OKW for approx $52 per point at _______

[GoofyJ]

A friend had an offer accepted for approximately $52 per point. Various resale websites are listing OKW at $72 +. Actually receiving 2014 & 2015 points. Is this too good to be true? Early expiration but he is aware and fine with it.

I have been asked to comment about ROFR and explained it is completely unpredictable and up to Disney to decide.

I have cautioned him to be leery but it is an extremely good deal.

Any thoughts or concerns I should pass along would be appreciated.

Thank you in advance

 

[ProudMommyof2]

Yikes, I would be very weary of ROFR.

 

[pangyal]

A friend had an offer accepted for approximately $52 per point. Various resale websites are listing OKW at $72 +. Actually receiving 2014 & 2015 points. Is this too good to be true? Early expiration but he is aware and fine with it.

I have been asked to comment about ROFR and explained it is completely unpredictable and up to Disney to decide.

I have cautioned him to be leery but it is an extremely good deal.

Any thoughts or concerns I should pass along would be appreciated.

Thank you in advance

I actually know the agency your friend went through for this contract, as I asked about it as well. The broker told me that there was virtually no chance that it would pass ROFR. Sorry

 

[Friendlyadvice2]

Was this contract listed with a broker and how many points was it for?

 

[supersnoop]

I have been asked to comment about ROFR and explained it is completely unpredictable and up to Disney to decide.

ROFR gets more predictable as the price drops. That's so far below marker nobody would expect it to pass. I'd give it a 3% chance.

 

[Dean]

Likely the only way it'll pass is if there's a foreclosure or other similar situation pending. DVC tends to stay out of the middle of those mostly to avoid possible conflict of interest situations.

 

[Minniesgal]

I would expect Disney to take this one.

 

[Sandisw]

Listing price and selling price can be very different. However, based on the recent activity, both with what has passed and what has not, I would say that $52/pt is quite below what has been allowed to get through so I would consider it a long shot...but, the best part about it, if it does make it through, its a great deal!!!

 

[suebeelin]

I'm more than happy to flirt with rofr. Since I'm already a member with more points than I need, the deal is my priority. I've always passed thus far (twice)... Other ppl out there are apparently better negotiators than I!!

 

[Friendlyadvice2]

I think it has less to do with negotiating and more to do with circumstances surrounding the sellers decision to sell and their broker. I asked earlier and did not get a response, but I'm curious who the broker was and why they did not try to get more for the client even if only a few dollars a point. Most of the brokers I've dealt with treat the listing as their own and try to get the highest selling price for their client versus helping the buyer get a low ball offer accepted. Obviously there is incentive for a higher commission, so this makes sense, but this deal is surprising.

 

[supersnoop]

I wonder how quickly the seller gets paid if Disney takes it. Maybe they just wanted to sell quickly.

 

[Dean]

I wonder how quickly the seller gets paid if Disney takes it. Maybe they just wanted to sell quickly.

It's been a while since the one they took that I sold but IIRC it was maybe 30 days or just over. We had to do some paperwork and they tried to instill language in the agreement that was not in the original contract, namely that I kept the terms secret. I refused but they proceeded anyway.

 

[mtm65]

Would it make any difference if the points were fully stripped instead of having 2014 and 2015 points? I was under the impression that DVC would not be nearly as interested in a stripped contract.

Just curious, trying to learn how DVC works

 

[suebeelin]

Would it make any difference if the points were fully stripped instead of having 2014 and 2015 points? I was under the impression that DVC would not be nearly as interested in a stripped contract.

Just curious, trying to learn how DVC works

Based on my observations (mind you, I'm a novice although my first purchase was 2011), I think a stripped contract has less chance of being rofr'ed. Disney can't sell the stripped contract for a year or two... No?

I tend not to like stripped contracts... You never know where the market will be in a year or two.

 

[Dean]

Would it make any difference if the points were fully stripped instead of having 2014 and 2015 points? I was under the impression that DVC would not be nearly as interested in a stripped contract.

Just curious, trying to learn how DVC works

They are less likely to take a stripped contract but it has less value all else being equal. IMO, the true value can be quite different. In almost every situation I've seen, the loaded contract is a better value than a stripped one. The real value of a full use point is north of $10 per including the maint fees. Lets assume a fully loaded vs a fully stripped 100 pt contract at SSR and use round numbers. So a 100 pt March contract with 100 banked and 100 current points and all future points at $70 per point is around $8000 (price + 1 yrs fees + closing). A completely stripped contract with say no banked, no current and no 2016 points should be $3000 less (3 yrs pts at $10 per point, no 2015 MF, pay 2016 MF) so $5000. Obviously the extreme on both sides but for illustration purposes. Normally I'd reduce the value of banked points because they're often not full use and to be a full 3 yrs difference is not common. If we took a more realistic approach using the same example of no current points or banked points but with 2016 pts, we're still $2000 different or $6K. $6K with no MF since no pts minus closing is $55 compared to $70 loaded.

I realize there are other issues such as finding the right UY or at a resort that's difficult to find the right contract but this is simply comparing hard value.

 

[com_op_2000]

I paid within one dollar of that price for all my points, originally directly from DVC and resale in 2011.

 

[CarolMN]

There seems to be more than price involved in ROFR decisions - I believe that the unit number is a key factor. IMO, this is why it seems to us as though the decision is made by a blind monkey throwing darts.

Disney cannot (or chooses not to) combine points from different unit numbers into one contract for resale. If the unit number of the contract you are attempting to purchase doesn't fit with any Disney already has in their inventory, they may let it go, even if the price is lower than others they have recently taken. Unfortunately, we have no way for us to know what unit numbers are currently represented in their inventory, so we have to wait and see what they decide.

Good luck!

 

[heynowirv]

I've bought 3 different contracts (well buying my 3rd now) through 3 different brokers and neither one tried to get me to raise my bid.Now I never tried to low ball anyone ,I just looked at the ROFR board and tried to make a reasonable offer and it's worked 3 out of 4 tries.

But $52 PP it doesn't have a snowballs chance out of........IMHO.

 

[madhavok]

There seems to be more than price involved in ROFR decisions - I believe that the unit number is a key factor. IMO, this is why it seems to us as though the decision is made by a blind monkey throwing darts.

Disney cannot (or chooses not to) combine points from different unit numbers into one contract for resale. If the unit number of the contract you are attempting to purchase doesn't fit with any Disney already has in their inventory, they may let it go, even if the price is lower than others they have recently taken. Unfortunately, we have no way for us to know what unit numbers are currently represented in their inventory, so we have to wait and see what they decide.

Good luck!

I agree there is more to the ROFR decision than just price. I've seen low priced contracts pass and high one's get ROFR. I think it's worth tryig.

 

[GoofyJ]

Sorry, been away from the computer for a couple days. The listing agent was Fidelity and the contract had 2014 and 2015 points and was a 'combined contracts'. As my friend explained the purchase offer consists of two smaller contracts. I not sure that is possible but that is what he mentioned.
I am not sure I'm allowed to post the listing agent so I apologize in advance.
I just am happy my friend realized how the DVC program benefits his family's situation; agreeing in advance it may not be for everyone but it definitely works for his family.
If he gets ROFR'd atleast he is getting his feet wet in the process of becoming a DVC member.