Is the new discount affecting resale prices?

[Cinderella]

I almost sold two contracts for $78 each. They passed ROFR, but the buyer backed out when they heard about the new $86 a point deal. I didn't know about the new deal until yesterday, and I never thought to ask them for a deposit. So I wasted almost a month.

Now, I am wondering if I will have to sell for much less to tempt buyers because of the new Disney deal. But, what price per point for the resorts that are not the off property ones, or okw (which seem to go through for less) would be tempting enough to buyers and also pass ROFR. I was thinking $74. Does anyone know of any deals that have gone through at that price?

I noticed that when the price was $101 per point, some deals were going through for $79, which is $22 less. But, I don't think $22 less than $86 is going to pass, and i wouldn't sell that low anyway.

Considering the new referal price, how much less do you think resales will go for and still pass rofr? Also, does anyone know how much a sensible deposit is to ask, to avoid buyers backing out?

 

[RobDoc]

Unless I've missed something in the last 2 days, the lowest pricing from Disney at this time is still $94 for SSR and $96 for AKV - with Developer Points in addition for a referral incentive. The other resorts are a little less, but I don't think any of them are $86 at this time (I know that OKW is $96).

If you got the $86 price from the Referral thread on the DVC Board, be sure to note the date of the post quoting that rate - it was from a year ago when the referral pricing was $86 but had no Developer Points included.

I don't think the current incentive will have any affect on resale prices, especially for smaller contracts.

I would sure suggest that you get an earnest money deposit before bothering to submit another offer to ROFR.

Good luck with your resale.

 

[Cinderella]

Oh my goodness - thank you Doc. Because someone had bumped that thread, I assumed that it it was for this year. And I almost sold for a really low price based on what I read in it! Thank you.

 

[Deb & Bill]

I don't understand how the purchaser could back out AFTER ROFR. At that point, they have signed a contract to purchase those points pending Disney's response. I think they have to go through with it or give you a bundle of money for wasting your time.

 

[Cinderella]

Hi Deb and Bill - The problem is I didn't ask for a deposit, so it's probably my own fault. I should've learned my lesson really. A couple of weeks ago, I tried to sell my car. Some people made an offer and asked if I would keep it until later in the week. I did, and when some other people called about it, I told them it was sold. They then backed out, because they decided that there was something else they wanted to spend the money on instead!

It silly really - I have a business and sell services all the time, but I'm not used to selling my own personal stuff.

 

[calypso*a*go-go]

Well, the jokes on them if they think the going price is $86. Hang in there -- I'm sure you'll find another buyer soon.

 

[Cinderella]

Thanks - I did think $86 seemed really low. If Doc hadn't spotted my mistake, I would still have been believing it.

 

[robinb]

Cinderella:

Are your contracts stripped? I find it hard to believe that Disney would let VWL and SSR go for only $78! I sold my 230 OKW points for $77 just last month. You said that you didn't require a deposit. That says to me that you are selling it on your own. Before you resort to dropping your price to where Disney will exerciser it's ROFR, you should look into selling your contract through The Timeshare Store. They will sell your contracts for much more than $78 per point which will cover their 10% fee. They were *great* with me, although the salesperson asked me to lower my price point when the contract had only been out there for one day. Um ... let me think about that. No. The buyers paid my asking price anyway (darn! I should have asked more!) You're in the UK, so I am not sure if you can use their services. Check them out .

 

[Deb & Bill]

I'm selling my 75 OKW points for $86 a point. And I'm just waiting for the closing now - documents have been sent.

 

[Cinderella]

Hi Robin - no my contracts aren't stripped. Still have alot of 2007 points and all 2008. I was quite shocked too as they only just backed out before I found out Disney waived ROFR. In fact I called DVC in the end as our post is backlogged due to the mail strike and they told me on the phone.

I wonder if they're more likely to let sales go through if you're selling private? I suppose that letting the odd private sale go through for a low amount won't really diminish the value of DVC points, but it would if they started letting them slip through via brokers.

I understand that the timeshare store are good but, ten percent more would be $85 per point and I've noticed a lot advertised for less than that.

I also saw some broker guy a few places on the internet with a strange sounding name claiming that he was selling people's points for ridiculously low amounts - like $66 per point and that worried me a bit. I don't understand how he could possibly be passing ROFR at those levels, unless it's some kind of scam.

 

[robinb]

I understand that the timeshare store are good but, ten percent more would be $85 per point and I've noticed a lot advertised for less than that.

Why not give the TTS a try at $85 per point? Regular size contracts at SSR certainly sell for $85 per point and VWL sells for the low to mid 80's. They have a lot of buyers waiting for the perfect size contract with the perfect use year and many of the contracts do not even get listed on the web site! Mine was purchased the day after I listed with them . I also bought my BWV contract from them the same day it was listed.

If you sell on the TTS for the low to mid 80's you would pay a few hundred USD at most for their services over the $78 pp you were asking.

