$ value of a loaded contract

tom1944

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How much dollar value do you think a loaded contract is worth?

If a resort had a baseline value on average of $100 per point on a 150 point contract would it be worth $110 per point if it came with 150 points banked?

This issue came up on several of my BLT bids and as I move forward I want to get a sense of the value buyers and sellers place on that.

Thanks
 
IMO, $10 could be very reasonable. Many value points at the amount they can get by renting them - some value them at the amount a broker will pay, because that requires the least amount of work on their part. It also depends on the expiration date. If the points won't make it to your account with a reasonable amount of time left to use them, they are actually worthless.

In the end, it really doesn't matter because the value of a contract is the amount a buyer and a seller agree on. Pretty much everything is negotiable in resale.
 
$1-2 less than per point than the dues they paid. That is my rule.
 
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How much dollar value do you think a loaded contract is worth?

If a resort had a baseline value on average of $100 per point on a 150 point contract would it be worth $110 per point if it came with 150 points banked?

This issue came up on several of my BLT bids and as I move forward I want to get a sense of the value buyers and sellers place on that.

Thanks
I tend to look at it this way -
I divide the number of banked points above the net points on contract, by the years remaining, to get an estimated points-per-year bonus.
Ex: the resale I'm still waiting for sellers to sign was at BWV for 230 Points - with all 2022 banked so there are 460 in 2023. I divided the 230 points by the 19 years remaining and get 12.1, or approx. ~5% of the 230, so I look at it as getting a 5% break (taking the $110Point to $104.7)
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A loaded contract is 1 year. If the contract is 20 or 30 years, it doesn't really add that much.
YMMV. Ultimately its what the seller will sell for and what you will pay.
 
A loaded contract is 1 year. If the contract is 20 or 30 years, it doesn't really add that much.
YMMV. Ultimately its what the seller will sell for and what you will pay.
You don't have to use all of the "loaded, ie banked) points in one year.
With my 230 points, I will have 460 in 2023
I plan to use all 230 banked and an additional 12 from current year,
"rinse, lather, repeat"..... and it will take me 18-20 years to deplete the loaded points.
So, to me, it's like getting an additional 12 points per year........
 
Rented points are worth $18-$22/point. If I am buying I want it way cheaper and if I am selling I want close to that price otherwise I might as well use the points or rent them out.
 



















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