ROFR Thread January to March 2025 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[AstroBlasters]

True, and I think that’s why it’s highly situational. We don’t think of it from that perspective. We think of it from the perspective of having excess points and what we would “make” from renting them after taxes.

And the sellers and brokers are very supportive of that perspective.

 

[Brian Noble]

I think it does make sense to have "one value" for a point, in order to compare potential purchases. But that value is probably best set somewhere between the Bid and net Ask price. Something in the middle of the teens feels more or less rightish to me. That's based on both (a) what I would expect to net, after taxes, for a low- to no-effort rental and (b) what I might expect to pay for a point rental. And, even the latter is not currently $20, becuase I'd hold out for (and have gotten) a lower price.

 

[dvc_ocd]

dvc_ocd---$159-$17243-100-PVB-Sep-134/24, 102/25, 100/26- sent 1/17

 

[Chili327]

But if you are short some points…. I can tell you what it will cost you to rent them…. and it’s not $10.

$10 would just be the dues.

 

[Blerghityblergh]

$10 would just be the dues.

Yeah, I know it’s low, but it’s how we value them when factoring in what we are willing to pay price per point, and I know that’s different for different people. If we rent to David’s and they are points on the low end like Saratoga it’s $16 per point and then a little under $9 in dues, the remaining $7 is taxed and with our current tax structure it’s about a $4 takeaway. Pair that with the fact that we might not have as much time to use or rent them and personally $10 works for our value equation. I get why others are thinking of it differently (and I’m sure if we were considering renting to have more we would too), this just works for us. I think for a more standard metric on a deal site, as someone else said, maybe $15 is a good halfway point.

 

[AstroBlasters]

Yeah, I know it’s low, but it’s how we value them when factoring in what we are willing to pay price per point, and I know that’s different for different people. If we rent to David’s and they are points on the low end like Saratoga it’s $16 per point and then a little under $9 in dues, the remaining $7 is taxed and with our current tax structure it’s about a $4 takeaway. Pair that with the fact that we might not have as much time to use or rent them and personally $10 works for our value equation. I get why others are thinking of it differently (and I’m sure if we were considering renting to have more we would too), this just works for us. I think for a more standard metric on a deal site, as someone else said, maybe $15 is a good halfway point.

Ah! I think we have a disconnect. I am speaking from the perspective of how much I penalize stripped contracts.

 

[Chili327]

I think for a more standard metric on a deal site, as someone else said, maybe $15 is a good halfway point.

$15 would be a better/closer to accurate number, but it also depends on what you’re calculating at the time.

 

[Jrathjen]

So I hear some of you talking about dues w/ the backed points? These are free points, you don't pay dues on them. I always look for Triple point contracts, so I get 2 years of free points. I could see you value them anywhere from $14 on the low end (after renting them through company and paying taxes) - $27 on the high end (renting on your own, but takes some more time), but as an existing DVC, I feel $20 is perfect, because thats why you pay for extra points if you need a couple more through Disney. So when I look at contracts, and go for triple points, I don't see the $160/pp I see $120/pp cause you can rent or use those points. Just my 2 cents. I do the same for Stripped ones in the opposite direction, but never get one, cause I'm tooooo low

 

[Blerghityblergh]

Ah! I think we have a disconnect. I am speaking from the perspective of how much I penalize stripped contracts.

That makes sense too! All in how you look at it. The point above about loaded points in most circumstances having dues paid already is a good one too. Maybe we should be doing more like $15.

 

[TinkAgainU]

So I hear some of you talking about dues w/ the backed points? These are free points, you don't pay dues on them. ...

What you pay as far as Dues on something you buy Resale is part of the negotiations. If you don't address it with your offer, many Brokers will present the offer that the Buyer is offering to reimburse the Seller the annual dues for ALL unused points. And on a very small contract, they may well get it.

 

[jayt684]

jayt684---$105-$23480-200-AKV-Dec-98/24, 200/25, 200/26- sent 1/2, passed 1/21

 

[Chili327]

So I hear some of you talking about dues w/ the backed points? These are free points, you don't pay dues on them. I always look for Triple point contracts, so I get 2 years of free points. I could see you value them anywhere from $14 on the low end (after renting them through company and paying taxes) - $27 on the high end (renting on your own, but takes some more time), but as an existing DVC, I feel $20 is perfect, because thats why you pay for extra points if you need a couple more through Disney. So when I look at contracts, and go for triple points, I don't see the $160/pp I see $120/pp cause you can rent or use those points. Just my 2 cents. I do the same for Stripped ones in the opposite direction, but never get one, cause I'm tooooo low

Definitely not the case always, I'm not paying for them, but I'm sure many do end up paying for them, or even don't realize they're paying for them, all depends on the price you're paying I guess.

