Is this a good price on AKL resale?

[Keishag]

The contract I bid on was for 120 points at AKL for $10800 with a December UY. Points from this year are still available so they are asking that we pay the annual dues of $771. The closing costs are $485. I bid $86/point but they're holding firm at $89. Would this be a reasonable deal or should I keep looking?

 

[ldo]

doyou mean you will get Dec 2016 points or that you also get Dec 2015 points. If only 2016 points, I would look for a contract with 2015 points (and you might not even have to pay 2015 fees).

 

[lmkoons]

I just closed on a 160 pt contract at AKL for $80/pt. December UY. 138 2015 points, and 160 2016 points. $89/point seems high to me.

 

[Raul]

I have paid $85/point for an AKL 150 points June UY with all 2015 points banked. $89 seems high to me too.

 

[Lothlórien]

I considered buying a small AKV contract Resale last year. I think $82 - $90 was pretty much everything I saw for a while. I know it fluctuates with how badly the owner needs/wants to sell and what is available on their points and years.



Considering that they probably paid $115 - $125 a point, I can see why they are firm on $89. The broker gets a good portion of what they make and surely they do not want to just give it away/break even.
You cannot get a new contract from Disney with 40 - 50 years for less than $130 a point. If my choice was $90 a point resale or $130 from Disney and I wanted the contract, I would take the $40 difference per point and accept the terms. If you are using the points from this year, it is completely reasonable that you pay for the dues. If they wanted you to pay the dues and they already used the points, then of course that would be insane on their part.

 

[nluvwithdisney]

We paid 87 for a 200 point contract that had 195 points left from 2015. I guess the question is how much is it worth to you.

 

[sndral]

...
Considering that they probably paid $115 - $125 a point, I can see why they are firm on $89. The broker gets a good portion of what they make and surely they do not want to just give it away/break even.
You cannot get a new contract from Disney with 40 - 50 years for less than $130 a point. If my choice was $90 a point resale or $130 from Disney and I wanted the contract, I would take the $40 difference per point and accept the terms. If you are using the points from this year, it is completely reasonable that you pay for the dues. If they wanted you to pay the dues and they already used the points, then of course that would be insane on their part.

Supply and demand pretty much determines the going rate, how much the seller paid doesn't really matter if a buyer can get the same thing for less from a different seller.
There are quite a few AKV contracts on the market but most have more than 120 points - many are 160 points as that was the minimum buy in for new members for awhile.
OP with a Dec. use year 'this year's points' is ambiguous.
If I wanted to use Dec points for a reservation right now I'd be using 2015 points as those points are good from 12/1/15 - 11/30/16.
Yet 'this year' could also refer to 2016 and with a Dec use year the 2016 points are good from 12/1/16 - 11/30/17.
A contract with all 2015 points which are bankable (or have been banked) is worth more than a contract with no 2015 points and 2016 points not coming until 12/1/16.

 

[Minniesgal]

I think what you can get it for depends whether the owner needs to sell or wants to sell.

At the end of the day of the owner is holding firm at $89 you have two choices pay that or walk. So it all depends really on is it worth it to you. Is it the perfect contract with all the points you want if so it probably isn't with fighting over $4 a point. Is it an ok contract but there were others as good? In that case it might be worth walking.

The pricing is in the ball park maybe slightly towards the top end of it but still in the ballpark.

 

[Supplanter]

There is plenty of inventory, I'd hold firm. Check out other resale places, plenty of animal kingdom available for mid 80s. And they dont appear to be moving incredibly fast. I'd make him choose between selling now and waiting for another buyer. The difference is only 360 dollars lol.

 

[Keishag]

Thanks guys! I think I'm going to pass on this one and keep looking. I thought it seemed a bit high and were in no hurry.

 

[miTnosnhoJ]

If you search the Orange County Comptrollers site, you can see all transactions at your resort for the recent past. If you do this, you will see that there is not a "market price", but there is a range. The range may vary plus or minus 10% from the average.
Some people are very market aware and make aggressive bids. The brokers will submit these bids because they are also market aware. Sellers sometimes have to get educated on the market. A seller may turn down $86 today and accept $83 in 3 months after seeing no further offers. A difference of $3 a point for 120 points is $360 - hardly worth rejecting a deal over.

You will also notice that some transactions go through at the high end of the range. In my opinion, these are cases where people take the asking price at face value and don't try to negotiate. This may be because the amount involved is not material to them, or because the use year and size of contract matches their needs precisely, or because they are uninformed, or because it still seems like a bargain compared to buying direct, or because they have an unfounded fear of losing it in ROFR process. Some difference may be attributed to contracts being fully loaded or stripped, but you see stripped contracts priced high and fully loaded contracts priced low, so I think the price range can only partly be explained through the available points.

I did this analysis recently for VGF for the month of February. I found a range of $127 a point to $157 a point, with an average of between $146 and $147. I used this information to make an offer on a fully loaded contract at $141.50, which was accepted. (The $127 contract was an outlier, so I included it in my averages, but otherwise did not pay too much attention.)

Note: If you follow this thread, you can glean what is necessary to search the OC Controllers site. Dis member WDRL was very gracious in explaining how to pull this info. http://www.disboards.com/threads/how-can-disney-sell-taken-contracts.3500200/

 

[Dean]

The contract I bid on was for 120 points at AKL for $10800 with a December UY. Points from this year are still available so they are asking that we pay the annual dues of $771. The closing costs are $485. I bid $86/point but they're holding firm at $89. Would this be a reasonable deal or should I keep looking?

