ROFR Stats

[jimmytammy]

This is a really good point. And these numbers actually make me feel better about my offer. We aren't closing on VWL contract until August - but it passed for $79pp (2 seperate contracts, 1 for 25 and 1 for 100)

After reviewing the ROFR thread, I noticed that I paid higher than any other contract in my point range which made me second guess myself - even though I was originally content with the price. Now, seeing these numbers and seeing that there actually was a VWL ROFR'd for $73 pp and I am totally willing to pay the extra $750 in order to pass.

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.

 

[dmunsil]

Potential dumb question, but why are there decimal points? Do people really negotiate down to the cents? Or is the price a combination of price per point plus closing fee plus MF?

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.

 

[wdrl]

Potential dumb question, but why are there decimal points? Do people really negotiate down to the cents? Or is the price a combination of price per point plus closing fee plus MF?

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.

 

[ImagineerTHAT]

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.

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.

 

[dmunsil]

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.

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

 

[bnlbebes]

Thanks for the info!