How would you value this?

Discussion in 'Purchasing DVC' started by Tunseeker1, Apr 29, 2012.

  1. Tunseeker1

    Tunseeker1 Mouseketeer

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    I was looking at a resale listing and it was confusing as to how to put some kind of value on it.

    It is vb 150@$39
    Closing of 400.

    5 points coming on 8/1/13 and 150 points coming on 8/1/14.

    I understand they are using points from '13 for a vacation and using all '12 points.

    The seller would have paid '12 mf, but the new owner would pay '13 mf.
    Would you ask for a discount or is the price fair as listed?

    At $39 a point with closing it would be about $42 a point.
    If buyer pays for '13 mf it's $7.12 a point for points you can't use or rent out.
     
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  3. Tunseeker1

    Tunseeker1 Mouseketeer

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    And that's not figuring in replacing points with rental points if you wanted to travel before '14
     
  4. Missyrose

    Missyrose DIS Veteran

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    I personally wouldn't bother with a contract like that. The price per point you would offer to offset the stripped nature of the contract likely wouldn't pass ROFR.

    Wait for a better contract.
     
  5. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    Do you plan to go to Vero Beach? If you don't why not just buy an OKW or SSR or AKV contract? Then you would at least be guaranteed a stay at WDW if you booked at 11 months out.
     
  6. Missyrose

    Missyrose DIS Veteran

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    Deb, if you look at his posts from the last few days, he's been spending his time trying to convince everyone that the lower cost to buy in at VB makes it a better deal than the WDW resorts.
     
  7. Tunseeker1

    Tunseeker1 Mouseketeer

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    Actually VB books up at the 7month mark. My wife has decided going to the beach would be nice.

    I am buying vb to stay there.

    I have been telling people that small contracts might be worth looking into direct,and vb is a decent value.

    This contract proves that some people want more then buying direct for a contract.

    I had okw points before I had kids, and I have an AKV waiting for ROFR right now!
     
  8. Judique

    Judique Dis Veteran, Beach Lover at BWV, BCV, HHI, VB

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    The value in this contract is for the seller if they are able to get you to buy it. It's a stripped contract. No points for almost 2 years and then you have to borrow them!
     
  9. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    Exactly. You won't get points for two years and you'll be out of money so you won't even be able to book a stay or rent points from another member.

    So did they use the points for a cruise that hasn't been taken yet or for a trip after 8/1/12? Is there a request for delayed closing?
     
  10. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    IMO, it's not a good deal to use points for WDW even if it wasn't stripped. Assuming you pay no fees on closing and fees for Jan, 13, you'd be overpaying on fees by 19 months worth. I don't believe the price break is enough to justify the headache of no 11 month window if WDW is the goal and the much higher fees will eat any potential savings in about 5 years compared to say SSR or OKW as a points cow. VB is a great resort, if you want to stay there most years our want a Beach House periodically (not just the option) then it may be reasonable to buy there. However, if you're set on proceeding with VB you should ask that the seller split closing and credit you for the Jan, 2013 fees as a MINIMUM.
     
  11. ELMC

    ELMC DIS Veteran

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    Well at the rate Disney has been ROFRing OKW contracts, the only place you're guaranteed to stay if you buy one of those is your house. :rotfl2:

    (Well I thought it was funny).

    But seriously, good point. The problem is that the OP has a habit of finding the worst possible contracts available for resale and then uses them as evidence of how buying direct is better. Then this happens... :stir:
     
  12. ELMC

    ELMC DIS Veteran

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    I believe the word you are looking for is quagmire. Any savings that you might realize on the purchase price are eaten up after 5 years of maintenance fees. Then what do you do for the next 25 years? (besides sit there and hemorrhage money thinking about what a great deal you got)

    Please explain how entering into a 30 year agreement where the fees are 27% higher than the next most expensive resort is a "value".
     
  13. Tunseeker1

    Tunseeker1 Mouseketeer

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    That was funny!

    The reason I find what would be the worst contracts out there is because people as listing these and GETTING OFFERS!

    I just don't understand the logic. This contract Is open and would work with my UY
     
  14. ELMC

    ELMC DIS Veteran

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    Thank you. :)

    And I think we have identified the problem. You're baffled by the fact that these contracts are selling and you're trying to make sense of it. Well....don't! People out there make poor financial decisions or make decisions based on emotion or sometimes don't even make a decision they just react. You're not going to stop them and you certainly aren't going to beat them. You just have to move on.

    I don't think logic is at play here.
     
  15. Tunseeker1

    Tunseeker1 Mouseketeer

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    We agree on something!

    I remember when most contracts were bought back by Disney, and there were no stripped contracts.

    I see some of these like people selling their house after they sell the kitchen cabinets!
     
  16. dbs1228

    dbs1228 DIS Veteran

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    I too cannot see any logic in a stripped contract with no points for 2 years! If I was buying I would leave my money where it is and wait 2 years to buy - by that time prices should have gone down even more and no worries about dues or seeing a better contract come along!
     
