Surprised at high ppp for BCV, still?!?

[Redheadprincess]

A year ago we started our search for the right BCV contract. It took 5 months and 5 tries, but we never had more than about 40 options to choose from at a time. Now there are 150 BCV contracts for sale and most of them are just sitting there. New ones are still being listed $165pp and higher. Do you think it is the sellers who have unrealistic expectations or the brokers? Recent passes have gone as low as $135pp. BCV effectively has 18 1/2 years left as of today.

 

[tom1944]

They might not sell because renting them is financially advantageous

 

[cvjw]

We sold our BCV contract last year. I did a calculation for renting the points until the end vs selling. It was almost a wash. We could have easily just held on and rented the points out, but I didn’t want the hassle - just wanted it gone!

 

[Sandisw]

I think they are listing based on average prices that people have paid, With that many contracts, though, there are simply not enough buyers who are interested.

I personally think it is high and we will see a shift soon. But, for any seller who doesn’t mind the rental market. It can be a good way to cover things until you decide to list for sale.

 

[Redheadprincess]

They might not sell because renting them is financially advantageous

Yes, but if they are renting they would not be for sale. Listings have points available and make offers based upon that. As a seller, I would not simultaneously list a contract and rent out all the points. Plus, if there is a pending reservation you have a delayed closing which is not attractive to most buyers. So most of those 150 contracts over $160 are just going to sit there and not sell.

 

[808blessing]

If I were a BC owner who kinda want to sell, I would list high and then make reservations for myself in the meantime. I could cancel if I got the higher price or keep it if no dice. I don't think those BC are dying to sell because of the high immediate value it brings if kept.

with 10 years left in contract, if rent stayed the same, 100 pts could net you $20000 (well minus dues). But that will likely by higher than $20 by the later years.

btw, my two cents is that broker rent would/should go up proportionally for different properties such as BC and BW not be the same as all the other points. That's part of the take.

 

[StoweFoSho]

There are always contracts that sell for below and well below average, just as there are those that sell above and well above average.

The X factor here is that ROFR activity which was massively high earlier this year has come to a standstill and thus prices for those often ROFR’d resorts have come down. The BCV contracts will probably sit at those $160 for longer than you think as brokers wait to see what will happen with ROFR activity in the next couple of months.

As others have mentioned BCV and for the most part BWV have been priced where the rent vs. buy proposition reached a wash. But since demand for BCV rentals are so high, it’s price is likely to stay where there’s not much advantage in either route.

 

[RoseGold]

Huh? Fidelity has four at about $140 right now. I would match that in an offer with any other broker. Fidelity is not wrong on value.

The board sponsor always has some crazy expensive listings. I don't really get it. I guess it's like having the $200 steak on the menu. Makes everything else look cheaper? Maybe someone actually buys it?

 

[Redheadprincess]

If I were a BC owner who kinda want to sell, I would list high and then make reservations for myself in the meantime. I could cancel if I got the higher price or keep it if no dice. I don't think those BC are dying to sell because of the high immediate value it brings if kept.

with 10 years left in contract, if rent stayed the same, 100 pts could net you $20000 (well minus dues). But that will likely by higher than $20 by the later years.

btw, my two cents is that broker rent would/should go up proportionally for different properties such as BC and BW not be the same as all the other points. That's part of the take.

I agree that rental payout by brokers should be much higher for BCV. Everytime I look in my portal on tge sponsor site 95% of unmatched requests are for BCV. Those would rent faster if they paid more for it.

 

[pianomanzano]

I agree that rental payout by brokers should be much higher for BCV. Everytime I look in my portal on tge sponsor site 95% of unmatched requests are for BCV. Those would rent faster if they paid more for it.

Completely agree. I see on FB rental groups that BCV usually commands 23+/pt. If I had BCV points to rent out, I'd never go through a broker because you're just leaving too much money on the table.

