Resale Prices

[heynowirv]

Have I been out of touch or what? I was looking at an OKW extended contract,it has 25 points on it,it's a June UY with 2014&2015 points.So it's a loaded 25 point 2057 expiration OKW contract.It was being offered for 112.pp.
I placed a bid for 90.pp which I thought was reasonable.The broker got back to me and told me there were multiple offers and I had until 3PM to change my bid or stand pat.I stood at 90.ppHe wrote me back and told me there were 3 offers and the owners declined all 3.When I asked the broker the highest bid he told me 110.pp was the best bid.
I have 2 questions ,the owners were/are holding out for 50. more?And are prices that crazy that people are paying almost retail for DVC ?

Someone please please help understand.TIA.

 

[disneynutz]

Supply and demand. High demand, high prices.

 

[suebeelin]

IMO resale prices have gone insane. If my kids weren't 2 and 5, I would be selling (or renting) that's for sure.

 

[mickeyman]

The small contracts always seem to go for more. Most OKW contracts that are bigger seem to be going for under $90 per point

 

[amcnj]

Agree with the previous poster about smaller contracts. Over the years they have tended to be more per point, sometimes quite a bit more.

 

[jnjhuddle]

I agree with OP and would offer $90ish for this fully loaded extended OKW contract. If I was paying $112 pp resale, I would not be looking at OKW, as much as I love it there. I bought a loaded 50 point OKW in April for $71 pp (2042 expiration). Also got rofr'd on a fully loaded 80 point OKW at $86 pp a couple months ago which I thought was a little bit high. I believe the 2057 extended only commands about $10 more pp. Anyway, I'm sure someone out there is willing to pay the $112...

 

[heynowirv]

What got me the most was the the owner balked at an offer of 2.pp less. Gee they were only offering a total of 50. less.

'm sure someone out there is willing to pay the $112...

And there were 2 contracts one was being offered at 112.pp and another for 115.Identical with June UY's .Jnhuddle,sometimes the mouse takes a contract because they want the UY more than the amount of points.

 

[jnjhuddle]

What got me the most was the the owner balked at an offer of 2.pp less. Gee they were only offering a total of 50. less.


And there were 2 contracts one was being offered at 112.pp and another for 115.Identical with June UY's .Jnhuddle,sometimes the mouse takes a contract because they want the UY more than the amount of points.

I agree, shouldn't be too greedy about $50 when someone is already willing to pay more than they probably should for this.

Everything worked out for me with them taking the 80 point contract. I had jumped on it because it had all 2014 and 2015 points with no MF due. It was September use year which could have worked, but the day after I got notice of rofr I was able to get a 150 point OKW with my use year (October) for $79 with no MF due on 2015 points. It closed yesterday.

My original plan with DVC was to buy one smallish contract at a time so I could pay cash until I had the number of points I needed. With the crazy price increases esp on small contracts lately, I changed my mind and decided I better get more points now. The bad part is I had to finance this, but only temporarily until I get my tax refund. I'm justifying it by saying it equals out with not having to pay closing costs on multiple small contracts.

 

[supersnoop]

What got me the most was the the owner balked at an offer of 2.pp less. Gee they were only offering a total of 50. less.

Sure, the owner balked at $50, but so did you. It's a seller's market right now. The contract has only been listed for a week. I'd never accept an offer less than full asking price in the first week.

 

[heynowirv]

Sure, the owner balked at $50, but so did you. It's a seller's market right now. The contract has only been listed for a week. I'd never accept an offer less than full asking price in the first week.

Actually I only went as high as 90.pp,someone else offered 110.

 

[djohn06]

DVC is very hot right now. Disney is also ROFRing a ton these days too.

$50 less, wow. There are plenty of fish in the sea.

 

[Michael Gago]

Have I been out of touch or what? I was looking at an OKW extended contract,it has 25 points on it,it's a June UY with 2014&2015 points.So it's a loaded 25 point 2057 expiration OKW contract.It was being offered for 112.pp.
I placed a bid for 90.pp which I thought was reasonable.The broker got back to me and told me there were multiple offers and I had until 3PM to change my bid or stand pat.I stood at 90.ppHe wrote me back and told me there were 3 offers and the owners declined all 3.When I asked the broker the highest bid he told me 110.pp was the best bid.
I have 2 questions ,the owners were/are holding out for 50. more?And are prices that crazy that people are paying almost retail for DVC ?

