First DVC Resale Contract for The Villas at Disneyland Hotel

[take36]

With new incentives coming at end of the month, this price make it difficult to sell fast.

 

[intamin]

My two cents on pricing:

• Being the first contract, I think, as with anything, you always aim high and see what the market dictates.

Fair, I don't think anybody faults the owner for trying to get as much return as possible and the owner may have some unforeseen circumstances that are out of their control that don't allow them full control over the pricing. I do have to wonder though if setting the price THIS high discourages people from even bothering to put in an offer.

 

[AstroBlasters]

Fair, I don't think anybody faults the owner for trying to get as much return as possible and the owner may have some unforeseen circumstances that are out of their control that don't allow them full control over the pricing. I do have to wonder though if setting the price THIS high discourages people from even bothering to put in an offer.

What price would you bid if you were actively in the market for 150 Feb VDH points?

 

[take36]

What price would you bid if you were actively in the market for 150 Feb VDH points?

I actually am in the market! I would want to pay 40% off (the after the current incentive pricing) to account for the restrictions and the possibility of better deals direct in the future. And this is coming from an already DVC owner (the restrictions affect me less vs a new owner) and someone that goes to Disneyland at least once a year.

 

[Cfabar1]

A few thoughts:

1. Maybe it is a little high, but restrictions at VDH I don't think will necessarily have the same negative connotation that they do at say, Riviera. Practically, why would you buy VDH as home resort unless you want to stay there - especially given the high dues. These are people who will want to be there.

2. This is likely a distressed seller, and if they financed they are already taking a haircut. Or maybe DVC Resale or one of their friends bought one to gauge the market and then strip/rent in the meantime and see where gravity lands.

3. $180 seems a little high, but it fits with my view that everything on DVC Resale is too high. I don't think VDH is going to reach Riviera resale territories though, even with the restrictions.

4. I wonder if DVD is going to track this or care at all. At this point VDH is kind of baked, but it will be interesting to see how this resort with restrictions prices out compared to Riviera in the end.

5. I'm glad this conversation was allowed to happen even though it is very clearly referencing one individual contract for sale. I think that this is newsworthy and worth discussing.

 

[intamin]

What price would you bid if you were actively in the market for 150 Feb VDH points?

Assuming I could get VDH for about 190 after incentives and taking into account the benefit of buying with credit cards through direct, the absolute highest I would consider is probably 160 if that. More than that for me personally the resale restrictions and transient taxes make it not worth it. Since I have direct points at Riviera and not being able to use them sometimes to upgrade my room at RIV is a pretty big downside.

Someone else probably values it more than I do and I hope that's the case for this owner.

 

[AstroBlasters]

I actually am in the market! I would want to pay 40% off (the after the current incentive pricing) to account for the restrictions and the possibility of better deals direct in the future. And this is coming from an already DVC owner (the restrictions affect me less vs a new owner) and someone that goes to Disneyland at least once a year.

So, $115ish?

 

[take36]

So, $115ish?

Yeah, a big part of the "premium" I must pay for when buying resale is the use year and the contract amount. None of this applies since I can buy any use year at any point level I want direct. This UY is good for my family and 150 pts is about the number of points I like each contract to be (for passing them on and/or selling in chunks if needed).

Oh and I'll get a DVC towel and water bottle with direct (I guess the DVC resale backpack is kind of cool, but I don't see myself using that in the parks and get mistaken for a white card peasant! JKJK!!!).

 

[take36]

A few thoughts:

1. Maybe it is a little high, but restrictions at VDH I don't think will necessarily have the same negative connotation that they do at say, Riviera. Practically, why would you buy VDH as home resort unless you want to stay there - especially given the high dues. These are people who will want to be there.

Totally agree with you on the point but would like to add to your first bullet.

VDH is amazing and beautiful now, but it won't be as the years go on and there will be a refresh needed. During the years we are waiting for the refresh, you can "hide out" at other resorts that are newer or have underwent a refresh with direct. VDH is trickier as the only other DVC in DL is VGC which is impossible as non owner but the principle still somewhat applies. I am "guilty" of avoiding my VGC and BLT rooms the past few years because they simply are tired and not up to my standard of what I paid a huge chunk of money for.

VDH and Riviera will fall into the new/refresh then in need of a refresh cycle eventually and those that have resale are going to face some tough decisions of staying where you "love" but in need of refresh versus staying at another resorst (such as those that bought resale in the original resorts). This I feel is the greatest drawback of resale.

 

[ehh]

@ehh is tracking direct sales ofVDH, so any resale contract will show up in the same place. It’s how some are able to track RIV resale…the comptrollers site.

It won't show with the way I search because I specifically look for direct contracts.

I can search for resale separately, though. Even if I find it, I may not be able to tell how much was paid without buying a copy of the deed.

