when buying any DVC contract. You can pay a higher price but get a greater value. The higher price will help get the contract through ROFR.
In May this year, we bought a contract (OKW, Dec UY, 330 points) for $70 per point and we paid closing and 2003 maint. Doesn't sound like a great deal.....yet! Using Jessethecowgirl and DocBrown's analysis above (as i have endorsed since I became a member in '99), I should allow some value for the banked and current points.
This contract came with ALL 330 points from 2001 banked into the current use year (yes, from 2001), and ALL 330 points from 2002 were available, and ALL 330 points were available from the current 2003 use year. That's 990 points (or "triple points" as my resale agent termed it) upon closing, and only paid maint on 330 points. I then rented the 660 banked and prior year points at an average of $9.25 (most transferred to one member), for a credit of $6,105 against my purchase price. I give no add'l value against current use year points, only banked and prior year, also don't count maintenance on those points.
Anyway, the purchase price was $23,600 ($70 X 330, plus ~$500 in closing). If I deduct the credit, the total price was $17,495 ($23,600 less $6,105), which is $53 per point!! Using DocBrown's analysis which credits the curent use year points as well, I would be somewhere around $44 per point!
So the moral of this story is look for resale contracts with banked and current (and absolutely no borrowed) points. With these contracts, you will be more comfortable offering a price that will get you over the ROFR hurdle, and probably end up with a greater value in the end. If have only bought resale contracts (bought six, sold three), and would buy again if the right combo of banked/current points comes around.
Thanks for your time.
In May this year, we bought a contract (OKW, Dec UY, 330 points) for $70 per point and we paid closing and 2003 maint. Doesn't sound like a great deal.....yet! Using Jessethecowgirl and DocBrown's analysis above (as i have endorsed since I became a member in '99), I should allow some value for the banked and current points.
This contract came with ALL 330 points from 2001 banked into the current use year (yes, from 2001), and ALL 330 points from 2002 were available, and ALL 330 points were available from the current 2003 use year. That's 990 points (or "triple points" as my resale agent termed it) upon closing, and only paid maint on 330 points. I then rented the 660 banked and prior year points at an average of $9.25 (most transferred to one member), for a credit of $6,105 against my purchase price. I give no add'l value against current use year points, only banked and prior year, also don't count maintenance on those points.
Anyway, the purchase price was $23,600 ($70 X 330, plus ~$500 in closing). If I deduct the credit, the total price was $17,495 ($23,600 less $6,105), which is $53 per point!! Using DocBrown's analysis which credits the curent use year points as well, I would be somewhere around $44 per point!
So the moral of this story is look for resale contracts with banked and current (and absolutely no borrowed) points. With these contracts, you will be more comfortable offering a price that will get you over the ROFR hurdle, and probably end up with a greater value in the end. If have only bought resale contracts (bought six, sold three), and would buy again if the right combo of banked/current points comes around.
Thanks for your time.
