Cost per point variance

[Mickmse2002]

I was just perusing the listings for OKW resales and was struck by the wide variation in asking price per point. The asking prices range from $73 per point to $88 per point. Why the huge spread?

 

[ZekeKelso]

3 Main Issues

1) The amount of points available. Some contracts have used up all their points for the current year, borrowed next years points and used them as well. Others not only have this year, but have last year's banked points for use. The more points available, the higher the price

2) Size - small contracts are desirable and go for more per-point. Disney is also in the habit of ROFRing small contracts, so a higher prices is needed. Note that this is a double wammy. You not only pay a higher price per point on a small contract, your per-point closing costs are higher as well.

3) Seller motivation - like everything else, some sellers need to sell quickly and price their point to move, others want as much as they can get and are willing to wait.

 

[Mickmse2002]

Thanks. Your points certainly makes sense, I was just amazed that there was a $15 dollar differential that you don't see with the other resorts that have similar point configurations.

 

[ScottakaMickey]

I too have been thinking about this as I've been contemplating resale. I also agree with the explanations above, but do not necessarily think it correlates.

Meaning, I see High number of points at the high, low and mid, price per point ranges. I also see points that have used up this years and next years that are also sitting at the high end. I also see sellers that do have points for this year, or even last year available that aren't necessarily sitting at the high end of the per point scale.

I guess the other factor is what did the seller originally pay for their points. I think that is the biggest factor, IMHO.

This is hard thing to figure out and find the deal that works best for you.

 

[RobDoc]

3) Seller motivation - like everything else, some sellers need to sell quickly and price their point to move, others want as much as they can get and are willing to wait.

I think that the motivation of the seller is a big consideration. Motivated sellers may well have a lower asking price - and if it gets RORFed, the contract is still sold and the seller gets the same amount.

 

[greenban]

IMHO:

OKW has recently started dropping in asking price at TTS. (I don't know about other brokers).

I was very lucky last year to get OKW at $73pp (I offerred $1.00 above asking), and today as the OP noticed, I saw many "Just Reduced" OKW listings, and several tripples well below $78.00 per point.

Is it the $5.00 DVC discount finally kicking in?

Is it the end of the F&F promo, and prices will rise?

Is it the anticipationof AKV and hope (prayers) for CRV?

Has OKW maxedout?

I really don't know, but there is some change going on right now.

Jason, Tom care to comment?

-Tony

Also, there are many BCVs listed well below the $98.00 pp level right now.....

 

[calypso*a*go-go]

I think the biggest issue is that many OKW owners have had their points for over 10 years (and paid mid to low $50's?)...they've used them over and over again and received their initial investment back and then some. I feel when they make the decision to sell, they have a lot more flexibility on an acceptable price per point than someone that bought in over the last few years.

 

[kdzgon]

IMHO:

OKW has recently started dropping in asking price at TTS. (I don't know about other brokers).

I was very lucky last year to get OKW at $73pp (I offerred $1.00 above asking), and today as the OP noticed, I saw many "Just Reduced" OKW listings, and several tripples well below $78.00 per point.

Is it the $5.00 DVC discount finally kicking in?

Is it the end of the F&F promo, and prices will rise?

Is it the anticipationof AKV and hope (prayers) for CRV?

Has OKW maxedout?

I really don't know, but there is some change going on right now.

Jason, Tom care to comment?

-Tony

Also, there are many BCVs listed well below the $98.00 pp level right now.....

I thought prices really dropped right after the holidays - I think that might have to do with basic economics and "shopping" patterns as much as anything.