EDIT: okay, I'm losing confidence I could even find the contract due to how primitive the OCRW search is. But I am increasingly confident I could tell the price, if I found it, but only because I already know how many points it is. General resale tracking will be very difficult, if not impossible.

 

[DougEMG]

An international buyer might be interested. As an international owner myself (I'm not interested) I can only buy direct when I am at Disney as Disney is not allowed to sell direct where I live. So, there might be someone out there that this fits for!

 

[bholbert81]

Unfortunately with the resale restrictions of only being able to utilize the points at that 1 property, same for RIV, as well as the lack of being a blue card memeber with post point purchase I do not feel the new properties are a great value to purchase resale. I also don't like the restrictions period if you think you may sale at any point which is why we got our blue card by adding on 150 points at VGF when it went on a descent sale!

 

[thelionqueen]

I couldn’t click that listing fast enough to see the price, then I just had to laugh. There’s absolutely no chance of d pat anywhere close to that for a restricted resort. I do understand that it’s almost certainly a distressed seller, and don’t begrudge anyone for trying to make a buck. Also there’s no precedent set so heck why not?

That being said. I took a minute when I read Paul suggesting to make an offer…hmm I thought. What would I offer that would make it worth my while to buy a West Coast restricted contract? Answer? $130pp. And even at that price I’d want to seller to pay closing and dues on existing points, which I’d imagine Disney would ROFR. Then..if the seller accepted my offer, I’d likely have serious doubts even at that price.

Personally it’s worth $50pp more to buy direct. Ease of purchase, no wait, credit card, immediate points. No restrictions & so on. Interestingly enough, not even interested to see where the price lands. It did make me ponder my future VDH direct purchase..in that I’ll be the owner facing an uncertain value if I ever decide to sell. Didn’t think it’d come this fast though.

 

[AstroBlasters]

Ok, so I ran the numbers (without TVM) based on various price points (with dues and TOT) for preferred views averaging weekday/weekend during October (middle of the point chart):

@ $230pp Studio: $396; 1BD $709; 2BD $1071

@ $193pp Studio: $378; 1BD $675; 2BD $1022

@ $160pp Studio: $361; 1BD $648; 2BD $979

@ $130pp Studio: $347; 1BD $621; 2BD $939

 

[DanCali]

What price would you bid if you were actively in the market for 150 Feb VDH points?

No more than $80, probably even less with those high dues and taxes. But I'd say the same for any restricted resort.

I know that's a lot less than what people buy it for direct, but it's just not even a similar product on the resale market - 1 resort access vs 16 resort access... To me, that aspect is at least a 50% haircut off the lowest price the developer sold to anyone. YMMV...

In other words, if I really wanted it, I'd rather buy direct and live with the potential capital loss unless it was way way cheaper on the resale market. Not worth buying resale and having those restrictions just to save $30-$40/pt. But owning O14 for now is good enough for me. I may start getting interested in a (resale) restricted resort if/when those resale prices drop below Aulani.

 

[Cfabar1]

Ok, so I ran the numbers (without TVM) based on various price points (with dues and TOT) for preferred views averaging weekday/weekend during October (middle of the point chart):

@ $230pp Studio: $396; 1BD $709; 2BD $1071

@ $193pp Studio: $378; 1BD $675; 2BD $1022

@ $160pp Studio: $361; 1BD $648; 2BD $979

@ $130pp Studio: $347; 1BD $621; 2BD $939

I guess it does save you money over cash, but boy this reminds me how greedy Disney is with hotel room rates and DVC.

 

[take36]

No more than $80, probably even less with those high dues and taxes. But I'd say the same for any restricted resort.

I agree, though I will give VDH resale a higher price then Riviera (even with the taxes) as it is walking distance to a Disney park and there is potential for big gains if Disney Forward happens.

WDW has many more DVC resorts to come and gondolas are great but its not walking distance like the EPCOT resorts. Like AKV, where the theming is amazing and it is the closest to AK, Riviera resale will be difficult to keep up with the MK, EPCOT, and DL resorts.

 

[skier_pete]

I’m not familiar with what data is available. So my question would be will we even know what it sells for?

Because all real estate transactions are public record and can be found by anyone nosy enough to care. And when it comes to Disney there's always someone nosy enough to care.

 

[NorCalFanatic]

We’d have no problem adding on to our direct VDH points at $150 for our use year. Once more come on the market we’ll be shopping for another 50-150 anyways.

I feel bad for the seller, I’m guessing it’s a distressed sale, hopefully not due to someone’s passing.

 

[intamin]

I feel bad for the seller, I’m guessing it’s a distressed sale, hopefully not due to someone’s passing.

That's what I was thinking as well, I hope it's due to more of a change of heart about the resort rather than a sudden change of circumstances as unlikely as that is. I hope the seller is able to recover a significant portion of the amount of money put into it.