  17. KSL

    KSL Mouseketeer

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    At the risk of entering into this, knowing you will all tell me I made a horrible decision.... I am posting in defense of the stripped contract.

    We made an offer on a contract with very few points available for 2012 & 2013, full points starting in 2014. Our logic was this:
    (1) we really wanted this resort (BWV)
    (2) this was exactly the number of points we wanted
    (3) this is a good use year for us
    (4) we have the cash now to purchase, and
    (5) we already have points budgeted through our existing BLT contract to cover our trips for this summer and next (so aren't planning to use more points until 2014).

    So for us, this stripped contract was good because we don't need the points yet and are not interested in getting involved with renting, and don't want to be paying MFs on points we don't really need - we are only paying the MF on the 2012 and 2013 points that we are actually receiving (again, very few). But there have been so few BWV contracts listed, and once we made the decision that we would like to have more points starting in 2014, we were ready to go ahead and add on and be set with it. We accept that we are risking that resale costs may go lower and that the MF may go up for 2013 whereas we are only being credited costs based on 2012 rates.

    Now, we are currently waiting on passing ROFR and who knows - maybe Disney will take this and we will be back to the drawing board. But if not, we are happy with this deal and it works for us. Quite likely not a good deal for most people, I realize. But with the lack of offerings at BWV lately (not to mention at the number of points and Use Year we want), we're really hoping it all goes through!

    Now....I am bracing myself for all of you telling me how wrong I was.... BE KIND!! ;)
     
  18. Tunseeker1

    Tunseeker1 Mouseketeer

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    Ok brace yourself.

    Did you get a contract you want?
    Do you need the points?
    Did you get a price your happy with?

    If your happy then I'm happy you got the contract you wanted.
    Good luck in rofr

    If I could find the resort I want, correct UY and good price I would consider a stripped contract, but I can't figure out how to come up with a good offer. I found a ssr that would work for $15 a point higher then direct then paying closing
     
  19. AllieV

    AllieV DIS Veteran

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    I'll defend the stripped contract, too, though I'm still deciding if it's right for me. I saw a stripped bcv at the right points. Not a great UY but I can work with it. No points till very late 2014, meaning I couldn't really use it till at least spring 2015. But if I could get it for $50 a point, I'd be thrilled. I could keep saving till 2015 and find a nice loaded one, but I'd probably pay $25-$35 pp more. In the meantime, I'd only be paying $15-ish more pp to pay the dues for all three of those years (13-15). So I think I'd still come out ahead and I can negotiate the seller paying closing to make up for using the 13 points, so it's a true $50pp. They'd also pay '12 dues. With a loaded contract three years from now, I'd have to reimburse dues and split or cover closing, putting the point cost another $10 higher even more.
     
  20. goldenears

    goldenears DIS Veteran

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    The contract works for you and if you are happy with it, then no one else needs to be. Could you have bought a loaded contract, rented the points you don't need and lowered your price/point? Yes. Could you have waited two years and possibly paid less per point? Yes. In the end, we look at today, what is available and make the decisions that work best for the moment we are in. No one knows for sure what tomorrow holds. In addition, my DH always reminds me that our time needs to be factored into our decisions. If spending your time renting points isn't valuable to you, then that is a factor. Supply and demand for BWV could also be different in two years and you may have had to spend more time finding and negotiating the right contract for your family.
    Congratulations on finding a contract that works for you. I wish you the best with ROFR! Keep us updated :)
    As for OP... my DH and I LOVE VB. It was a wonderful getaway for us at the end of two out of three of our pregnancies. I hope to go back sometime soon. With that said, we do not plan on vacationing there regularly, so I would not buy there. As others have said, the cost of dues will outweigh any cost per point savings that you see initially. If you see yourself vacationing there regularly and you can see past the cons, then it might be the place for you. As for the stripped VB contract, I would pass. This resort is in less demand and you can probably negotiate something more worthwhile on another contract.
     
  21. KSL

    KSL Mouseketeer

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    Gee, thanks guys! :lovestruc I was fully prepared to hear several arguments (and maybe they're still coming..:goodvibes) for why we shouldn't have gone for the stripped one. We're quite happy with it, but I know conventional wisdom says not to go for those. Renting would never have worked for me - I would have wanted to USE the extra points, which would be more vacations than I can justify in the next 2 years (we have some other non-Disney things planned as well)! ;) I had been hoping the fact that it has nearly no points until 2014 would help us get through ROFR, but apparently not! :worried: Didn't realize (but suspected it was possible) that Mickey has a few tricks up his sleeve to make stripped contracts 'whole' again to resell. Fingers crossed that he doesn't want this one. I will keep you all posted!
    AllieV - on the deal you're considering, shouldn't they also pay the 2013 MFs if no points until 2014? Or is having them pay closing a better deal for you? I agree with goldenears that you never know what will happen in the future (which was absolutely also part of our reasoning, though I forgot to list it among our considerations) so if this deal looks good to you, I'd go for it (but again, that's me following the logic that brought me to my situation!). Let us know what you decide!
     

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