DVC Resale Buyback Raised to $62

[robinb]

Disney raised their resale buyback price from $58 to $62 on Monday 4/29. I could smell a price increase coming, but I thought it would be in June and not in April!

[Wislodgers]

We are in the process of closing on a resale. Disney was out of Sept. VWL points and we came across an ideal resale. It came out to $60.86 per point. Disney released on the first refusal on 4/19. $62 a point seems like a high jump for Disney. Do they always raise their price on first refusal before a price increase? I didn't realize that Disney had an "advertised" set price on the refusal. Very interesting! Guess we bought at a good time!

[Regina]

That's excellent news Robin.

[doubletrouble_vb]

I'm curious about this too. Where do you find out what DVC's right of refusal price is?

[robinb]

Well ... I'm not so sure it's "excellent news" for us resale buyers :).

I talked to my agent at my resaler (name withheld :)) and they said that Disney called them on Friday and gave them until the weekend to get in any pending contracts which were for under $62 pp. Of course, both seller and buyer have to sign off on the contract before it can be presented to Disney. I hope this has not effected Carl and his "foot dragging" sellers :(.

I had my offer on 200 BWV accepted just last week. I must have had ESP because we offered $62 (it had a bunch of banked points). We would have offered a lot less if it didn't have any banked points ... I guess we were lucky since we didn't even send our deposit until Friday and we would have been SOL if we had offered less.

[DVC-Don]

Wow, a couple of weeks ago I saw an asking price of $57 at OKW. I remember thinking "that one will never make it through". All of it points were used up and some borrowed.

[lizziepooh]

Does Disney figure in closing costs or maintenance fees when they figure price per point that we are paying thru resale?

[robinb]

I'm not sure if they figure in closing costs and maintenace fees. You could structure a deal where you pay $62 pp and the seller pays both, but I'm not sure if Disney will let that fly or not. I think I have read where they take banked points into account and if there are a lot of them and the price is particularly low Disney is more likely to buy the contract.

[Doctor P]

Very interesting thread. Makes our original purchase at $67 per point look like more of a steal every day!

[friskykitten]

Makes me glad we purchased our resale when we did. 150 OKW points for $58/pt. We just signed the closing statement and sent in the check for the remaining amount this week. I knew the buyback price would jump from $57.75 rather quickly, I just didn't know when or how much!

[^^^ SnowBunny ^^^]

I'm not so sure Disney buys back all the first right's of refusals as you all think they do. My girlfriend from the gym that I got totally hooked on Disney like 4 years ago, began checking into DVC and I gave her all the good sites -- Tug, TSStore, ATimeShare etc., - just purchased an OKW resale I believe TUG and she offered $56 per point OUT THE DOOR and although she was nervous, she knew there were plenty of other contracts out there should that fail and guess what? They are now proud owners of 245 OKW points at a pretty nice price. (They had a small number of points banked, and all 2002 points available).

I'll try and convince her to either come on here and post - or ask if I can give the FULL details. So bottom line is - Disney isn't always so eager to buy back contracts that all a little below their "expected" price.

My theory though is still that we come out ahead by just renting - but that's another debate!! :D

[DVCajun]

I think this is very cool. I don't ever anticipate selling, but it's nice to know the value if I want to.

[Dean]

It appears that DVC buys back many contracts below their set price, whatever it is at the time, but not all. Of course points availability and the like will affect the price as well. I'm sure part of Disney' idea in the ROFR buybacks is to keep the resell market high enough that people will continue to buy retail and if that's the case, it's worked. I've seen them let contracts go through that I thought they would buy and vice versa. They still haven't bought my pending contact for BW at $54 pp though I suspect they would. It is over 300 points and not as many points availble currently as some. Seller is paying all of the closing, title ins. and there are no reiumbursements for maint fees. We shall see.

[SleepyatDVC]

Adding my 2 cents:

I'm thinking that just because Disney is making $62 their "official" buy back price still doesn't mean they will enforce it for every contract that falls below that target.

Just a theory - but I think they are more likely to let OKW resales through even at really low prices just because of the sheer number of OKW units- they don't want to wind up buying back too many contracts. People who bought in originally at $48+ can make an automatic profit at $62 after 10 years of vacations.

They are probably more likely to exercise their options on BWV & VWL contracts where availability is less (smaller resorts) and where there's more of a ready market for them to resell them (waiting list for add-ons from existing DVC members.)

Of course, this is all just what I think!

[TrudyZ]

Grace:

I moved up to 15th in line for an OKW add on via DVC for my use year--after about a month of waiting. Know someone else (hi Nick) who is 3rd for another use year; but they have been on the waiting list for many, many months now.

