Has Anyone Noticed The Run On Resale Contracts?

Discussion in 'Purchasing DVC' started by BWV Dreamin, Mar 24, 2013.

  1. Sur

    Sur Love the Dis

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    I do know that my stripped purchases got through ROFR, with the majority being at a lower price point. I needed the time to NOT use points, as I was committed elsewhere until I could use points, and banking would've put us over the top too much.
     
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  3. DizBub

    DizBub Totally Addicted

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    I think they want to keep people guessing. Look at what all the speculation has done for their direct sales. Business seems really good for DVC these days, so good that it appears to have depleted resale inventory and forced prices up.
     
  4. miprender

    miprender <MARQUEE BEHAVIOR=ALTERNATE><img src=http://www.em

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    That's probably why my small VWL contract slipped through. I have no points until 2014 but that is fine... I was just happy to have a home at VWL:love:
     
  5. dbs1228

    dbs1228 DIS Veteran

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    I would be very surprised if Disney took any stripped contracts since they would have to shell out money for points and sit on the contracts until the points were there - not good business to tie money up that way.

    They are grabbing loaded contracts and I noticed if current year points are in the contract and it is past or in UY they can safely take those and resell them right away. Example: I just had my BWV ROFR'd it was Feb UY with 2013 points - they can now sell those points to direct buyers with 2013 points. If it was an Aug UY contract they would not be able to give current UY points (since Aug is still in 2012 UY) since there are none - again holding the contract! This has only been an observation. Disney is not predictable!
     
  6. e46m3

    e46m3 Mouseketeer

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    They took my Aulani contract that was stripped. So it's really hard to determine.
     
  7. wdrl

    wdrl DIS Veteran

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    You are probably right that stripped deeds are not attractive to DVD. However, I can think of two scenarios where a deed, even if it is stripped, is still attractive to DVD. One scenario involves Vero Beach or Aulani deeds that have subsidized maintenance fees. In 2013 alone, DVD is responsible for subsidizing $1.61 per point and $1.55 per point on VB deeds and Aulani deeds, respectively, that qualify for the subsidies. Since DVD may continue to subsidize these deeds for the life of the resorts, it makes financial sense for it to ROFR these deeds whenever possible.

    The second scenario is a little more convoluted and may not actually come into play that often. By regulation, DVD must retain ownership of 2% of each resort, which is represented by the total number of points allotted to a resort. A deed that is stripped of current year points still counts toward that 2% requirement. DVD could ROFR a stripped deed just so it has an excess of points above the 2% requirement. Then, it can sell the excess points that it already owned, assuming those excess points have current year points.
     
  8. bwvBound

    bwvBound DVC SSR & other timeshare

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    Was the Aulani contract subsidized?
     
  9. e46m3

    e46m3 Mouseketeer

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    Yes and it was a 75 pt contract.
     
  10. dbs1228

    dbs1228 DIS Veteran

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    Very good points! I did not even think about the 2% requirement!
     
  11. nunzia

    nunzia You can't top pigs with pigs, but you CAN top Toys

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    The best observation is that Disney is not predictable :) My year long waitlist came through right when current year points would be available on a stripped contract. I have a March use year and lo and behold guidle called me March 2nd with contract..so they may have had that contract, stripped, and just didn't sale until points were available. Of course that could have been a contract taken back for non payment, but if they have a waiting list they are pretty sure they can sell those contracts as soon as current year points kick in.
     
  12. wdrl

    wdrl DIS Veteran

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    In the almost four years I have been tracking DVD activity on the Orange County Comptroller's website, I can count on one hand the number of deeds I have seen where a buyer is only getting points for a date in the future. If DVD does not have points for the current Use Year, it won't sell the points until the next Use Year has started. Even if a buyer is willing to buy a deed in which the first set of points isn't available until September 2013, DVD won't sell those points until September 1, 2013, at the earliest.
     
  13. AInWonderland

    AInWonderland As the monorail attendant says "Don't go inside un

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    So if I am on the waitlist for an OKW April use year next week may be my turn? I hope so!
     
  14. LoriKutchey

    LoriKutchey DIS Veteran

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    Me too :cool1: Hopefully hear something soon:dance3:
     
  15. fairy8i8

    fairy8i8 Spread the Magic!

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    Could you point me to this webcast? I have heard people talk about it, but don't know where to find it. Thanks!
     
  16. DebbieB

    DebbieB DIS Veteran

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    It was on set dates at the end of last month. I don't think they are offering replays.
     
  17. DVC BLT

    DVC BLT Earning My Ears

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    To the OP point - its brutal how quickly contracts are disappearing for BWV and BC.

    What is with the sudden love for BWV? Now that we are interested in adding on, there are no contracts!

    Not to mention the asking prices seem to have climbed significantly compared to only a few months ago.

    Bummer!
     

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