T.E. Yeary
07-22-2005, 05:11 PM
Handling the DVC Resales requires a great deal of knowledge as they are unlike any other on the market. You need someone who specializes in this area to achieve the outcome you desire. Sure, sometimes folks can get "lucky", but there are still lots of horror stories. Do your homework!
Warning signs for BUYERS to watch for:
1. A small amount of listings on their site (Indicates NO track record)
2. Talking with agent leaves you unsure they know the product. Ask questions about banking, borrowing, points in holding, etc.
3. Unreturned or late response to your inquiry (Where will they be when you need help with the ROFR, Closing Process & getting into the DVC system? A knowledge of the right people to contact in case of a situation is imperative.)
4. Mistakes on postings on their website. Example: OKW, 2 bedroom Wk 6 ( DVCs are in points, not weeks and certain size units like most timeshares.)
5. The company tells you that you can purchase BWV for $65 a point and ROFR will be no problem. (They will get their commission when Disney does a buyback, so they really don't care if you are a new owner or not. In fact, they prefer it, because it's less work for them and they don't have any worries about the closing process or anything else. They are not concerned about establishing a long-term relationship with a customer. Only their relationship with their own banker. You get the picture)
6. What kind of office do they have. (Many don't, look up their address, if it's a residential area or a P.O. Box????)
Warning signs for SELLERS to watch for:
1. The company asks for an upfront listing, advertising, appraisal, website development, or auction fee. (There is no end to the names they come up with to describe an upfront fee. This is one of the biggest ripoffs out there. These people will take your money and in most cases you will never hear from them again.)
2. Company "A" asks you to sign an "exclusive" listing agreement with a term of several months or even a year (usually 6 months or more), which of course means you are stuck for the duration of the agreement, even if you find your own buyer. If you also list with company "B", (or have previously listed with company "B" prior to listing with Company "A") and the agent from company "B" finds a buyer, as soon as Company "A" finds out about your sale, you are going to get a letter from their lawyer demanding their commission as well.
.
3. The company charges you a cancellation fee if you withdraw your listing before the end of the listing term. (Example: Things happen, if you were selling for financial reasons and suddenly came into some money, you would still be forced to sell or pay the cancellation fee which can sometimes be hundreds of dollars.)
4. They tell you they can get you $150 per point. (That's an exaggeration, but it happens. They will start hitting you up to reduce your price as soon as the listing contract has been signed. They will say the market has changed. Just remember, if it sounds too good to be true, you know the rest.)
5. Is their office easily accessible to the public? You should be able to walk in during regular business hours and be assured they can and will handle your business transaction. Does the broker work out of their home? Do you really think a purchaser is going to drive to their subdivision, knock on their door, and sit down at their kitchen table to write up a contract? How many DVC buyers have actually done this? The internet has enabled many people to disguise the true circumstances of their situation. They have a pretty website, so the public thinks the are dealing with a really big operation.
6. The company advertises NO Closing Costs. They are either calling the closing costs by another name or not giving the buyer & seller the legal protection needed to pass on a free & clear title. Read the fine print in the listing agreement and closing paperwork. Remember, “there is NO free lunch”.
7. Do they have a person answering the phone or is it primarily an answering machine. People are continually frustrated in this day and age just dealing with the obstacles of trying to speak to a real person. This does NOT put them in the buying mood. Most often they will keep calling around until they reach someone who can discuss their situation.
Franchises:
The latest trend in the Resale business is for brokers to align themselves with a national franchise in order to legitimize their operation, thereby creating a false sense of security to the general public. Examples: ERA, Century 21, GMAC, RE/MAX, etc. Some Resale brokers go from one franchise to another after the number of complaints build up, they simply purchase a new franchise and it's business as usual. Most legitimate and ethical businesses should be able to use and operate under the same name for many, many years. In fact, if their reputation was one they could take pride in, they would insist upon it!
The above statements are certainly not meant to be construed to include "every" agency that is backed by a franchise. There are definitely some reputable Resale offices with ties to franchises. My warning is, it's NOT always the case. Protect yourself, look for the same warning signs with these companies as you would with any other Resale company!
These are just a few of the most blatant obstacles out there. So I say to you all, just as many have said on this board, DO YOUR HOMEWORK!!!
