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Thread: Okay, help us old timers...small amount of points, large amount of money.

  1. #1
    Join Date
    Oct 2011
    Location
    NH
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    Default Okay, help us old timers...small amount of points, large amount of money.

    We have purchased DVC points 4 times, 2 direct, 2 resale (one of them just within the last 2 weeks). While we were looking at the resale listings, I was amazed to see that at certain resorts, a 30-50 point contract was way more per point than buying chunks of 200 or 300 points. For example, a Grand Floridian 35 pointer was listed at over 200 per point! Really?

    We have apparently missed the boat - why would you want to book one night? At such a high cost? There must obviously be a catch why this is a good thing, but for the life of us old farts, we cannot figure out what we would do with such a thing.

    We always book 1-2 week stays...and always have our next 2-4 trips booked ahead. (often as we complete one trip, while at the airport waiting for our flight as the magical express always gets us to the airport early, we then book the next one...or two). How would 35 points at a resort have helped us?

    We would love to be let in on the reasoning.

  2. #2
    Join Date
    Feb 2010
    Location
    Missouri City, TX
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    The owner might have been short 30 points for another night in a 1 or 2BR and added on that number or maybe he needed only 20 or 25 and rounded up to 30.

    In the past people had to purchase 25 points to become entitled to all DVC benefits. Maybe the purchaser at VGF bought 30 thinking he needed that many points when banking and borrowing.

    As to why people would pay more for small about VGF points now, it might make the difference on getting a lake view when a standard view isn't available. Doesn't VGF sell for a ridiculous amount of dollars anyway?

    Edit: I just checked the Timeshare Store and there were contracts for sell in the low to mid $180s and a stripped one for $170. Usually the small contracts usually sell around 20% higher than larger contracts of 150 points or more.
    Last edited by denlo; 07-13-2018 at 09:58 AM.
    --Denise

    Scheduled upcoming Disney trips:

    11/27-12/14/18 AKV Kidani Village
    2/19-2/22/19 - Bay Lake Tower
    3/10-3/14/19 - AKV Jambo House


  3. #3
    Join Date
    Jul 2010
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    For some time now its been apparent that people are willing to pay extra for smaller point deeds and there are several reasons for this.

    Some people only need a few more points. They might find they are always borrowing next year's points, so they only need an extra 25 or 50 points to fulfill their yearly needs. Sometimes, people find their vacation plans have changed since they initially joined DVC. They originally thought they would only travel for 6-7 nights and now they want longer trips. Or they are changing accommodation types -- going from studios to one-bedrooms -- or upgrading the View category from Standard View to Lake View. With these changes they only need a few more points to suit their needs.

    Some people want to add more points in an incremental fashion. Buying several small deeds over time allows people to stay within their budgets.

    As to why small deeds command a premium on the resale market, the answer is simple supply and demand. A 500-point deed won't attract a lot of potential buyers. Most buyers can't afford a 500-point deed, nor are there very many buyers who even want 500 points. Thus, the seller of a 500-point deed needs to price the deed at a lower price to attract buyers. On the other hand, there are many, many more buyers who want and can afford 50 points. Thus, there is much more competition amongst buyers when a 50-point deed hits the market. And with more competition comes higher prices.

    Historically, small deeds were rare. When Old Key West started selling in early 1990s the minimum buy-in was 230 points. Over the years Disney lowered the minimum buy-in, but for a long time new members had to buy 150 or more points in order to join DVC. For years, the resale market had lots of 150, 160, and 200 point deeds for sale, but the smaller deeds were rare. Therefore, they were quickly snapped up whenever they hit the resale market.

    I wonder if things will change in the future and small deeds will not command a premium in the marketplace. As I stated, small deeds were rare in the past. But today, 50-point deeds are much more common. For awhile, Disney had 50-point minimum buy-ins for the Polynesian, which generated a large number of 50-point deeds. Plus, some buyers of larger point totals purposefully split their purchases into smaller deeds, which, in turn, has generated more smaller deeds that eventually hit the market.

    As time goes by, smaller deeds will become far more common, resulting in buyers having far more small point deeds to bid on. I think its only a matter of time before resale market has a correction and we see small deeds lose some of their price premium.






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