Beach Club Villa: A Resale Story

[CPTJAK]

I thought it might help others if I went through my recent resale saga, unfortunately I have to stop for now due to ROFR:

March: After years of debating made decision to buy BCV, contacted DVC (waitlist too long), got outbid on e-bay, started to check all resale sites daily,
called resale offices as soon as new contract usually sold by the time I called or wasn't ready to buy right away until worked it out with family first.

April 14, 2006 7AM happened to see a contract just posted at a very low price for BCV $83 per point, called made an offer at full price knowing it was in danger of ROFR

April 17, 2006 5pm Offer accepted by seller ($83 per point/closing costs no maintenance fee on 12 available points)

April 19, 2006 contract e-Mailed

April 21, 2006 signed contract, fax'd to broker, sent deposit to closing company

April 25, 2006 contract forwarded to Disney for ROFR

May 08, 2006 Disney notified they are purchasing contract

Sorry can't help you on the rest of the process/timing

I was happy with the broker and process just should have gone at minimum $85 (as I was told by another resale company was the low end for acceptance by DVC at the time)

 

[RobDoc]

Why were you happy with the broker when another broker had already advised you that a higher price would be necessary?

Looks like you should have accepted the advice of the "other" broker instead of the one you were "happy" with.

 

[CPTJAK]

Why were you happy with the broker when another broker had already advised you that a higher price would be necessary?

Looks like you should have accepted the advice of the "other" broker instead of the one you were "happy" with.

True but as the person making the offer I could have decided to make a higher offer If I wanted and I was advised that it was a 50/50 proposition. Live and Learn.

By the way there is one that is sale pending for BCV that is asking price at $85 from the sponser of this site so it would be interesting to see if that one goes through.

 

[rinkwide]

Why were you happy with the broker...

"Happy" ain't exactly the feeling I'd have either. Your broker got a fat commission check but you got nothing for the trouble.

(BTW, unless it's a huge contract, $85 isn't gonna' help.)

 

[LIFERBABE]

How many points were you trying to purchase? Was the seller paying the MF or you?

I would have been very surprised if $83 made it thru ROFR.

I did see where you knew ROFR was a possibility, but for all that trouble, I think the extra $200-$500 would have been worth it.

Another thing to consider for future reference, is that if BCV is what you really want, then your offers are not "free shots" per say. Disney continues to raise the prices every 6 months or so, so the threshold to get past ROFR has increased. Those months you went thru the process, Disney solidified their new selling price and established buyers at that price.

Just recently, prices went to $98 so now $83 and $85 no longer have any shot of going through.

And although the published asking price on that other BCV contract was $85, doesnt mean that the person interested didnt offer more to get past ROFR. We wont know that unless that buyer is a Diser and posts back here. I personally would bid to win if it were me.

If I had a BCV contract to sell with 12 pts left, I would price it a couple dollars lowers too. Either way, the seller and the broker get their money.

 

[Disney1fan2002]

Just recently, prices went to $98 so now $83 and $85 no longer have any shot of going through.

WOW! I remember not to long ago, $69-$74/point were in the danger zone of ROFR. Anything over $74/point was pretty much safe.

I guess, I am glad we bought when we did. We got a 300 point OKW contract, with 300 banked points, maintenance fees paid, for $72/point. This was in 2003. We thought for sure Disney would scoop it up, but we got lucky.

I guess this is a lesson learned, when Disney raises the price, they force the resale prices up with ROFR. So, if you are considering DVC, and you are 99% sure you want to buy, but you are waiting, it is going to cost you everywhere. We almost bought in 1997, but we didn't. We bought in 2002 at a much higher price. The resale prices now are what Disney was selling points for in 2002.

 

[JimMIA]

I don't know that I'd be unhappy with either broker, although one clearly gave you better advice than the other. When I was researching, I figured it was MY job to find a price which would clear ROFR. My broker (TTS) was very helpful in helping me find that price, but the responsibility was mine.

Also, as Rinkwide correctly observed, both brokers were recommending prices which were probably too low to pass ROFR on BCV. There's no practical difference between too low and WAY low -- you lose either way.

It's often said that the most important number in any resale is NOT the lowest price you could get, but the price which will clear ROFR. With your 170 point contract, if you'd offered $87 (which would have stood a chance of passing), that would have cost you $680 more. In the context of your long-term cost of ownership, that's a drop in the bucket.

If you want to maximize every penny, go over to the Disney Dining Plan board and debate whether an ice cream bar is a better value than a bottle of water for a snack credit. If you are serious about buying into DVC, you really need to make realistic offers.

 

[DebbieB]

I noticed on the resale listings that some contracts for BWV or BCV have asking prices in the low 80's, there are some OKW in the low 70's. Why aren't the sellers asking for more?

 

[MarieA]

We purchased 310 BCV points in Oct./Nov. of 2005 for $88 per point. There were 310 points points banked for 2005 and 112 points banked from 2004. We did not pay any maintenance fees. It passed ROFR.

Prior to our purchase, we had bid on another BCV contract. That contract was for 300 points (300 points banked) and the asking price was $85. Our bid was $84. It did not pass ROFR.

 

[ClarabelleCow]

I noticed on the resale listings that some contracts for BWV or BCV have asking prices in the low 80's, there are some OKW in the low 70's. Why aren't the sellers asking for more?

Probably because the owner just wants to dump them, and if they ask more it may take longer, but if a buyer sees a lower price, they will jump, the seller doesn't care if its ROFR'd or not, they just want out of the contract.

 

[jade1]

If you want to maximize every penny, go over to the Disney Dining Plan board and debate whether an ice cream bar is a better value than a bottle of water for a snack credit. If you are serious about buying into DVC, you really need to make realistic offers.

I like that, good advice.

 

[Halle]

We would like to buy a resale at BWV but don't know how to figure out what will pass ROFR. Can someone please explain how to figure that out? Thanks

 

[JimMIA]

We would like to buy a resale at BWV but don't know how to figure out what will pass ROFR. Can someone please explain how to figure that out? Thanks

First of all -- and this should be obvious -- ROFR levels vary from resort to resort.

I have two suggestions.

The first, and most accurate way, to determine what might pass ROFR is to deal only with one of the brokers who specialize in DVC resales. One of those is obviously the sponsor of this board -- the Timeshare Store. I've used them, and they were a great help to me in determing a sensible bid.

The other tool is this thread: http://www.disboards.com/showthread.php?p=12624378#post12624378

If you go to the last (or next to last) page, you will find a listing of recent purchases, ROFR's, etc. Remember that this thread is only as good as the info posted, and it certainly is only part of the total picture.

As you look at the ROFR thread, you will see inconsistencies, because ROFR MAKES NO SENSE. You just have to gather whatever info you can and make an educated guess.

 

[Halle]

Jim thanks for the quick reply and link. Can't wait to start researching!!

 

[calypso*a*go-go]

Don't forget that we have a lot more knowledge of the current ROFR thresholds due to the ongoing thread by beca/vascubaguy. Many DVC owners have never even ventured on this forum and some don't even know it exists. Quite honestly, I didn't even realize DVC was available by resale until I stumbled onto this website a few years ago (boy did that twist of fate cost me thousands of dollars! LOL). Anyway, I feel that's why we see some contracts priced what appears to be below market value...some people just don't realize they can ask for more.