Why are SSR resales priced so low?????

[momba#9]

I just reviewed some listings on the TSS page. I was really surprised to see the prices so low for SSR resales. The prices range from $79- $90 with most being priced at $83. The top and bottom prices should be ignored as there is only one at $79 and one at $90.

Anyone have any reasons for this? I mean SSR is a nice resort with like 47 years of use left. Seems Disney should ROFR almost all of those at that price point.

Also, I feel sorry for those selling now. I mean even in the beginning SSR was selling for more than this. Take out the 10% commision and these peole are losing some money. Could this be a trend for new resorts, that prices will fall or remain level?


Thanks for any and all thoughts,


Mike

 

[cobbler]

I would say because most bought under the family and friends promotion which they paid 83.30 per point. Took a couple of vacations on those points and are darn near breaking even. Figuring the loss would be what they paid for those vacations.

 

[WebmasterDoc]

Actually, with the incentive available at the time, SSR sales began at $79 in 2003 - so the only one who might be "losing" money would be the one you chose to ignore because it is selling at that price. When you figure in the trips possibly taken between then and now and those resales may not be losing anything.

This has happened at every DVC resort and is not at all specific to SSR.

 

[LIFERBABE]

We purchased at $79 with double points, then $82 with Free Annual Passes (2) and double points, then Friends and Family with all the free points and $15 off, we calculated at closer to $68 per point if we valued those points at $10 so I doubt very few are taking a bath on SSR resales. Many rented those points to bring their point cost down.

SSR opened in 2004, but we were able to use SSR points in 2003 at BCv so if I can get $83 right now then Im a happy camper We average 3 trips a year since 2003.

 

[Dean]

It's true that what people paid has some impact on the price they are willing to sell. However, the demand for that resort compared to the demand for the other resorts is likely a larger determinant of price thus the resale prices for HH, OKW, VB and SSR will be somewhat lower. SSR will make up some of the difference on the length of the contract, but not all.

 

[momba#9]

Thanks for the replies.

Is it safe to say that prices on those resales will rise once the resort is sold out? Or has it simply been increases over time?

The reason I ask is that I have no plans to own DVC for the duration and I'd like to get a feel for the history of resale prices.

I'd still say SSR is selling low when compared to the $96 or so that DVC is getting direct.

Location might have a bit to do with it but then BWV has a great location and lower prices than BCV. Only thing I can see that is a pattern is that location plus smaller size of a resort means higher resales.

Keep the thoughts coming.


Thanks,


Mike

 

[tjkraz]

DVC is selling SSR for $94 per point. In recent years, the ROFR threshold for any given resort usually starts at about $8-10 less than DVC's price. If that still holds true, DVC will probably ROFR anything $84 and under, although they may let some slip thru at lower prices if they don't have any current points available.

As for why people list points at even lower prices, IMO you can chalk that up to an individual's urgency to sell. It's like trying to figure out why someone would rent points for $9 each when you can get $12 with little additional effort.

I don't see how $79-80 per point would pass ROFR, but the seller is guaranteed to get money from someone as soon as an offer is made. He probably doesn't care whether it's DVC or a new member writing the check.

 

[crisi]

Thanks for the replies.

Is it safe to say that prices on those resales will rise once the resort is sold out? Or has it simply been increases over time?

The reason I ask is that I have no plans to own DVC for the duration and I'd like to get a feel for the history of resale prices.

I'd still say SSR is selling low when compared to the $96 or so that DVC is getting direct.

Location might have a bit to do with it but then BWV has a great location and lower prices than BCV. Only thing I can see that is a pattern is that location plus smaller size of a resort means higher resales.

Keep the thoughts coming.


Thanks,


Mike

I think that your wisest course of action is to assume that the moment you buy it, gas hits $6 a gallon, the bottom drops out of the market for Disney trips, and your timeshare is worth zero. Plan on getting your return over 6-10 years of ownership - and anything you can resell it for is gravy.

Historically in my observation, resale prices drop or increase at a lower rate compared to the other resorts for a year or two once the resort sell out. Early in the contract people NEED to get their money back out and Disney may exercise ROFR more enthustatically (why buy SSR from Disney if a resale is 15% cheaper), once a few years have passed people have gotten their money out in the form of trips, inflation has made resale match their buy in, and they don't mind getting out. SSR may work different because of the better discounts during the sales cycle. BCV did work a little differently, but I think BCV is an exception.

At some point the BWV/OKW/BCV/VWL will start to have their shorter contract impact their resale value - when is anyone's guess.

In the other direction, Disney could do all sorts of things that will impact resale values - a DVC at the Contemporary or Poly would change things. So would expanding DVC offsite again. So would annoucing they are done expanding DVC. I think as long as Disney is in expansion mode, resale prices are going to be mostly determined on where Disney chooses to exercise ROFR.

 

[Dean]

Is it safe to say that prices on those resales will rise once the resort is sold out? Or has it simply been increases over time?

The reason I ask is that I have no plans to own DVC for the duration and I'd like to get a feel for the history of resale prices.

No it's not safe to assume that. Hx suggests to me that resale prices rise incrementally over time related in part to demand for the resort itself which encompasses the resort size, ROFR price and the price paid when buying in. As for buying with the intent of selling later, it really depends on the specifics. If the numbers suggest you can buy, use it then get out at a loss later and still do OK owning; then you're OK. Anyone that has to have appreciation to make the numbers work likely should not buy in.

I'd still say SSR is selling low when compared to the $96 or so that DVC is getting direct.

Then we'd disagree. ASAMOF, I think SSR is selling higher than it would otherwise simply due to the later termination date and once there are a number of other options resale with also with a later expiration, you'll see some adjustment downward over time.

Location might have a bit to do with it but then BWV has a great location and lower prices than BCV. Only thing I can see that is a pattern is that location plus smaller size of a resort means higher resales.

The smaller size will create more competition for each resale but you have to combine that with the additional facts/info. Those include that the owners there paid more plus the SAB situation and lack of Pool Hoping options.