What Are DVC Points and Why Sell Them?

Disney Vacation Club (DVC) points function as the currency within Disney's timeshare system, allowing members to book stays at Disney resorts and partner properties. Each point represents a portion of ownership in a specific DVC resort, with annual allotments based on your contract size.

Members choose to sell their points for various reasons: lifestyle changes, financial considerations, or simply moving on from Disney vacations. Understanding the DVC resale market is crucial before listing your points, as it operates differently from the direct Disney market. The resale process involves transferring your deeded interest to another buyer, which requires specific documentation and procedures to complete properly.

The DVC Resale Process Explained

Selling DVC points involves several key steps. First, determine your points' current market value by researching comparable listings and recent sales of similar contracts. Factors affecting value include your home resort, contract size, points available, and expiration date.

Next, decide whether to sell independently or through a broker. The independent route potentially maximizes profits but requires managing paperwork, finding buyers, and navigating legal requirements yourself. Broker-assisted sales provide expertise and wider exposure but involve commission fees, typically 8-10% of the sale price.

The transfer process involves submitting a contract to Disney, who holds the Right of First Refusal (ROFR). Disney may choose to buy back your contract at the agreed-upon price instead of allowing the transfer to your buyer. This review typically takes 30-45 days, after which closing documents are prepared and the deed transfer is recorded.

DVC Resale Company Comparison

Several companies specialize in DVC resales, each offering different commission structures, marketing approaches, and service levels. DVC Resale Market is one of the largest brokers, known for their extensive listing database and detailed market reports. They typically charge a 8-10% commission but provide comprehensive services throughout the selling process.

DVC Sales offers competitive commission rates and focuses on quick turnaround times for listings. Their streamlined approach appeals to sellers wanting to move through the process efficiently. Fidelity Real Estate has been in the DVC resale business for decades, providing experienced agents and a wide buyer network.

The table below compares key aspects of these resale companies:

CompanyCommission RateAverage Listing TimeServices Included
DVC Resale Market8-10%30-45 daysMarket analysis, ROFR guidance, closing coordination
DVC Sales7.5-9%30-60 daysListing creation, buyer screening, paperwork assistance
Fidelity Real Estate8-10%45-60 daysFull-service brokerage, marketing, closing support

Maximizing Your DVC Points Value

Strategic timing can significantly impact your sale price. The DVC market tends to be more active during winter months when buyers are planning summer vacations. Contracts with loaded or banked points often command premium prices, as buyers can use them immediately after closing.

Consider banking your current points if your Use Year is approaching, making your contract more attractive to potential buyers. Accurate pricing is crucial—research recent sales of similar contracts at your home resort to set a competitive yet profitable price point.

Presentation matters in listings. Provide clear information about your contract, including home resort, points available, maintenance fees, and expiration date. Transparency about any borrowing or banking status helps build buyer confidence. Disney Vacation Club itself provides resources that can help you understand the current value of your membership.

Common Pitfalls When Selling DVC Points

Several mistakes can delay your sale or reduce your profits. Overpricing is the most common error, as emotional attachment often leads sellers to set unrealistic prices. The resale market typically values points at 60-80% of direct Disney prices, depending on the resort and contract details.

Incomplete documentation creates delays and potential legal issues. Gather all ownership documents, including your original contract and member number, before listing. If you have a mortgage on your DVC contract, you'll need to pay it off before selling.

Understanding tax implications is essential. The IRS may consider your sale a capital gain if you sell for more than your purchase price (rare in the resale market) or a capital loss if selling for less. IRS rules for timeshare sales can be complex, so consulting with a tax professional is advisable before completing your sale.

Conclusion

Selling your DVC points requires careful planning and market awareness to maximize your return. Whether you choose to work with an established broker or navigate the process independently, understanding the current market conditions and preparing thorough documentation will streamline your sale. While the process involves several steps and potential waiting periods, proper preparation can help you achieve a fair price for your vacation ownership. As the DVC resale market continues to evolve, staying informed about changing values and policies ensures you'll make decisions that align with your financial goals.

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This content was written by AI and reviewed by a human for quality and compliance.