How does the sale of AK work

[Kurby]

I've seen people on here talk about other DVC resorts that are sold out - how does that work? will they only sell say 5000 contracts for AK and then you'd have to buy resale if you wanted in?

i was trying to tell my husband that boardwalk was sold out and we'd have to go resale but i don't actually understand it either.

why do they sell out a resort?

thanks.

 

[Amy5000]

Hi Kurby: I'm not sure of the math involved, but I believe they "sell-out" b/c at some point they will have sold more of an interest in the resort than actually exists.

Just for a simplified example: Let's say there were only 3 rooms at the Villas at Cinderella's castle, all studios and all costing 2 pt per night. Members get their allotment of pts every year. DVC could potentially sell a maximum of 2190 pts. Determined by multiplying

2 (# of pts per night) times 3 (# of rooms) times 365 (# of days in a year) equals 2190 pts.

I will give this caveat...I think it's a reasonable assumption that the above formula is something close to how Disney figures out what it can sell in a resort. But in reality, I'm a newbie and not familiar with FL law so I may be very off base.

Any experienced DVCers out there who understand this?

 

[Kurby]

that's kinda how i was trying to explain it but i was using number of rooms x number of days

meaning 200 rooms x 365 days = potential of 73000 rooms available in 1 year.

i divided it up by weeks and figured they would sell to 1403 people then sell out.

figuring that if every person who owned AKL wanted to stay and not have anyone from other resorts stay they could only accomodate 1403 contracts at 1 week each

not that it matters but Patrick was just wondering why we couldn't buy Boardwalk instead of AK from Disney. (though he does like AK if he had a choice of the 2 he'd have picked BW)

 

[childsplay]

Amy5000's respone is basically how it works. DVC can only sell as many "points" as it takes to fill up every room every night. Also, DVC retains 4% - 5% of the inventory. This inventory is not figured into the number of points they can sell. At least I don't think it is.

 

[tjkraz]

Amy's explanation is basically correct. Every Savannah-View Two Bedroom villa at AKV represents about 17,000 points. Figure DVC will probably sell about 16,000 points per 2B after they hold some back for maintenance.

If the average DVC contract is about 200 points, a single room could average about 80 owners.

And that's just one room. DVC is building over 450 rooms at AKV so figure there will be 30,000 - 40,000 owners by the time the property is all sold. That process will play out over a period of years--not weeks or months. Saratoga Springs went on sale in August 2003, has sold at a pace that exceeded initial projections, and is still about 15% away from being sold out.

 

[LisaS]

not that it matters but Patrick was just wondering why we couldn't buy Boardwalk instead of AK from Disney. (though he does like AK if he had a choice of the 2 he'd have picked BW)

You can buy BWV from Disney. The resort is "sold out" but Disney buys back points when they exercise their ROFR on a resale contract. The points are then resold to existing members who want to add on at BWV, and also to new members. You would have to purchase a minimum of 160 points. The current price for non-members is, I believe, $98/point. BWV contracts expire on Jan 31, 2042. AKV contracts expire on Jan 31, 2057.

You can purchase ANY DVC resort directly from Disney. You may have to go on a waiting list (especially if you want to purchase BCV) but for BWV, points are often available immediately or it not, after a short wait (a few weeks).

 

[Kurby]

well maybe in a few years we can buy an add on at BW if we are having a hard time getting in at the 7 months window.

but for now - i'll just keep that part between you and me since i love AK and he really liked it until we started talking about how great it will be to stay at BW one visit

 

[kimberh]

that's kinda how i was trying to explain it but i was using number of rooms x number of days

meaning 200 rooms x 365 days = potential of 73000 rooms available in 1 year.

i divided it up by weeks and figured they would sell to 1403 people then sell out.

figuring that if every person who owned AKL wanted to stay and not have anyone from other resorts stay they could only accomodate 1403 contracts at 1 week each

not that it matters but Patrick was just wondering why we couldn't buy Boardwalk instead of AK from Disney. (though he does like AK if he had a choice of the 2 he'd have picked BW)

You may still be able to buy the sold out resorts from Disney. I bought my Boardwalk from Disney ,through my guide that was assigned to me when I made my initial purchase through the resale market. I called the Disney phone number, asked for my Guide, told him that I wanted Boardwalk (this was last Summer) and had it within minutes. He told me what was available, I was not tied down to a particular Use Year, I bought a different one and actually made a reservation very soon after that. When you buy from Disney, you do not have to deal with ROFR. If you are wanting a certain UY and number of points, you may have to be put on a list and wait for that to become available. I took what they had available.

 

[pilferk]

that's kinda how i was trying to explain it but i was using number of rooms x number of days

meaning 200 rooms x 365 days = potential of 73000 rooms available in 1 year.

i divided it up by weeks and figured they would sell to 1403 people then sell out.

figuring that if every person who owned AKL wanted to stay and not have anyone from other resorts stay they could only accomodate 1403 contracts at 1 week each

not that it matters but Patrick was just wondering why we couldn't buy Boardwalk instead of AK from Disney. (though he does like AK if he had a choice of the 2 he'd have picked BW)

FYI, you CAN buy BWV from Disney...you have to insist to your guide and then you'll likely be put on a waiting list. Disney does buy back points using their Right of First Refusal (ROFR) and then sells those contracts to satisfy those on the wait lists.

Others pretty much explained how Disney figures "sell out". There is a total number of points they can sell for a resort that equals "something less" than the total number of points required to book every room in the place for 1 year. That "something less" represents the inventory held by CRO for cash ressies and developer hold back for maintenance issues

 

[LisaS]

well maybe in a few years we can buy an add on at BW if we are having a hard time getting in at the 7 months window.

That is also a good strategy. As you can see from the photos in my signature, I like having my foot in the door at 11 months out at more than one resort. It's more challenging to manage your points when you own at multiple resorts, but it's worth the effort.