Selling Your DVC Contract: A Complete Guide
Eventually, many DVC members decide to sell their contracts due to changing life circumstances, vacation pattern shifts, or financial needs. Understanding the resale selling process helps you maximize your sale price, avoid scams, and navigate the transaction smoothly from listing to closing. Whether you're selling due to retirement, family changes, or simply wanting to exit DVC ownership, knowing the process ensures a successful sale.
Deciding to Sell
Before listing your contract, carefully evaluate whether selling makes sense versus other options. Can you rent points to offset dues? Would modifying vacation patterns restore value to your ownership? Sometimes temporary life changes resolve, and selling during a difficult period means missing future vacations once circumstances improve. However, if you're genuinely not using points and don't foresee that changing, selling allows you to exit the financial obligation of annual dues.
Choosing a Resale Broker
Most sellers work with specialized DVC resale brokerages that handle marketing, buyer communications, offer negotiations, and transaction coordination. Reputable brokers charge 10-15% commission on the sale price, deducted at closing. This fee covers advertising, buyer pre-qualification, contract drafting, title company coordination, and handling the ROFR process with Disney.
Research multiple brokers, comparing commission rates, sales timelines, customer reviews, and services included. Established brokerages with high sales volumes typically move contracts faster than smaller operations, though their commission rates may be slightly higher. Some sellers attempt For Sale By Owner (FSBO) transactions through the DVC Resale Market Facebook group or Mouseowners.com to save commission, though this requires more seller involvement.
Pricing Your Contract Strategically
Competitive pricing is crucial for timely sales. Research recent sales of similar contracts at your resort (same use year, similar point count) to establish market rates. Contracts priced above market sit indefinitely, while slightly below-market pricing generates quick offers. Consider current point balances - loaded contracts with banked points command premiums, while stripped contracts (current year used) sell at discounts.
Contract characteristics impacting value include resort desirability, contract expiration date, use year, point count, and current point status. Beach Club contracts sell for more than Saratoga Springs. Longer expirations command higher per-point prices. December use years (rarest) often price slightly above more common use years. Understanding these factors helps you price competitively while maximizing proceeds.
Right of First Refusal (ROFR) Risks
All resale contracts must be submitted to Disney for ROFR review. If Disney exercises ROFR, they purchase your contract at the agreed selling price and the transaction ends - you receive your sale proceeds but the buyer doesn't get the contract. This frustrates buyers but sellers still complete their sale. Disney tends to exercise ROFR on below-market contracts, particularly at popular resorts like Beach Club and Grand Floridian.
Pricing at or slightly above recent ROFR-passing prices increases the likelihood your sale completes to the buyer rather than Disney buying it back. Monitor ROFR databases (available on Facebook groups and DVC forums) to understand current Disney buying patterns at your resort.
The Sales Process Timeline
From listing to closing typically takes 90-150 days. Marketing time varies based on pricing and resort desirability - well-priced Beach Club contracts may sell within days while overpriced Aulani contracts could sit months. Once you accept an offer, ROFR submission takes several days, Disney's review period runs 30-45 days, and post-ROFR closing requires another 30-45 days for title work and transfer processing.
The lengthy timeline means sellers should list well before they need proceeds. If you're selling to access equity for a specific purpose, start the process 4-6 months before you need funds to ensure closing completes in time.
Seller Costs and Net Proceeds
Sellers pay broker commissions (10-15% of sale price), prorated annual dues from closing date through year-end, prorated property taxes, and occasionally small title fees depending on the title company. For example, selling a 150-point contract for $15,000 with 12% commission costs $1,800 in commission, plus perhaps $800 in prorated dues (if selling mid-year), plus $100-200 in miscellaneous fees, netting the seller approximately $12,100-12,300.
Calculate expected net proceeds before listing so you understand what you'll actually receive after all costs. This prevents disappointment at closing when deductions reduce your check below the nominal sale price.
Preparing Contract Documents
Gather all contract documents including your original purchase paperwork, deed, most recent dues statement, and membership number. Brokers need this information to list your contract accurately and begin the sales process. Missing paperwork can delay listings, so start collecting documents when you decide to sell rather than scrambling once you accept an offer.
Tax Implications
Consult a tax professional about capital gains implications when selling DVC contracts. If you sell for more than your purchase price plus improvements, you may owe capital gains tax on the profit. However, most resale sellers sell at breakeven or slight losses given DVC depreciation over time, eliminating tax liability. Keep records of your original purchase price, closing costs, and any point add-ons for accurate tax reporting.
After the Sale
Once closing completes, Disney transfers the membership to the new owner and your annual dues obligation ends (prorated to closing date). You'll receive final accounting from the title company showing all proceeds and deductions. If you financed your original purchase, ensure the lien release processes correctly and confirm you're no longer liable for any DVC-related debt. Your DVC journey ends, allowing you to pursue other vacation options or simply enjoy the financial freedom from annual dues obligations.