One more thing ... DO NOT pay attention to the "Have you passed the ROFR?" thread. Those are BUYERS trying to get the absolutely best price and pay as LITTLE as possible. You, on the other hand are a SELLER and you want to get the absolutely best price and make as MUCH as possible. You have different needs and requirements. If you price higher you probably won't sell to one of the people who frequent that thread, but you will sell to one of the other 99% of the buyers who do not.

 

[calypso*a*go-go]

If you price higher you probably won't sell to one of the people who frequent that thread, but you will sell to one of the other 99% of the buyers who do not.

Good point Robin -- Sometimes we all get so wrapped in the Disboards that we forget what a small group we are compared to Disney-Lovers overall.

 

[calypso*a*go-go]

Cinderella -- Chances are good that your buyers were just unsure about moving foward with DVC in general (more so than the pricing) and changed their minds. Was the same person buying the separate contracts? Anyway, you might want to take Robin's suggestion and give the Timeshare Store a try. You can always try to sell it on your own again simultaneously and see what comes through first.

 

[Cinderella]

Yes it was the same buyer for both contracts. I would have hated for them to go ahead then decided they didn't like it.

And I have had a few people approach me with ridiculously low offers. I guess they do it with a lot of people in the hope that one of them will slip under DVC's radar - but it is bad, as it means DVC will end up ROFRing most of them at really low price.

The deal I had with the other buyer was good and I don't see anything lower going through. And to be honest, I wouldn't sell for less. Because of the exchange rate change since buying VWL, I will make a loss on that contract no matter what I sell for as I bought when we only got $1.38 to the point. Mind you the money I've saved on trips getting tickets etc at almost $2 to the point makes up for it!

Robin - I suppose you are right re the ROFR thread - it is for people wanting a cheap deal. And it annoys me when some of them moan about how stressful it is and the buyer being the only winner. If they weren't determined to get the lowest deal possible they wouldn't have all that stress.

Robin - you sold your points really quickly, so I may try listing with the Timeshare store. I would feel more comfortable using them as I know they've sponsored this forum for a long time. Do you only pay them if they make a sale, or do they charge an upfront fee? Is it ten percent on the selling price you pay and do they do deals for more than one contract?

 

[robinb]

Robin - you sold your points really quickly, so I may try listing with the Timeshare store. I would feel more comfortable using them as I know they've sponsored this forum for a long time. Do you only pay them if they make a sale, or do they charge an upfront fee? Is it ten percent on the selling price you pay and do they do deals for more than one contract?

You only pay the fee when the points sell and there is no fee to list with them. The commission is subtracted from the proceeds of the sale. You may be able to work something out with them for a lower commission if you have two contracts to sell at the same time ... it can't hurt to ask. And yes, I sold my points so fast I kinda wonder that they were priced too low .

ETA:

And I have had a few people approach me with ridiculously low offers. I guess they do it with a lot of people in the hope that one of them will slip under DVC's radar - but it is bad, as it means DVC will end up ROFRing most of them at really low price.

I am shocked that you have not received offers at your asking price from the ROFR thread! Your price was *great* and the ROFR would be a slam-dunk for your points.

Good luck with what ever you do .

 

[doubletrouble_vb]

Cinderella,

In using the Timeshare Store (or any other broker) the simplest approach is to start with what you paid and then add on 10 percent. Then take a look at the ROFR thread to see how your price compares to the documented low ball price that passed within the last three months for your resort. Then check out what is on the TSS website for your resort...unfortunately they don't keep units with offers on their site very long so what you are looking at are units that haven't sold. I'd look at the ones that have been out there a while as an indicator of what might be too high (but some are there because the price is high and the contract is stripped).

The other factor is how many points your contract is missing from '07, '08 and '09. If none are missing from '07, '08 and '09 your contracts are loaded and should go for more than a contract that has been stripped. The bonus for extra points is limited ($3 to $5 a point maybe?).

PS. There are reasons to go with a low price...speed of selling for one. Avoiding ongoing payments in maintenance fees is another.

 

[Cinderella]

Hi Thanks - I've checked the Timeshare stores listings and managed to work out prices to advertised based on pending sales etc.

Many of the SSR ones that haven't sold have no 2007 points available and some don't even have their 2008 points available. I would hate to be buying into DVC now and getting no points until 2009. Even if I wasn't planning to travel until then, I'd rather have one with points available and rent them out to recoup some of my initial investment.

I've filled out the enquiry forms and hopefully they'll call me tomorrow. I do have the contracts listed elsewhere at the same rates I originally sold at, and I've also given the option to prospective buyers to offer more to ensure the deal goes through. But if the Timshare store get me a buyer first - I'm quite happy to let them handle the sales. It would save me a lot of legwork.

Thanks everyone for pointing me in the right direction.

 

[cjsmom5]

Where is the ROFR thread that is referred to on this thread? Is it one on the disboards?

 

[Cinderella]

Yes it's a thread on this forum. Usually you'll find it on the front page but if not ust search ROFR thread. Basically, when people have managed to buy at a low price they add details to the thread. Also they add details if they didn't manage to get through. It's so people know how low they can bid before Disney ROFR's.

 

[CarolAnnC]

Where is the ROFR thread that is referred to on this thread? Is it one on the disboards?

Here is a Link for you!