Yes, very interesting.
Some questions/observations based on those 37 records:
1. Sounds like Disney is selling mostly smaller contracts. 10 deeds containing 677 points means almost exactly one-half being 50-point contracts and one-half 75-pointers (perhaps with some 25 and 100 pointers mixed in). This is a little surprising, especially since VGF points requirements are fairly high.
2. 10 sales in one month, supposedly to people on the waitlist. Does anyone know how many are still on the waitlist? Or how long they've been told they still need to wait?
3. Did Disney reclaim all 505 points from the foreclosures? If so, it sounds like Disney doesn't need to ROFR many contracts at all (which seems to match up with information from the ROFR threads), at least for VGF.
4. So the VGF waitlist is essentially waiting for points from foreclosure (maybe because taking expensive contracts during ROFR doesn't yield enough profit)?
5. If those records do not include ROFR data, is such data available?
1. Seven of the 10 deeds were add-ons; three were new VGF master contracts. As
@supersnoop posted, DVC members routinely add on small deeds to supplement the points they already own.
DVC deeds show the contract number of the owner(s) in the upper left hand corner of the deed. New master contracts, meaning the buyer is establishing a new DVC account with this deed, will have a contract number with a suffix of .000, such as 13123456.000. Add on deeds will have a number like .001, which signifies the first add on deed to that DVC account. In this batch of deeds, there is a member who is adding on their first deed (.001) and there is another member who is adding their 24th (.024).
Also (because too much info is never enough), the contract number will tell you where the member bought their master contract. All VGF master contracts start will 13, so if you see a contract number such as 13123456.007, it means that the member is adding on his 7th deed and that his first deed was for VGF. The lead number will tell us which resort is (or was) the buyer's original home resort.
2. Information about waitlists maintained by DVD is unavailable to the public.
3. Yes, DVD reacquired all five deeds that were foreclosed in March 2016. No VGF deeds were ROFRed in March because the spread between the acquisition price DVD would have to pay for the ROFRed deed and the direct sale price was too small.
5. Yes and no. In the past, DVD almost exclusively used a Warranty Deed document to reacquire a deed via ROFR. But starting in late 2015, it appears that DVD started using a Warranty Deed document when it was taking back a deed via the internal foreclosure process. Previously, it always used "Warranty Deed in Lieu of Foreclosure" documents for that process. Thus, it is now very difficult to distinguish a true ROFR transaction from an internal foreclosure buyback.
These records would include ROFR, but these this month were not ROFR. Correct me if I am wrong, WDRL, but if it isn't recorded with the County, it didn't happen!
Since DVC deeds are real estate transactions, they should be recorded with the local county. However, if the local county fails to record a transaction, it doesn't mean that it didn't happen. The parties involved still have legal rights even if the county failed to record a transaction.
If you drill down, the 10 contracts went to 9 distinct purchasers
- 255 points went to 1 purchaser, but was made up of 2 separate deeds of 165 and 90 points in the June Use Year
- 90 points
- 85 points
- 65 points
- 57 points
- 50 points
- 50 points
- 30 points
- 25 points
I don't fully understand the purchase of 30 points or 25 points, but I assume it is an add-on from an existing member who wants to have home resort advantage once every three years. Or perhaps a single day every now and then.
Pricing varies between $170 and $180 per point. My hypothesis is that Disney charges the same amount per point, but that on small contracts, the closing costs become a meaningful percentage of the costs.
See above for identifying which deeds are add-ons and which were new master contracts. The smallest master contract was for 57 points.
Closing costs are not factored into the consideration price. The consideration price, upon which the Deed Document Tax is computed, is based solely on price paid for the property.
Although all ten of these deeds were recorded in March 2016, it doesn't mean that they were actually sold in March 2016. Months ago, a buyer could have agreed to purchase points from DVD when the price was $170 a point, but did not return all the documents and close of the transaction until March 2016, by which time the price had increased to $180. Since the contracted was entered into when the price was $170 a point, then that is what the buyer will pay.
Also, its not surprising that one buyer bought two deeds. This could be because they wanted to break up their purchase into two deeds. Or it could be because DVD did not have 255 points available in a single Residential Unit. Thus, it offered the buyer 165 points from VGF Unit 03B and 90 points from VGF Unit 03E.
One more bit of number crunching:
16 VGF Resales were recorded in March 2016 totaling 2120 points. Average resale contract = 132.5 points
Average price per point $146.7
Weighted average price per point $146.55
I would explain the variation in pricing (high price is 12% higher than low price) as some buyers having poor market information, and perhaps relying on brokers asking prices for market information.
Also, some may just want the points and not want to risk losing the deal through bargaining.
Also, we don't know if the resale deeds were stripped or fully loaded, if the buyer or seller was paying closing costs, or if the buyer or seller was paying the maintenance fees. These factors are not reflected in the price paid per point for each of these deeds, but they could influence greatly how much someone was willing to pay for each deed.
Interesting, thanks. So, at least for March, resale average is 132 points, and direct purchase average is 67 points. I wonder if this is similar for other DVC resorts?
Yes, these numbers are similar for other DVC resorts that are labeled as "sold out." I report monthly sales for all DVC resorts except VGC on another site.
