Ask Seller to Bank Points in DVC Resale: Negotiating Point Terms
When purchasing a DVC resale contract, you can sometimes negotiate with sellers about banking points from the current use year into the next. Points worth $5,000 to $10,000 or more could be at stake, depending on the contract size and how close you are to banking deadlines. Understanding how this negotiation works helps you maximize the value you receive from your purchase.
Understanding Point Banking
DVC members can bank unused points from one use year into the following year. These banked points must be used before the end of the banking year or they expire. Banking provides flexibility when you can't use your full allocation during a particular year.
The banking window opens 8 months before your use year ends. For example, if you have a June use year, you can start banking points in October. You have until May 31st to bank any unused points into the following year. Points not banked by the deadline expire.
When sellers have current year points available, they can bank those points before the sale closes. These banked points then transfer to you along with the contract, providing immediate points for your first vacation. This can be significant value since you're essentially getting two years' worth of points in your first year of ownership.
Why Request Point Banking
Asking the seller to bank points benefits you in several important ways. It ensures you receive usable points with your purchase instead of watching valuable points expire during the closing process. DVC resale closings typically take 60 to 120 days, and current year points might expire before you can use them if they're not banked.
Banked points are guaranteed to transfer with the contract. Current year points that haven't been banked face real risk if closing takes longer than expected or if the banking deadline passes during the transaction. We've helped families through situations where $8,000 worth of points expired because banking wasn't addressed in the contract negotiations.
The value is substantial. If you're purchasing a 150-point contract at Bay Lake Tower, those current year points represent about $6,000 to $7,500 in vacation value at current Disney retail pricing. Banking those points into the following year means you can plan a major vacation right after closing.
When Banking Matters Most
Banking negotiations become critical when significant current year points exist and the banking deadline approaches. If a contract has substantial unbanked points and the banking window closes soon, those points will be lost without action.
Contracts purchased mid-use-year often present these situations. A seller with an October use year might have 200 unbanked points in July. If closing won't complete until September, those points need to be banked by September 30th or they expire. The seller has the banking window open, but action must be taken.
Consider a Riviera contract with 100 current year points available in March for a December use year. Those points don't need banking until April of the following year, giving both parties flexibility. But a similar contract in November faces an immediate banking deadline.
How to Request Banking
Include point banking requests in your initial offer or during negotiations. Specify that you want the seller to bank any available current year points before closing. Your broker can include appropriate language in the purchase contract documenting this agreement.
The request should be specific about timing. Something like "Seller agrees to bank all available current use year points prior to the banking deadline or closing, whichever comes first." This protects you regardless of whether closing happens before or after the banking deadline.
Banking requests sometimes affect negotiations. Sellers who must take action to bank points might seek compensation through higher pricing or other concessions. You'll need to balance the value of receiving banked points against any pricing impact. But in many cases, sellers agree to banking requests without significant pushback, especially when the alternative is losing the points entirely.
Timing Considerations
Banking must occur before Disney's deadline for the specific use year. Once this deadline passes, points must be used in the current year or they expire. Understanding the contract's use year and banking deadline helps you assess whether banking is even possible.
Each use year has its own banking timeline. February use year points can be banked starting in June and must be banked by January 31st. August use year points can be banked starting in December and must be banked by July 31st. Your DVC contract will specify the exact use year.
Given typical closing timelines of 60 to 120 days, banking requests need to account for this duration. If closing will likely occur after the banking deadline, those points need to be banked beforehand. If closing happens before the deadline, you can bank the points yourself after taking ownership.
What If the Seller Refuses
Sellers aren't obligated to bank points before selling. Some decline the request, particularly if they're still using the property and want to keep their options open until closing. Others might not want the administrative burden of calling Disney to bank points.
If the seller refuses and significant points might be lost, consider adjusting your pricing accordingly. A contract priced assuming you'll receive current year points but likely to lose them through timing issues may warrant negotiating a lower price to reflect the actual value you'll receive.
You might also negotiate other terms. Perhaps the seller reduces the price by $15 per point that might be lost, or agrees to cover your buyer administration fee as compensation. The goal is ensuring the contract represents fair value for what you'll actually receive.
Documentation and Verification
If the seller agrees to bank points, this agreement must appear in your purchase contract. Documentation protects your expectation and creates enforceable terms. Without written agreement, you have no recourse if the seller doesn't follow through.
The estoppel certificate obtained during closing confirms actual point status, including any banked points. This document from Disney shows exactly what points transfer with your contract, their expiration dates, and any restrictions. Review this carefully before closing.
Don't assume banking happened just because the seller agreed to it. Verify through the estoppel that points were actually banked. If they weren't and the deadline has passed, you may need to negotiate compensation or, in extreme cases, reconsider the purchase.
Strategic Point Negotiation
Point banking represents just one aspect of negotiating point terms in DVC resales. You might also negotiate which party receives specific point allocations, how pro-rated dues are handled, or whether borrowed points are involved.
Some contracts have borrowed points from future years. These reduce your first year's allocation, so understanding the complete point picture matters. A contract showing 150 annual points but with 50 points borrowed forward gives you only 100 points in year one.
Work with your broker to address point-related issues appropriate to each specific contract. Experience with these negotiations helps achieve favorable outcomes while maintaining realistic expectations about what sellers will accept. The current market conditions also influence how flexible sellers are willing to be on these terms.
Banking negotiations protect your investment and maximize the value of your DVC purchase. When handled properly, they ensure you receive the full benefit of the points you're paying for, setting you up for years of successful vacations with your new membership.