I too think the points availability is the key. The price difference between $89 & $85 is roughly $500 but the difference between a loaded contract (all 2015 & 16 points plus banked 14 points) is more in the $1500 range even after paying the extra fees for the 2015 points. I'd say that does seem a bit high but it's not out of line given it's smaller. You really can't compare completely to 150 & above though it should make one think whether they should buy more like 150 over 120 point contract if they can swing it.

 

[intertile]

As many others have already stated...having a loaded contract with current points that can be used or banked into next year increases the value. Simply put you can use it right away, or at the very least rent those points for about $12/pt to recoup some of the expenses of your purchase. 120 contract at $89/pp is $10680. The $4/pp you are considering represents about 4% of that price...Not really a meaningful amount for me, but it may be for you. I am in the process of purchasing a VGF resale atm. I paid more than most people do on resale by about $4-5/point, but I was ok with that. For me, it was more important that I get the same use year as my other VGF contracts, and that the contract was no more than 75 points. Those 2 factors made this contract worth the extra few hundred $ to me...I'm still saving almost $1500 versus going retail, It matches my other contracts use year, and it's a small contract that allows me to downsize easier if I ever need/want to.

At the end of the day, only you can really answer the question on whether it is worth it or not. Good Luck.

 

[_auroraborealis_]

You would absolutely need to make sure that they bank the points if you made the offer, I think. A December UY would need to be banked by July 31, if I am understanding the contract correctly -- basically, this year's points are available, so they want a higher bid + this year's dues. If you had your offer accepted today, you'd be coming out of ROFR in June, then relying on estoppel and closing and everything to be in place in time for YOU to bank them, and it's fair to estimate 8-10 weeks from offer to points being in the account. Which is cutting it real close.

And I don't think you can rely on MS being generous about the banking deadline on a resale.

Given that the points would need to be used by end of UY if not banked and given what fall availability looks like, I wouldn't want to count on being able to rent them without having banked them.

 

[Keishag]

You would absolutely need to make sure that they bank the points if you made the offer, I think. A December UY would need to be banked by July 31, if I am understanding the contract correctly -- basically, this year's points are available, so they want a higher bid + this year's dues. If you had your offer accepted today, you'd be coming out of ROFR in June, then relying on estoppel and closing and everything to be in place in time for YOU to bank them, and it's fair to estimate 8-10 weeks from offer to points being in the account. Which is cutting it real close.

And I don't think you can rely on MS being generous about the banking deadline on a resale.

Given that the points would need to be used by end of UY if not banked and given what fall availability looks like, I wouldn't want to count on being able to rent them without having banked them.

Thank you for that. I hadn't even thought about that. So we would probably need to definitely plan on a trip THIS year to use those 120 points if we were to move forward on this contract.

 

[intertile]

Thank you for that. I hadn't even thought about that. So we would probably need to definitely plan on a trip THIS year to use those 120 points if we were to move forward on this contract.

Yes, or you would have to make sure the current owner banked the points. You could probably have the agent make it a condition of the sale...that as soon as they receive your deposit they must bank the points.

 

[_auroraborealis_]

Yes, or you would have to make sure the current owner banked the points. You could probably have the agent make it a condition of the sale...that as soon as they receive your deposit they must bank the points.

This is exactly what I'd do. Given the availability of this fall already, I would not want to be finding a use for 120 points booking in early August for a trip to be completed by 12/1. With a lot of flexibility and a sense of humor, it might be possible... but getting the owner to bank would be much less stressful.

 

[JimMIA]

The question I have is, why AKV?

AKV's dues are $6.42 per point...the second highest in the whole system, I believe. Over the course of your ownership, those high dues are going to cost you a heckuva a lot more than whatever you pay per point to buy in.

Do you really, REALLY want to own AKV? If so, why? And is it worth the dues premium over some other DVC resort's lower dues?

 

[JimMIA]

Looking at your posts on several different threads, the best advice I can give you is to:

1. STOP
2. Cancel your offer on this contract
3. Spend the next 3-6 months researching DVC, how it works, how it fits in with your family's vacation needs, and whether or NOT you should purchase ANY DVC -- either direct or resale -- at ANY price.

With all due respect, I don't think you understand DVC well enough to make an informed decision, and I don't want to see you make another timeshare mistake.

 

[kniquy]

The question I have is, why AKV?

AKV's dues are $6.42 per point...the second highest in the whole system, I believe. Over the course of your ownership, those high dues are going to cost you a heckuva a lot more than whatever you pay per point to buy in.

I really wonder why people make such a huge deal about the AKV MF. Yes they are higher than most of the dvc but the difference the the MF of a 120 point contract vs the same as a BLT contract would be $135.60/yr based on 2016 MF.

Assuming that they increase at the same rate each year. Looking at what i saved at the initial buy in buying the same amount of points at AKV vs BLT It would be a savings of approximately $5200. if you break that down between the difference in yearly MF's (est $135/year) it would take approximately 38 years ($5200/$135) in the paying MF to catch up to what i would have initially spent buying BLT in the first place. So just simply looking at MF is not the whole financial picture.

Sure there could be some savings in buying SSR or OKW for comparable price per point but that depends on whether or not that is where you want to be stuck. Just for comparison below are the MF

2016 MF
Bay Lake Tower $5.2830
Grand Californian $5.3730
Saratoga Springs $5.4391
Old Key West $6.0107
Beach Club Villas $6.1277
BoardWalk Villas $6.1753
Wilderness Lodge $6.2152
Animal Kingdom Villas $6.4152
Hilton Head $6.8153
Vero Beach $8.0846
Aulani TBD