DVC RESALES
DVC RESALES

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Old 05-09-2013, 07:24 PM   #1
Kidanifan08
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Stripping . . . everyone's doin' it!

Looking at the currently available contracts on the popular resale websites, it appears that few have a full compliment of current year points or any at all in many cases. There is even a smattering of contracts that don't have any points until 2015! And yet, the listing prices are not much lower than a year ago when there were more "loaded" contracts, and in many cases the list prices are higher.

It seems like now would be a good time for someone who is contemplating selling a contract or two to list them. The question is, how detrimental would it be to the final sale price to strip the contract before listing? Particularly for a 50-100 pointer.

For example, if someone had more than one UY, they could transfer the current UY points of the contract they are thinking of selling to their other contract and turn around and sell the newly stripped contract. Or one could even sell the points for a transfer before listing the contract. In the current market, it seems like that would do very little to the planned list price. This seems particularly true for contracts of 100 points or less, which usually command a premium. It probably depends on the home resort, but for small contracts, it may not matter. I'm thinking maybe $4-8 per point less than before stripping.

How do you DIS'ers think that purposely stripping a contract would impact the price per point?

ETA: I am interested in responses about stripping 2013 points, primarily. Also the impact it would have on small vs. large contracts.
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Last edited by Kidanifan08; 05-09-2013 at 09:19 PM. Reason: more thoughts
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Old 05-09-2013, 07:30 PM   #2
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No points until 2015, no thank you. I don't care what the price point, resort, etc. is.
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Old 05-09-2013, 07:40 PM   #3
Kidanifan08
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Originally Posted by NoleFan View Post
No points until 2015, no thank you. I don't care what the price point, resort, etc. is.
I have to agree with this. Let's just say that the seller strips the 2013 points, but 2014 forward are available. Would having no 2013 points have much impact on the asking price of a contract in the current market - particularly a small contract?
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Old 05-09-2013, 08:05 PM   #4
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Quote:
Originally Posted by Kidanifan08 View Post
I have to agree with this. Let's just say that the seller strips the 2013 points, but 2014 forward are available. Would having no 2013 points have much impact on the asking price of a contract in the current market - particularly a small contract?
For me the asking price would be effected (as a buyer) if no 2013 were available - others it would not. Of course I may not end up with a contract anytime soon Two months ago I had a contract taken 222 all 2013 points forward BWV 55.00PP right now I have a 200 point BWV all 2011 points forward in ROFR 65.00PP which I consider a better deal then the 222 point contract since it is coming with 200 points and 400 in Oct. - not sure it will pass but that is my comfort zone.

The contracts that do not have points until late 2014 or 2015 I would rather wait and see what the market does since there are no points anyway, also better contracts could come along in the mean time (even if its a higher price if it comes with banked points I can rent them out and lower my price by 12.00PP - why lay out funds for something you cannot use or rent out for a year to year and a half!
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Old 05-09-2013, 08:52 PM   #5
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Originally Posted by Kidanifan08 View Post
I have to agree with this. Let's just say that the seller strips the 2013 points, but 2014 forward are available. Would having no 2013 points have much impact on the asking price of a contract in the current market - particularly a small contract?
Yes, I would factor in the cost of buying the missing # points (via transfer purchase) at around $12/pp. It would also have to be for a contract with a # points & resort that is very rarely available to go through the added work. Good news is those contracts probably have a better chance of passing ROFR.
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Old 05-09-2013, 09:14 PM   #6
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I am selling a stripped 150 point SSR contract right now. We purposely used our 2013 points before listing it. We bought the contract loaded a few years back for $65 and are selling it stripped for $58. We actually listed right before the price increase was announced by Disney, so we could possibly have sold for a little more if we had waited a few weeks. Oh, and we had a buyer within days of listing the contract - it does seem to be a seller's market right now.
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Old 05-09-2013, 11:50 PM   #7
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I don't know that it would *hurt* since almost everything is stripped right now. That said, the stripped contracts are the primary reason that I'm not arguing for resale with my husband who only wants to buy direct.
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Old 05-10-2013, 06:44 PM   #8
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Quote:
Originally Posted by NoleFan View Post
Yes, I would factor in the cost of buying the missing # points (via transfer purchase) at around $12/pp. It would also have to be for a contract with a # points & resort that is very rarely available to go through the added work. Good news is those contracts probably have a better chance of passing ROFR.
So, if the contract is loaded, do you offer the owner about $12 a point more for the extra points?

