First RIV resale contract sold for?

[The Jackal]

Just watched the new DVC Show and they announced the first RIV resale contract was listed for $133 per point and sold for $100 per point. I know it’s hard to judge things by the first one, we do not know the sellers reasons. This at face value is not too good for DVC. Hopefully things change.

 

[Randywatson79]

For what it's worth, the Riviera listing for $170/pt is still sitting there.

 

[thelionqueen]

The fact that Disney let it pass ROFR at $100 per point is telling in and of itself imo. The speculation has pretty much been confirmed. I wonder if that's the bottom or if the bottom is even lower? I have no desire for a RiV resale contract, even at $50-$75 a point, otherwise I might throw my hat in the ring just to see lol.

 

[CarolMN]

The fact that Disney let it pass ROFR at $100 per point is telling in and of itself imo. The speculation has pretty much been confirmed. I wonder if that's the bottom or if the bottom is even lower? I have no desire for a RiV resale contract, even at $50-$75 a point, otherwise I might throw my hat in the ring just to see lol.

FWIW, I do not recall Disney buying back any resort while sales were still in progress., and DRR isn't even open yet.

 

[aoconnor]

It's only one data point, but I don't think it's that crazy. Buying a direct contract that size would be ~$175pp with incentives. A $75 discount for awfully severe restrictions sounds reasonable to me.

If you look at the two most recent resorts (CCV/Poly) they are selling in the $150 range resale, and CCV also has a much cheaper point chart to offset the cost. Again, a $50 discount for the severe restrictions doesn't sound crazy.

Agree with CarolMN that as far as we know Disney has never bought back a resort they are actively selling, so I wouldn't read into it passing ROFR.

 

[thelionqueen]

FWIW, I do not recall Disney buying back any resort while sales were still in progress., and DRR isn't even open yet.

Agreed, but they constantly do things they've never done before. If one comes across for $75 I imagine it wouldn't pass, but who really knows. ROFR was created to keep value, so it's counterproductive to let deals go through whether or not open. Just my .02

 

[crvetter]

This is well discussed on this thread:

https://www.disboards.com/threads/poll-your-riviera-resale-price.3756066/
Apparently the owner of the brokerage firm bought the contract. So there is some concerns, IMO, with how this one sale will hold up as a data point, especially when this is a new company and the fanfare the company did in announcing they had the first resale and that it sold for much less than asking.

 

[DougEMG]

Having Disney buy it back wouldn't off helped, people would still have known that it went for $100 point. It has set a low and resale buyers are going to look at that as their baseline for making offers.

I bet the people that bought it are going to try and flip the contract.

 

[crvetter]

Having Disney buy it back wouldn't off helped, people would still have known that it went for $100 point. It has set a low and resale buyers are going to look at that as their baseline for making offers.

I bet the people that bought it are going to try and flip the contract.

Yes the person that bought it was the owner of the brokerage firm that listed the contract. Apparently he is a known flipper.

 

[bwvBound]

Hopefully things change.

What kind of change are you looking for?

 

[KAT4DISNEY]

Agreed, but they constantly do things they've never done before. If one comes across for $75 I imagine it wouldn't pass, but who really knows. ROFR was created to keep value, so it's counterproductive to let deals go through whether or not open. Just my .02

A point - ROFR is created to keep control, not to hold value. That it has contributed some to holding value is just part of keeping control. There are other timeshares that have ROFR and still sell for pennies.

 

[The Jackal]

For what it's worth, the Riviera listing for $170/pt is still sitting there.

The 2nd RIV contract is on the market. The resort is still months away from opening. $170 is too high, you can buy direct for a little more and get full benefits. Resale price is $21,250, direct would be $23,000, all costs prior to closing costs and direct has cheaper closing costs. A reasonable price would be around $155, but with the resale restrictions who knows.

 

[The Jackal]

This is well discussed on this thread:

https://www.disboards.com/threads/poll-your-riviera-resale-price.3756066/
Apparently the owner of the brokerage firm bought the contract. So there is some concerns, IMO, with how this one sale will hold up as a data point, especially when this is a new company and the fanfare the company did in announcing they had the first resale and that it sold for much less than asking.

If I’m the seller and you need to offload the contract fast. Why not go with one of the well known companies that sell them in minutes after listing for a reasonable price.

 

[CarolMN]

If I’m the seller and you need to offload the contract fast. Why not go with one of the well known companies that sell them in minutes after listing for a reasonable price.

Because seller probably financed it and doesn't want to pay even more to get rid of it. Can't sell a contract unless any loans on it are paid in full at closing.

 

[CaliAdventurer]

The buyer is reputedly a contract flipper/renter so I expect to see that $100 contract back on the market at a higher price or if not, used for rentals.

 

[bwvBound]

A reasonable price would be around $155, but with the resale restrictions who knows.

’Reasonable’ to whom?

 

[PolyRob]

The 2nd RIV contract is on the market. The resort is still months away from opening. $170 is too high, you can buy direct for a little more and get full benefits. Resale price is $21,250, direct would be $23,000, all costs prior to closing costs and direct has cheaper closing costs. A reasonable price would be around $155, but with the resale restrictions who knows.

It seems the $170 asking price is at least within range of what has been shared historically for new DVC resorts hitting the resale market. Pete mentioned it and Jamie confirmed the range on the DVC Show. Not saying I would want to pay that much given the restrictions or that others would, but it seems the $170 could be from a responsible broker with the seller’s best interest. Someone can always ask under that, but you will never get higher. $133 started really low and it all seems sketchy to me with this new information about the lister purchasing it for profit.

 

[The Jackal]

’Reasonable’ to whom?

Reasonable based on previous resorts. CCV contracts hit the market around 145-150 per point. Buy in for CCV was cheaper then RIV. Usually new resort contracts hit the market 15-20 bucks less then cost. But hey it’s selling so well DVC is giving incentives on fixed weeks at RIV.

 

[bwvBound]

Reasonable based on previous resorts. CCV contracts hit the market around 145-150 per point. Buy in for CCV was cheaper then RIV. Usually new resort contracts hit the market 15-20 bucks less then cost. But hey it’s selling so well DVC is giving incentives on fixed weeks at RIV.

But resale Riv is a new beast given the specific resale restriction limiting use to either Riv or RCI. For many, that is a crippling restriction that validates a significant drop in value.

 

[thelionqueen]

A point - ROFR is created to keep control, not to hold value. That it has contributed some to holding value is just part of keeping control. There are other timeshares that have ROFR and still sell for pennies.

Not sure what the difference is betwee. Keeping control and holding value. Seems like the same end to me. If someone underbids a contract, many times... not all of course.. they’ll buy it back. That sustains both control and value. Nit sure I’m understand the difference