Anyone made it through (or not made it through) ROFR recently? - Section V

[MickeyFan612]

Originally Posted by cz4ever

DougEMG posted a similar formula a while back (perhaps in a previous iteration of this thread). Basically, it's a way to compare contracts in a way that accounts for how many points are/aren't bundled in the sale. A $50/pt contract with no points in 2012, 2013, and 2014 is a much worse deal than a $65/pt contract with all 2011, 2012, and beyond points, and it's important to consider that when comparing two contracts/deals. A more complete formula would also account for who pays the maintenance fees and closing costs, which are especially important for small contracts.

For your example, XP should only be 210 points, since only one year's worth of "extra" points were bundled -- the 2012 points. 2013 points are this year's points. 2014 points are a twinkle in our imagination.

Finally, I suggest using a fixed rate of $10 or $11 for each extra point, not the Annual Dues rate, since that represents how much it would cost to buy (rent) the points on the open market. When you do the numbers, the bottom line is "fully loaded contracts are worth a helluva lot more than stripped ones, like $30/pt more".

BTW, yours was a very good deal. If it had included the 2011 points, it would have been an insanely good deal (now -- those types of deals were not all that uncommon during the lowest points of the recession).

His did have the 2011. It was an insanely good deal.

Quote:
Originally Posted by elcid3
elcid3 210 BWV (June) $50, 210 11', 210 12', 210 13' points, Buyer pays closing, Seller pays 2013 maintenance (sub 2/5)
- See more at: http://www.disboards.com/showthread.....Cyat5QHb.dpuf

[SOBDOSNV]

Yes, we passed ROFR 2/26/13 submitted 2/4/13.
Here's the details:
150 VWL (Jun), $55, 0 '13 pts, all '14 pts,
Was listed at $60 offered $50 settled at $55, buyer pays closing, no MF.
So glad to get VWL, me and DW love it and can't wait to go home.

[Amymarie0606]

Originally Posted by ozzie2131

Our contract for BWV has been sent to disney for ROFR. $55.00 for 150 points with 300 points available this year and all points available 2014 March use year. This will be my wifes and my first contract and am hoping it goes through. We decieded to buy in December when we found out we were pregnant with our first baby. What better gift could we give our baby then a lifetime of great vacations. So wish us luck.

Great deal! Good luck!

[dbs1228]

Congrats to all who have gotten great contracts! My DH gave me the go ahead a few weeks ago to find a BWV contract mid to large point and I have not even seen any listed long enough to make an offer never mind get these kinds of deals! I guess I have to sit tight and keep looking - it is not easy

[moreisgood]

Originally Posted by elcid3

Thanks for posting the formula. I plugged it into Excel but I'm not sure I'm using it correctly. Do you mind posting an example? Feel free to use the data for a contract I just purchased. It has 210 points from 2012, 2013, and 2014. Since I'm not paying 2012 or 2013 dues, I put 420 under XP's.

XP 420
MP 0
AD $5.84
CP 210
AP $50.00 (which is what I paid)

AVP - Extra Points $38.32

What I'm confused about is does this mean I should have only paid $38.32 per point? Or is the AVP the value over the asking price? If I increase the XP number, shouldn't the AVP increase?

thanks

I’m the original poster of the formula. The intent of the formula is to compare multiple contracts, and see how they stack up against each other, depending on the number of points available. I assumed that if you got the current year’s points, you paid the dues for them. If you got the 2013 points, and the Seller paid the dues, then I think you could add those in as extra points.

To compare:
Your deal: AP - ((XP x AD) /CP ) = AVP OR 50-((420 x 5.84)/210) = $38.32
Same deal, but you’re paying the 2013 dues: 50-((210 x 5.84)/210) = $44.16
Same deal, but you’re paying 2013 dues and NO 2012 points : $50
Same deal, but you’re paying 2013 dues and NO 2012 or 2013 points 50+((210 x 5.84)/210) = 55.84

This shows how the value is different depending on how many points are included. I think you got a great deal!

[jp02]

Originally Posted by jp02

Sent to ROFR 2/6/13

OKW 170 pts Oct UY, $59 pp, 27 pts-2011, 30 pts-2012, and all points going forward. Buyer pays all fees.

Found out yesterday we passed! I'm so excited and can't wait to close and book my next trip.

[Hunclemarco]

Well after looking at this thread after my contract was sent to ROFR, i think i may have chosen poorly. I asked the realtor if that was a reasonable price, she said yes...and i've never haggled a price for anything in my life. I think i may need a mentor when looking for our next contract. We'll be looking for a larger one then. So here goes...

SSR 55 point stripped contract no points till August '14, seller pays '13 MF, Buyer pays closing. $60 per point.

[disbound09]

Originally Posted by Hunclemarco

Well after looking at this thread after my contract was sent to ROFR, i think i may have chosen poorly. I asked the realtor if that was a reasonable price, she said yes...and i've never haggled a price for anything in my life. I think i may need a mentor when looking for our next contract. We'll be looking for a larger one then. So here goes...

SSR 55 point stripped contract no points till August '14, seller pays '13 MF, Buyer pays closing. $60 per point.

Ouch! Although smaller contracts always command a higher price. We paid 52 for a loaded contract 320 2012 and all of 2013 they paid MF of 2012 and we pay 2013 got 300 credit for closing cost from buyer. Remember it was better than buying direct and you went for the smaller contract so you aren't out that much. Good Luck.

We submitted our contract 1/9 found out they didn't send to ROFR until 1/25 still waiting for them to get back to me that we passed. Started process in December thru TBS which stands for TOTAL BS I think. Anyway waiting for the process to finish out.

