New Procedure and higher Price for add-ons through DVC

[jel0511]

I had contacted my guide to find out about getting a BWV add-on. She had asked me for a credit card to hold my place and to keep all the fires burning while looking for a resale. Well, my resale came through on Monday, and I decided not to contact my guide to take my name off the list until it had passed ROFR. Well, this morning I got an urgent message to call her back. After my panic settled that she had points available, I called her back. She said that just this morning in their quarterly meeting the procedure for current DVC members to add-on at sold out resorts has changed. They are going back to the waiting list, and they will be using a new system. As soon as points are available, they'll consult this system, and the first person in line gets the points. No more guides searching, and having to constantly search and praying they are the first to see the point. She said that system was incredibly unfair, especially if the DVC Guide was with a client. So the change. Also, the price per point for sold-out resorts has gone up to $89 per point effectively immediately, no grandfathering if you requested your points before the change. Since we're already contracted on a resale, and the increase is a lot, I've taken my name off the list.

 

[CarolMN]

Thanks for letting us know. I agree that the "old" system wasn't very fair.

I' sure most here won't be happy about the price increase - wonder if resale prices will increase a bit as a result. I suppose it will mostly depend on the price Disney decides to exercise it's ROFR on, though.

Best wishes -

 

[Happy Birthday Cat]

Thanks for the update.

I'm very glad they are going back to a waitlist because that gives everyone an equal chance. Whether you get a sold out property shouldn't depend on whether your guide happens to check at the moment it becomes available. The price increase is interesting but not surprising considering how fast some resort contracts are selling on the resale market.

I wonder if this will do anything to resale prices and/or the ROFR price?

HBC

 

[Beca]

Wow...news travels fast!!! I just got off the phone from my guide with the same info!!

I guess the resale market will have to follow suit...I think Disney is doing this so they can pay more for resale contracts, and therefore get more contracts to offer to their members.

I stayed on the list. I am unsure as to how hard it will be to get a contract through ROFR right now.

I think this will be really good for sellers, and any new DVC people who want to buy, but not necessarily at SSR.

The next few weeks will be very interesting, for sure!!



Beca

 

[Mike]

Someone just posted that Disney exercised ROFR on an OKW resale at $67/pt. I wonder if this price increase had anything to do with that?

 

[jel0511]

I wonder if this will do anything to resale prices and/or the ROFR price?

My thoughts exactly. We just signed a BWV contract on Monday at $71.50 per point. Only a few 2004 points left, and all of 2005's. We're paying closing too, so hopefully it will make it through....

 

[LIFERBABE]

This is not good! I need about 200 more points!

I just picked up 106 at BWV last week for $84! My BCV add-on was inadvertently cancelled by a DVC rep so I was waitlisted for those points too.

I just tried to call my guide and she is out until Monday.

 

[jel0511]

Originally posted by LIFERBABE
This is not good! I need about 200 more points!

I just picked up 106 at BWV last week for $84! My BCV add-on was inadvertently cancelled by a DVC rep so I was waitlisted for those points too.

I just tried to call my guide and she is out until Monday.

You might want to get in touch with another guide. As my guide indicated to me this morning, the new list takes effect immediately, and people are getting listed as we speak. If you wait until Monday, you might have several other people in front of you. There is no grandfathering for the new list, so the earlier you can get on the list the better. My guide was anxious to get me on the list as early as possible today, since it didn't matter how long she'd been holding my info for the add-on.

 

[LIFERBABE]

QA was able to connect me with Judy! She was great and took all my info to be added to the list.

I think this squashes any innuendo that DVC is not interested in selling sold out Resorts.

Seems to me, they are very interested and after so many months of waiving ROFR on some of their hottest properties, they decided it was time to get back into the game. They are going head to head with the resellers. They will have to increase their prices to get past ROFR or DVC will eat them up.

I guess this is good for the members (potential pool of sellers) and DVC as it just increased the price of our holdings, but it still hurts for those of us that wanted to add-on.

Capitalism is alive and well!

 

[RuthnPaul]

We're currently waiting on ROFR for a VWL contract, $71.xxx per point, all 2003 points banked, all 2004 coming in September. We thought we got a great deal -- hopefully, Disney doesn't think it's TOO sweet!

 

[disneyberry]

<font face="times" size="+0">Bummer...
Well I guess it was too good to be true to think that the price would stay at $84 forever.
The gap between the old resorts and SSR would become too huge.

Thanks for posting this news.</font>

 

[jandklumley]

Question??? We are looking to buy resale and certainly don't want Disney to exercise ROFR. Do they look at the entire package or just price per point? If we pay a higher price per point but have the buyers pay closing or maint. fees, would that play into effect?

 

[LisaSt]

Disney just took ROFR on our BWV contract we were attempting to buy. Seller paid closing and they had 58 points left from 04 and all of 05 left. We were trying to get it for 73.25/point it was a 150 point contract so there is somewhat of a baseline on what they are buying back at.

 

[disneyberry]

<font face="times" size="+0">jandklumley, not that anyone really knows how DVC's ROFR formula works, but from what I've heard here, DVC seems to look most carefully at <i>both</i> Price per point and Who is paying closing costs. They sometimes seem to completely not care about the points status. As a buyer, for the best chance of passing through ROFR, you should pay the closing costs. Good luck. </font>

 

[Mike]

Originally posted by LisaSt
Disney just took ROFR on our BWV contract we were attempting to buy. Seller paid closing and they had 58 points left from 04 and all of 05 left. We were trying to get it for 73.25/point it was a 150 point contract so there is somewhat of a baseline on what they are buying back at.

they exercised at $73.25 Sorry to hear the news. Unfortunately, it looks like there are going to be a lot of disappointed people who are currently awaiting to hear about ROFR. Better luck in the future.

 

[LisaSt]

Ya we were pretty bumbed out about it but not much you can do. So now we have called our guide and are on the waitlist. maybe we will still get that 150 point contract just at a much higher price.

 

[LisaSt]

Ya we were pretty bummed out about it but not much you can do. So now we have called our guide and are on the waitlist. maybe we will still get that 150 point contract just at a much higher price.

 

[LisaSt]

Sorry double post.

 

[jandklumley]

Disneyberry-

Thanks for the tip. All of this is definately disapointing news for the buyer. Great for the seller, however.

 

[LIFERBABE]

Disney just took ROFR on our BWV contract we were attempting to buy. Seller paid closing and they had 58 points left from 04 and all of 05 left. We were trying to get it for 73.25/point it was a 150 point contract so there is somewhat of a baseline on what they are buying back at

LisaSt would you mind posting if you or the seller was to pay the 2004 MF's or were they pro-rated?

From what I have seen in the past, ROFR is pure numbers per point. Banked or borrowed points have very little impact. They take the total cost per point and if they can make a profit after their expenses, they will buy it back.