Stripped Contract...Updated 5/8 It's sold!

[TeresaNJ]

Would you be more inclined to buy a stripped contract if no annual dues were owed until 2016? The contract has 90 banked points that need to be used by Sept 30th, 38 points available for this use year, then 300 points coming on Oct 1, 2015. It's a 300 point contract at VWL going for $70/point right now.

 

[disneynutz]

It's all about the money, the points have a value and the dues do also. Do the math and see if it's a good deal compared to other listings. If the number look good, then I would make a below list offer and see what happens.

Bill

 

[wnielsen1]

I would be, but then again I already have a trip planned for August. So I am looking to get my DVC feet wet by purchasing a resale that has little/no points until mid-2015. Holding all else equal, there should be no 2014 dues owed as well as a slightly lower resale cost per point as the 2014 points have already been used by the seller.

This is me personally. Everyone's situation is different. Good luck!

 

[nalajms]

If you are willing to negotiate, loaded contracts typically are not the best value. Most full point contracts are listing in the low 80s. If you value those points at $10 to $13, it's about even with a stripped contract. From my experience, owners were less likely to go down in price because they were already listed lower than everyone else. Where as full point contracts were more willing to negotiate.

You can always make an offer. I'd only be willing to pay asking if it's the exact UY and points I wanted.

 

[sndral]

Would you be more inclined to buy a stripped contract if no annual dues were owed until 2016? The contract has 98 banked points that need to be used by Sept 30th, 38 points available for this use year, then 300 points coming on Oct 1, 2015. It's a 300 point contract at VWL going for $70/point right now.

Is it even possible to pay the 2015 MF now?
Is this your contract that is for sale that you referenced in this thread?
http://www.disboards.com/showthread.php?t=3245841
The price @$70 seems on the low end, but if it's the contract I think it is, it's been on the market since 1/14/14 (don't know if the price has been dropped or not) - it'll be interesting to see if it sells before the fully loaded 300 pt. Oct. WL contract listed today for $80 pp.

 

[nalajms]

Is it even possible to pay the 2015 MF now?...
it'll be interesting to see if it sells before the fully loaded 300 pt. Oct. WL contract listed today for $80 pp.

The listing says no dues until 2015. So buyer is expected to pay full dues on Jan 1, 2015. But they can always negotiate the 2015 dues into the price per point.

Exactly, the full point contract is only $10 more. I'd pick that one and take my time renting the extra points out at $12.

 

[TeresaNJ]

Is it even possible to pay the 2015 MF now?
Is this your contract that is for sale that you referenced in this thread?
http://www.disboards.com/showthread.php?t=3245841
The price @$70 seems on the low end, but if it's the contract I think it is, it's been on the market since 1/14/14 (don't know if the price has been dropped or not) - it'll be interesting to see if it sells before the fully loaded 300 pt. Oct. WL contract listed today for $80 pp.

Yes, that is my contract. I don't know what else to do to get rid of it, LOL. We don't need to sell it, but we'd like to, as we're buying a farm, and could use the extra cash for equipment, etc. We've gotten good use out of it, and I am sad to sell it, but it's for the best right now. I don't want to give it away, and with the 90 points needing to be used by September 30th, I'm afraid if it doesn't sell soon, it won't sell within the next few months, as who will be able to get a reservation at that late date.

I'm thinking about pulling it off the market until after October 1st, and just using the 90 banked points myself. Anyone have any suggestions?

 

[bwvBound]

Would you be more inclined to buy a stripped contract if no annual dues were owed until 2016? The contract has 90 banked points that need to be used by Sept 30th, 38 points available for this use year, then 300 points coming on Oct 1, 2015. It's a 300 point contract at VWL going for $70/point right now.

Yes, for a contract as described, I'd be hesitant to purchase if I had to pay dues in 2015 but not receive points until Oct. Deferring dues into 2016 would completely overcome my objections.

 

[nalajms]

I'm confused. If you're willing to forgo 2015 dues, why not just drop the price. At $65 per point, you'd at least be a comparable listing to a fully loaded contract selling for $80.

I would get rid of it now, unless you really want to go on a vacation and use those points. The little bit that's left in the next 2 years is an enticement along with the lower price per point. This board is also likely to be a more savvy group of buyers, which probably doesn't account for a big percentage...

 

[DebbieB]

The listing says no dues until 2015. So buyer is expected to pay full dues on Jan 1, 2015. But they can always negotiate the 2015 dues into the price per point.

Exactly, the full point contract is only $10 more. I'd pick that one and take my time renting the extra points out at $12.

