Points question.... and a few more

[CindeBella]

We were just approved for our loan to purchase 175 points at BWV. There are 135 points currently available and 175 coming in June '08.
Do we need to use the 135 points before June or will we risk losing them?

I'm still very confused on the resale. We were told we need to pay $700+ up front for dues and $525 for closing costs. We were also told that Disney can still purchase the property. We are paying $85 per point and we were told it isn't likely that it will happen.

Thank you for any advice you can give! A little nervous and excited

 

[kend58]

the current list is on the 2nd last page I think post 3949 http://www.disboards.com/showthread.php?t=720134&page=264

 

[kend58]

We were just approved for our loan to purchase 175 points at BWV. There are 135 points currently available and 175 coming in June '08.
Do we need to use the 135 points before June or will we risk losing them?

I'm still very confused on the resale. We were told we need to pay $700+ up front for dues and $525 for closing costs. We were also told that Disney can still purchase the property. We are paying $85 per point and we were told it isn't likely that it will happen.

Thank you for any advice you can give! A little nervous and excited

who pays the closing costs and MF's is up to the seller and the buyer should have been a part of your offer negotiation sounds like you are paying 07 maint and closing costs in addition to x per point

 

[Boston5602]

We were just approved for our loan to purchase 175 points at BWV. There are 135 points currently available and 175 coming in June '08.
Do we need to use the 135 points before June or will we risk losing them?

I'm still very confused on the resale. We were told we need to pay $700+ up front for dues and $525 for closing costs. We were also told that Disney can still purchase the property. We are paying $85 per point and we were told it isn't likely that it will happen.

Thank you for any advice you can give! A little nervous and excited

You can be told anything the seller wants to tell you , but what you actually pay is up to YOU !!! It's like buying a car or home , you make an offer and then work from there. IF you were buying from Disney there would be NO negotiating but since you are buying from an individual you can negotiate all you want.

 

[browniemtb]

The 135 points can be banked if you will not be traveling in 07. As far as closing costs and MF....that is one area I would negotiate. The MF for the 07 contract should already be paid unless the current owner is paying monthly. In which case I would negotitate to have the seller pay. We didn't buy resale so I am not sure how they handle the closing cost...Lastly at $85 a point you may or may not get ROFR......current Disney's price for BWV is around $98 I think. It all depends on what is in their (Disney's) point inventory at the time.
Good Luck...
Brownie

 

[CindeBella]

You can be told anything the seller wants to tell you , but what you actually pay is up to YOU !!! It's like buying a car or home , you make an offer and then work from there. IF you were buying from Disney there would be NO negotiating but since you are buying from an individual you can negotiate all you want.

I thought about that also but I'm wondering what makes Disney exercise ROFR.. is it that the cost per point is too low or I would be negotiating, etc. Does that makes sense? I feel that if I'm fair the sale should go through. Which is another question... what is fair? Since I would be obtaining 135 of the 175 points this year I figure I should pay 2/3 of the dues this year. closing cost is another question all together. Who usually pays?

 

[WebmasterDoc]

If you were purchasing from DVC, you would pay about $425 (Disney prorates the dues based on when you purchase) and you would be getting a full 175 points for the June 2007 Use Year and another allotment of 175 in June, 2008.

The 135 current points can be banked into the next Use Year and you will have until the end of November to bank all 135 or the June, 2007 points.

It sounds as though you have already agreed to pay closing costs and $525 in annual fees and probably cannot renegotiate those terms at this time. Closing costs are a negotiable component of the sale - as are annual fees.

I might have raised the per point offer and had the owner pay all closing costs and maintenance fees - just to make it less attractive for DVC thru ROFR. Closing costs should be in the $450 range - so if you had offered $90 per point, the total cost would have been just what you will pay now (and have the seller pay closing and all annual fees), but DVC would be less likely to ROFR at that price.

You will probably be fine as it is. Please keep us informed.

 

[CindeBella]

If you were purchasing from DVC, you would pay about $425 (Disney prorates the dues based on when you purchase) and you would be getting a full 175 points for the June 2007 Use Year and another allotment of 175 in June, 2008.

The 135 current points can be banked into the next Use Year and you will have until the end of November to bank all 135 or the June, 2007 points.

