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Discussion in 'Purchasing DVC' started by ImagineerTHAT, Jun 14, 2013.

  1. jimmytammy

    jimmytammy <font color=purple>Swivel, it's a hard habit to br

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    rusafee
    I wouldnt feel bad about paying 79 per pt for VWL. Resales for VWL are scarce, seem to get snatched up quick. Our 4th VWL, contract direct we paid 83 per pt(this was an increase of $11 from our 1st contract at $72 per pt for VWL). I thought it was steep in those days, but now, it seems reasonable.
     
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  3. dmunsil

    dmunsil Disney Uber-Nerd

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    Usually it's just because when you calculate the price from the Deed Doc Tax, you're getting not the actual price, but the price rounded up to the nearest $100.

    For example, if someone sold 160 points at $72, the sale price would be $11,520. The Deed Doc Tax is on each $100 or remaining fraction, so you effectively pay tax on $11,600. The tax would be $81.20 ($0.70 for each $100). When reading the deeds, we see $81.20 and 160 points, calculate a total sale price of $11,600, divide by 160 and get $72.50.

    When I post sale prices figured from the Deed Doc Tax, I generally just round them down to the nearest dollar as a rough-and-ready way of correcting for this factor, since most of the time the price is negotiated in whole dollars per point. ImagineerTHAT prefers to just report the calculated price, which is a perfectly good way to go and in some ways more transparent. The prices are generally slightly high because of the round up built into the tax, so you just have to know that actual sale prices are slightly lower.
     
  4. wdrl

    wdrl DIS Veteran

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    Buyers and sellers can negotiate any price they want for a DVC deed. Although prices are normally determined at a price per point, such as $70 a point, a buyer and sell can agree on a set price for the deed.

    For example, a seller may offer a 220-point deed at $70 a point, or $15,400. A buyer may counter and offer $15,000 for the deed, which comes out to $68.18 a point.
     
  5. ImagineerTHAT

    ImagineerTHAT Imaginerd

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    I do find it strange that most of the title companies that list the price come out to whole numbers, whereas most of the doc deed tax calculations have extra cents on them. The deed tax calculation usually works out to a normal total amount, but the price per point isn't a round number. It could just be that they calculate the tax based on a certain rate.

    Either way, I think dmunsil is correct in rounding down. I've started to do that in my spreadsheets. I'm not too concerned with a $1 difference in what I'm looking for.
     
  6. dmunsil

    dmunsil Disney Uber-Nerd

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    It's just the way the tax is calculated. The tax is 70 cents for each hundred dollars. It's always a whole multiple of 70 cents. So the calculated price is always going to be a multiple of $100, but it will often be too high by somewhere between $1 and $99. Check out my example. When you then divide that too-high price by the number of points, you get a small number of cents per point, which is usually (but not always) just an artifact of the inaccuracy of calculating the sale price from the Deed Doc Tax.

    Don
     
  7. bnlbebes

    bnlbebes Mouseketeachers

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    Thanks for the info!
     

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