BoardWalk, Beach Club, Hilton Head, and Vero Beach Price Increases

[nuhusky123]

To build on my last post. Let’s pick on beach club which is now $265

you are mr nobody buyer thinking about buying dvc. You can buy riv and gfv for $207 direct or go into an old resort at a super high price of $265

nope won’t do $265 direct, it’s too much money so now you look at the resale market. Well guess what resale prices have gone up because the sold out direct price is $265 so resale is probably low $200s now

so here are mr nobody’s two choices

1- buy riv or gfv direct for low 200s. You get a blue card and all the other benefits of buying direct

or

2- buy bcv resale also for low 200s and get no direct benefits

this price hike is going to force anyone looking at the resale market to take a second look at going direct

i also think this price hike is going to make selling the Epcot resorts resale really really difficult

 

[Lunchbox66]

To build on my last post. Let’s pick on beach club which is now $265

you are mr nobody buyer thinking about buying dvc. You can buy riv and gfv for $207 direct or go into an old resort at a super high price of $265

nope won’t do $265 direct, it’s too much money so now you look at the resale market. Well guess what resale prices have gone up because the sold out direct price is $265 so resale is probably low $200s now

so here are mr nobody’s two choices

1- buy riv or gfv direct for low 200s. You get a blue card and all the other benefits of buying direct

or

2- buy bcv resale also for low 200s and get no direct benefits

this price hike is going to force anyone looking at the resale market to take a second look at going direct

i also think this price hike is going to make selling the Epcot resorts resale really really difficult

As a recent direct buyer I can attest to this in a way. Our major deterrent from resale was future resort limitation as we are a young couple and will be able to travel (if I'm still alive... should probably cut back on the beer and bourbon.. and scotch... and cigars...) in 50 years (hopefully). Once I sat down with a guide and found out about the 2042 expiration that took Boardwalk (what I was 100% going to buy into) out of the equation and we immediately took the sky lift to tour the Riviera. I know own Riviera and wouldn't change it. And especially if I was on the fence now and saw the price increase that would put more nails in the coffin. I know some people don't care about 2042 and are dead set on BWV or BCV, but for younger buyers it just makes little sense to me even if you're going resale. So I think that is definitely Disney's goal is definitely to push "active" sales going into their VGF2 release.

 

[gregskellington]

To build on my last post. Let’s pick on beach club which is now $265

you are mr nobody buyer thinking about buying dvc. You can buy riv and gfv for $207 direct or go into an old resort at a super high price of $265

nope won’t do $265 direct, it’s too much money so now you look at the resale market. Well guess what resale prices have gone up because the sold out direct price is $265 so resale is probably low $200s now

so here are mr nobody’s two choices

1- buy riv or gfv direct for low 200s. You get a blue card and all the other benefits of buying direct

or

2- buy bcv resale also for low 200s and get no direct benefits

this price hike is going to force anyone looking at the resale market to take a second look at going direct

i also think this price hike is going to make selling the Epcot resorts resale really really difficult

Buying the Epcot resorts resale already doesn't make any sense, it happens because people love those resorts and want to own DVC there. I don't forsee this having any significant negative impact on resales.

 

[RoseGold]

Buying the Epcot resorts resale already doesn't make any sense, it happens because people love those resorts and want to own DVC there. I don't forsee this having any significant negative impact on resales.

Of course it won't. This pricing is set by the resale market. It's just Disney holding the spread for some buyers who still want it direct.

 

[Bearval]

Correct except if there is no ROFR, then people will offer less and owners may take less on those properties because they have had them so long that they still make money.

ROFR has no effect on resale prices since DVC is not bidding on contracts. Competition between potential buyers and the high direct prices and cash room rates is what keeps resale prices so high.

 

[DVCsloth]

Yah, pretty sure I would buy Riviera way before considering BCV for an Epcot/HS (almost) resort.

 

[DonMacGregor]

ROFR has no effect on resale prices since DVC is not bidding on contracts. Competition between potential buyers and the high direct prices and cash room rates is what keeps resale prices so high.

Disney is indirectly bidding by ROFR’ing contracts at a certain price point. If Disney takes a contract at $150 per point for resort ABC, it is unlikely that sellers will list at $140 knowing there is at least a possibility they can list at $150 and either unload it to a buyer or have Disney take it. Regardless, there’s zero motivation for a seller to list below the current “benchmark” for ROFR. No guarantee they’ll take it, but only an idiot would list well below the ROFR benchmark and potentially leave money on the table. There’s upside to a seller listing above ROFR, knowing that a hungry buyer may pay a premium to in an attempt to avoid Disney snagging that dream contract.

Conversely, if Disney is grabbing those contracts at $150, a buyer would be foolish to offer significantly less than that, with the distinct possibility Disney will just snap it up, And a seller wouldn’t take their low offer when, again, they have at least the potential to list higher and have it taken at the higher price point.

Disney can control the price by controlling the supply side of the equation.

 

[bobbiwoz]

We were looking for some more HHI points with March UY. We bought more direct today.

 

[Sandisw]

ROFR has no effect on resale prices since DVC is not bidding on contracts. Competition between potential buyers and the high direct prices and cash room rates is what keeps resale prices so high.

I think it does to a certain extent If DVD hadn’t begun to ROFR SSR in the low $100s , I think many buyers would have bid less and sellers would have taken less.

While they may not bid on a contract, when they start buying at a certain price, prices for resale go up as an indirect consequence.