 

[bakerworld]

What happens when you low ball offer - will the broker not offer it to the seller? I'm not talking about super low but if someone's selling at $155 is offering $140 an insult? Maybe the offers are still high because the seller is planning on paying the dues??

 

[tom1944]

They should be required to submit all offers like any real estate agent

I was actually thinking about contacting various brokers and saying I am interested in 250 points at a specific resort and I am willing to pay x amount. Please present my offer to any of your clients with 250 points for sale. They might not have to do that but what are they going to do not deal with me going forward?

 

[RoseGold]

They should be required to submit all offers like any real estate agent

I was actually thinking about contacting various brokers and saying I am interested in 250 points at a specific resort and I am willing to pay x amount. Please present my offer to any of your clients with 250 points for sale. They might not have to do that but what are they going to do not deal with me going forward?

Just buy from Fidelity then. They list lower and don't negotiate much, in my experience.

 

[tom1944]

Just buy from Fidelity then. They list lower and don't negotiate much, in my experience.

I will definitely use their listing in my analysis

I also have to see if they have certain fees that offset the lower prices in a meaningful way

I am not there yet

I was told I should have my vacation pay paid to me by March 2023 so that is when I will be looking to contact brokers

 

[stwaldman]

I will definitely use their listing in my analysis

I also have to see if they have certain fees that offset the lower prices in a meaningful way

I am not there yet

I was told I should have my vacation pay paid to me by March 2023 so that is when I will be looking to contact brokers

Unless you're agreeing to pay the broker fee as a buyer, then your fees as the buyer are going to be driven more by the contract type/financing arrangements/title company. Any other fees/costs in excess of the purchase price would be nominal in nature, and if I recall, the board sponsor got a heap of angst last year when they tried to add a "buy side" fee which wasn't even very large in the grand scheme of things.

 

[tom1944]

Unless you're agreeing to pay the broker fee as a buyer, then your fees as the buyer are going to be driven more by the contract type/financing arrangements/title company. Any other fees/costs in excess of the purchase price would be nominal in nature, and if I recall, the board sponsor got a heap of angst last year when they tried to add a "buy side" fee which wasn't even very large in the grand scheme of things.

I plan to be cash buyer so it should only be dues, title insurance . Hopefully they are transparent I heard Fidelity has a buyer fee of $225 or so

 

[Redheadprincess]

What happens when you low ball offer - will the broker not offer it to the seller? I'm not talking about super low but if someone's selling at $155 is offering $140 an insult? Maybe the offers are still high because the seller is planning on paying the dues??

Both BCV resale contracts that I purchased last spring we offered $15 pp below asking and both offers were accepted immediately. We had others that we had to offer full price when BCV was getting rofrd.

 

[Sandisw]

What happens when you low ball offer - will the broker not offer it to the seller? I'm not talking about super low but if someone's selling at $155 is offering $140 an insult? Maybe the offers are still high because the seller is planning on paying the dues??

They will present the offer unless they have instructions from a seller not to bother.

I have sold a few in which the broker knew, after rejecting a really low bid, not to bother me with ones in that range,

I was certainly not insulted by the offer…but was in no rush and felt the low amount I would take….would snag me a buyer at some point.

 

[Sandisw]

They should be required to submit all offers like any real estate agent

I was actually thinking about contacting various brokers and saying I am interested in 250 points at a specific resort and I am willing to pay x amount. Please present my offer to any of your clients with 250 points for sale. They might not have to do that but what are they going to do not deal with me going forward?

I have bought and sold a lot and I don’t think they are going to send your offer to multiple owners at once,

I think they will ask you to tell them which contract you are interested in and go from there. Now, I have heard of people putting in a few offers at different brokers at once but we never had,

We gave all the sellers a timeline,,,,24 hours,,,if they didn’t respond by then, we went to the next one.

 

[Samfar]

Will try fidelity as I’ve been keeping an eye on BCV as well.