Just so you know there is a strong, active waiting list (and demand) at OKW also!

Trudy

[friskykitten]

Trudy is absolutely correct. We were placed on the waiting list for OKW points for April. We were eighth on the list and when we checked back with our guide sixth months later we were still 6th on the list. So there is definately a demand there for Disney to sell reclaimed points to!! That is why we went ahead and bought the resale. We knew points probably wouldn't be available through Disney before the major price hike.

[ncligs]

What Trudy said about the demand for OKW is true. We were put on the waiting list for OKW (sept use yr) back in January, and right now we are still 3rd on the list.:(

[doubletrouble_vb]

On the other hand...it would seem to Disney's advantage to keep an active waiting list at OKW. Obviously they could engage in a covert but active buy back campaign to clear out the waiting list at OKW...and it doesn't look like they are. The only thing I can figure is that by leaving people on the waiting list Disney hopes to encourage them to buy the new resort instead.

[kem330]

Perhaps the issue of waiting list and ROFR are linked- that is maybe Disney looks at the waiting list and if there are any matches to the use year of a contract coming through at a low price, then they exercise their option. Seems like a good deal for Disney since it probably doesn't cost them too much to sell it if they already have a buyer and a little profit if they buy at $58-$62 and sell at $75- $80/point.

[Dean]

Originally posted by kem330
Perhaps the issue of waiting list and ROFR are linked- that is maybe Disney looks at the waiting list and if there are any matches to the use year of a contract coming through at a low price, then they exercise their option. Seems like a good deal for Disney since it probably doesn't cost them too much to sell it if they already have a buyer and a little profit if they buy at $58-$62 and sell at $75- $80/point. Maybe but I doubt DVC makes any money on that margin. I suspect it's more of an issue of holding the price up on resales high enough that buying retail isn't that much of a stretch.

[Maistre Gracey]

Just my .02 cents here. If you are going to sell, for lets say, $58/point, that does NOT mean Disney will say "We will take it for $62/point". I believe it simply means that Disney has the right to say "No, WE will take it for $58/pt" Does that make any sense?

[Dean]

Originally posted by Maistre Gracey
Just my .02 cents here. If you are going to sell, for lets say, $58/point, that does NOT mean Disney will say "We will take it for $62/point". I believe it simply means that Disney has the right to say "No, WE will take it for $58/pt" Does that make any sense? That's correct. DVC must buy it for the exact terms of the contract. That's why I've always wondered what would happen if one structured the deal for one that couldn't be met. Say a cash plus merchandise deal or a trade of timeshares built into the contract.

[ilovebwv]

I am shocked to read about such a demand for OKW. We had a resale listed for OKW for almost 6 months that had no borrowed points and we were only asking $58.00 a point and we could not get rid of it. We had found a resale at BWV that we really wanted to buy so just to get rid of the OKW contract and have the money to buy the BWV resale we sold the OKW contract for $54.00 a point and paid the closing costs! Disney never offered to use their first buy back option even after we lowered the price to $54.00. We can tell you from experience Disney does not buy back all contracts that go below their buy back price. We were hoping they would but after a month of haggling with a prospective buyer we just agreed to $54.00 a point and paid the closing costs. It all worked out in the end and now we have our second contract at BWV so we are happy but we did not make a profit that is for sure.

[Maistre Gracey]

Just to follow up, it seems that this does not really effect buyer or seller. It just ensures DVD will be able to scoop up all "good deals". That is fine by me, I would not like to see DVC points "given away". That would make us look cheap.

[kem330]

I wasn't suggesting Disney would buy at $62 if it was listed for $58 I was reflecting the info that the minimum was now supposedly $62 and therefore that would be a buyback threshold. I agree its not much profit margin but maybe they want to keep more control of the resale market. I am in doubt that such a threshold exists- I think resale agents might be trying to drive the price up. I was simply posing the question that if Disney knows they have x amount of buyers for say 150 points, april use year, would they be inclined to exercise their ROFL on contracts coming through at say $54 or so and resell to the wait listers? Or do wait lists simply get filled by foreclosure situations? By the way Dean- have you gotten approval on your BWV yet? That was a sweet deal!

[chris1gill]

ILoveBWV, I'm really surprised you had that kind of experience! How long ago did you sell? Which agency did you go through? I watch the Timeshare Stores listings all the time & the onsite resorts never stay on anwhere near the time you waited it seems... I'm really glad you like your BW contract!

[Dean]

Originally posted by kem330
By the way Dean- have you gotten approval on your BWV yet? That was a sweet deal! See this thread (http://www.disboards.com/showthread.php?s=&threadid=186922), but it looks like it's going through.