Posted on July 16, 2021
Members looking to sell their DVC timeshare points are in the most envious position in the timeshare industry, due to the impressive demand for the product. Disney timeshare points generally hold their value better than any other timeshare program in the world, due to the strength of the Disney brand and the entertainment products associated with the behemoth known as The Walt Disney Company.
For Club members wondering if they can sell their timeshare back to Disney, the real question you should be asking yourself is why would you want to sell it back to them in the first place?
Disney Vacation Club does not have an in-house resale department, so while they may buy back through their Right of First Refusal program (discussed later in this article), they do not offer to resell Disney timeshare points for owners on the secondary market. They say so clearly on their website, so there is no ambiguity about whether they can help owners looking to sell.
What Disney does recommend is that owners use a licensed timeshare resale broker if they want to sell their DVC points. This is at least a step in the right direction, even if Disney does not suggest specific companies or mention a dedicated program like other branded timeshare companies.
The reasons for suggesting a licensed broker are many:
These are all important factors to consider when selling Disney vacation club property since no other operation short of Disney themselves can provide as comprehensive a service as licensed brokers.
Members can also transfer DVC points to another active member, with those points available to be booked by the recipient in the Member Online Booking System. Such transfers can be made once each use year and members need to contact Disney Vacation Club directly in order to complete the process.
Keep in mind that this process does not relinquish ownership of the points, just allow for a member to give them to another member to use during the current year. In order to transfer DVC points ownership, the new owner will need to accept ownership much like a purchase and the process will need to be properly documented and approved by Disney.
Where Disney is very active on the secondary market is through their Right of First Refusal program. All sales on the resale market need to be presented to Disney for approval and one of the ways Disney maintains their high resale values is by engaging in the approval process.
When a buyer is found for a Disney timeshare resale, the sale is referred to Disney and they assess the sale price agreed to by both parties. If the amount is considered too low, Disney will consider buying back the timeshare points. If the amount is considered high enough, Disney will allow the sale to go through. In either case, the seller will be able to sell their points, either to Disney or to the new buyer, but they will need to have a buyer lined up first.
By Disney participating in this process, they can keep the documented resale prices as high as possible as well as removing the lower priced DVC resale points from the secondary market. This all works in favor of sellers looking to get as much as possible for their timeshare points.
As most DVC points owners know, Disney is always in sales mode whether it comes to the theme parks, movies, merchandise or vacation club points. Regardless of whether a Disney timeshare resort is listed as sold out or in sales, there are always ways to buy points.
Depending on the ownership, number of points, specific resort that points are deeded to and the sales needs of the Disney sales centers, Disney has been known to buy back points from existing owners looking to sell. This process is in constant flux due to changing market demand (such as the impact of the COVID pandemic), the status of existing resorts and whether there are new resorts coming onto the market.
While there is no guarantee that Disney will buy back timeshare points, there is the chance that owners can sell their timeshare back to Disney. But here’s the problem. Disney low balls offers to their owners – in some cases as much as 40 percent under the anticipated resale value of the timeshare points. So this comes back to the original “why” mentioned earlier – why would a seller want to sell back to Disney when you can get more money by selling on the resale market?
It’s not like it will cost you more to sell through a licensed broker. As we mentioned earlier, licensed timeshare brokers do not take upfront fees to sell, so Disney timeshare owners can list their DVC points for sale on the resale market with no upfront expenses.
So let’s say, hypothetically, that a package of 150 Disney points is offered on the resale market for $120 per point. That’s a total price of $18,000. Even with a 15 percent commission for the agent ($2,700) that is a better deal than selling back to Disney and potentially losing 40 percent of the resale value ($7,200).
Even with transfer fees and associated commissions paid out to the agent involved in the sale (which are paid during the closing process after the sale), some of these fees can be negotiated to be paid by the buyer during the sales process.
Because of the varying resale values of DVC points, depending on the resort at which the points are deeded, the number of points for sale and any limitations that may be attached to those points, it really makes sense to discuss this with a professional, licensed resale agent. Every Disney timeshare resort in Orlando has points priced above the $200 per point mark now when purchased through Disney, so resales are a bargain and buyers will know that. You don’t want to make a judgement based on what other sellers are asking and potentially leave money on the table. Get professional advice.
Certainly you can make money selling DVC points, but it really depends on when you originally bought your points, whether you have a loan attached to the purchase and at which resort are those points deeded to. Some DVC owners who purchased in the 1990s will see their points increase in value, and having your points paid off makes a big difference. Certain resorts require a higher number of points and those values can be higher than some of the older DVC resorts.
Even the lowest resale values tend to hover over the $100 per point mark for the majority of DVC resorts, so there is money to be made. It also depends on how you sell them, since some resale companies charge more than others in order to sell.