Thomas E. Yeary (Tom)
Owner/Broker
The Timeshare Store, Inc.
www.dvc-resales.com (http://www.dvc-resales.com)
1-800-550-6493 US & Canada
407-239-8899
Hours: Mon-Fri 9am to 9pm EST
Sat 9am to 6pm
Sun 10am to 6pm
[ July 25, 2005, 09:08 PM: Message edited by: JohnY ]
Warning signs for BUYERS to watch for:
1. A small amount of listings on their site (Indicates NO track record)
2. Talking with agent leaves you unsure they know the product. Ask questions about banking, borrowing, points in holding, etc.
3. Unreturned or late response to your inquiry (Where will they be when you need help with the ROFR, Closing Process & getting into the DVC system? A knowledge of the right people to contact in case of a situation is imperative.)
4. Mistakes on postings on their website. Example: OKW, 2 bedroom Wk 6 ( DVCs are in points, not weeks and certain size units like most timeshares.)
5. The company tells you that you can purchase BWV for $65 a point and ROFR will be no problem. (They will get their commission when Disney does a buyback, so they really don't care if you are a new owner or not. In fact, they prefer it, because it's less work for them and they don't have any worries about the closing process or anything else. They are not concerned about establishing a long-term relationship with a customer. Only their relationship with their own banker. You get the picture)
6. What kind of office do they have. (Many don't, look up their address, if it's a residential area or a P.O. Box????)
Warning signs for SELLERS to watch for:
1. The company asks for an upfront listing, advertising, appraisal, website development, or auction fee. (There is no end to the names they come up with to describe an upfront fee. This is one of the biggest ripoffs out there. These people will take your money and in most cases you will never hear from them again.)
2. Company "A" asks you to sign an "exclusive" listing agreement with a term of several months or even a year (usually 6 months or more), which of course means you are stuck for the duration of the agreement, even if you find your own buyer. If you also list with company "B", (or have previously listed with company "B" prior to listing with Company "A") and the agent from company "B" finds a buyer, as soon as Company "A" finds out about your sale, you are going to get a letter from their lawyer demanding their commission as well.
.
3. The company charges you a cancellation fee if you withdraw your listing before the end of the listing term. (Example: Things happen, if you were selling for financial reasons and suddenly came into some money, you would still be forced to sell or pay the cancellation fee which can sometimes be hundreds of dollars.)
4. They tell you they can get you $150 per point. (That's an exaggeration, but it happens. They will start hitting you up to reduce your price as soon as the listing contract has been signed. They will say the market has changed. Just remember, if it sounds too good to be true, you know the rest.)
5. Is their office easily accessible to the public? You should be able to walk in during regular business hours and be assured they can and will handle your business transaction. Does the broker work out of their home? Do you really think a purchaser is going to drive to their subdivision, knock on their door, and sit down at their kitchen table to write up a contract? How many DVC buyers have actually done this? The internet has enabled many people to disguise the true circumstances of their situation. They have a pretty website, so the public thinks the are dealing with a really big operation.
6. The company advertises NO Closing Costs. They are either calling the closing costs by another name or not giving the buyer & seller the legal protection needed to pass on a free & clear title. Read the fine print in the listing agreement and closing paperwork. Remember, “there is NO free lunch”.
7. Do they have a person answering the phone or is it primarily an answering machine. People are continually frustrated in this day and age just dealing with the obstacles of trying to speak to a real person. This does NOT put them in the buying mood. Most often they will keep calling around until they reach someone who can discuss their situation.
Franchises:
The latest trend in the Resale business is for brokers to align themselves with a national franchise in order to legitimize their operation, thereby creating a false sense of security to the general public. Examples: ERA, Century 21, GMAC, RE/MAX, etc. Some Resale brokers go from one franchise to another after the number of complaints build up, they simply purchase a new franchise and it's business as usual. Most legitimate and ethical businesses should be able to use and operate under the same name for many, many years. In fact, if their reputation was one they could take pride in, they would insist upon it!
The above statements are certainly not meant to be construed to include "every" agency that is backed by a franchise. There are definitely some reputable Resale offices with ties to franchises. My warning is, it's NOT always the case. Protect yourself, look for the same warning signs with these companies as you would with any other Resale company!
These are just a few of the most blatant obstacles out there. So I say to you all, just as many have said on this board, DO YOUR HOMEWORK!!!
Thomas E. Yeary (Tom)
Owner/Broker
The Timeshare Store, Inc.
www.dvc-resales.com (http://www.dvc-resales.com)
1-800-550-6493 US & Canada
407-239-8899
Hours: Mon-Fri 9am to 9pm EST
Sat 9am to 6pm
Sun 10am to 6pm
[ July 25, 2005, 09:08 PM: Message edited by: JohnY ]