Why does OKW cost so much less?

[deedeetoo]

I've been checking out resale prices and have been surprised at the differences among resorts. I've also been checking out pictures on allears.net.

I can understand why BCV is the highest price - great location, great pool, nice decor. But why is OKW the lowest? I have to admit the pictures look pretty nice to me and would probably be my second choice after BCV. Also, the rooms seem bigger than the other resorts. Is it because of the location? Is it that hard to get around from OKW? Do you really need a car? Or is it that there are just a lot of people selling right now so that is driving the price down?

 

[linzbear]

It's because it's so much larger than BCV, BWV, VWL, and also because it's not directly attched to any park (BCV and BWV are walks to Epcot/MGM, VWL is a boat ride to MK)

You basically pay a premium to be close to the park and in a smaller resort.

 

[gcbsdad]

Part of it might be because it is the oldest DVC location.

 

[Doctor P]

I think the answer is much simpler. OKW sold out at a lower price than any other resort. It was the first resort to actually sell out, though they added some points in 2000 when they replaced the Commodore House with villas. If my recollection is correct, OKW original contracts (including those for the new villas at Commodore House) sold out at a final price of about $70 per point. Our original contract was at $67 per point in August 2000. Therefore, even at the lower prices, generally OKW contracts are still probably being sold for a higher price than most of the owners paid.

 

[mikesmom]

Probably several things going on....

First, OKW was the first DVC resort. People bought in at a lower price (in general) than the points go for now so they are probably not trying to make a killing. I know we bought in at $67 there and that was at the very end of availability. Early buyers got in at $57 and even $55.

Second, it is a much larger resort than BCV and BWV so there is always more availability. It isn't as hard to get in there at 7 months if you are not an owner. That may change as DVC membership grows!

Third, BCV and BWV have a couple of things going for them. You can walk-in to 2 parks (Location, location, location!!) and they are much smaller than OKW. Smaller = scarcity of rooms and scarcity drives up prices. I also think there is a bit of resort hysteria going on. As people report that they have tried to book BWV and BCV at 7 months and can't, it drives up desire and prices. Owners of BWV and BCV also bought in higher. Thery must start with a higher price to get their money back.

By the way, unless it is Food & Wine Fest time, I almost always prefer OKW. The rooms are bigger, the resort is more relaxing, and I love the place. I would not be afraid to buy a resale there unless you just "have to" have a room at the other 2 resorts.

 

[Anthony1971]

People also want the option to bok 11 months before thier vacation so they stay at one of the EPCOT resorts being these resorts are smaller and have a good location most people want to stay there at peak times so the price...
if you are the type who goes off season for DVC (please note that periods like the begging of Decembre are peak season for DVC and low for Disney in general) then OKW is a great deal or ofcorse if you prefer to stay at that resort. but you need to flexable if you do not buy where you want to stay. I personally do not care where I stay but I have never had a problem satying in any resort when I went off peak

 

[DizWacko]

Its all supply vs. demand ...

Fewer people demand OKW .. so then you ask why.

Their Older, their farther away from everything, and theres more of em.

 

[pickles]

It was once explained to me that it is simply to do with when it was made/sold

for example SSR is the newest, it has a lot of rooms and the location isn't much different from OKW, but it has the highest price of the DVC


I think the word I am looking for is inflation

 

[crisi]

Owners of BWV and BCV also bought in higher. Thery must start with a higher price to get their money back.

More true of BCV than BWV. BWV sold at the same time and the same price point as the later OKW contracts. We bought our resale in 2003 for a mere $63 a point.

Then again, BCV sells for more than BWV - it has SAB which could be the driver - or it could be the difference in the original cost.

 

[DizWacko]

Buy-in price has nothing to do with OKW low resale values. Its simple supply and demand. If you had 1982 Chevy Chevette, and you could get $10,000 for it, why would you sell it for $5000?? You wouldnt.

 

[Anewman]

If forced to pay the same price per point but you could choose from any resort to buy.

My guess is that OKW would be near the bottom of sold points, and it is one of the ones with the most available points.

So in a semi FREE MARKET you could see why the WVL and BC points would sell for so much more.

 

[Doctor P]

If forced to pay the same price per point but you could choose from any resort to buy.

My guess is that OKW would be near the bottom of sold points, and it is one of the ones with the most available points.

So in a semi FREE MARKET you could see why the WVL and BC points would sell for so much more.

I think you are way off on this, but we will never be able to prove it in any objective fashion.

 

[Anewman]

I think you are way off on this, but we will never be able to prove it in any objective fashion.

Feel free to DISagree, that is what DIScussion forums are for.

I just feel that booking at the 7 month window is very doable with OKW, so I feel that "MOST" DVCers would choose a resort where the 11 month would be more vital if all points were the same price. I think most could really care less what the original purchase price was.

Supply and Demand is very PROVEN.

 

[MiaSRN62]

Supply and Demand is very PROVEN

I think this is partly correct. But if OKW were as small as BCV/VWL I think you'd see problems booking at the 7 month window as well. I think the size of the resort has alot to do with it. I've never had any trouble finding BWV availability at the 7 month window except for Nov/Dec. I've even had trouble getting ressies at OKW about 3-4 months out for those two months.

