Resale Point Value

[dischris11]

I'm interested in purchasing my first contract at AKV for around 200 points. I have been looking at the ROFR thread to get a sense of what the market value is of the points. However, when I look at the listings they are priced significantly higher than what I'm seeing on that thread (by around $15-$20 a point). Is that the typical markup? Is there somewhere else I should be looking to determine how much to offer? Thanks!

 

[Kickstart]

Others with more experience will chime in, as I bought for the first time this last summer.

IMHO, for a 200 point contract, offering around $15-$20 below what's currently being asked makes senses to me.

I'm guessing (total guess BTW) the average sales price probably hovers around $5 below asking, with people who research these boards generally offering less than the typical buyer (but not necessarily - could be a hard to find use year, or the buyer doesn't want to risk someone else getting the contract or losing it during ROFR).

It's just a matter of how rare/important the particular contract is to you, how much time/hassle you're willing to put up with for someone to accept a lower than average offer, and how much risk you're willing to take on losing the contract to Disney during ROFR.

 

[Lorana]

I'm interested in purchasing my first contract at AKV for around 200 points. I have been looking at the ROFR thread to get a sense of what the market value is of the points. However, when I look at the listings they are priced significantly higher than what I'm seeing on that thread (by around $15-$20 a point). Is that the typical markup? Is there somewhere else I should be looking to determine how much to offer? Thanks!

Most sellers will price their contracts on the higher end, hoping to get top price for them, but many are willing to negotiate, so I would start by asking for a lower price and seeing if they will negotiate. I’ve rarely paid the asking price on contracts I’ve bought resale. Don’t forget to also negotiate on MFs and Closing Costs, especially if the seller won’t budge on price per point or if the contract is stripped.

 

[MICKIMINI]

There are too many unknowns to make a judgement here IMO. You may want to read blogs on various broker websites regarding their ROFR and average selling prices. DVCResales.com has plenty of reading material. I certainly would use that info as a guide only.

AKV seemed to become really hot about a year ago and small contracts have been selling pretty well. Larger contracts seem to linger and that is where knowledge is key...how long has it been listed? How many points are available?

In the end, a fair price is whatever you and the seller agree on. If DVC takes it in ROFR, so be it. I don't advise basing an offer on that possibility. Good luck!

 

[RanDIZ]

I'm interested in purchasing my first contract at AKV for around 200 points. I have been looking at the ROFR thread to get a sense of what the market value is of the points. However, when I look at the listings they are priced significantly higher than what I'm seeing on that thread (by around $15-$20 a point). Is that the typical markup? Is there somewhere else I should be looking to determine how much to offer? Thanks!

I’d probably shoot for the $110 range on a 200pt. I did notice that AKV seems to be priced on the higher end. But remember, nickel and diming on a couple bucks over the life of a contract isn’t worth losing.

 

[Drew729]

While it appears that anything $100 a point or more has been passing ROFR the asking prices have been listed for much higher.

I bought a 160 point AKL contract with full 2019/20 points for $105 which I thought was fair. I had just been waiting for the right contact to match my use year to come along. If it’s your first contract and use year doesn’t matter I am sure something with come up, and for me it’s worth it to pay an extra few bucks for a loaded contract.

Love AKL and the reasonable points chart

 

[BugsPop]

The ones with the higher asks usually have loaded contracts as well.. lower asking price is almost always stripped..

 

[HappyDisneyWife]

Animal Kingdom Lodge saw a jump in pricing last spring... seemingly due to a shortage of contracts for sale. Sellers would obviously like to keep that upward momentum going! Current price “differences” you are seeing could definitely be the people that have negotiated down, but the fear of ROFR is real and many buyers are willing to pay more to avoid it... which causes sellers to be able to list higher. It’s a viscous uphill cycle.

If you feel that “$20 less” pp is what’s fair, then offer that! You’ve kept numbers a bit vague here, but I think low $100s pp shouldn’t be too hard to find a seller willing to work with you

 

[Rm4OneMore]

The ones with the higher asks usually have loaded contracts as well.. lower asking price is almost always stripped..

I second this. We bought a stripped contract last spring and picked it up for $95 per point. We knew we wouldn't be going in 2020 so we were cool with it.