It sounds as though you have already agreed to pay closing costs and $525 in annual fees and probably cannot renegotiate those terms at this time. Closing costs are a negotiable component of the sale - as are annual fees.

I might have raised the per point offer and had the owner pay all closing costs and maintenance fees - just to make it less attractive for DVC thru ROFR. Closing costs should be in the $450 range - so if you had offered $90 per point, the total cost would have been just what you will pay now (and have the seller pay closing and all annual fees), but DVC would be less likely to ROFR at that price.

You will probably be fine as it is. Please keep us informed.

We're still waiting on the paperwork. I was told by another agent what the closing cost and dues are. The closing cost is $525 and the dues are $703. The price per point is $85 where as Disney charges $94 per point. There are 135 points availabe now and 175 available next June.

I will talk with the agent about raising the price per point. What do you think is fair for everyone? Thank you for your advice!!

 

[Mickbee]

We're still waiting on the paperwork. I was told by another agent what the closing cost and dues are. The closing cost is $525 and the dues are $703. The price per point is $85 where as Disney charges $94 per point. There are 135 points availabe now and 175 available next June.

I will talk with the agent about raising the price per point. What do you think is fair for everyone? Thank you for your advice!!

If I recall correctly, TSS often "assumes" the buyer will pay the current year dues on ONLY the points available for the CURRENT use year ($4.xx * 135). If BWV dues are $5.20 ($703/135), then the $703 sounds correct for the 135 points. I forget the actual dues per point cost so please don't take the $ figure as correct for the dues. Also, the $703 may include the $20.00 ROFR fee.

Banked point dues should not be passed to the buyer unless it is agreed by the buyer; typically not proposed by TSS.

If you aren't certain of the terms, keep asking your agent until you fully understand the terms.

Good luck with your purchase.

 

[WebmasterDoc]

We're still waiting on the paperwork. I was told by another agent what the closing cost and dues are. The closing cost is $525 and the dues are $703. The price per point is $85 where as Disney charges $94 per point. There are 135 points availabe now and 175 available next June.

I will talk with the agent about raising the price per point. What do you think is fair for everyone? Thank you for your advice!!

The BWV dues for 2007 are $4.85 per point. These are based on the calendar year - NOT on the Use Year. Purchases made thru Disney will be prorated based on the date - so anyone purchasing now will only pay about 50% of what the dues would normally be and will still get ALL of the points in the contract. With this resale , you would have to pay dues again in January (on all 175 points) - even though you will not get more points until next June - unless you are able to negotiate something different.

Using the figures you have provided - you will pay about $92 per point (including closing costs and maintenance fees) and you will not get your full allotment of points for 2007.

A purchase thru Disney would cost a little more - I think the price per point is $98 for BWV, closing costs of about $250 and prorated dues of about $425 - but you will also have 40 more points this year. You could begin making reservations immediately.

The resale, as outlined, will be about $1575 less but would have an additonal 40 points.

My original suggestion was just a means to reallocate the same purchase price to make it less attractive for Disney to exercise ROFR - since Disney already has the ability to handle the closing themselves and they already have received the annual fees. By defining the same total purchase price as a higher per-point cost (and having the seller pay closing and dues), Disney might be less likely to ROFR since it would cost them more than the $85 price.

The seller doesn't really care since he gets the same amount whether it's from you or from Disney. If you still have the ability to define your offer, I'd sure consider structuring it to include all costs and have the seller handle those details for you.

Good luck!

 

[spsmyk]

It was my understanding that DVC figures closing costs into determining whether they ROFR --- so my 130 point resale purchase at $80 actually becomes $83 in their calculations if I pay $390 in closing costs.

So if I made an $83 deal and has seller pay closing costs, it would be the same exact deal in DVC's decision to ROFR.

Am I mistaken?

 

[CarolMN]

It was my understanding that DVC figures closing costs into determining whether they ROFR --- so my 130 point resale purchase at $80 actually becomes $83 in their calculations if I pay $390 in closing costs.

So if I made an $83 deal and has seller pay closing costs, it would be the same exact deal in DVC's decision to ROFR.

Am I mistaken?

Nobody here really knows exactly what goes into Disney's ROFR analysis. My personal opinion is that Disney looks at the cost of the entire contract to the buyer as well as other factors - such as how many members are on a waitlist for a particular use year at a particular resort.