2021 points - offer/usage?

[KalamityJane]

New buyer here, bear with me!

There’s a couple of contracts I’m looking at that are Dec UY with ~100 2021 points, 200 pt contract. I believe they are still able to be banked until July 31, right?

If you were to make an offer on one of these, how much per point would you give extra? For instance if the average price per point for most contracts at that resort was around ~150, and the price the contract is at is 170, how low would you go? They’d essentially be free points as far as dues and I was thinking of asking the seller to bank them just in case ROFR/closing goes long. Average rental point cost being ~18-20, I figure a $5-7 upcharge per point is probably not bad, given I’d be paying that upcharge on the full contract worth of points (200) and not just the extra ones (100).

If not banked, they would need to be used by Nov 30 this year?

 

[crvetter]

Do you mean 2022 points? If 2021 they would have to already been banked to December 2022 as that is the current use year right now. So would expire 11/30/2023, and probably add minimal value.

If 2022 points, I’d say those points usually add about 7-10 per point to the contract value. They aren’t worth the full cost of rental points simply because you can’t sell with a rental attached to your contract. And I assume most people don’t like doing transfers.

I personally stripped the current use year points on a contract I sold by transferring to another contract of mine because I noticed you don’t get much more on the market compared to the rental value.

 

[HappyDisneyWife]

If these truly are Dec 2021 UY points- and weren’t previously banked- then they’ve already expired. That UY would have been good from Dec 2021-Nov 2022, and we are now in 2023. If they were already banked, you cannot bank them again. If these are Dec 2022 UY, then they’re still usable & bankable.

Now, to the rest of your Q- I decide what I am willing to pay for a contract & don’t base my numbers off of what the seller lists it at. I offer what I think is reasonable, and if they disagree- we don’t make a deal. No harm done. I personally give a little extra wiggle room when negotiating for a whole year’s worth of banked points… but I don’t have a set amount that I automatically add bc if a seller is willing to sell for less- why would I pay more?

 

[Sandisw]

We are currently in the Dec 2022 UY...so any 2021 points still being listed are banked, and will expire November 30th, 2023.

The 2022 UY points, if any, are eligible for banking through July 31st. In terms of offers? I always just decided what I thought was a good price for what I was getting, given the average selling price. I neve let an extra $10/pt or so keep me from a contract I thought was perfect.

Now, if there are several that meet your needs, then I always went lower in my original offer, but did have an amount I would pay. IMO, if you think its worth $155 to $160 because its what you are looking for, then I say that works!

 

[KalamityJane]

Thank you all!! It does say banked from 2021, so those would expire Nov 30 this year, I’m guessing. So I should ask for the 2022 points to be banked on any Dec UY then in order to give me more time to use them?

 

[intamin]

Thank you all!! It says 2021 points, doesn’t say they are banked so I’m guessing they are expired then. That definitely makes it easier to figure out! So I should ask for the 2022 points to be banked on any Dec UY then in order to give me more time to use them?

.. it could mean that the 2021 points are there and banked otherwise they would’ve put 0 for 2021. Verify with the broker if the 2021 points are actually there or not as they can be used though 11/30/23 if they were banked. If you’re not planning to use the 22 UY points before 11/30/23 then you can ask them to bank the points.

 

[KalamityJane]

.. it could mean that the 2021 points are there and banked otherwise they would’ve put 0 for 2021. Verify with the broker if the 2021 points are actually there or not as they can be used though 11/30/23 if they were banked. If you’re not planning to use the 22 UY points before 11/30/23 then you can ask them to bank the points.

I edited bc I checked and they were banked into 2022 from 2021, so it would be 0/21, 300/22 (100 banked from 21), 200/23 and beyond.

 

[crvetter]

I edited bc I checked and they were banked into 2022 from 2021, so it would be 0/21, 300/22 (100 banked from 21), 200/23 and beyond.

I wouldn’t offer any additional for the baked 2021 personally. They probably won’t expect much either because their usefulness is short lived by the time you close.

But I agree with others if it’s the perfect contract in the scheme it might be minimal

 

[rspencer38]

I would look at it as either a way to offset the initial cost should you choose to rent them, or perhaps a "free" stay if you can manage to find availability for something that meets your needs.

I just finished a resale purchase of a 200 pt DEC UY contract that includes 400 points in 2022 (200 from 2021 that will expire at the end of Nov this year + 200 from 2022 that can be banked by the end of July 2023) and full points from 2023 going forward. Typically resale buyers are responsible for current year dues, so I paid dues for upcoming 200 points coming in Dec of this year. Essentially, I got 400 points for "free" which I intend to rent to out and offset the purchase price. Even at a reduced rental rate, I will recoup a significant amount to offset my initial buy-in.

As for how the points impact listing or sale price, I'm not sure they hold too much value to the seller. I paid $90 per point for a SSR contract that was definitely on the low end of what is currently being sold even with the fully loaded 400 points on the front end of the contract.