Comparing value of resale contract to each other

[bullpup12564]

I am having a hard time determining if one resale contract is a better deal then another. I have been subtracting the value of any existing points + the value of any upcoming use year points at 10$ point from the price. I then add the closing costs to this price and divide by the number of points for sale. This gives me the price per striped point as I use for comparrision between contracts. Is this a ballpark way to compare or am a missing something like maybe a use month being worth a higher cost?

 

[Dean]

That's reasonable as long as your including any dues you pay in the $10 per point issue. The principles are to account for closing costs, account for points you don't get that you would through DVC, or vice versa, account for dues you're paying that you wouldn't pay with DVC, add value appropriate for extra dues and consider your specific situation. Here are some adjustments I've made in the past.

1. Add $1 (roughly) per point for any month that there are no points after you buy.
2. Add $10 pp for any points not there during the next use year that starts after you are buying, this frequently crosses over to he next calendar year.
3. Add closing costs
4. Subtract $4-7 per point for any banked point you can get use of, even just to rent them out. Less for reservation or holding account points.
5. Add $10 per point for any borrowed points from the second year out.

Example. Assuming you were buying 100 June OKW at $80 pp with no points until 2006 and half points then and no banked or borrowed points + $8000. I'd add to my estimation of the "cost" the following as above. 1. $600, 2. $500 3. $250-500, 4 & 5. zero. In the above example, that would reduce your value by around $1350-1600 or the best way to look at it is raise your price to roughly $9400 for the current example or $94 pp. Of course every situation is different and one should consider whether buyer is paying closing, the difficulty of getting the specific resort and package resale, how well it fits your needs and how much benefit you get form any extra or banked points as well as how much a negative the points are that are not available would be. You may come up with different parameters that fit your thinking. Other variables might include financing options or comfort level as well as how fast you need to get it done possibly for an upcoming trip.