What you pay as far as Dues on something you buy Resale is part of the negotiations. If you don't address it with your offer, many Brokers will present the offer that the Buyer is offering to reimburse the Seller the annual dues for ALL unused points. And on a very small contract, they may well get it.

Yes, exactly, usually you pay for what you receive, unless you negotiate them out, or make up for it in the price per point.

 

[Jrathjen]

Definitely not the case always, I'm not paying for them, but I'm sure many do end up paying for them, or even don't realize they're paying for them, all depends on the price you're paying I guess.


Yes, exactly, usually you pay for what you receive, unless you negotiate them out, or make up for it in the price per point.

I'm very confused by this. Free points are points you don't pay dues on. I have never paid dues ever for banked points. In my recent one, they had points from 23 and 24, and I only pay dues on 25 points. Not sure, how people don't realize that you're paying for them.

 

[Potigant]

I'm very confused by this. Free points are points you don't pay dues on. I have never paid dues ever for banked points. In my recent one, they had points from 23 and 24, and I only pay dues on 25 points. Not sure, how people don't realize that you're paying for them.

They could be written in as a separate line item in the contract "2024 dues paid by buyer". I agree with your general sentiment and have not "paid" 23 or 24 dues on the two loaded contracts I purchased. I didn't know it was a thing either until reading it here. Clearly some people have seen it in contracts or negotiations.

 

[TinkAgainU]

They could be written in as a separate line item in the contract "2024 dues paid by buyer". I agree with your general sentiment and have not "paid" 23 or 24 dues on the two loaded contracts I purchased. I didn't know it was a thing either until reading it here. Clearly some people have seen it in contracts or negotiations.

This would be a good time to remind Buyers EVERY BROKER HAS THEIR OWN CONTRACT, THERE ARE NO STANDARD TERMS (other than the 10 day cancellation, which is apparently only 7 days in California if you buy Direct?)... READ EVERY SINGLE LINE of the Purchase Agreement before signing it. A couple have additional cancellation penalties or extra fees that are not always disclosed upfront. Many Brokers do not explain the Buyer can (usually, depends on the Broker/Seller negotiations) pick the Escrow/Title company - and those fees vary a lot too.

 

[Chili327]

I'm very confused by this. Free points are points you don't pay dues on. I have never paid dues ever for banked points. In my recent one, they had points from 23 and 24, and I only pay dues on 25 points. Not sure, how people don't realize that you're paying for them.

They could be written in as a separate line item in the contract "2024 dues paid by buyer". I agree with your general sentiment and have not "paid" 23 or 24 dues on the two loaded contracts I purchased. I didn't know it was a thing either until reading it here. Clearly some people have seen it in contracts or negotiations.

This would be a good time to remind Buyers EVERY BROKER HAS THEIR OWN CONTRACT, THERE ARE NO STANDARD TERMS (other than the 10 day cancellation, which is apparently only 7 days in California if you buy Direct?)... READ EVERY SINGLE LINE of the Purchase Agreement before signing it. A couple have additional cancellation penalties or extra fees that are not always disclosed upfront. Many Brokers do not explain the Buyer can (usually, depends on the Broker/Seller negotiations) pick the Escrow/Title company - and those fees vary a lot too.

Yes, & also you could negotiate them out, or they could negotiate them in, if you pay more per point, they are just covering the points you got.
You may call them "free", but if you paid more than they want/need, they are covered, so it may just be semantics.

 

[Potigant]

Yes, & also you could negotiate them out, or they could negotiate them in, if you pay more per point, they are just covering the points you got.
You may call them "free", but if you paid more than they want/need, they are covered, so it may just be semantics.

I was going to make a similar comment about paying for the 24 points due to a higher price per point relative to a stripped contract. To me that is a little different than specifically compensating for already paid dues which would be a hard pill for me to swallow as a buyer. Especially if you are already paying say $10 more per point because its loaded.

 

[rssquires]

rssquires---$98.25-$43913-400-RIV-Feb-0/24, 513/25, 400/26, 400/27- sent 1/1, passed 1/21

 

[heynowirv]

So it looks like the only contacts they have taken so far this year or even recently is AKV?
And what contract are we waiting on? Yep AKV.... Throw me some pixie dust please.

 

[AstroBlasters]

I'm very confused by this. Free points are points you don't pay dues on. I have never paid dues ever for banked points. In my recent one, they had points from 23 and 24, and I only pay dues on 25 points. Not sure, how people don't realize that you're paying for them.

That is negotiated, it is not necessary the default.