Resale Value of a Stripped BWV Contract?

[BuzzLightYear3]

Hi....I'm interested in perspectives on what you think the resale value would be of a stripped contract at BWV.....April Use year but no significant points until April 2004. Points are in low 200s (so it's not so low that it's a really attractive small add-on, and it's not so high such that it'd be unaccessible for many people.) We're planning to make an offer and don't know what a reasonable per point offer would be. Any input would be appreciated.

Thanks!

 

[Denmage]

Considering there are no points till 2004, I would say that a price between $63 - 65 per point would not be unreasonable. I have seen may contracts on the Timeshare store for around $68 per point, but you usually expect that there will be some use points in the near future.

Good Luck,

Denis

 

[HookdonWDW]

Personally, by the time I got the price down to where I'd want it, I doubt that DVD would let the sale go through (even if the owner accepted my offer). This is how I look at it:

220 points * $64 = $14080

$14080 + $902 (Est MF for 2003) = $14982

$14982 + $500 (Closing) = $15482

$15482/220 points = $70.38/point

I'd want a final price of about $65/point, and I just don't see how I could make it happen in this case.

 

[Granny]

Wow, this one is really stripped down.

Maybe you could structure the offer to allow it to go through...say have the seller pay closing costs, plus have the seller pay all maintenance on 2003 points (after all, they already used them) and even then probably look in the $63-64 per point range?

Hard to say. Even harder to believe someone wants to sell a contract when they have already borrowed the maximum number of points allowed!!

Good luck!

 

[lehrsj]

This is the way I look at it. If I go to Disney and buy 200 points at BCV I can get my April use year. I will have 200 April 2002 points and I will have 200 April 2003 points. My cost will be 200 * $80 = $16,000.

Let's say I can buy a resale of 200 points for $62 a point for a total of $12,400 with an April use year but no points until April 2004. Add closing costs of say $500 and you get $12,900.

I've got 400 more points if I buy straight from Disney - 200 for 2002 and 200 for 2003. If I rent those 400 points at the going rate of $10 a point then my cost drops from $16,000 to $12,000. If I just figure $8 a point which I gotta believe would be quite easy to rent the price drops from $16,000 to $12,800.

So for me $62 a point is still too much.

 

[DeeP]

I am currently in contact with a salesperson from the timeshare store regarding a resale at BWV and also my DVC guide regarding an add on at BCV and I was told that Disney will not let let any contracts be sold for less than $65.00 per pt or they will exercise the first right of refusal. If this is truly the case, maybe you may want to pass this contract up and wait for another one with pts available before April '04, that is a long way away.

 

[kem330]

I have to agree with lehrsj and granny- You have nothing to lose making a low offer and see if it will fly with Disney. I would definitely ask for 2003 maintenance fees and closing costs to be paid by seller and only offer $60 - $61/point.

 

[Laurabearz]

All I can add is that we bought (5 months ago) a fully load BWV contract for 65 per point....... full bank of last years points, all points from current year and the next.......... AUgust UY........

 

[robinb]

We also just bought a BWV resale in April with an August UY. It had 100 banked points (2001), all 200 from this year (2002) and 200 from next year (2003). We paid $62 per point plus closing. Personally, I think that you'll find a better contract out there than one that does not have any points until 2004. Think of it this way, all points are gone from this year (2002) and next (2003). Skip it, it's not worth it. You'll be in "debt" right away and will never catch up.

 

[msdis]

here are some fact of our recent resale. Sold in less than 1 week. BWV-150 pts. -sold in Sept- June use year- 65/pp- all closing costs paid by buyer- all 2002 points used-all 2003 points in tact.

If it's not a good deal for you then don't buy it, but there are buyers out there that are not looking for a "good deal" but are looking for their location of choice. At the time we sold this there were threads on this board advising people not to pay 65/pp let alone one with no points for 2002 and god forbid you hog for not banking 2001 points. I thought I was wasting my time but felt my asking price was fair. The proof is in the pudding, sold in less than a week. Right after the announcement of the Dec. increase I noticed most of the resale prices went up. Had I waited till now I'm sure a buyer could be had for 2-3 dollars more per point. At 200 points you are talking $5.00 per year for each dollar per point you pay "extra" than you want. Look at the big picture. It's no wonder sellers are backing out of deals as reported here on several occasions.

 

[Dean]

I personally would not give more than around $54 per point for that contract with seller paying closing and paying for the dues upcoming in Jan. You're talking almost a year and a half with no points other than borrowing them. If you assumed 200 points at $65 per point, that's $13000. You then add about $450 for closing and subtract about $15 pp for each points not present until April of 2004 and that gives you a price around $52.25 pp plus the maint fees coming up in 2003 and in 2004 on points you don't have use of.

While it's true that DVD may buy it back, that's what it's worth compared to a non striped contract for around $65 pp. Also remember that DVC will cancel any pending points reservations so you might find yourself with more points than anticipated. Good luck.

 

[BuzzLightYear3]

Thanks for all the thoughtful input! Gives us a lot to think about. This board is great!

 

[Caskbill]

Just to look at it a little differently, I think the seller is making a big mistake just putting this contract up for sale. Maybe they really need the money right now?

If it were myself selling, I'd just sit on it till at least 2004, maybe even 2005. By then Disney will surely have raised prices again putting their price well above $84/point, while this contract would then be caught up with 2004 points available as either current points or banked, and could probably pull down $70/point. That would be about a 16% gain compared to today for simply waiting about a year and a half from now.