DVC Contract Resale

DVC Contract Resale: Buying and Selling DVC Ownership

DVC contract resale refers to the buying and selling of existing Disney Vacation Club ownership interests through the secondary market. Understanding this market helps both buyers seeking membership and sellers looking to exit their ownership.

What Is DVC Contract Resale?

DVC contracts can be bought and sold between private parties through the resale market. Sellers are current DVC members who have decided to exit their ownership for various reasons. Buyers are individuals or families seeking DVC membership at prices below what Disney charges directly.

Licensed resale brokers facilitate these transactions, providing marketplace infrastructure that connects buyers with sellers and manages transaction processes. This established market has operated successfully for decades. Brokers play a critical role in ensuring that both parties meet all legal and financial requirements, making the process seamless and efficient.

Benefits for Buyers

Buying DVC contracts through resale offers significant cost advantages. Resale prices typically run 40% to 60% below Disney's direct prices, providing substantial savings. These savings make DVC membership accessible to families who cannot afford direct purchase prices.

Resale buyers receive the core DVC benefit of booking deluxe Disney resort accommodations. Points function identically to direct purchases for making reservations. The vacation experience at DVC resorts is the same regardless of purchase method.

• Access to a wide range of Disney resorts.
• Flexibility in vacation planning with points-based systems.
• Potential for long-term savings on future vacations.

Resale Restrictions for Buyers

Disney has implemented restrictions on resale purchases affecting supplementary membership benefits. These may include limited access to Member Getaways, Disney Collection, and certain discounts. The restrictions affect perks beyond core resort booking abilities.

Most buyers accept these restrictions given the substantial savings. Evaluate which benefits matter for your vacation planning when determining whether resale provides appropriate value. It's important to note that the core benefits, such as booking rights at DVC resorts, remain intact for resale buyers.

Benefits for Sellers

The resale market provides DVC members an exit path when ownership no longer serves their needs. Life circumstances change, and the ability to sell allows members to recover some of their investment rather than walking away from the property.

While resale prices are lower than original purchase prices, sellers typically recover a meaningful portion of their investment. The active market ensures sellers can find buyers for their contracts with appropriate marketing and pricing.

• Recoup a portion of the initial investment.
• Flexibility to exit the contract when personal circumstances change.
• Quick access to a broad audience of potential buyers.

The Resale Transaction Process

Resale transactions follow established processes. Buyers identify suitable contracts through broker listings and submit offers. Negotiations occur until both parties agree on terms. Contracts are signed and submitted to Disney for Right of First Refusal (ROFR) review.

If Disney waives ROFR, title companies manage closing, preparing documents, collecting funds, and recording deeds. After closing, Disney registers the new owner and membership transfers. The complete process typically takes 60 to 90 days.

Role of Resale Brokers

Licensed DVC resale brokers provide essential marketplace services. They list contracts for sellers, market properties to potential buyers, facilitate negotiations, and coordinate with title companies for closing. Their expertise makes transactions efficient and professional.

Multiple brokers compete in the market, benefiting consumers through competitive services and pricing transparency. Compare multiple brokers when buying or selling to ensure you receive good value and service. Brokers also provide guidance on navigating the complexities of the resale market.

ROFR Impact on Resales

Disney's Right of First Refusal allows them to purchase any resale contract at the agreed price. This policy affects market dynamics by establishing price floors below which Disney frequently exercises their right. ROFR adds uncertainty to transactions but passes for most reasonably priced contracts.

Understanding ROFR helps both buyers and sellers set realistic pricing expectations. Contracts priced too far below market rates face higher exercise risk, potentially wasting time for both parties. Buyers should be prepared for the possibility of Disney exercising ROFR and have contingency plans in place.

Market Pricing Factors

Resale prices vary by resort based on location, demand, and other factors. Point count, use year, and current point status also affect specific contract values. Research comparable sales to understand fair market pricing for contracts you are considering.

Pricing transparency in the modern market helps both buyers and sellers understand value. Multiple listing sources provide market data that informs realistic expectations for transactions. Staying informed about market trends can help buyers and sellers make strategic decisions.

Participating in the Market

Whether buying or selling, working with reputable brokers and understanding market dynamics leads to successful transactions. Research thoroughly, maintain realistic expectations, and engage professionally throughout the process. The DVC resale market provides legitimate opportunities for ownership transfers at prices determined by genuine supply and demand.

By understanding the intricacies of the DVC resale market, both buyers and sellers can maximize their benefits. Whether you're looking to purchase a contract at a reduced rate or sell your ownership to recoup your investment, the resale market offers a viable path for achieving your goals.