How do I value my contract if I sell?

[Slakk]

I never got the point to buying a stripped contract especially no points until 2015! If the price is real low - maybe but the contracts that are selling is amazing to me. We have bought resale several times and I would not even look at a stripped contract unless it was cheap. I would rather wait a year or 2 to see where prices are in 2014 - 2015 then outlay money for something I cannot use or rent out for 2 years!

People are buying them so if you want to sell give it a shot and good luck!

What I find more amazing is that there is no value paid on a loaded contract. I can strip a contract and sell it at about the same price as a loaded.

Fictitious Contracts

Contract A
Loaded 100 points - sells $80

Same Contract stripped
100 points sells - $78 a point

BUT the owner sells the 2012 and 2013 points at $10 a point and comes out ahead $1800. So until you see a difference in value that is substantial it is crazy AS A SELLER to sell a loaded contract.

This is especially true on small contracts. In fact on a 50 point the price really does not vary. I have sold 3 stripped contracts for the same price as a loaded.

 

[ELMC]

What I find more amazing is that there is no value paid on a loaded contract. I can strip a contract and sell it at about the same price as a loaded.

Fictitious Contracts

Contract A
Loaded 100 points - sells $80

Same Contract stripped
100 points sells - $78 a point

BUT the owner sells the 2012 and 2013 points at $10 a point and comes out ahead $1800. So until you see a difference in value that is substantial it is crazy AS A SELLER to sell a loaded contract.

This is especially true on small contracts. In fact on a 50 point the price really does not vary. I have sold 3 stripped contracts for the same price as a loaded.

To numbers people like you and me, the situation you describe is baffling indeed. But if you spend enough time here on the boards you will realize that the majority of the people on here are not motivated by numbers or even money really. Please note that I'm making an observation, not a judgment. Many times people have shared their priorities, and they focus on getting the perfect resort, use year, contract size, initial buy in cost, etc. Then at the end of this list of priorities is whether or not the contract had any points in it. Yes, we all know that those extra points can be rented out to reduce the net cost. But I actually believe that some people see this as a negative, as they are not planning a vacation this year, don't want to waste points, and don't want to get involved in the rental game. In the end, people are going to buy and sell contracts in the way that works best for them. It's not perfectly efficient, but it works.

 

[DougEMG]

To numbers people like you and me, the situation you describe is baffling indeed. But if you spend enough time here on the boards you will realize that the majority of the people on here are not motivated by numbers or even money really. Please note that I'm making an observation, not a judgment. Many times people have shared their priorities, and they focus on getting the perfect resort, use year, contract size, initial buy in cost, etc. Then at the end of this list of priorities is whether or not the contract had any points in it. Yes, we all know that those extra points can be rented out to reduce the net cost. But I actually believe that some people see this as a negative, as they are not planning a vacation this year, don't want to waste points, and don't want to get involved in the rental game. In the end, people are going to buy and sell contracts in the way that works best for them. It's not perfectly efficient, but it works.

The bright side to this is that there is less competition for those loaded contracts.

It is amazing though how many stripped SSR contracts there are out there for sale

 

[Slakk]

To numbers people like you and me, the situation you describe is baffling indeed. But if you spend enough time here on the boards you will realize that the majority of the people on here are not motivated by numbers or even money really. Please note that I'm making an observation, not a judgment. Many times people have shared their priorities, and they focus on getting the perfect resort, use year, contract size, initial buy in cost, etc. Then at the end of this list of priorities is whether or not the contract had any points in it. Yes, we all know that those extra points can be rented out to reduce the net cost. But I actually believe that some people see this as a negative, as they are not planning a vacation this year, don't want to waste points, and don't want to get involved in the rental game. In the end, people are going to buy and sell contracts in the way that works best for them. It's not perfectly efficient, but it works.

No I agree - it works very well for me - I have been able to sell all of my contracts that way. I only have small contracts so it is an easy sell

 

[dbs1228]

The bright side to this is that there is less competition for those loaded contracts.

It is amazing though how many stripped SSR contracts there are out there for sale

 

[AppleDisneyDad]

I think some of thethis is accounted for in the MFs.