Resale market value

[OPTAX]

I'm looking to buy points in the resale market. Does anyone know at what price Disney is buying back SS? I just made an offer to a seller for $77/pt and they accepted. Should I expect Disney to buy them back at that price or can I expect to get them? Any advice would be greatly appreciated.

 

[Buckeye Fan]

You never know, but it looks as if things are passing in the low 80s. Here's a thread link that details ROFR stats.

http://www.disboards.com/showthread.php?t=720134&page=295


Best of luck and whether it's this contract or the next... HOME!!!

 

[epicureangirl]

Many here (from what I've read) think it is a good idea to increase your dollar-per-point offered (if there is a chance it may not pass ROFR), but to ask the buyer to pay all of the closing costs or current years dues etc. In effect, you can pay the same total, but it is just distributed differently.

Example, on a 200 point contract with $800 closing costs:
Instead of ($77 x 200) $15,400 plus $800 closing for a total of $16,200.
You would offer ($16,200 / 200) $81 per point and have them cover closing.

Good luck with your SSR contract!

 

[Terri2007]

I completely agree with PP. I would doubt that $77 per point for SS would pass ROFR. I would change numbers such that all the purchase monies would be applied to the per point costs.

 

[OPTAX]

Thanks, that was a big help! I'll just have to wait and see what Disney does.

 

[Caskbill]

Many here (from what I've read) think it is a good idea to increase your dollar-per-point offered (if there is a chance it may not pass ROFR), but to ask the buyer to pay all of the closing costs or current years dues etc. In effect, you can pay the same total, but it is just distributed differently.

Example, on a 200 point contract with $800 closing costs:
Instead of ($77 x 200) $15,400 plus $800 closing for a total of $16,200.
You would offer ($16,200 / 200) $81 per point and have them cover closing.

Good luck with your SSR contract!

This doesn't really work. You can't just go by the price/point. When Disney looks at doing ROFR or not, they look at the entire contract. In this case the buyer is paying $16,200 total and that's what Disney would have to pay. They will base their decision on this, and not on whether it's structured as $77/point or as $81/point. It's the same cost.

They also consider if points are banked, or borrowed. These add value to a contract, or decrease value. Dues are similar.

When you see what has passed ROFR or not in the past, it is only a guide. Each contract is different based on the above criteria.

And keep in mind it's illegal to try to hide some of the contract details from Disney. You must present them the exact same offer that is presented to the buyer. For example in the past people have suggested telling the buyer if they pay $95/point (to get past ROFR), you would give them a $10/point rebate. This does not work as you have to offer Disney the same deal. If you don't tell Disney about the 'rebate' and want them to think it's a $95/point selling price, then you are making a side contract with the buyer only. This then becomes an illegal transaction.

 

[epicureangirl]

This doesn't really work. You can't just go by the price/point. When Disney looks at doing ROFR or not, they look at the entire contract. In this case the buyer is paying $16,200 total and that's what Disney would have to pay. They will base their decision on this, and not on whether it's structured as $77/point or as $81/point. It's the same cost.

If a contract says that the BUYER pays closing, doesn't Disney then have the option to do the closing themselves, therefore saving themselves $$$ on that? Obviously we all know it is the same amount of money being offered, but if "this doesn't really work", why is this a common recommendation? Doesn't the APPEARANCE alone of $77 a point send off red flags, vs. $81, say?

Or would it be more accurate to say we really don't know why some get ROFR'd and others not? Come to think of it, does the ROFR post even have enough data to come up with any conclusion (either way)? Just wondering....

 

[cubes]

I strongly disagree. Disney gets all the same benefits of the contract, and these contracts are reviewed by a Disney lawyer, so I doubt that shifting around the cost will have any effect whatsoever.

EXCEPT... It increased the property price which INCREASES THE SELLERS COMMISSION, which may be what drivers this line of thought.

Many here (from what I've read) think it is a good idea to increase your dollar-per-point offered (if there is a chance it may not pass ROFR), but to ask the buyer to pay all of the closing costs or current years dues etc. In effect, you can pay the same total, but it is just distributed differently.

Example, on a 200 point contract with $800 closing costs:
Instead of ($77 x 200) $15,400 plus $800 closing for a total of $16,200.
You would offer ($16,200 / 200) $81 per point and have them cover closing.

Good luck with your SSR contract!

 

[BWV Dreamin]

I strongly disagree. Disney gets all the same benefits of the contract, and these contracts are reviewed by a Disney lawyer, so I doubt that shifting around the cost will have any effect whatsoever.

EXCEPT... It increased the property price which INCREASES THE SELLERS COMMISSION, which may be what drivers this line of thought.

Very true. I bought two contracts resale, one where I paid all closing and MF's. One I paid NO closing, just current UY MF's. Both offers were really low. One even had '06 pts. banked. Thought for sure I would get ROFR'd, but didn't happen. That is the million dollar question "at what point is too low". Well I say test the market.

 

[OPTAX]

After all your comments, I decided to up the offer to $79.00/pt. There are some 2006 points still banked. We'll see what happens. Thanks for all your help!