Boardwalk price?

[ThreeTiggers]

I'm taking the plunge to buy a Boardwalk resale. It has a full complement of 2004 points banked into 2005. What should I do to ensure this gets through ROFR? Should I offer more than the $79/point price? Or, is this a crapshoot at any price between 78-80?

 

[JimMIA]

My first suggestion is to ask your resale broker what they think. However, they have to represent both sides fairly and they may be reluctant to offer that kind of advice. If they will, they would be the best resource because they see a much wider range of ROFR activity than we see in the ROFR thread...plus they've been doing this for years.

Having said that, you know from the ROFR thread that $80 has both passed and been ROFR'd in the last couple of weeks. To me, that makes $80 a crap-shoot and anything less a little doubtful...although you never know.

You didn't tell us the use year, or whether you can use those banked 2004 points. If you can use them, or are willing to rent them, they have value and make a nice contract. It also matters where you stand on the 2005 point banking deadlines. If the double points for 2005 gives you more points than you can reasonably use, AND you don't want to rent points for whatever reason, then those points are less valuable to you.

If you CAN use or rent all those points, that's a sweet contract. YMMV, but I personally would price my offer $1-2 above where I perceive the ROFR line to be if I REALLY wanted that contract. It's only a couple hundred bucks over the life of your DVC ownership, and you're getting a lot for the extra money. If that is the contract you want, I'd sure go for it.

 

[TammyAlphabet]

We don't know how many points this contract is for, but, say it is a 150 point contract. With closing costs and the transfer fee and a price of 81 (if you add a couple of dollars) per point, that would bring the price per point up to about 85 per point. Why not give disney a call and see if they have any inventory? You will get the 2004 points if your use year has not passed, you can make reservations right away, no ROFR waiting, and the cost is 89 per point with no closing costs. I just thought this was something to think about.

 

[JimMIA]

Tammy's suggestion is certainly something to look at in light of the minimum closing cost charged by most title agencies, but the $200 transfer fee is usually paid by the seller. Either way, Tammy has a good point, and you need to weigh the costs and convenience/inconvenience etc. for all options.

Another thing to consider is this. Let's say you are talking about a resale of 150 points at a $79 asking price. Assume the closing costs are $450 (that's a guess, you need to check this number to be sure).

Why not make this offer? You pay the $450 closing costs, and I'll pay $82 pp to be sure we get past ROFR. You have effectively paid $79, and they have effectively gotten their $79 asking price, less the costs they were going to pay anyway.

 

[ColoradoBelle1]

Thanks good advice JimMIA....I used a version of it to get past ROFR. Instead of closing costs, which at $475 were about $2.50 a point in my case (170 points) I offered more than the asking price, but asked that the seller NOT be reimbursed for maintenance fees...at $4.51 a point. Figured it might get by Disney's scrutiney.

If there is a broker involved, you must remember that the seller usually pays a % of the accepted offer...so if the offer is higher but there are considerations like seller paying closing costs....sometimes the broker can be persuaded to reduce the overall % by enough to make the effective yield to seller a little higher.

good luck!!!! I think all of us who have had to deal with ROFR need to meet for a drink or two and to 'reflect' on that LONG WAIT. We are forever bonded by the experience !!!!

 

[rayelias]

I may be wrong, but I don't think Disney can FORCE the seller to take ROFR. I THINK they can come back and offer you a higher "counter offer".

For example, if you offer $80 and get ROFR'd, I think the seller can come back and make the price $81, and if you accept, Disney has the right to take or pass at $81.

You'll probably get much better advice from some others here, but I believe this will work.

Good luck!

 

[JimMIA]

I may be wrong, but I don't think Disney can FORCE the seller to take ROFR. I THINK they can come back and offer you a higher "counter offer".

For example, if you offer $80 and get ROFR'd, I think the seller can come back and make the price $81, and if you accept, Disney has the right to take or pass at $81.

You'll probably get much better advice from some others here, but I believe this will work.

Good luck!

I could be wrong (and often am), but I don't think that is the case. I think if Disney ROFR's, it's over. Maybe Doc or Tom can clear that up.

 

[DebbieB]

DVC can allow a counteroffer as a courtesy. But the contract reads that they can exercise ROFR and close immediately.

 

[blacklily]

When I bought my BWV I offered $70 and got ROFR'd then I countered with $71 same thing and finally offered $72 and was approved. I don't know if they always allow counters but they did for me.