looking into joining DVC, curious about re-sales??

[fortheluvofpooh]

We are looking at AKL villas (did the tour and all), but have been web surfing and found a resale site and there are alot of SSR resales, why is that? Just wondering if the DVC is not all it is cracked up to be or are people just looking to get into AKL and dump SSR? Any help would be greatly appreciated.
Thanks
Lori

 

[Deb & Bill]

There was a sales incentive if you bought 120 points at SSR for current members. I think several members bought in to get the incentive, use the points (use and borrow) and then sell. SSR was the first resort to add time to the length of the contract. I also think there were a lot of newer members who didn't realize what they were getting into and wound up selling. And then some members sold to buy AKV.

Plus SSR is the largest resort, so you would expect to have a larger number of resales just based on the percentage.

 

[Happy Birthday Cat]

When you consider the number of DVC owners there are (over 100,000), the number of resales is still rather low. Most importantly, the resale price is still rather high especially in comparison to many other timeshares whose owners can't give their resorts away.

HBC

 

[salmoneous]

A lot? Keep in mind there are tens of thousands of SSR owners.

As for why there are more SSR for sale than other resorts, it's the largest resort. It's also (almost) the newest, and we think the percentage of folks who sell is highest in the first couple years.

Finally, and this is just total speculation on my part, but I think SSR contracts stay on the market longer than the other resorts because the owners price them high relative to the market. Pretty much anyone selling at an older resort is selling at a profit. At SSR, after commission, folks need to sell at a loss. People don't like that, so are trying to get as much as possible, even if it takes a bit longer to sell.

 

[crisi]

DVC ownership is cyclical. A lot of people buy when Disney is selling the resort on vacation in a "this is the best vacation EVER" high - then a certain number of those folks sell within a very few years - they burn out, they want to go other places, they couldn't really afford it. After that first sell off (which AKL hasn't hit yet and SSR is in the middle of), then the resort moves to a normal resale cycle - people sell because they want something different, because of life changes (divorce, kids leaving home, job changes, moving). SSR is a big resort, much bigger than the other resorts, even OKW is small compared to it - so its early sell off cycle has been proportionally bigger. Add in the great incentive - which made a lot of people "break even" on a family reunion trip even if they took a loss reselling points in two years, and there are a lot of resales. And lastly Salmoneous' point - they are priced a little high for the supply due to the initial cost - particularly for those that didn't get or use the points incentives.

There are a number of DISers however who have done or are contemplating what you are talking about. They bought SSR and discovered their heart is at a different resort - and they aren't happy with seven month availability - I don't know how many of them are going to AKL - seems like the Epcot resorts are popular. But their overall numbers aren't huge.