selling contract with a vacation booked

[LadyLuck24]

I'm considering selling my DVC contract next year. I have three trips booked this year, and after that we're not planning to go for awhile. We had to do some major work to our house this year, and the money from the sale would be very helpful in paying off the bills.

My furthest-out trip is booked for May 1-5 2019. Should I wait until that trip is completed before even listing the contract? Or could I list it earlier (ie in March) but say I can't close til May 5th? Is that an undesirable trait to see in a listing?

I just want some flexibility in terms of market value. Like if, in March, resale values are high, I'd love to list it then, rather than waiting and risking a shift in the market.

 

[sndral]

When I was buying each of my contracts I chose to not offer on any contract with a cannot close before date because it’s too easy for the seller to change their mind and back out of the deal, plus I’m impatient - so the thought of having to wait an extra couple of months would have added unnecessary stress for me.

 

[The Jackal]

Lots of people list them with later closing dates due to trips. I personally would not buy one, but lots of other people do. Prices for most resorts are up right now.

 

[Dean]

I'm considering selling my DVC contract next year. I have three trips booked this year, and after that we're not planning to go for awhile. We had to do some major work to our house this year, and the money from the sale would be very helpful in paying off the bills.

My furthest-out trip is booked for May 1-5 2019. Should I wait until that trip is completed before even listing the contract? Or could I list it earlier (ie in March) but say I can't close til May 5th? Is that an undesirable trait to see in a listing?

I just want some flexibility in terms of market value. Like if, in March, resale values are high, I'd love to list it then, rather than waiting and risking a shift in the market.

As long as you don't close before the checkin day you should be OK. While some would list it and put the closing as part of the deal, I think doing so this far out will decrease your pice and interest as well as be a hassle. I'd time it and lit maybe in Jan or Feb, that way your closing isn't delayed too much.

 

[CarolMN]

.........I just want some flexibility in terms of market value. Like if, in March, resale values are high, I'd love to list it then, rather than waiting and risking a shift in the market.

If the market shifts lower, you risk the buyer cancelling on you. It's happened. So the flexibility you seek may not be as valuable as you think.

 

[kniquy]

I have three trips booked this year

You can certainly put a close by date on your listing, but as a buyer a close by date which is farther out would be a deterrent to me personally. Some might be willing to wait, IF the deal is real good.

It sounds like you do enjoy going but are looking at DVC as a way to pay off other bills -- do you really want to get rid of your DVC? If you are unsure then I would rent out your points for a few years, use that money to pay MF and to help pay off your housing bills. If you really do love your DVC, which 3 more trips this year makes me think you do -- it will cost you more to buy in down the road if you change your mind. I'd hold on to the contract and see how you feel not going by renting.

 

[10CJ]

I was helping a family member search for contracts. I would skip over anything if the close date was too far away. I might make a note of it to see if it was still around later and we were still looking. We were searching over the summer and I saw some that could not close until 2019. That was way too long for our interests.

March with an early May reservation might not be too bad for some people.

I agree with the idea of renting out your points for a year or two first to make sure you really want to sell.

 

[zavandor]

I would list it 45 days before the end of your last trip. By the time you find a buyer, contracts are signed and the closing company is ready to close it'd be 45 days anyway. There would be no delay for the buyer and you'd find the money in your account when you're back from your vacation.

 

[cvjw]

I listed a contract with a close by date of about 6 months in the future. It sold very quickly. The people who bought the contract did not need the points for over a year, so it was not an issue at all.

 

[RichVIII]

The market will give you an answer. I would avoid anything with a long close date. For some, it may give them more time to get the money together. For you, it may lock in a hot market but if it cools, I agree with OP that they back out. Or what if it gets hotter and are you going to be upset you locked in today's price when tomorrow's hotter. Again, the market will tell you the value of it.

 

[drusba]

What you are suggesting, listing in March with closing after May 5, sounds reasonable because it would typically take at least that long to find a buyer, complete ROFR, and get to closing even if you had no vactions planned.

 

[Bruin_mouse]

I agree with everyone on here saying now is too far out. As it is buyers are antsy because sellers can cancel at anytime before sending in their signed deed without any practical consequence. Add in a few months of waiting, and it will be a much less attractive contract to buyers. On the other hand, I was talking to an agent at one of the brokerages about selling a contract I have but then I realized I had rental point reservations booked on it. He told me some buyers like that because they can get under contract but delay the huge cash outlay. I had never thought about that, but I still don't think there would be enough of those potential buyers to make it worthwhile from your perspective.

 

[The Jackal]

If the market shifts lower, you risk the buyer cancelling on you. It's happened. So the flexibility you seek may not be as valuable as you think.

Maybe, but the buyer would lose the deposit, once it was made so not likely. The seller has the upper hand and can cancel anytime without penalty.

 

[LadyLuck24]

You can certainly put a close by date on your listing, but as a buyer a close by date which is farther out would be a deterrent to me personally. Some might be willing to wait, IF the deal is real good.

It sounds like you do enjoy going but are looking at DVC as a way to pay off other bills -- do you really want to get rid of your DVC? If you are unsure then I would rent out your points for a few years, use that money to pay MF and to help pay off your housing bills. If you really do love your DVC, which 3 more trips this year makes me think you do -- it will cost you more to buy in down the road if you change your mind. I'd hold on to the contract and see how you feel not going by renting.

Thanks for the advice everyone—it all makes sense.
Kniquy, you’re absolutely right. I am sad about the idea of selling. I love owning a DVC and knowing I have years of vacations coming up. I worry that if I have a “plan” to rent out my points, I’d end up not doing that

I guess the fact that we have the May vacation booked is helpful, because I’ll have 8 months to think about this. Having just bought this 2 years ago, I agree that if I saw a contract with a closing date of several months ahead, it would have turned me off. So I think I wouldn’t list it til next April or May. So that gives me some time to think about this.
Thanks everyone for all the advice!

 

[kniquy]

So I think I wouldn’t list it til next April or May. So that gives me some time to think about this.

I think this is a really good plan, sometimes we think of ideas and just run with it. But when you really sit back and think about it -- you see things a little bit clearer. Depending upon your points status you could plan to rent your 2019 and 2020 points . Use a service like Davids who will do the leg work for you and is a bit more of a secure transaction. That might bring in a little bit of money that will help to off set your bills and take care of the MF - which essentially puts your DVC contract at a point where keeping it isn't costing you any money.