Anyone made it through (or not made it through) ROFR recently? - Section V

[cuteinnocent]

Update for 2/19/13 -- Current data

cuteinnocent --- 310 VGC (Dec), $85, all '13 & '14 pts, buyer pays closing & mf (sub 12/3, passed 12/27)

Actually seller pays closing!

 

[cm8]

Congrats to all of you who passed ROFR

 

[shwn]

Congrats to everyone that passed ROFR yesterday or are waiting to hear today! Tons of great deals- congrats. And some people passed so quickly- awesome!!!

 

[psac]

Submitted today 2/25

AKV 160 points December UY - $60/point. 160 banked 2011 points, 160 2012 points and all 160 going forward. Buyer pays closing, 2013 MF, and admin fee.

Ours was submitted a few days ago (end of last week, early this week, not sure which), exact same terms except no 2011 points. I thought we got a great deal, but your deal is even better. Hopefully then if they refuse one contract, it won't be ours. Good luck to both of us!

 

[elcid3]

Thanks for posting the formula. I plugged it into Excel but I'm not sure I'm using it correctly. Do you mind posting an example? Feel free to use the data for a contract I just purchased. It has 210 points from 2012, 2013, and 2014. Since I'm not paying 2012 or 2013 dues, I put 420 under XP's.

XP 420
MP 0
AD $5.84
CP 210
AP $50.00 (which is what I paid)

AVP - Extra Points $38.32

What I'm confused about is does this mean I should have only paid $38.32 per point? Or is the AVP the value over the asking price? If I increase the XP number, shouldn't the AVP increase?

thanks

As you'll see, I was an engineer before I was a real estate agent. A little nerdy, but I think it's a realistic way to compare resale contracts.

DVC Contract Point value calculations
Looking for the AVP or actual value per point, of a contract.
--------------------------------------------------------------------------------------------------------------------
XP = Extra points available with the contract, from previous years, ex. 2011, 2012 points
MP = Missing points from the contract, from this year or future years, ex. 2013, 2014 points
AD = annual dues/point for the resort
CP = number of points on the contract each year
AP = asking price per point for the contract
AVP = actual value per point of the contract
------------------------------------------------------------------------------------------------------------------------
IF there are Extra points (points available outside of the current year – now 2013)
AP - ((XP x AD) /CP ) = AVP

AVP should be more than the AP.
Hint – if there are exactly a year’s worth of extra points, the AVP will just be the AP – AD.

IF the contract is missing points (no points for the current year, or even next year)
AP + ((MP x AD) /CP ) = AVP
AVP should be less than the AP.
Hint – if there are exactly a year’s worth of missing points, the AVP will just be the AP + AD.

If the contract has no extra or missing points, the AVP is the AP – no math needed.
-----------------------------------------------------------------------------------------------------------
You could take this one step further, and use $11 instead of the AD, if you were planning to rent the points out.

 

[kenspidey]

Just passed ROFR

6OK94 Old Key West (Extended 2057) 100 Oct 140 points for 2012 (100 + 40 banked 2011) + 100 for 2013. $69.00 per point.

 

[ozzie2131]

Our contract for BWV has been sent to disney for ROFR. $55.00 for 150 points with 300 points available this year and all points available 2014 March use year. This will be my wifes and my first contract and am hoping it goes through. We decieded to buy in December when we found out we were pregnant with our first baby. What better gift could we give our baby then a lifetime of great vacations. So wish us luck.

 

[silmarg]

Our contract for BWV has been sent to disney for ROFR. $55.00 for 150 points with 300 points available this year and all points available 2014 March use year. This will be my wifes and my first contract and am hoping it goes through. We decieded to buy in December when we found out we were pregnant with our first baby. What better gift could we give our baby then a lifetime of great vacations. So wish us luck.

I wish we did it when the kids were born. Well done Ozzie!

 

[BuffaloJim]

Passed ROFR...

