Question re OKW Offer Price

[masupo]

I placed an offer on a small 39 point OKW contract Oct UY. It was listed for $110pp and I offered the asking price. The broker just responded that she can submit my offer to the seller.

I've been watching the ROFR thread and an OKW was taken recently at $116. I'm considering upping my offer to $115pp (or even a little higher) It would only be about $200 more.

Do you all think that would be a good move? Thanks!

 

[Stargazer65]

No way of predicting really. I guess it depends on whether the contract or 200 dollars is worth more to you. If it gets taken ROFR at $110, are you going to kick yourself? OTOH, if you get the contract at $115, are you going to miss the $200?

 

[MomOTwins]

I suspect if Disney wants to ROFR, $200 won’t matter to them either. Roll the dice at 110—you won’t know if Disney wants to buy back the contract until you go through the process.

 

[masupo]

No way of predicting really. I guess it depends on whether the contract or 200 dollars is worth more to you. If it gets taken ROFR at $110, are you going to kick yourself? OTOH, if you get the contract at $115, are you going to miss the $200?

I think I have my answer LOL. While I will miss $200, I would definitely kick myself for days if it gets taken at $110.

I suspect if Disney wants to ROFR, $200 won’t matter to them either. Roll the dice at 110—you won’t know if Disney wants to buy back the contract until you go through the process.

Good point. I'll think about it a bit, then pull the trigger.

Thanks!!

 

[Paul Stupin]

If OKW was taken recently at $116, I’d consider offering $120. It’s a couple hundred more that you’d pay at $115, but those small point contracts, especially if it’s your UY, are hard to find.

 

[poofyo101]

You should be fine. Your closing costs are going to be higher cost PP than the larger contracts so it makes your actual PPP higher.

 

[macman123]

I would offer asking but seller pays closing......

 

[masupo]

All great advice! This is my first resale contract (I have direct points) and I'm a little leery of asking price plus seller paid closing. That would bring the true cost pp to $118. I may get braver on my next contract LOL

With $505 closing cost + 2021 maint fees, the true cost of $110 asking price is $131pp. Plus the Fidelity $195 admin fee ugh. Think I'll skip small contracts through them in the future...

I talked to the broker and she also said offering $110pp should be fine. She's offering to the seller now - wish me luck!

 

[mustinjourney]

um -- the one taken at $116 -- how many points was it?

I seriously doubt disney is going to mess with a 39 point contract. The administrative hassle alone would make it a non-starter for me if I was managing things at DVC. In short -- it wouldn't be worth the paperwork to buy back the points from disney's POV.

 

[MICKIMINI]

The $116 was mine as the seller. 150 points and pretty much stripped. I would not pay more than $110 for that contract since your closing costs and fees are about $700.

I passed on 2 25 point OKW at $100 and have a 30 point OKW in ROFR for $125 seller paying closing which brings it down to about $108. DVC doesn't seem to take small contracts. I think you'll be okay. Good luck!

 

[T-i-double-guh-er]

DVC doesn't seem to take small contracts.

Not super recent, but in September 2019 Disney ROFRd a 40-point OKW contract that I was buying at $87/point.

 

[MICKIMINI]

Not super recent, but in September 2019 Disney ROFRd a 40-point OKW contract that I was buying at $87/point.

That was a super cheap price for 2019! Great buy, no wonder they took it!

 

[DL1WDW2]

Is this when DVC was still keeping a waitlist?
I guess somebody was waiting to buy that and a guide needed the sale.
I still feel bad for the person trying for the 100 point contract that I got at BLT thru this process. I never really thought about the ROFR.

 

[masupo]

um -- the one taken at $116 -- how many points was it?

I seriously doubt disney is going to mess with a 39 point contract. The administrative hassle alone would make it a non-starter for me if I was managing things at DVC. In short -- it wouldn't be worth the paperwork to buy back the points from disney's POV.

The $116 was mine as the seller. 150 points and pretty much stripped. I would not pay more than $110 for that contract since your closing costs and fees are about $700.

I passed on 2 25 point OKW at $100 and have a 30 point OKW in ROFR for $125 seller paying closing which brings it down to about $108. DVC doesn't seem to take small contracts. I think you'll be okay. Good luck!

My offer for $110pp was accepted! I'll add it to the ROFR thread when they send it to DVC. Thanks for the reassurances - I was a little nervous about my first resale offer.

 

[MICKIMINI]

If you offer full price that particular broker will consider it sold so if it is close to what you want to pay and you get in first, you are all set. Congratulations!