Resale ????

[shelbyjosh]

I posted a question about this last week. Yesterday, I got a call from Pat at TTS. She told me about a 100 pt. OKW resale (June) that has no points available until 6/05. They are asking $70. Pat suggested that we offer them $65 and see if they counter. What is the lowest $$$ amount before Disney does their ROFR?? We wouldn't need (some) of the points until next March. Our current contract is at OKW-June-231 pts. Can any of you experienced add-on negotiaters give me an idea on what to do??? TIA.

 

[CarolMN]

I think you should take advantage of the TTS agent's experience/advice and not worry too much about ROFR.

First of all, there will always be another contract, especially if OKW is the one you want for home resort. (It's the largest and the oldest, so more contracts are likely to be available).

Next, according to other posts here on the DIS, Disney has not been all that aggressive on buying back contracts lately. Since there are no points available until 2005, that also tells me Disney is less likely to be interested in that particular contract.

Do not offer to pay 2004 dues and if the entire allotment is not available on 6/1/2005, only offer to pay 2005 dues on the points that are available then.

Good luck!

 

[calypso*a*go-go]

Hi shelbyjosh!

We just passed ROFR with a $65/pt. offer on 150 pts. @ OKW. The seller is paying the transfer fee, we are responsible for the closing costs and '04 maint. fees on the unused points (64).

If your 100 pt. contract doesn't have any points left for '04, you really shouldn't pay any of the '04 maint. fees (IMO).

Good luck...!!!

 

[JeffPort]

You certainly don't want to pay dues for 2004 if there are no remaining points. Provided that you don't pay dues until January, 2005 (and you'll need to specify that in the purchase agreement), then the $65 per point price seems reasonable to me.

However, if the user does accept those terms (low price and no dues for the first year). then you fall smack into Disney's ROFR territory. That's why it really doesn't typically pay to try to purchase stripped contracts. Of course, if this contract is exactly what you are looking for (except for the stripped points), it can't hurt to try. If it doesn't work out, you can just keep looking out there on the resale market for a better fit.

 

[shelbyjosh]

I certainly would not want to pay dues on points that I do not have. What would happen come January? What is the transfer fee? Pat said something about the $350 transaction fee, but that was about it. The guy originally wanted to sell for $75/pt and they told him he was nuts, especially since there were no points to use!! I am not sure what he would do if we offered him $65. I can imagine he would reject it.

 

[JeffPort]

DVC dues are due in January (beginning of the calendar year) for all DVC members, regardless of the contract "use year."

Even though the current owner has already paid the DVC dues for this year (back in January), the standard resale contracts usually stipulate that the buyer reimburses the seller for those paid dues. In your case, there are no points remaining for the 2004 use year, so you should request that you do not pay any DVC dues until January, 2005 (for your June 2005 use year points).

The DVC transfer fee ($100) is required for all deed ownership transfers at DVC. Normally, the seller will be required to pay that fee. It is deducted from the seller's proceeds. You should simply clarify this with your broker so that there are no surprises.

The $350 in "closing" fees will cover the title transfer, recording, and insurance, plus additional services performed by the closing service. These fees are normally paid by the buyer.

Nobody knows what EXCACTLY will incite Disney to exercise their ROFR rights. In fact, it seems to change from month-to-month. Right now, people are indicating that more lower-priced contracts are making by Disney than in prior months. Still, $65 is a very low price point for OKW. As I indicated in my prior post, I would surmise that this would be very near where DVC would decide to buy the contract. Some people have reported to have made it by ROFR in the mid $60's, but others have not. There is no way to know for certain until you sign a purchase agreement and wait the 10-20 days for Disney to make a decision.

Good luck!

 

[stacy6552]

$65 is awefully low. If they have interest in the contract with that use year, Disney will probably snap it up at that price.

Then again, you have loads of time, so why not go cheap, since you can always catch the next one to come around.

remember TTC is only interested in getting a contract signed because they get their fee no matter who buys it.

 

[mickeyc]

You have nothing to lose by making the offer recommended by the TTS agent. Keep in mind that the value of this contract is diminished because there are no current points accompanying the contract for immediate use.

Make sure if you make the offer you do not pay maintance fees for this year, since they have been used.

Good luck!

 

[lacool]

I may be wrong, but my understanding is that if Disney exercises its ROFR, you can counter with a higher offer. That offer would then have to go through ROFR again, but if you aren't in any hurry, it can't hurt to try.

Poorman is an expert on purchasing resales and ROFR. You may want to ask his advice.

 

[disneyberry]

<font face="times" size="+0">shelbyjosh, i think you should give it a shot at $65 with you paying only 2005 dues and the $350 closing costs (the transfer fee is usually paid by the seller, you shouldn't have to worry about the transfer fee). i do not think that $65 is too low to pass ROFR when it comes to OKW, and such a stripped contract.
in fact, IMO, you should not pay any more than $65, unless you are really 100% sure that this is the <i>exact</i> contract you want, and you do not have the time to wait for another one.

the thing is, i think there are a lot of OKW contracts for sale, so i don't think you'll have to wait for that long even if this one doesn't work out.

i worked with Pat Spell when we bought our first DVC contract, and she is a very experienced broker. her suggestion sounds reasonable. and, it is good that she is recommending you try $65. considering that they work on commission, she would make more commission if you offered $70, but instead she is recommending lower, so obviously she's not just looking out for herself.

good luck, and let us know how it goes.</font>

 

[Disney Doll]

I agree with disneyberry. What have you got to lose? Pat does a lot of DVC resales, so she must have a good sense of what might get you past ROFR.