220 OKW (Dec)

all 12, 13, 14

$57, submitted 1/30, passed 2/26

Buyer pays MF

 

[cz4ever]

Thanks for posting the formula. I plugged it into Excel but I'm not sure I'm using it correctly. Do you mind posting an example? Feel free to use the data for a contract I just purchased. It has 210 points from 2012, 2013, and 2014. Since I'm not paying 2012 or 2013 dues, I put 420 under XP's.

XP 420
MP 0
AD $5.84
CP 210
AP $50.00 (which is what I paid)

AVP - Extra Points $38.32

What I'm confused about is does this mean I should have only paid $38.32 per point? Or is the AVP the value over the asking price? If I increase the XP number, shouldn't the AVP increase?

thanks

DougEMG posted a similar formula a while back (perhaps in a previous iteration of this thread). Basically, it's a way to compare contracts in a way that accounts for how many points are/aren't bundled in the sale. A $50/pt contract with no points in 2012, 2013, and 2014 is a much worse deal than a $65/pt contract with all 2011, 2012, and beyond points, and it's important to consider that when comparing two contracts/deals. A more complete formula would also account for who pays the maintenance fees and closing costs, which are especially important for small contracts.

For your example, XP should only be 210 points, since only one year's worth of "extra" points were bundled -- the 2012 points. 2013 points are this year's points. 2014 points are a twinkle in our imagination.

Finally, I suggest using a fixed rate of $10 or $11 for each extra point, not the Annual Dues rate, since that represents how much it would cost to buy (rent) the points on the open market. When you do the numbers, the bottom line is "fully loaded contracts are worth a helluva lot more than stripped ones, like $30/pt more".

BTW, yours was a very good deal. If it had included the 2011 points, it would have been an insanely good deal (now -- those types of deals were not all that uncommon during the lowest points of the recession).

 

[MickeyFan612]

DougEMG posted a similar formula a while back (perhaps in a previous iteration of this thread). Basically, it's a way to compare contracts in a way that accounts for how many points are/aren't bundled in the sale. A $50/pt contract with no points in 2012, 2013, and 2014 is a much worse deal than a $65/pt contract with all 2011, 2012, and beyond points, and it's important to consider that when comparing two contracts/deals. A more complete formula would also account for who pays the maintenance fees and closing costs, which are especially important for small contracts.

For your example, XP should only be 210 points, since only one year's worth of "extra" points were bundled -- the 2012 points. 2013 points are this year's points. 2014 points are a twinkle in our imagination.

Finally, I suggest using a fixed rate of $10 or $11 for each extra point, not the Annual Dues rate, since that represents how much it would cost to buy (rent) the points on the open market. When you do the numbers, the bottom line is "fully loaded contracts are worth a helluva lot more than stripped ones, like $30/pt more".

BTW, yours was a very good deal. If it had included the 2011 points, it would have been an insanely good deal (now -- those types of deals were not all that uncommon during the lowest points of the recession).

His did have the 2011. It was an insanely good deal.

Quote:
Originally Posted by elcid3
elcid3 210 BWV (June) $50, 210 11', 210 12', 210 13' points, Buyer pays closing, Seller pays 2013 maintenance (sub 2/5)
- See more at: http://www.disboards.com/showthread.php?t=3001288&page=64#sthash.Cyat5QHb.dpuf

 

[SOBDOSNV]

Yes, we passed ROFR 2/26/13 submitted 2/4/13.
Here's the details:
150 VWL (Jun), $55, 0 '13 pts, all '14 pts,
Was listed at $60 offered $50 settled at $55, buyer pays closing, no MF.
So glad to get VWL, me and DW love it and can't wait to go home.

 

[Amymarie0606]

Our contract for BWV has been sent to disney for ROFR. $55.00 for 150 points with 300 points available this year and all points available 2014 March use year. This will be my wifes and my first contract and am hoping it goes through. We decieded to buy in December when we found out we were pregnant with our first baby. What better gift could we give our baby then a lifetime of great vacations. So wish us luck.

Great deal! Good luck!

