Is this a good deal?

[JimFitz]

I am buying a resale contract for OKW with an Oct. use year. The contract is $74 a point and is for 250 points. There are 250 banked points from 2002 that need to be used by 10/1/04. All 250 are banked from 2003 and all 250 for 04 become available on 10/1/04. I bid 69 per point and the seller countered at 71 and I said yes. Someone told me 71 for OKW is too much.

I think i got a great deal.........anyone disagree?

 

[PCWizard]

It's a great deal.

I have been drooling over that contract for a week.....

Just think - the 250 to be used by Oct 1, and the banked 250 from 2003 are each worth about $3000-$4000 compared to rack rates at deluxe resorts.

You got a great deal- enjoy it, and welcome home!

I'll just have to wait for another opportunity.

 

[Chuck S]

With those banked points, I think it is a really good deal!

 

[jevans8758]

Greetings,

We bought into a very similiar contract (230 points at OKW)through Lee Reid for an April use year. We had full banked points from 2002, 2003 and still haven't used all of those. We paid 69/pt. and have not looked back. Add your banked points into the math, and it will make youfeel much better.....Personally given the points you will enjoy up front, I would not look back. You also need to ensure you get through ROFR, so regrets are not an option.......Enjoy!!!!

 

[DebbieB]

I think it's a great deal, that's alot of points to have available! 250 points would get you over a week at OKW in a 2 bedroom in September. DVC is selling the older resorts at $84 per point and you wouldn't get all those banked points.

 

[lovetotravel1974]

Its a great deal!

 

[tamu91]

2002 banked points alone are worth ~$2,500 so if you can rent the points out before they expires, you are buying this contact at $61/pt. Not a bad deal

 

[CarolMN]

Originally posted by JimFitz
I am buying a resale contract for OKW with an Oct. use year. The contract is $74 a point and is for 250 points. There are 250 banked points from 2002 that need to be used by 10/1/04. All 250 are banked from 2003 and all 250 for 04 become available on 10/1/04. I bid 69 per point and the seller countered at 71 and I said yes. Someone told me 71 for OKW is too much.

I think i got a great deal.........anyone disagree?

Did you already pass ROFR? If not, Disney might think it is a great deal, too and exercise its right to buy in your place. Hope not!

Best wishes -

 

[JimC]

Assuming you are paying the buyer's normal closing costs that works out to about $1.83 per point for the 10,000 points remaining on the contract. That is a very good deal.

 

[Happy Birthday Cat]

Originally posted by CarolMN
Did you already pass ROFR? If not, Disney might think it is a great deal, too and exercise its right to buy in your place. Hope not!

Carol is right but remember you can make a counter offer if Disney takes it by ROFR. You did get a good deal and if they take it, even a dollar more will still be a good deal.

HBC

 

[DBBN]

I've recently purchased two OKW resales and this looks to be a good deal. Other similar contracts have sold for less than $71 but this is a good price SO LONG as you can use all those banked points before they expire. At this price I would expect the seller to be paying the transfer fee and dues for ALL banked points. Further I would expect you to pay closing costs and dues for the current year points. If the seller is paying for the latter two expenses then this becomes an excellent deal. To my knowledge similar contracts with all current year points and half the previous years banked points have sold for as low as $65 per point.

Looking at your registration date (April 2004) and number of posts (14) I would guess you've been lurking and studying the information on this board. If my guess is accurate you have studied well. Although impossible to predict with certainty, based on recent reports I expect you will easily pass ROFR...that is if you haven't already. Good luck.

Welcome to the Dis community and if this is your first contract Welcome Home.

 

[Dean]

It could be a very good deal or end up being a bad deal, it depends on the other factors. If you can use the banked points that will expire and paid NO MORE than the 2004 dues, you did get a very good deal. IF you can't use the points that will expire and have to pay much more than the 2004 dues, it's actually not that good a deal at $74 pp. In between situations would vary with the specifics. IF you paid all 2003 and 2004 dues, regardless, it's not that good of a deal.

A great deal would be around $65-66 pp with the banked points and only 2004 dues. But if it suits your needs and you're happy with it, that's all that matters. As for ROFR, I'd bet it will pass.