 

[Kickstart]

The ones with the higher asks usually have loaded contracts as well.. lower asking price is almost always stripped..

I second this. We bought a stripped contract last spring and picked it up for $95 per point. We knew we wouldn't be going in 2020 so we were cool with it.

Which brings up an interesting cost/value analysis... Having thought about what the most cost effective options are, I'm thinking it generally boils down to the following:

• If you want/need points sooner than later: It's worth it to pay a slight premium for the loaded contract
• If you don't plan to go for a while after closing, and you don't want to deal with renting points out: Look for a discount on stripped / partially stripped contract
• If you don't plan to go for a while after closing, and you don't mind renting points out: Try to get the best price on a loaded / mostly loaded contract.

Generally speaking, if you're willing to rent out the "extra" points you don't plan on using you'll save more with the loaded contract, even if that means you're paying maintenance fees. Even after MF's you'll likely clear $6 to $9 per point. You have to do the math on the specific contract, how much time you'll have to rent out any extra points, and what your travel plans are to figure out which of the above categories works best for you.

 

[dischris11]

Animal Kingdom Lodge saw a jump in pricing last spring... seemingly due to a shortage of contracts for sale. Sellers would obviously like to keep that upward momentum going! Current price “differences” you are seeing could definitely be the people that have negotiated down, but the fear of ROFR is real and many buyers are willing to pay more to avoid it... which causes sellers to be able to list higher. It’s a viscous uphill cycle.

If you feel that “$20 less” pp is what’s fair, then offer that! You’ve kept numbers a bit vague here, but I think low $100s pp shouldn’t be too hard to find a seller willing to work with you

Yes, low $100's was what I was thinking. Thanks.

 

[macman123]

I have 2000 points of which 1 contract was direct and the other 11 or so are resale.
I aways offered around 95% of what was asked.
However don't go too low as you may get hit by Disney taking it back under ROFR. This happened to two contracts (excluded from my figure above).
Read the ROFR reports and see what price point they are taking back. Then I usually offer slightly higher than this just to make sure.

If you had a perfect 150 point contract and you end up paying $2 a point more, thats only $300 for your ideal contract. Not much in the long term.

 

[sethschroeder]

Find a price you want to hit and offer that or below it. Don't worry about what the listed price is.

If you start seeing the ROFR thread going up in price then maybe adjust your price then.

Oh and most brokers are not that helpful. Their goal is to sell you a contract not get you the lowest price. So I would just come here for help and not rely on them if you are wondering about a specific contract.

 

[VWLforever]

OP, keep in mind that AKV has 35 years remaining on the contract. Therefore, even if you were to pay an extra $10/point over your ideal price, that ends up only being a difference of 35 cents/point/year. The large majority of your overall ownership cost is going to be annual dues- the purchase price will end up being less than a third of your total cost of ownership.

I like a "deal" as well as the next guy, so I don't fault you at all for wanting to find an attractive price. Just saying, don't lose sight of the forest for the trees. If you find a contract with the exact right UY, size, and points available status, buy it and don't look back if the purchase price is $5-10 more than you had seen at the bottom of the ROFR threads.

 

[RedFive]

Dischris, I was/am in the same boat as you. I've reviewed the ROFR numbers, the prices contracts have been generally going for for AKV, etc.. I'm a data nerd by day, so naturally, I probably spent way too much time going over the numbers. My offer was just accepted last week.. at the listing price. It was a tad on the higher end, not extreme, but several points higher than data on dvcstore suggested. It's exactly what I was looking for though. I probably could have gotten it $10/pt cheaper. Maybe not, who knows. Got 2x pts though and only half the dues for those points. Long story short, don't drive yourself too crazy over it. As some have mentioned on here, it's truly pennies over the lifetime of the contract. Whatever you do pay, it's still going to be a much better value than direct, so win/win, imo.

 

[RoseGold]

Different resorts have different pricing strategy. SSR has plenty of contracts coming and going, so your listing has to be competitive or it won’t even be considered. Plenty more contracts in the sea.

Smaller resorts can demand crazy pricing. I always question those VGC listings that I consider reasonable. I’d list crazy high, you just might get it.