15 Jul How Do I Sell My DVC Membership?
How Do I Sell My DVC Membership?
Believe it or not, some families stop traveling to Disney, while some view their DVC Membership as a bank account they can utilize when the need arises. Here are just some of the reasons DVC Members have shared for selling their points:
- It breaks our heart to sell our points, but we want to buy a lake house and need the money for a down payment.
- We’ve enjoyed incredible Disney Vacation Club vacations for the past 23 years and now that we’re 80 years old, it has become hard for us to travel and we don’t have children.
- We’re going through in vitro fertilization to have a baby, and selling some of our points gives us the money to pay for our medical bills.
- DVC helped us save tremendously while bringing our kids to Disney World every year, and now that they’re older and we no longer visit, we’re able to get our entire investment back.
- My husband was injured at work and is now on disability. We no longer have the income to travel.
Whatever your reason for selling, we want to make sure you know the ins and outs of selling your DVC points, what to expect and what pitfalls to avoid.
Find a DVC Resale Expert that is Licensed and Insured
Disney Vacation Club may be simple and easy for members to enjoy, however it is very complex and legally is deeded real estate. When a member attempts to sell on their own without a broker, they are opening themselves up to a lot of liability. A proper contract is also required, as the sale of DVC contracts is a real estate transaction. Paying an attorney to create a contract may cost more than the commission paid to a broker, and without liability insurance, the financial consequences of a lawsuit could be severe.
For this reason, we recommend not only hiring a licensed and insured broker to sell, and not a company that sells all timeshare brands, but someone that specializes in Disney Vacation Club, exclusively. At DVC Resale Experts, we work exclusively with Disney Vacation Club Resales, and we are former DVC Guides, experienced in all aspects of Disney Vacation Club.
Avoid Companies Charging Upfront Fees!
If a resale company is charging upfront fees, run! This is definitely not customary in the DVC Resale market. Besides, if they’re paid up front, how motivated are they to sell your contract? We only get paid when we’ve achieved your goals of selling your DVC contract. And at DVC Resale Experts we believe in earning your business every day. If you’re unhappy with our service for any reason, or your situation changes, you can cancel your listing agreement and owe us nothing.
Get Help Determining the Value of Your Disney Vacation Club Contract
The value of your Disney Vacation Club contract is determined by several factors, including:
- Home Resort: Having home resort priority at a resort with higher demand can greatly impact the value of a contract. Resorts with direct access to the Magic Kingdom or Epcot have historically increased in value at a faster rate than those that rely on busses alone. Another factor influencing the value is the size of the resort. Those in high demand, but with fewer villas, have experienced a more rapid increase in value. The Beach Club Villas is a great example. It’s one of the smaller DVC Resorts, has what many consider the best pool at Disney World, and it is right next door to Epcot. Due to all of these factors, the market value is high, and even with only 21 years until deed expiration, it’s value continues to increase.
- Number of Points: More points in a contract will allow a member to spend more nights with Disney Vacation Club, increasing the value of that contract. An important factor to understand is the fact that a larger contract will have a higher total price than a smaller contract, however it will have a lower price per point. For example, at Beach Club Villas, a resale contract with 150 points may have a price per point of $154 with a total price of $23,100, while a 300 point contract may have a lower price per point of $147 and a total price of $44,100. Smaller contracts are more affordable, in higher demand, and therefore have a higher value per point.
- Current Point Availability: In the DVC Resale market, you’ll hear some terms that reference how many points a contract for sale has currently available. If a contract has points available to use this year, it is more valuable than one where the buyer would have to wait until next year to use their new DVC Membership. A contract with no points available until next year is considered a “stripped” contract. One with last year’s points banked, combined with this year’s points coming, is considered a “loaded” or “triple” contract.
- Other Factors (Contract Extension or Subsidized Dues): Early members of Old Key West were offered the opportunity to extend their contract in 2007. The original deed expiration for Old Key West ws 2042, and those who chose to purchase the extension, now have a deed that expires in 2057. After 2007, contracts at Old Key West sold directly through Disney also have the later 2057 expiration date. On the resale market, these contracts with 15 additional years of membership have a higher value. At Aulani, any contract purchased prior to July 5th, 2011 has “subsidized dues” where Disney is obligated to pay $1.62 per point per year toward dues for the life of the membership. With 41 years remaining for Aulani deeds, this is a huge cost savings, thus raising the value of a subsidized Aulani contract.
Understand Your Expected Net Proceeds. When selling your DVC contract, your fees will consist of $170 in fees ($150 for Disney’s estoppel fee, plus $20 for Disney’s ROFR waiver), along with the broker’s commission, which shouldn’t exceed 10% of the sales price. The seller typically pays the dues for the current year’s points that they’ve already used. If you pay dues annually and the buyer is receiving current year’s points, it is not uncommon for the seller to request that the dues for the unused points be reimbursed. Likewise, if you pay your dues monthly, and you’ve used all of your points for the year, it would be customary for the seller to pay the year’s remaining dues balance at closing. Lastly, don’t forget to consider the outstanding mortgage balance, if you still have a mortgage on your contract. Subtract all of this from the total sales price and you’re left with your net proceeds, or the amount you’ll walk away with after selling your DVC contract.
Be Aware of the Approximate Timeline to Sell DVC. When you list your DVC Points for sale, it typically takes about 70-90 days to receive your net proceeds. This can vary a little, depending upon how quickly Disney’s ROFR process is moving. If you list your contract at a competitive price, it will likely be under contract in about 15 days. From there, it takes about 20-30 days for Disney to respond to ROFR. It takes approximately 10-20 days more for the title company to receive the estoppel from Disney. Then finally, it takes about 7 days for the contract to close and be recorded. Please keep in mind that if you have a pending reservation on the contract, it will delay the closing process. A DVC contract cannot close until the reservation is complete.
Learn more about selling and buying Disney Vacation Club with DVC Resale Experts. And as always, please don’t hesitate to reach out to us with your questions! 844-DVC-FANS (382-3267) Info@DVCResaleExperts.com