I don’t believe DVD chooses to exercise ROFR to keep resale higher or to influence their direct prices

But, if there had been no ROFR in the last year, I definitely think resale prices would be lower right now then they are.

 

[princesscinderella]

What’s crazy is with BCV at $265 it makes VGC at $295 on the resale market look like a deal since it has a much longer expiration date. It’s definitely going to get interesting as we get closer to the 2042s expiring since they are such beloved DVC resorts.

 

[Bearval]

I think it does to a certain extent If DVD hadn’t begun to ROFR SSR in the low $100s , I think many buyers would have bid less and sellers would have taken less.

While they may not bid on a contract, when they start buying at a certain price, prices for resale go up as an indirect consequence.

I don’t believe DVD chooses to exercise ROFR to keep resale higher or to influence their direct prices

But, if there had been no ROFR in the last year, I definitely think resale prices would be lower right now then they are.

DVD ROFR a very small percentage of the contracts and is currently does not ROFR any RIV, VB, HHI and AUl yet there resale prices are relatively high considering that 3 of the 4 are not near the parks. Competition between buyers and the economy is what props up resale not ROFR.

 

[Sandisw]

DVD ROFR a very small percentage of the contracts and is currently does not ROFR any RIV, VB, HHI and AUl yet there resale prices are relatively high considering that 3 of the 4 are not near the parks. Competition between buyers and the economy is what props up resale not ROFR.

I think that DVC Resale Market reported close to 13% buyback for the year. AKV was just over 19%.

I don’t consider that very small. There is a difference between impacting it in a way that prices plummet and impacting it so that it rises $20 to $30 a point more than they might be without jt

Just the data from these boards alone shows people pay more when they know the ROFR data and don’t want to risk it being taken.

I just dont believe the impact is 0.

 

[eandt]

We were looking for some more HHI points with March UY. We bought more direct today.

We are about to buy a small 30 point BWV or BCV direct contract w/2021 points before the price goes up. Not really worried about 2042 on a contract this small since it will get us a 4-6 night stay in a studio every other year before it expires and I am reasonably confident that should we want to sell it in 10 years that we would get most if not all of our money back out of it and have enjoyed at least 5 trips on our points ....... don't see this affecting us at all.

 

[Sandisw]

We are about to buy a small 30 point BWV or BCV direct contract w/2021 points before the price goes up. Not really worried about 2042 on a contract this small since it will get us a 4-6 night stay in a studio every other year before it expires and I am reasonably confident that should we want to sell it in 10 years that we would get most if not all of our money back out of it and have enjoyed at least 5 trips on our points ....... don't see this affecting us at all.

You really think BWV or BCV with only 9 years left to use will sell that high?

 

[eandt]

You really think BWV or BCV with only 9 years left to use will sell that high?

Close yes and taking into account 10 years of point use prior to a sale, don't anticipate losing anything on a small contract. When cash rooms are going for $700 plus per nigth 5-10 years down the road it would still be a "bargain" to buy 9-10 years worth of points in the $200 range. Again I am talking about a very small contract not one where a buyer would have to lay out $25k. Absent that I would be perfectly happy (and save money over cash) just using the points for the next 20 years and letting the contract expire.

 

[Sandisw]

Close yes and taking into account 10 years of point use prior to a sale, don't anticipate losing anything on a small contract. When cash rooms are going for $700 plus per nigth 5-10 years down the road it would still be a "bargain" to buy 9-10 years worth of points in the $200 range. Again I am talking about a very small contract not one where a buyer would have to lay out $25k. Absent that I would be perfectly happy (and save money over cash) just using the points for the next 20 years and letting the contract expire.

It certainly will be interesting. I can’t see it when you factor in MFs but if it doesn’t, you can just keep using it!! Win win!

 

[Bearval]

Disney is indirectly bidding by ROFR’ing contracts at a certain price point. If Disney takes a contract at $150 per point for resort ABC, it is unlikely that sellers will list at $140 knowing there is at least a possibility they can list at $150 and either unload it to a buyer or have Disney take it. Regardless, there’s zero motivation for a seller to list below the current “benchmark” for ROFR. No guarantee they’ll take it, but only an idiot would list well below the ROFR benchmark and potentially leave money on the table. There’s upside to a seller listing above ROFR, knowing that a hungry buyer may pay a premium to in an attempt to avoid Disney snagging that dream contract.

Conversely, if Disney is grabbing those contracts at $150, a buyer would be foolish to offer significantly less than that, with the distinct possibility Disney will just snap it up, And a seller wouldn’t take their low offer when, again, they have at least the potential to list higher and have it taken at the higher price point.

Disney can control the price by controlling the supply side of the equation.

If ROFR had any impact on resale contracts DVD would stop buying any contracts at all wait and for the prices to drop. Then buy up a ton at the cheaper prices. They could do this like once a year less. But they don't because DVD ROFR doesn't have a reali mpact on resale since the price has already been determined

 

[gregskellington]

If ROFR didn't have any impact on resale pricing then AKL wouldn't be going for over $140 per point now. The idea that it doesn't have an effect on price is absolutely absurd.

 

[Bearval]

If ROFR didn't have any impact on resale pricing then AKL wouldn't be going for over $140 per point now. The idea that it doesn't have an effect on price is absolutely absurd.

It doesn't cash prices for the rooms is what impacts resale along with supply and demand.

 

[davidl81]

I think we here on the boards way overestimate how many people are familiar with what DVC is paying for ROFR. Heck I’d bet a large majority of owners don’t even know that DVC has ROFR on resale contracts.