OKW ROFR Update

[DBBN]

On another thread I mentioned I'd keep this board informed as our OKW resale purchase progressed. I'm happy to report that Disney passed on their ROFR. We expect to close in early February.

Here are the details.

December OKW 300 points. We get 147 banked points from 2002 and all 300 points from 2003. 2002 dues, 2003 dues and transfer fee paid by the seller. We pay the purchase price $66.00 per point and closing costs of $560.00. I intend to rent the 2002 and 2003 points. The net price paid per point will be $51.48 after the proceeds from the rental have been considered.

There is speculation that one criteria for Disney exercising ROFR is whether there is a wait list for the same UY at the specific resort. As it happens I am on the waitlist for December OKW direct from Disney. At least in this case it appears that it did not influence their decision.

All-in-all the more I look at the numbers the happier I am with this purchase. Thanks to other posters reporting on ROFR I believe I saved hunderds if not thousands of dollars on this contract.

 

[joepoe]

Originally posted by DBBN

Here are the details.

December OKW 300 points. We get 147 banked points from 2002 and all 300 points from 2003. 2002 dues, 2003 dues and transfer fee paid by the seller. We pay the purchase price $66.00 per point and closing costs of $560.00. I intend to rent the 2002 and 2003 points. The net price paid per point will be $51.48 after the proceeds from the rental have been considered.

I saved hunderds if not thousands of dollars on this contract.

Great job! Only thing I would say is we all have the opportunity to rent the points when we purchase. Using your logic, we only paid $40 per point two years ago for the 232 point OKW contract we obtained at $58 a point and all points banked.

I would not consider that in figuring your initial outlay. Your basis is $67.87 per point, still a great deal, and very useful information to people who are looking to buy a resale!!!!!

 

[DisneyKidds]

Only thing I would say is we all have the opportunity to rent the points when we purchase.

The difference is that there are banked points involved here. Not everyone who purchases gets those. I'd agree that rental proceeds from those points could be considered an offset when comparing to a direct purchase from Disney or a resale without banked points.

 

[pumpkinboy]

Wow! $66 per point with points in the bank? and Doc tells us that the management company is selling OKW for $84 per point. As we say back home, "wicked good bahgain, deah. You done good." Darn, I want some of that too.

Well done, and thx for keeping us apprised.

 

[dianeschlicht]

CONGRATULATIONS!

AND ALMOST

WELCOME HOME!

 

[bobbiwoz]

That's a great deal, congratulations!

Bobbi

 

[July]

Wow Congratulations! You have alot of contracts? 8 is that right my goodness. You want to share.. Just kidding..

July

 

[tinkgrl]

Hi,

Congrats & welcome home!!!

Allison an associate

 

[KANSAS]

I am shocked that Disney passed on RORF,congratulations!!

 

[DBBN]

joepoe...point taken. Although the actual basis is not terribly important to us I included rental proceeds from the 2002 banked and all 2003 points in my calculation because maintenance and taxes have already been paid on these by the seller. We'll pay maintenance and taxes on the 2004 points and they were not included in my calculation.

July...actually that's 8 Add-Ons to our original contract plus this 1 resale. We'll have of 10 contracts after this resale closes. We're in the process of accumulating points for extended stays at OKW when we retire in a few years. It's cold here in Southern Maine, as I write this at 11:30 pm I see it is -2 F/-19 C and dropping fast. Florida weather will suit us just fine.

Kansas...the broker who worked with us from The Timeshare Store believed Disney would purchase this contract. Based on information on this board I thought I had only a fair chance of owning them. Other contracts recently passed up by Disney have had what I consider better terms for the buyer. I consider 300 points to be a relatively LARGE contract and I believe it was the key to their passing on it. Too bad we'll never know for sure why they let us buy it.

 

[KANSAS]

dbbn
is your point, that disney,really did not need, your 142 banked points, 300 current year points and the 300 year point Okw Contract, at all? so it got past DISNEY ROFR?

i think you believe, the size of your contract, helped you get past RORF, not hurt you.

I would think, it would be the opposite, because DVC, could take all those banked and current points and the 300 points contract period and carve it up and take care of many wait list people.


I Am incredibly fascinated, that you were clearly on the waitlist, for this exact same use year at OKW and it still got past DVC RORF?

 

[DBBN]

KANSAS...I can only speculate. It appears larger contracts are passed up more often than smaller contracts that otherwise have similar terms, eg. price per point, banked points, current points, etc. I believe banked and current points are important but their importance drops off proportionally as the contract gets bigger.

True...I believe the size of this contract helped me.

True...I am on the December waitlist at OKW. I've been on it for a year or so. On a recent thread WebmasterDoc reports..."DVC is currently selling OKW points for Use Years March, August, September and October. They have between 1,000 and 3,200 points in each of those Use Years available. They are selling at $84 per point and MB is available for those interested. All other Use Years are sold out at OKW." (emphasis added).

 

[Nick@ VB+OKW]

Originally posted by DBBN
July...actually that's 8 Add-Ons to our original contract plus this 1 resale. We'll have of 10 contracts after this resale closes. We're in the process of accumulating points for extended stays at OKW when we retire in a few years. It's cold here in Southern Maine, as I write this at 11:30 pm I see it is -2 F/-19 C and dropping fast. Florida weather will suit us just fine.

DBBN
Congratulations on your add-on and your moving up into
the "Top 3 ".

"Top 12" DVC posters"

1.Debbie H-"2000 pts"
2.Katzha-1660
3.DBBN-1375
4.Icy Dog- 1252
5.sanddune-1236
6.Poorman-1220
7.BEIRMUGG-1200
8.tworgs-1200
9.wdw1972-1150
10.Nanjo1-1135
11.PKK/MJK- 1110
12.Mastre Gracey-1100

 

[stacy6552]

If its true that Disney cross references the contracts, then I suspect they let it go through because you were on the wait list and they werent going to really make any money on the deal anyway......

CONGRATS!

 

[Dean]

Originally posted by stacy6552
If its true that Disney cross references the contracts, then I suspect they let it go through because you were on the wait list and they werent going to really make any money on the deal anyway......

CONGRATS!

If the wait list would be a factor, you'd expect them to block sales to all on the wait list so they could sell them directly. Still, at a differential of less than $20 pp, it's not likely they'll make much money. They do this more to prop up sales and discourage the resale process overall than worrying about a specific buyer.

 

[joepoe]

Oh, and BTW, you will love getting to spend quality time at OKW with 300 new points to add to your existing stash! I think it will be fantastic to be able to escape the state of Maine for one of the winter months!

We love a nice relaxing 10 night stay there in late, late summer just before school starts in Illinois and just after school starts in Florida. We just move in like we own the place. LOL!