$109 per point for a HH contract, made me laugh

[SL6827]

Just saw a HH contract for 25 points, for $109 a point. Ugh, no thank you. Points coming in 2018, but $109 is way higher than I would ever pay per point there.

 

[supersnoop]

Wow! Direct is $115. Closing costs would likely eat up the $150 savings.

 

[Tlmb615]

It seems like a lot of listings are much higher than they were a week or so ago??

We put an offer in for 25-BWV @ $100 pp and now I see one for 25-BWV $133

 

[zavandor]

It looks like someone is going to discover they've made a costly mistake.

 

[Tlmb615]

It looks like someone is going to discover they've made a costly mistake.

Ours was taken during ROFR and the broker seemed to think that $100 pp was too low.

 

[zavandor]

Ours was taken during ROFR and the broker seemed to think that $100 pp was too low.

For a HHI contract?

 

[Tlmb615]

Our 25 point BWV @$100 pp was taken

 

[zavandor]

Our 25 point BWV @$100 pp was taken

The incredible thing about this contract for sale is that it's for HHI. BWV contracts are in a completely different category

 

[crisi]

Ours was taken during ROFR and the broker seemed to think that $100 pp was too low.

That is too low for a 25 point BWV contract.

 

[RKS03]

That is too low for a 25 point BWV contract.

From Disney's perspective why wouldn't they be Moreno likely to ROFR 25 point contract than 150? They're doing business on such a large scale compared to individual buyers. They just passed a loaded 150 point BWV contract for 95. I guess it's possible they had one buyer requested that specific use year but it would make more sense to me for Disney to buy larger and cheaper contracts. Seems like they could move them quickly Direct.

 

[crisi]

I actually wasn't talking ROFR. That's low for a low number of points. From Disney's perspective, we have no clue how ROFR works - it sometimes appears to be a dartboard. It is possible that the administrative costs to reallocate points back into the pool and divide them out are significant enough that the 25 point contract that doesn't need to be repackaged is more attractive to Disney than the 150. Its possible that two minutes before that ROFR hit some accountants desk, a guide called and said "if you see any 25 pointers at BWV for X use year, grab them. I have a client that is looking."

 

[RKS03]

I actually wasn't talking ROFR. That's low for a low number of points. From Disney's perspective, we have no clue how ROFR works - it sometimes appears to be a dartboard. It is possible that the administrative costs to reallocate points back into the pool and divide them out are significant enough that the 25 point contract that doesn't need to be repackaged is more attractive to Disney than the 150. Its possible that two minutes before that ROFR hit some accountants desk, a guide called and said "if you see any 25 pointers at BWV for X use year, grab them. I have a client that is looking."

I wasn't trying to put words in your mouth but your message made me think. I have noticed that Disney seems to excercize ROFR on sort of a sliding scale similar to how individual buyers to, based on number of points. You may be right that there are frictions involved that aren't obvious. I also wonder if they're just trying to maintain price levels so that you're more tempted to buy direct.

 

[minorthr]

The small 25-50 point contracts have sky rocketed in price over the last month and the crazy thing is they are selling at those prices in minutes. I think a lot of that has to do with people trying to buy in for as little money as possible. someone can get in for $5k instead of $10k+ from disney.

 

[crisi]

Well, that is literally what ROFR is for. Keeping the resale market high enough so that direct is appealing. Disney holds the cards there as well - when they are cash poor (like they were during 2009-2010) they don't have to exercise their right, so you can get real bargains. But when they have money to invest, they can choose to invest it via buybacks that they can then resell. They were also really aggressive on ROFR when they had no new inventory to sell.

 

[jesschris]

Just saw a HH contract for 25 points, for $109 a point. Ugh, no thank you. Points coming in 2018, but $109 is way higher than I would ever pay per point there.

Wow that is crazy. So many for sale there at much lower price

 

[Dean]

It looks like someone is going to discover they've made a costly mistake.

Probably not. They'll likely sell at a slightly lower price but one can't buy retail at 25 pts direct. I would agree it wouldn't make sense to fool with resale for a current owner who wanted that size contract that UY assuming the UY was available retail.

 

[GlamMistress]

I've decided I want to buy into DVC, probably at Aulani. I'm still in research mode right now but man - these prices seem to be insane. I hope they come down! I've got a budget in mind for this first contract and I won't go over it!

 

[kydisneyfans]

DVC purchase prices have skyrocketed across the board the past few months. Not really finding much anywhere for under $90. Even HHI and VB are going for what I bought AK for in 2013.

 

[JamesA1]

Recently noticed a lot of smaller contracts are stripped of points until 2019.

 

[minorthr]

Recently noticed a lot of smaller contracts are stripped of points until 2019.

Yea most of the ones with with points in 2018 are going for a major premium.