Dis buying back points?

[ds251]

My Mom just tried to purchase 275 points for OKW at $55 a point and is being told by Timeshare Closing Services that unless the price is raised to $59 a point DVC will buy back the points.

Can anyone confirm or deny this as being the true?

 

[ds251]

Also, did anyone get a bill for next years dues for OKW? Was just wondering if they were going to stay at $3.13.

 

[dianeschlicht]

DVC reserves buy back rights to ensure the price doesn't go too low. If they buy back points, these become available for resale through Disney directly. Of course, that would be at Disney's going rate!

 

[ds251]

I understand they have right to buy back the points. My question is do they have a set number ($59) like the closing service is saying?

Thank you


During my October trip DVC salespersons told me they expect DVC points to be at $90 by next summer.

 

[PamOKW]

I'm sure DVC does have a set price but they do not make it public. I wonder if anyone here has purchased recently that can give you an idea of the current going rate?

The OKW budget (with the dues) should be coming out very shortly. Vero arrived last week. I'm not sure what the new rate will be. Vero went up 4%.

 

[drusba]

I guess what you are asking is whether you can find out if Disney has actually said it will excercise right unless point cost is $59 as the broker said (or is the broker just trying to get you to pay more). Unless the broker is willing to provide something to show Disney has really stepped in, I am not sure you can. In the past many have mentioned that Disney has at least implied to brokers that it will act if price is below a certain number and that price has varied (the last I heard it was in the neighborhood of $55, but that was several months ago) although even then it depends on the particular contract, i.e, Disney is likely to let a large contract that is difficult to sell (like a 1000 points) or a contract that is lacking current points and borrowed and used on next year's to go for a lower price.

 

[vetteguy]

We bought an OKW resale back in March 2001 at $57.37.
I think they told us at that moment that the buy back was at $56.
Hope this help.

 

[CarolMN]

I'd suggest that you go ahead and raise your offer to $59/point, but at the same time, also restructure some of the other costs s that the seller pays them instead of you. Maybe have the seller pay maintenance dues or some of the closing costs that you were originally expecting to pay. What I'm trying to say is that the total you pay for the contract can stay the same, but to Disney it looks like the points are selling for $59.

My understanidng is that Disney doesn't look at anything besides the "point per" cost. If your offer is a good one, the seller will take it anyway. Good luck!

 

[Dean]

Since this is coming from the closing company, I'd suspect that they have already submitted it to DVC and told by DVC that they were going to buy it back unless it was this price. I'd certainly confirm that but I bet that's the case. If so and she wants it for the higher price, I'd proceed. As recommended, I'd make sure the seller is paying the upcoming maint fees and closing costs for the higher amount. Otherwise, call their bluff and see if they do in fact buy it back. This is not the first time I know of DVC saying they are going to buy it but giving the parties the opportunity to resubmit at a higher price.

Frankly, I'd think DVC would be crazy to buy 275 points at $55 pp. With MP reducing the prices and all of the costs in the repurchase and then selling it again; just seems sort of penny wise and pound foolish.

 

[Cap]

I spoke to DVC Member Services two weeks ago about doing a private resale among family members. They were very uncommunicative about any buy back price. All they would tell me was that the agreement must be in writing and that they would have to review the price / point to see if they would exercise their right of first refusal.

I've since found that the "Review Board" meets Thursdays to review resale offers and decide if the offer can go ahead. I"ve not been able to get any real data on the price per point that triggers them.

This would be a good topic to track on these boards for awhile, to see if we can better understand when they do exercise their right of first refusal.

 

[ds251]

Mom says thanks to all. She believes that she will be able to work a deal out that will make all parties happy and keep Disney out of the transaction.

I'm sorry that I did not look harder when I bought my resale.

Also, If DVC is not going to have any properties to sell I wonder if they will start buying back points on a more aggressive basis?

Again thanks to all.

Joe