And the extra years still available (like 40 more years) are also worth $12 a point more?

Bad logic on your part.
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Old 05-10-2013, 06:59 PM   #9
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Originally Posted by NoleFan View Post
No points for 2013. No MF is a plus. Cost pp would still have to be $5-10 less pp depending upon UY. Offered more than asking (premium) for small loaded contract recently. If it was stripped, I certainly would not have offered such or made an offer at all.
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So, if the contract is loaded, do you offer the owner about $12 a point more for the extra points?

And the extra years still available (like 40 more years) are also worth $12 a point more?

Bad logic on your part.
Great point, Deb. The buyer never considers added compensation for the "loaded" or later expiration date contract; only reduction for the stripped one. In this sellers market, there probably needs to be some new math.
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Old 05-10-2013, 07:10 PM   #10
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Originally Posted by Deb & Bill View Post
So, if the contract is loaded, do you offer the owner about $12 a point more for the extra points?

And the extra years still available (like 40 more years) are also worth $12 a point more?

Bad logic on your part.
I would not offer $12 more pp. factor in about $5-$6 pp MF & $5 pp differential between stripped vs. loaded. I would not pay the same price pp for a stripped vs. loaded contract. If I had to buy 100 points via transfer, it would cost around $10-$12 pp ($5-$6 mf + $5 discount for stripped contract). That's the math on the approx. $12

Same resort, same contract size
ie. stripped $70pp NO MF
loaded $75pp +MF

Last edited by NoleFan; 05-10-2013 at 07:32 PM.
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Old 05-09-2013, 07:46 PM   #11
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There are more savvy, informed buyers here so probably not going to find many willing to consider severely stripped contracts, however there is a buyer out there for everything and it's just a matter of time before the right buyer comes along! As available contracts shrink daily that time is coming much sooner than expected!!
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Old 05-10-2013, 10:36 AM   #12
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There are more savvy, informed buyers here so probably not going to find many willing to consider severely stripped contracts, however there is a buyer out there for everything and it's just a matter of time before the right buyer comes along! As available contracts shrink daily that time is coming much sooner than expected!!
Totally agree. 1-2 years ago we were all looking how best to make a low-ball offer, it's now turned into sellers placing high-ball listing !
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Old 05-11-2013, 08:34 AM   #13
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A Friend of mine listed his AK With the broker I don't remember which one but it was one of the big 3. They told him to sell his current Points with a transfer for 10-12$, then list it. They said he wouldn't get the 10 or $12 more per point and DVC. Would more likely not ROFR. Based on his goals of what he wanted to make this worked out for him, and listed it 8$ less pp after selling his 300 points at 10.50. He contemplated selling his next year points, bet others are doing this.
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Old 05-12-2013, 11:50 AM   #14
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A Friend of mine listed his AK With the broker I don't remember which one but it was one of the big 3. They told him to sell his current Points with a transfer for 10-12$, then list it. They said he wouldn't get the 10 or $12 more per point and DVC. Would more likely not ROFR. Based on his goals of what he wanted to make this worked out for him, and listed it 8$ less pp after selling his 300 points at 10.50. He contemplated selling his next year points, bet others are doing this.
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Old 05-10-2013, 10:34 AM   #15
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Originally Posted by Kidanifan08 View Post
It seems like now would be a good time for someone who is contemplating selling a contract or two to list them. The question is, how detrimental would it be to the final sale price to strip the contract before listing? Particularly for a 50-100 pointer.
If someone is looking to make the most amount of money possible selling and isn't in a hurry, then I think it make total sense to strip the contract of all points before selling it.

I would think that stripped contracts also have a better chance of passing ROFR.
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