I think that's the only way you could do it. I don't think the seller can prepay 2015 dues or pay them after the sale. You would have to estimate the 2015 dues and subtract it from the price. The buyer would still get the 2015 bill.

 

[TeresaNJ]

I'm confused. If you're willing to forgo 2015 dues, why not just drop the price. At $65 per point, you'd at least be a comparable listing to a fully loaded contract selling for $80.

I would get rid of it now, unless you really want to go on a vacation and use those points. The little bit that's left in the next 2 years is an enticement along with the lower price per point. This board is also likely to be a more savvy group of buyers, which probably doesn't account for a big percentage...

Yes, I thought about that also. After working the numbers yesterday, I saw that dropping the price to $65/point would be the same as paying the cost of the 2015 dues. I just thought psychologically, buyers would feel they were getting a better deal if they knew their dues were covered. Do you think $65/point would pass ROFR?

We've already rented points for our vacation in September. I booked four extra days using the 90 points, at AKV, as well as booked a regular resort stay those four days in case it sold, since I already purchased our plane tickets. If it sells, I'll just cancel the four days at AKV, and the points go back into this use year, still needing to be used by September 30th.

 

[nalajms]

Do you think $65/point would pass ROFR?

Is there a difference for you as a seller if it doesn't pass ROFR? As a buyer, I would jump on a low priced contract hoping it passes ROFR. It's also possible that you could end up in a situation where multiple buyers bid it up.

 

[TeresaNJ]

Is there a difference for you as a seller if it doesn't pass ROFR? As a buyer, I would jump on a low priced contract hoping it passes ROFR. It's also possible that you could end up in a situation where multiple buyers bid it up.

Nope, no different for me. I'm just concerned no one will make an offer if they think it's not going to pass ROFR.

 

[DebbieB]

Nope, no different for me. I'm just concerned no one will make an offer if they think it's not going to pass ROFR.

If someone doesn't need the points right away, it would be worth rolling the dice. Are you working with an agent? I would talk with them about the best way to list it regarding the dues. I would be curious to find out how that works, if you can actually pay the 2015 dues or if it is subtracted from the price and the buyer gets the bill.

 

[KAT4DISNEY]

Nope, no different for me. I'm just concerned no one will make an offer if they think it's not going to pass ROFR.

There are people that will take the chance with it passing ROFR at a lower price. I'd go that route rather than wording it as no dues until 2016.

 

[itutorfortravel]

Do you think $65/point would pass ROFR?

Just wanted to chime in to say that we just purchased a 150 point contract at VWL in January and paid $68 pp, and we passed ROFR.

 

[itutorfortravel]

Just wanted to chime in to say that we just purchased a 150 point contract at VWL in January and paid $68 pp, and we passed ROFR.

Oh, and it had 100 banked points from 2012, 70 points from 2013, and all points for 2014, August UY. So if ours passed ROFR with all those points, I'm guessing a stripped contract at $65 stands a pretty good chance if my logic is correct.

 

[TeresaNJ]

Oh, and it had 100 banked points from 2012, 70 points from 2013, and all points for 2014, August UY. So if ours passed ROFR with all those points, I'm guessing a stripped contract at $65 stands a pretty good chance if my logic is correct.

Cool! I'm going to call now and get the price lowered to $65 a point! Thanks everyone, for your thoughts!

 

[robinb]

I guess I don't understand why are you are trying to sell the contract now at such a fire sale if you don't need to. Use/Rent the 90 points you have left over and wait until 2015 to sell when it will be much more attractive. You've already paid 2014 dues and you're willing to pay 2015 dues so it's not like you'll lose money by waiting .

 

[Msmithmd]

I guess I don't understand why are you are trying to sell the contract now at such a fire sale if you don't need to. Use/Rent the 90 points you have left over and wait until 2015 to sell when it will be much more attractive. You've already paid 2014 dues and you're willing to pay 2015 dues so it's not like you'll lose money by waiting .

The pretense of your post is contradicted by recent history. Just three years ago, I purchased VWL resale, 300 point contract, at $55- loaded- and that was full asking price. This wasn't any incredible bargain; it was merely a "decent" price for the market at that time.

While $65-70 is indeed below recent asking prices, it is appreciably more than one could expect on this property a couple years ago.

I will readily grant that VWL "could" be more expensive than it is now during 2015. However, it seems at least equally likely that prices will in fact be less then than now. My point is simply that it is wrong to hold onto a contract assuming that it will be worth more in the future. No such guarantee, or even likelihood, exists.