Purchasing a stripped resale?

[disneynutz]

200 points is enough for DH & I. It's the children, grandchildren, sisters, nieces, etc. that use up our points. LOL!

With 2 home resorts you can alternate every other year and borrow to double your points for the stay while booking at 11 months.

Bill

 

[christianweecare]

With 2 home resorts you can alternate every other year and borrow to double your points for the stay while booking at 11 months.

Bill

That's what we have in mind.

 

[Deb & Bill]

Fair enough. To get back to OP's question, is a $10/pt reduction for stripped a good starting point? Given the wide range of prices on different properties, this would be anywhere from an 8% to 15% reduction off of asking. Many of us start by offering 10% less than asking in any case. Should we be starting with an average selling price and take $10 from there?

Are you including the dues for those points in the $10 a point? I'd just go for the owner paying the dues on all the missing points and maybe a $1 or $2 for the missing points. Otherwise, you are valuing the points at $500 a point ($10 per year of the contract) which is absurd.

 

[belias21]

OK, I need help understanding something here. I think it is fundamentally correct to assume that one could offer $5-$10 less pp for a stripped contract. How does that play in to the ROFR process though? Does Disney factor that in too?

Back when I bought my contract, I paid $58pp. Although we all know it's not an exact science, DVD was exercising ROFR seemingly around the $55pp range. If I had offered $53 or less because it was stripped, even though the seller may have accepted, it probably would have gotten snagged, no?

 

[disneynutz]

OK, I need help understanding something here. I think it is fundamentally correct to assume that one could offer $5-$10 less pp for a stripped contract. How does that play in to the ROFR process though? Does Disney factor that in too?

Back when I bought my contract, I paid $58pp. Although we all know it's not an exact science, DVD was exercising ROFR seemingly around the $55pp range. If I had offered $53 or less because it was stripped, even though the seller may have accepted, it probably would have gotten snagged, no?

Disney takes available points into consideration when they look at ROFR.

Bill

 

[Dean]

Fair enough. To get back to OP's question, is a $10/pt reduction for stripped a good starting point? Given the wide range of prices on different properties, this would be anywhere from an 8% to 15% reduction off of asking. Many of us start by offering 10% less than asking in any case. Should we be starting with an average selling price and take $10 from there?

I use $5 a point for dues and an additional $5 pp as rental return as a round number. I do this partly to make it simple and partly because one can often rent out points for a resort you don't own at. Also, often the home resort window doesn't come into play for points gained in a purchase that one plans to rent out. Certainly there's some variation on return from one resort to another, one unit type/view/season to another. The dues will vary a little as well. If one wants to further micromanage this issue, it can be done relatively easily. It's also possible to get more than $10 a point in many situation, upwards of $13 a point total (including dues) is sometimes workable. I'm comfortable with the $10 a point and feel it's a good representation for points not overly restricted. I'd use a much lower number of banked and/or very restricted points. I wouldn't pay any dues on them and would value them at much less than other points, how much less would depend on specifics.