 

[JimFitz]

My only concern is the 2002 points. We plan on going to Disney in September, but it takes 8 weeks to close which will have us in Mid-August and making a reservation at that time for September will be tough. I want a two bedroom and don't care which resort....

What do people feel my chances are of getting a two bedroom for September when calling in Aug.

 

[Happy Birthday Cat]

Originally posted by JimFitz
My only concern is the 2002 points. We plan on going to Disney in September, but it takes 8 weeks to close which will have us in Mid-August and making a reservation at that time for September will be tough. I want a two bedroom and don't care which resort....

What do people feel my chances are of getting a two bedroom for September when calling in Aug.

IMHO you will get something somewheres as long as you are flexible with dates and the resort you stay at. remember you have all of the Disney collection regular hotel rooms to that you could use your points at. I doubt all of them will be full for all of September. It's not the best use of points but at least you could use them. Good luck.

HBC

 

[wisbucky]

That is a great deal. We have been looking at that same one debating. Let us all know how it works out on the dues. Way to go.

 

[Dean]

Originally posted by JimFitz
My only concern is the 2002 points. We plan on going to Disney in September, but it takes 8 weeks to close which will have us in Mid-August and making a reservation at that time for September will be tough. I want a two bedroom and don't care which resort....

What do people feel my chances are of getting a two bedroom for September when calling in Aug.

It should not take 8 weeks to get you in the DVC system, I'd say most resales are in the system within 5-6 weeks, possibly as little as 4. Of course knowing this is an issue, you may be able to push it up a bit by using overnight mail and alerting the closing agency. Some even offer an expedited closing for an extra fee and while it may only save you a week or two, it'd be well worth it in this situation. As for September, I'd say your chances are excellent. The other question, one I do not know the answer for, is at what point(s) DVC cancels pending reservations and at what point you, or the current owner, could make a new reservation that carries over. If the cutoff is when DVC changes it over, you are stuck. If it's at ROFR, you might ask the owner to email or call DVC and make reservation for what you need. As a minimum, the owner could check availability to give you an idea of what to expect.

Email me directly and I have a couple of more suggestions you may want to consider that might not be appropriate for the DIS board.

 

[ScottOKW2K]

A quick question to add to this thread - could the buyer use the 2002 banked points to make an II reservation ? I have read on the board that once points are used/deposited for an II reservation/exchange that you have up to 2 years to actually use them. Would this be true in this case ?

Just trying to give the buyer all possibilities available. I'm sure that some of the experts can answer is this scenario is possible.

 

[Dean]

Originally posted by ScottOKW2K
A quick question to add to this thread - could the buyer use the 2002 banked points to make an II reservation ? I have read on the board that once points are used/deposited for an II reservation/exchange that you have up to 2 years to actually use them. Would this be true in this case ?

Just trying to give the buyer all possibilities available. I'm sure that some of the experts can answer is this scenario is possible.

Absolutely if done by 60 days out though that deadline may also be in jeopardy. They could rent the points or even ask DVC to use their once in a lifetime examption and bank the points to next year where they could use them later or rent them for this trip.

I'd do a cancellable reservation for cash then once the resale clears, go on the wait list if necessary. I'd do the wait list day by day, not for the entire time and go ahead and take any days that come up. If one were in the position of losing these points, even cancelling after the cancellation date if the wait list came thorugh and losing one days payment on the cash rental might be better than losing the points.

 

[CarolMN]

Originally posted by Happy Birthday Cat
IMHO you will get something somewheres as long as you are flexible with dates and the resort you stay at. remember you have all of the Disney collection regular hotel rooms to that you could use your points at. I doubt all of them will be full for all of September. It's not the best use of points but at least you could use them. Good luck.

HBC

Won't be able to use the points for a September stay at one of the Disney Collection resorts unless the reservation is made before August 1. He has October use year and we cannot both reserve and stay at non-DVC location during last 60 days of the use year.

 

[JimFitz]

Well...I am paying the dues for 2004 only. I am not responsible for the 2002 and 2003 dues.

I think I see a OKW Grand Villa in my future....