 

[dbs1228]

Congrats to all who have gotten great contracts! My DH gave me the go ahead a few weeks ago to find a BWV contract mid to large point and I have not even seen any listed long enough to make an offer never mind get these kinds of deals! I guess I have to sit tight and keep looking - it is not easy

 

[moreisgood]

Thanks for posting the formula. I plugged it into Excel but I'm not sure I'm using it correctly. Do you mind posting an example? Feel free to use the data for a contract I just purchased. It has 210 points from 2012, 2013, and 2014. Since I'm not paying 2012 or 2013 dues, I put 420 under XP's.

XP 420
MP 0
AD $5.84
CP 210
AP $50.00 (which is what I paid)

AVP - Extra Points $38.32

What I'm confused about is does this mean I should have only paid $38.32 per point? Or is the AVP the value over the asking price? If I increase the XP number, shouldn't the AVP increase?

thanks

I’m the original poster of the formula. The intent of the formula is to compare multiple contracts, and see how they stack up against each other, depending on the number of points available. I assumed that if you got the current year’s points, you paid the dues for them. If you got the 2013 points, and the Seller paid the dues, then I think you could add those in as extra points.

To compare:
Your deal: AP - ((XP x AD) /CP ) = AVP OR 50-((420 x 5.84)/210) = $38.32
Same deal, but you’re paying the 2013 dues: 50-((210 x 5.84)/210) = $44.16
Same deal, but you’re paying 2013 dues and NO 2012 points : $50
Same deal, but you’re paying 2013 dues and NO 2012 or 2013 points 50+((210 x 5.84)/210) = 55.84

This shows how the value is different depending on how many points are included. I think you got a great deal!

 

[jp02]

Sent to ROFR 2/6/13

OKW 170 pts Oct UY, $59 pp, 27 pts-2011, 30 pts-2012, and all points going forward. Buyer pays all fees.

Found out yesterday we passed! I'm so excited and can't wait to close and book my next trip.

 

[Hunclemarco]

Well after looking at this thread after my contract was sent to ROFR, i think i may have chosen poorly. I asked the realtor if that was a reasonable price, she said yes...and i've never haggled a price for anything in my life. I think i may need a mentor when looking for our next contract. We'll be looking for a larger one then. So here goes...

SSR 55 point stripped contract no points till August '14, seller pays '13 MF, Buyer pays closing. $60 per point.

 

[disbound09]

Well after looking at this thread after my contract was sent to ROFR, i think i may have chosen poorly. I asked the realtor if that was a reasonable price, she said yes...and i've never haggled a price for anything in my life. I think i may need a mentor when looking for our next contract. We'll be looking for a larger one then. So here goes...

SSR 55 point stripped contract no points till August '14, seller pays '13 MF, Buyer pays closing. $60 per point.

Ouch! Although smaller contracts always command a higher price. We paid 52 for a loaded contract 320 2012 and all of 2013 they paid MF of 2012 and we pay 2013 got 300 credit for closing cost from buyer. Remember it was better than buying direct and you went for the smaller contract so you aren't out that much. Good Luck.

We submitted our contract 1/9 found out they didn't send to ROFR until 1/25 still waiting for them to get back to me that we passed. Started process in December thru TBS which stands for TOTAL BS I think. Anyway waiting for the process to finish out.

 

[Hunclemarco]

Ouch! Although smaller contracts always command a higher price. We paid 52 for a loaded contract 320 2012 and all of 2013 they paid MF of 2012 and we pay 2013 got 300 credit for closing cost from buyer. Remember it was better than buying direct and you went for the smaller contract so you aren't out that much. Good Luck.

We submitted our contract 1/9 found out they didn't send to ROFR until 1/25 still waiting for them to get back to me that we passed. Started process in December thru TBS which stands for TOTAL BS I think. Anyway waiting for the process to finish out.

Thanks for the encouragement. This is another lesson learned for us. When we had DVC before, we had a LOT of points and we financed.

Now that we're starting all over, we wanted to do things right with paying outright with smaller contracts this time, and to start out slow, paying low MF's, and gradually building up. Now we just have to learn the "art of dealing" i guess.

 

[Hunclemarco]

double posted