without any extra fees or time wasted. One big benefit is that you are usually buying the whole 50 year contract. Most contracts on the open market have many years used already. Also, Disney usually runs some type of special that will give you bonuses. They frequently have discount on points ($3-5 off regular price) and other times they will give you free, one time use points so that your first vacation is free. They also have the ability to finance the contract through their company. This can be a benefit if you are not sure if you can finance it outside. Finally, if you purchase through DVC, you know that you are going really getting the contract. (See ROFR in next paragraph). A couple of drawbacks are obvious. You will be paying more for the points since you get all, or most of, the 50 years and there is no real market competition for these new points. You are also limited to what your “home” resort can be. There are rumors out there that Saratoga Springs and Animal Kingdom are very close to, if not already, sold out. That leave the new Bay Lake Tower at the Contemporary (coming soon) and the Grand Californian Villas at Disneyland. If you don’t want those as your “home” you will have to go on the open market.
When considering buying on the open market, keep in mind that the process can be more involved and you need to be patient. You can look around online and find people that are trying to sell their contracts directly and there are also people that make their living off of selling only DVC contracts. I would personally recommend using a broker. It will cost a bit more as they add broker fees, but it will save you a lot of headaches as they know the system and will walk you through the rough spots. (See next week’s blog for tips on how to choose a broker)
There is a lot of upside in buying and existing contract. For starters, it will be a lot cheaper than buying through DVC. You can usually save about 20% or so off the DVC price. Even with the broker and transfer fees, you are still going to come out ahead. You also have the ability to choose your “home” resort. There is almost always someone from every resort looking so sell and if you are patient, you can find the exact contract you want. The major drawback of buying a contract is Disney’s “Right Of First Refusal” (ROFR). The DVC contract states that if you ever want to sell your contract, DVC has the right to match the offer that the other person has made. I believe that ROFR is DVCs way of making sure that prices on the secondary market don’t go too low. So you may work for weeks to find the contract you want, negotiate a good price and then find that DVC wants the points and you have to start over again.
So decide for yourself if you want to got DVC way or use a broker to buy a contract, but don’t start yet! Come back for Part 2 of “I’m sold! Now what?” We will discuss how to choose a home resort and a couple of tips for those that are looking for a good broker.
If you would like to comment on this blog, please join us on the DVC Message Boards at Walt's Basement. If you are not a member of Walt’s Basement, just contact us at waltsbasement@charter.net and we will get you signed up.
If you are interested in more information about joining DVC, please drop me a note and I will get you connected with my great DVC rep. To be fair, I do get a gift when I recommend people to DVC.
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