Wow. Cheap OKW, pass ROFR?

[nunzia]

The GMAC site has 40 points at OKW for $48.75 a point. This sounds way too low..would sellers do this on purpose just to get Disney to buy it? I can't imagine this passing ROFR, and if I does I'd have wished I'd tried for it!

 

[dianeschlicht]

Wont pass, but how about offering$70/point for it and see what happens?

 

[nunzia]

Wont pass, but how about offering$70/point for it and see what happens?

I actually have a contract working right now, but it's for 78 a point..I was just very surprised to see this low one and thought for sure, it won't pass, so why list that low?

 

[dianeschlicht]

My guess is that it is a distress situation like an estate settlement or something of that nature so that quick sale is the motivation.

 

[Granny]

This sounds way too low..would sellers do this on purpose just to get Disney to buy it?

I doubt this was really done on purpose.

I agree with Diane that this is probably being sold by somone with little knowledge or understanding of what they are selling.

My guess is that an estate or surviving spouse looked at the original purchase price, figures that 15 years of use must make it worth less than the original price and using common sense thinks that $48.75 is a fair deal.

If they were original purchasers, that's only a little below initial buy in price.

Just my guess, but if someone really wanted Disney to ROFR a contract, they could certainly get a lot more for it and still have Disney snatch it up.

 

[nunzia]

I doubt this was really done on purpose.

I agree with Diane that this is probably being sold by somone with little knowledge or understanding of what they are selling.

My guess is that an estate or surviving spouse looked at the original purchase price, figures that 15 years of use must make it worth less than the original price and using common sense thinks that $48.75 is a fair deal.

If they were original purchasers, that's only a little below initial buy in price.

Just my guess, but if someone really wanted Disney to ROFR a contract, they could certainly get a lot more for it and still have Disney snatch it up.

That certainly makes sense. You'd think the broker would fill them in though. I guess it isn't worth the headache to make and offer and just see it disappear..

 

[nunzia]

Well, Well, Well..that listing is gone. I bet it was some typo and they caught it quick!

 

[Granny]

That's an even more logical explanation!

 

[salmoneous]

I doubt this was really done on purpose.

I disagree. Assuming it wasn't a simple typo, it was almost certainly on purpose. The folks at GMAC aren't fools. They know that is grossly under market price - you could add $10-15/point to the price and still have it sell (or ROFR) in a heartbeat. They also know their commission is based on selling price.

It's hard to understand, but there are situations where people don't want to make a profit; they are just looking to get rid of an asset. You see such things with nasty divorces or when a large institution - a bank, trust, etc. - ends up with an asset they don't want. If they price to pay off the loan, they walk away and are done with it. If they sell at market price, they've got $1000 profit they need to do something with. It sounds crazy, but that can be a big problem. You have to find an account to put the profit in - you have to deal with taxes - you have to figure out who is entitled to the money, etc. When your lawyers are billing you at $350/hour, dealing with a $1000 profit can be more trouble than its worth.

 

[Granny]

I disagree. Assuming it wasn't a simple typo, it was almost certainly on purpose. The folks at GMAC aren't fools. They know that is grossly under market price - you could add $10-15/point to the price and still have it sell (or ROFR) in a heartbeat. They also know their commission is based on selling price.

It's hard to understand, but there are situations where people don't want to make a profit; they are just looking to get rid of an asset. You see such things with nasty divorces or when a large institution - a bank, trust, etc. - ends up with an asset they don't want. If they price to pay off the loan, they walk away and are done with it. If they sell at market price, they've got $1000 profit they need to do something with. It sounds crazy, but that can be a big problem. You have to find an account to put the profit in - you have to deal with taxes - you have to figure out who is entitled to the money, etc. When your lawyers are billing you at $350/hour, dealing with a $1000 profit can be more trouble than its worth.

Could be, I suppose. But in that case, if GMAC had any ethics they'd tell the seller to contact Disney since that's about the price Disney is paying people who sell back direct.

 

[nunzia]

Could be, I suppose. But in that case, if GMAC had any ethics they'd tell the seller to contact Disney since that's about the price Disney is paying people who sell back direct.

True..but...well, it seems sometimes ethics are hard to come by. I can see how in a divorce or something messy they'd just call an agent to dump it...
Still, it was a typo. Sure be nice to get points at 48.50, though wouldn't it? Oh wait...had I been smart enough 15 years ago, it would have been close to that mark

 

[BWV Dreamin]

Could be, I suppose. But in that case, if GMAC had any ethics they'd tell the seller to contact Disney since that's about the price Disney is paying people who sell back direct.

Right on Granny!!

 

[CarolA]

The GMAC site has 40 points at OKW for $48.75 a point. This sounds way too low..would sellers do this on purpose just to get Disney to buy it? I can't imagine this passing ROFR, and if I does I'd have wished I'd tried for it!

Yes, a seller might do this just for this reason. (I think my original purchase MANY years ago was priced too low for this reason. It did pass however LOL!)


Also, Disney is only buying back "selected" resorts and I don't think OKW is one of them.