Disney exercised their right to buy back my resale...

[kdonnel]

Pat Spell called today to tell me that Disney bought the contract I was trying to buy. She said they bought back 3 today and 4 yesterday. She has had to call 7 different people.

 

[anniet]

Where was it and for how many points?

 

[cindy_k]

I wonder if Disney is trying to collect enough points so they can sell Boardwalk/Wilderness Lodge points to new members after the Beach Club is sold out.

Cindy in NY

 

[kdonnel]

It was 250 points at OKW. I was to pay $66 per point.

When I called Disney to buy from them tonight they offered my WLV. They are apparently not sold out. I had a choice of BCV, WLV, HH, or VB.

 

[lizziepooh]

When we were there last week and toured the DVC models at the boardwalk, the guide said that Disney was going to start being more aggressive in their buy backs of resale contracts. My assumption was that they wanted to have the points available to sell themselves.

 

[PamOKW]

If Disney has demand for points and they are lacking inventory why wouldn't they buy back the "bargains"? It may not make a big profit for them but it'll be a profit and they won't have to tell folks there is "nothing to sell" at WDW if there is a gap between BCV and Saratoga.

 

[torismom]

Sorry yours got bought back. Mine did to.

I wonder if they will start buying them all back to have the points for their inventory? Pretty much eliminating people from getting a good deal and trying to force the sale through Disney themselves at a higher price.

 

[Sims]

Does anyone know if Timeshare still takes their commission if DVC buys back the points? If Timeshare considers a DVC buyback a sale, then they would charge their sales commission, I assume.

If that is the case, it would be so much more beneficial to DVC members if they had a way to offer DVC their points for buyback before a contract was signed with a broker.

 

[kdonnel]

They assume the exact same deal you had negotiated. The seller would still pay a commission. The buyer just changes.

 

[PrincessMom98]

I am getting close to making an offer on a resale too. Were there banked or borrowed points on your contract? How long did it take before Disney exercised their ROFR? I am afraid that if I try for a resale that I may not get it and then miss out on the Magical Beginings too!

 

[Gary K. D.]

With the current DVC demand at $85.00 per point through Disney, why wouldn't Disney buy back all the contracts they can get their hands on especially since most of the Resorts are either sold out or close to that state. I would take a 25% profit on any real estate deal where I'm just rolling contracts. Let's face it, Disney has pulled the plug on loan assumption and can compete activly in the resale market by offering instant financing, magical beginning programs and "free" closing fees. In addition, Disney will give you instant access to your newly purchased points prior to closing and the recording of the deed whereas you must wait until the closing, the recording of the deed and the registration with Disney if you purchase resale to use you points. Things should be interesting for the next year or two now that Disney is activly in the market.

 

[kdonnel]

My contract was for 250 points at OKW. It was a March use year. None of the 2002 points were left but none of the 2003 had been used. I think they are just buying up everything.

I made the offer on Jan 8th and was notified today Feb 5th that Disney had exercised their right. The waiting was killing me.

I am actually happy. After I made the offer the Magical Beginnings came out. That made my resale less and less of a deal. I was still saving money but only about $1800 instead of the $3300 I had orginally calculated.

This way I am now an owner at BCV. If for some reason Disney started restricting you to staying at your home resort I think my children would be happier there then at OKW.

 

[CaptainMidnight]

To those trying to purchase, I know it' no fun that your deals aren't going through. I guess one just needs to offer a little higher price, and the buyback will be avoided. I'ts still a great deal. Buybacks also help keep the value higher for the seller, which may be of value after your purchase.

I think it's great for current members who may wish to add on for Disney to buy back points. Disney can offer additional smaller add-ons, that wouldn't be available on the resale market. The demand for add-ons is certainly there, seems like a great idea.

Just a thought.

 

[4greatboys]

kdonnel...I have been watching your posts about the resale. First of all sorry you didnt get that one but congrats on you BCV. When it comes down to it anywhere at Disney would be great.
They didnt buy back our OKW but I dont think they are going to buy those back but VWL and BWV are still hot so I think they are going to be keeping an eye on those.

 

[InstImpres]

Originally posted by Sims

If that is the case, it would be so much more beneficial to DVC members if they had a way to offer DVC their points for buyback before a contract was signed with a broker.

My understanding from way back when we bought, was you can not go direct to Disney. They may have changed things but I dount it, this way they get better deals.


As far as the comment on resale value and marketing, I know especially at OKW, they have a HUGE waitlist of current owners who want add-ons, so it is no marketing effort at all. Just quick sale, quick cash - IMHO

 

[Poorman]

Disney did there ROFR on me. I had waited a month for them to pick it up. Pat Spell called me last night to let me know. On to the next one. Rich \BTW it was a OKW 404 points w/ 554 points for 2001/2002. A good deal but not to be.

 

[Dancind]

I must have squeaked through. Closed just a couple of weeks ago on 150 points at OKW at $63 per point. No points until August, maybe that's why. Diana

 

[sgtdisney]

Frankly, I am surprised that this hasn't been happing more, and much sooner.. I mean if Disney is charging, and getting 85.00 a point for the DVC resorts, including add-ons at existing resorts, it would only make sense for them to buy up the contracts at say 75.00 and under. They can break these up and turn around and make a quick profit since there still is such substantial demand for points at all the resorts. I mean if 250 points are selling on the resale market at 66.00 and Disney can turn and sell them for 85.00 then they have made almost 5000.00 on that deal.

 

[Dean]

Actually I doubt they'll make a dime at $10 pp difference when they factor in their costs, commissions and the like. I suspect they're doing this just to push up the prices somewhat, give the members wanting add on what they want and keep the sales staff busy while waiting on SS. I bet things slow down again in a month or 2 and contracts that were bought now by DVD will go through again at the same price later on. I doubt we've seen a hard floor that will last for resales, esp at OKW. We'll see.

 

[joepoe]

Originally posted by kdonnel
It was 250 points at OKW. I was to pay $66 per point.

When I called Disney to buy from them tonight they offered my WLV. They are apparently not sold out. I had a choice of BCV, WLV, HH, or VB.

Wow, sorry to hear this! One year ago we bought an OKW 232 point contract with all points available for 2002 for $58 per point!

If $67 or $68 is the new "floor" I wonder if the price will go up from $84 when they introduce SS. We may see $100 per point in a few years.