Someone please please help understand.TIA.

Stay put and don't buy now. These price increases are unsustainable. In the last few months, BCV alone is up from $90 pp to about $120 with resellers now expecting $125 to $130 on a stripped contract with 25 years left. This reminds me of the same housing bubble that occurred in Florida in the mid 2000's. Real estate prices came down substantially across the state then and there is a strong chance that history is going to repeat itself with DVC as resale prices and memberships continue to increase. You should wait until things cool off.

 

[Miss Piggy 1978]

Im a huge Disney fan and have been going every year for quite some time now, but I'm surprised at the prices buyers are paying for membership in this market. I think anyone buying in now at these price levels are making a mistake.

We just paid $123 for a stripped 50 point contract at BCR and I don't feel it's a mistake. We will be using the contract towards our next stay in 2016 and it's still a lot cheaper for us doing it this way than paying for a cash reservation so I'm not interested in waiting to see if the bubble bursts.

We all attach different values to things and make our own choices, doesn't mean mine is a mistake.

 

[ScubaCat]

Actually I only went as high as 90.pp,someone else offered 110.

There could have been more to the offer, though. It could have been an offer for $110/point but seller pays 2016 dues or something like that. And the 2014 points are worth at least $10/point rented, so that's approximately equivalent to $100/point without the 2014 points.

Realize, I don't know any of this for a fact. I'm just offering some ideas to consider.

I just passed ROFR on a BCV contract for 350 points at $99/point. I was pretty shocked given recent history, but I think the issue was that some of the 2016 points are already used, and there are some points borrowed from 2017 into 2016, so it's an odd number of points each year until 2018. That probably made it tricky to split up in a way that they could use it to fill wait list requests. Still, quite a deal IMHO just based on recent prices and ROFR history.

 

[zemra406]

We just paid $123 for a stripped 50 point contract at BCR and I don't feel it's a mistake. We will be using the contract towards our next stay in 2016 and it's still a lot cheaper for us doing it this way than paying for a cash reservation so I'm not interested in waiting to see if the bubble bursts.

We all attach different values to things and make our own choices, doesn't mean mine is a mistake.

Agree with this. Do I wish I bought in a year ago? Yes! But the per point price difference for me is about one out of pocket cash reservation. It still seems worth it to me. Would agree it depends on your own individual values.

 

[Dean]

Have I been out of touch or what? I was looking at an OKW extended contract,it has 25 points on it,it's a June UY with 2014&2015 points.So it's a loaded 25 point 2057 expiration OKW contract.It was being offered for 112.pp.
I placed a bid for 90.pp which I thought was reasonable.The broker got back to me and told me there were multiple offers and I had until 3PM to change my bid or stand pat.I stood at 90.ppHe wrote me back and told me there were 3 offers and the owners declined all 3.When I asked the broker the highest bid he told me 110.pp was the best bid.
I have 2 questions ,the owners were/are holding out for 50. more?And are prices that crazy that people are paying almost retail for DVC ?

Someone please please help understand.TIA.

For 25 just I'd just buy retail, get the current and future UY points and move on.

 

[heynowirv]

You'd just have to find your 25 points from the mouse and that's not always easy if it's an older resort. But I see your point

 

[Dean]

You'd just have to find your 25 points from the mouse and that's not always easy if it's an older resort. But I see your point

it shouldn't be that difficult other than VGF & VGC. Likely easier than a resale.

 

[BWV Dreamin]

The economy is improving. Foreign travel is risky for Americans. People are staying in the country to vacation and Disney is the number one destination to vacation in the world. Why would resale prices be falling in the future? Not going to happen anytime soon. As rehabs happen and new points are offered for sale the price is only going to increase. I would not advise anyone to wait who truly wants to purchase.

 

[RaymOOOnd]

As anyone familiar with Warren Buffett's philosophy can tell you, the market does not always price things appropriately. I think DVC is becoming an extreme example of that. At some of the prices some older resorts are going for, there aren't even substantial savings over simply staying on cash each year (in which case you get room service and a higher quality room, IMHO). I think the emotional component of these purchases introduces some price hysteria.

Resale prices are even making direct look very appealing in the case of the older resorts, i.e. I'd love to buy at VWL but not at $100pp with ~25 years left on the contract. Perversely it actually seems better to wait and spend the $180 or whatever they list the cabin points at.