Disney Buy Back Concern

[MinnieGi]

We are trying to buy a Boardwalk resale contract. Our offer of $67.00 was accepted by the seller. But now I've been reading a few threads saying how Disney seems to be buying more contracts at higher prices than they used to. Jaki is our broker and she called yesterday and confirmed that 6 of her 8 contracts were bought back by Disney. They bought back contracts under $69.00 and at a variety of properties. Jaki is going to submit our contract at $68.00 as she rolled the reimbursement of points for Jan. - March into the price. She explained the situation of buy backs to us and told us we can bump the price up a dollar per point if we want to feel safer about getting it through Disney.

If we leave the contract at $68.00 and Disney exercises its option, is that the final word? Or can we at that point offer another dollar per point?

Or do you think I should up the contract another dollar right now?

Thanks for any input!
Gi

 

[Chrzas]

I think that if a party exercises the right of first refusal on a contract, then the matter is resolved. You will not have the option to up your bid.

 

[Richyams]

If it is a good contract for you, I would just offer $70. Its still way, way below the price from Disney.

 

[KANSAS]

IF YOU Pay $70 PER POINT and closing costs.

HOW MUCH are you saving with a retail PURCHASE OF $84 per point, with $10 DISCOUNT, for MAgical Beginnings?
net $74 per point.

Plus retail, is a little quicker and you get the exact use month, that you want.

MAYBE DISNEY FINANCING, MAYBE USE OF CREDIT CARD??

PLUS WON't BEACH CLUB VILLA, be a nice location, for years to come??

 

[Richyams]

Depending on the banked, borrowed point situation, it could still be a much better deal than available from disney.

If it has banked points, or even if its flat, its still better than a new contract missing its first year of points because of MB.

 

[msdis]

I talked to a guide(mine was out) on Friday and he told me that Disney is buying up 80-90% of all the resales. He said that Disney is finally listening to the agents who have told them that there has been great opportunity for years in resales. So...... yes I think the days of great deals are over. But on the flip side, anyone who is on a wait list for the sold out resorts should be able to get in sooner. And for anyone who only wants a small add-on it is not only cost effective w/o the closing fees, but a much cleaner/quicker deal.

Just to humor Rich, I think any of the resales at VB will NOT be bought back in a hurry. So if the deals are to be had, VB is the place.

 

[KANSAS]

richyams

you MADE SOME VERY GOOD POINTS.

but, IT SEEMS LIKE 75% OF THE PEOPLE, ARE BEING DISSAPOINTED WHEN disney EXCERCISES rofr.

wHAT DO YOU THINK IS THE VALUE OF A beach club villa poINT AT RESALE TODAY?

it HAS TO BE LESS THAN RETAIL, WHEN YOU ADD cLOSING COSTS, TO THE AGREE PRICE, BETWEEN BUYER AND SELL
BUT HIGH ENOUGH, TO GET THRU disney rofr?

 

[CaptainMidnight]

but, IT SEEMS LIKE 75% OF THE PEOPLE, ARE BEING DISSAPOINTED WHEN disney EXCERCISES rofr.

Actually, when Disney purchases the points it allows current members the opportunity of purchasing add-ons to their current contract in the point amounts they would like with the same use year. The cost of these in comparison to a resale add on where title and transfer costs must also be included for small point amounts is pretty favorable. I think there are many current members who are pleased with the ability to add on to thier current contracts. So, I don't think it's accurate to say 75% of the people are dissappointed. There are long wait lists at several resorts for add-on availability.

Another minor point is that posting in all caps is considered 'shouting' in the internet community, you'll notice that other posts don't use this approach. This was brought up in another thread, so I'll share the same here.

Good luck with your decision and purchase.

 

[DebbieB]

Is there anything to prevent DVC from starting a direct buy back program, cutting out the real estate agents? They could collect a commission or some kind of charge that is similiar to commission?

 

[KANSAS]

DEBBIE B

Doesn't MARRIOTT Do just that??

 

[Dean]

Originally posted by KANSAS
DEBBIE B

Doesn't MARRIOTT Do just that??

No Marriott itself doesn't have a program where you call them and they give you a price. They have a resale program and a trade in program. On the resales they set the price and take a hefty commission, I think it's 25%. You or they must still find a buyer. For the trade ins, last I heard the price of the new property had to be $15,000 more than what you were trading in. They valued it at the established resale price but then took their 25% commission off the resale price. This is slightly different than the previous program, taking their commission price off the resale on a trade in is relatively new and seems a little low to me. Sometimes the Marriott resale reps will buy a property directly if they feel they can make a profit, I've seen it happen a number of times.

There's really little problem with the ROFR and current buy back program unless you take the bargain hunters viewpoint. Since I don't care if anyone gets a bargain or not, it doesn't bother me. The only issues I can think of are that if the price is too high, the pool of buyers will shrink and more go directly through DVC and that some people will walk away because of the uncertainly of whether the deal will go through or not. In the mean time it raises the value of what we all own.

The problem with a direct buy back is that the price will likely be much lower, maybe $60 pp in todays market. I still say the spread has to be at least $10 pp for DVC to break even with the costs included and the comissions or salary to the guides.

Don't expect this to go on for very long, I'm sure DVC will relax on resales by the time SS starts presales. That doesn't mean the price will go down much, only stay the same for a while.

 

[JOC]

MinnieGi,
I sent you a private message.