[Hunclemarco]

Originally Posted by disbound09

Ouch! Although smaller contracts always command a higher price. We paid 52 for a loaded contract 320 2012 and all of 2013 they paid MF of 2012 and we pay 2013 got 300 credit for closing cost from buyer. Remember it was better than buying direct and you went for the smaller contract so you aren't out that much. Good Luck.

We submitted our contract 1/9 found out they didn't send to ROFR until 1/25 still waiting for them to get back to me that we passed. Started process in December thru TBS which stands for TOTAL BS I think. Anyway waiting for the process to finish out.

Thanks for the encouragement. This is another lesson learned for us. When we had DVC before, we had a LOT of points and we financed.

Now that we're starting all over, we wanted to do things right with paying outright with smaller contracts this time, and to start out slow, paying low MF's, and gradually building up. Now we just have to learn the "art of dealing" i guess.

[Hunclemarco]

double posted

[kenspidey]

I did the same thing and I have no regrets. I knew I was paying more on a smaller 100 point contract but I wanted to be pretty sure I would pass as I am planning a trip to Disney in Sept regardless. So the upside is you should breeze through ROFR and have paid 40% less than buying direct. Sounds like a win to me : O )

[maburke]

Originally Posted by moreisgood

As you'll see, I was an engineer before I was a real estate agent. A little nerdy, but I think it's a realistic way to compare resale contracts.

DVC Contract Point value calculations
Looking for the AVP or actual value per point, of a contract.
--------------------------------------------------------------------------------------------------------------------
XP = Extra points available with the contract, from previous years, ex. 2011, 2012 points
MP = Missing points from the contract, from this year or future years, ex. 2013, 2014 points
AD = annual dues/point for the resort
CP = number of points on the contract each year
AP = asking price per point for the contract
AVP = actual value per point of the contract
------------------------------------------------------------------------------------------------------------------------
IF there are Extra points (points available outside of the current year – now 2013)
AP - ((XP x AD) /CP ) = AVP

AVP should be more than the AP.
Hint – if there are exactly a year’s worth of extra points, the AVP will just be the AP – AD.

IF the contract is missing points (no points for the current year, or even next year)
AP + ((MP x AD) /CP ) = AVP
AVP should be less than the AP.
Hint – if there are exactly a year’s worth of missing points, the AVP will just be the AP + AD.

If the contract has no extra or missing points, the AVP is the AP – no math needed.
-----------------------------------------------------------------------------------------------------------
You could take this one step further, and use $11 instead of the AD, if you were planning to rent the points out.

I'm not sure why you start with the asking price. If you're trying to figure out the actual value, I would think you'd use something consistent, like, "what I think a contract at this resort is worth per point." Then you can compare contracts and make an offer based on what you think it's worth, not so dependent on whatever price tag each seller is using.

Also, I think UY has to come into play somehow. Not only does UY make a difference to a lot of buyers in terms of matching their other contracts, I think you can't treat, say, a Dec contract with no 2012 points the same as a Feb contract with no 2012 points. And yet all dues are due in January. Hmmmm.

[fmer55]

Originally Posted by Hunclemarco

Well after looking at this thread after my contract was sent to ROFR, i think i may have chosen poorly. I asked the realtor if that was a reasonable price, she said yes...and i've never haggled a price for anything in my life. I think i may need a mentor when looking for our next contract. We'll be looking for a larger one then. So here goes...

SSR 55 point stripped contract no points till August '14, seller pays '13 MF, Buyer pays closing. $60 per point.

Nothing wrong with your contract for that little number of points, you did well.

Enjoy

[moreisgood]

Originally Posted by maburke

I'm not sure why you start with the asking price. If you're trying to figure out the actual value, I would think you'd use something consistent, like, "what I think a contract at this resort is worth per point." Then you can compare contracts and make an offer based on what you think it's worth, not so dependent on whatever price tag each seller is using.

Also, I think UY has to come into play somehow. Not only does UY make a difference to a lot of buyers in terms of matching their other contracts, I think you can't treat, say, a Dec contract with no 2012 points the same as a Feb contract with no 2012 points. And yet all dues are due in January. Hmmmm.

I totally agree. But, from what I see, there is no true comp info out there. I believe there are transactions on the county website, but without knowing what the terms are, it's not very useful information.

As everyone has agreed, the info at the beginning of this thread, probably shows some of the lowest prices out there. And while we all want a steal, sometimes you have to settle for what you can get when you want. In the big pictures, these are not big numbers we're talking about, unless you are buying a huge contract. A $5 difference in price for a 100 pt contract is $500.

The only thing I could come up with was how to compare currently offered contracts.

Also, is there a list of most desireable UY to least desireable UY, with weight percentages? I'd love to see it.

[fmer55]

Originally Posted by moreisgood

I totally agree. But, from what I see, there is no true comp info out there. I believe there are transactions on the county website, but without knowing what the terms are, it's not very useful information.

As everyone has agreed, the info at the beginning of this thread, probably shows some of the lowest prices out there. And while we all want a steal, sometimes you have to settle for what you can get when you want. In the big pictures, these are not big numbers we're talking about, unless you are buying a huge contract. A $5 difference in price for a 100 pt contract is $500.

The only thing I could come up with was how to compare currently offered contracts.

Also, is there a list of most desireable UY to least desireable UY, with weight percentages? I'd love to see it.

And that $500 is going to pay for my new NEX3 so I can chronicle my 'memories'