But I also agree with DocP. OKW initially sold at a very low amount. If you want to use the car analogy as DizWhacko did, then if you initially paid $10K for one car and initially paid $20K for another, I'd think the car that one paid $20K for is going to have a higher resale value if that makes sense. So I think both arguments come in to play here.

To address the OP. Yes, the rooms are larger. The OKW studios are set up differently than the other DVC resorts though. There are 2 queen beds in the studio at OKW vs a queen bed and fold out double couch at BWV/BCV/VWL/SSR. Some find the latter preferable and may be another reason they sell quicker. Our family actually prefers have 2 real queen sized beds. But I think the majority prefers the other set up so that may add to the attractivness of those resorts. And, no, you do not need a car at OKW. The longest walk to the main hub of the resort from the furthest bldg is maybe 10-12 min. The shortest walks are maybe 30 seconds to 2 min. If you do have a car however, OKW makes it very convenient with parking right outside your villa door. There are 5 bus stops scattered throughout the resort and I find getting around OKW is comparable to getting around resorts such as CBR and POR. Also want to add, in addition to the rooms being larger, the balcony (1 and 2 bedrooms) are also much larger than the majority of the other DVC resorts. I think I've seen pics of a select (very few !) BWV rooms having a large balcony. The washer/dryer at OKW are full size vs the smaller stackable types at the other DVC resorts.

Hope this helps ---we love OKW

 

[Dean]

It is very simple and there are 2 factors. OKW is less in part because DVC made it too low initially and in part due to location/demand. All you have to do is compare to SSR to see what the difference is. All the rest on property are the same save for the standard view units at BWV. And since the OVERALL number of points can't change at OKW, this is not an issue than can be "corrected".

 

[MiaSRN62]

OKW is less in part because DVC made it too low initially and in part due to location/demand.

Agreed and in addition, I think they made it less (cost and point wise) because it was the first time they were entering the timeshare industry. They probably had no idea how big DVC would get and what the demand would be. I'll bet they're hitting themselves over the heads about how low they set the point cost at this resort. I think with the other DVC resorts they lived and learned. So in other words----they didn't yet realize what the "demand" would be with DVC when OKW first went up for sale. When BWV went up I think they were much more prepared for what the public demand would be.

 

[Dwilliams]

Feel free to DISagree, that is what DIScussion forums are for.

I just feel that booking at the 7 month window is very doable with OKW, so I feel that "MOST" DVCers would choose a resort where the 11 month would be more vital if all points were the same price. I think most could really care less what the original purchase price was.

Supply and Demand is very PROVEN.

Anewman,

Count me in. I agree with both of your posts about this. Owning a large DVC proerty provides no advantage. 7 month and less bookings are always available at SSR and OKW. The 11 month advatage is critical at resorts like BCV, BWV and VWL to secure ressies during busy times. This demand, drives up the prices of those resorts and drives down the prices of the big resorts.

Here is a prediction so archive it for later reference: SSR owners will never see the resale price go beyond what the current selling price is. Those owners will never see the appreciation like OKW owners and BCV owners have. Why? Because other than the longer contract there is no reason to own SSR. Why would I need to own SSR? I can stay there whenever I want. This will hurt those who seek to sell those contracts on the resale market. Anyone selling SSR now is losing money. This will continue due to the size of the resort and the fact that it has no direct ties to a theme park. Inflation will not override the lack of demand for SSR. The price there will be lower than the smaller proerties for the foreseeable future.

This is only my best guess but I strongly feel it will play out. Only time will tell.

It pays to own a resort that is small and has direct theme park access.


Dave

 

[deedeetoo]

Thank everyone. This has been very interesting.

I am now actually leaning away from OKW because of the location. I think we really would like to near EPCOT, especially as the kids get older (they are 7 and 5). Even now we like to finish our days in EPCOT. It would so nice to just stroll home at the end of the evening. If we buy, I'm now thinking it will be either BWV of BCV. Now I just have to decide if Stormalong Bay is worth the price difference.

 

[Dean]

Thank everyone. This has been very interesting.

I am now actually leaning away from OKW because of the location. I think we really would like to near EPCOT, especially as the kids get older (they are 7 and 5). Even now we like to finish our days in EPCOT. It would so nice to just stroll home at the end of the evening. If we buy, I'm now thinking it will be either BWV of BCV. Now I just have to decide if Stormalong Bay is worth the price difference.

Remember that BWV is not only a little cheaper in terms of per point costs, it's also significantly cheaper in number of points if you use standard view options. You also have the option of the BW view reservations. Long term fees will likely be about the same but could be less over time at BWV due to the economy of scale.

And while OKW is our favorite resort, I would agree that in general, OKW should and does have the lowest per point value. It's also one of the cheaper options to own, and along with HH, will likely be so over the long haul. The jury is still out on SSR and may be for some time to come until somewhat after it's sold out though my gut feeling is it will cost more per point over a longer period. The reasons to own OKW are because you want a 3 BR GV, cheaper dues and that's you're preferred resort OR one is flexible and understands the pluses and minuses of that situation. The same discussion in many aspects we could have about HH and VB other than the fact you CAN lock in WDW at 11 months and those VB dues.

 

[byoung]

I own at BWV because I love it there. I like OKW next of all the others, it's very relaxing staying there. Not to mention it's a great point value.