disneynutz said:Looks like they may be running low on points and/or they want to offer OKW as an alliterative for buyers who take issue with the new resort prices.
Bill
The easiest explanation for OKW remains the split expiration date problem. DVCMC/DVD would presumably not want to suddenly own a substantial fraction of that resort come 2042.
Brian Noble raises a good point. However it appears DVD will ROFR 2057 deeds as well as 2042 deeds. Another factor that comes into play is price. Until November 2011 the OCC website showed the reacquisition price. DVD was picking up OKW deeds around $45 per point. If people are continuing to sell OKW today at those prices, it doesn't surprise me that DVD is willing to pickup OKW deeds so cheaply.
The master contract number for some of these OKW deeds indicates that the original buyer purchased in the early 90's. Some Members have owned OKW for 15 - 20 years. These members have already recovered their purchase price and they are willing to sell their deeds at an extremely low price.
It's not *that* cheap compared to new construction. Within the industry, construction cost is typically less than half of the total sales price. In some cases, it is much less than half. Wyndham, for example, spends 20-25% of the total sales price on construction, with marketing costs in the mid-40% range. You have to pay that sales/marketing cost every time you turn a deed, wether it is from a brand new resort, or a "resale". It's also probably easier to market the new/flashy resorts, *and* they sell for higher prices.If people are continuing to sell OKW today at those prices, it doesn't surprise me that DVD is willing to pickup OKW deeds so cheaply.
In short, ROFR is not necessarily the "free money" machine that it seems to be.
But to sell the contract again, they have to attract another willing buyer. That doesn't happen by itself---it requires more work, and that work is marketing.They have already sold that contract once (at least) and recouped all of the construction/marketing costs.
But to sell the contract again, they have to attract another willing buyer. That doesn't happen by itself---it requires more work, and that work is marketing.
But they are already doing the marketing for Aulani, AKV, and BLT. There is no marketing around any other resort (GFV soon) in any of the docs I have received. We did get 1 piece of info on SSR in our packet because I specifically asked for it.
Unless someone else has seen something, there is no additional $$s spent on marketing any resorts other than the new ones.
wdrl is my DH and we are driving to WDW as I type. Here is wdrl's reply.
Brian Noble raises a good point. However it appears DVD will ROFR 2057 deeds as well as 2042 deeds. Another factor that comes into play is price. Until November 2011 the OCC website showed the reacquisition price. DVD was picking up OKW deeds around $45 per point. If people are continuing to sell OKW today at those prices, it doesn't surprise me that DVD is willing to pickup OKW deeds so cheaply.
The master contract number for some of these OKW deeds indicates that the original buyer purchased in the early 90's. Some Members have owned OKW for 15 - 20 years. These members have already recovered their purchase price and they are willing to sell their deeds at an extremely low price.
How does the member contract number indicate the purchase date?
Quite often, Disney will exercise ROFR because they already have a buyer on their wait list. I called last year to purchase a small OKW add-on with an Aug UY and they did not have any points in inventory with that UY. I was told they would take my credit card number and then when something became available, they would make the purchase. I was also told that it probably wouldn't take more than 3 months before something was available. Considering the resale process takes roughly 6 - 8 weeks, it is my guess that sometimes they use ROFR to fulfill that person on the wait list. I did not want to have an open-ended buy order so I did not commit.
My wife and I just purchased Direct at SSR for 175 pts with a March UY yesterday. That said, we went and did the tour (mainly for the fast passes), but at the end did exactly what was posted. Left our CC # with the intent if they received a contract we would buy. that was on Thursday 11/8, and we closed yesterday. we looked at several resale locations and the financing options as well for the purchase. The incredible thing was, because we bought and dictated our purchase location and use year we received our current year's(2012) points (and we have 2 weeks to decide to bank or use) and will receive our upcoming year's points obviously. We have a first payment due in Feb, and put down 15% to cover the 7 weeks of dues. Our monthly payment (10yr financing, but our finances will allow us to pay it off in Aug 2013), include the annual dues over 12 months. With us banking the points we essentially received 350 pts for March 2013 use, paid 55/pt, with the full benefits entitled.
This was by far cheaper than the currently listed prices of most regales at SSR for 63+ /pt, with no ROFR issues or anything.
I have to say I am extremely happy with this and will purchase our next round in Nov 2013 at OKW for 200 Pts and same UY. There was no downside to this purchase, you just have to be smart on the time to buy, make your intents known for what you want in terms of pts and UY and they (Disney) will accommodate you.
paid 55/pt
Ugh... I think the buy direct price is $110/pt for SSR