BWV resale price per point range?

[MDdriver]

I am waiting ROFR on a contract for 200pts @ $50pp. No 2012 pts, all 2013 and beyond pts. Buyer pays closing costs and MFs. I could have offered less but I figured somebody would have bought it at asking price. Hope I hear by the end of next week.

[ELMC]

Originally Posted by Disneymooner07

We have narrowed down to buying at BWV, hopefully 200-220 points. We were looking at a contract that is listed at $69 and we made a lower offer that the seller declined. Not surprising, but I *was* surprised when I asked for guidance from the realtor as to what the seller might be expecting that she told me, "I am not sure as they simply 'declined.' Most Boardwalk listings are selling in the mid $60s per point so closer to that I would assume."

Every seller is different and you will really never know what motivates them. Some people will fixate on a price and not sell for less. There are contracts on Fidelity that have been there for years, simply because the sellers are unwilling or unable to come down in price.

Originally Posted by Disneymooner07

Is this true that BWV is selling in the mid-60s??? From what I can see on the ROFR thread, it looks like BWV is going more in the mid-50s to 60, no?

The ROFR thread does not tell the whole picture. Starting at about this time last year there has been a run on BWV contracts. There has also been a dearth of sellers in that time. So while it's true BWV contracts did sell in the mid $50 range, the new normal for BWV pricing is $60 and above. As an added tip, when looking at the pricing of contracts, you also need to factor in who paid closing and maintenance fees. Each one of these elements can add or subtract between $3-6 per point. As others have mentioned, you also need to look at the amount of banked points and assign a value to them.

Quick quiz: Which contract would you rather buy?

Contract A: $70 per point with 2011's points banked, all 2012 points and all 2013 points coming this year where the seller pays closing and maintenance fees

or

Contract B: $43 per point where it has full points coming in 2013 and you have to pay closing and reimburse maintenance fees.

It's a trick question, because both contracts are worth the same. So your purchasing decision would be based on your needs, because using cost as your only criteria won't help you decide between the two.

Originally Posted by Disneymooner07

I'm trying to gauge if I'm just totally off or if this realtor is just trying to get the seller a better deal?

Neither. You're not that off because if you just look at the numbers without considering recent trends in the market, your expectations were realistic. As far as the broker, brokers of timeshare sales in the state of Florida represent the transaction, not the seller or the buyer. Different brokers have different approaches in the way they represent the transaction, so this might affect how your low offers are being perceived.

Originally Posted by Disneymooner07

We actually tried to bid on another contract and apparently missed out by an hour or two, but it also sold for $55/point for 200 points (with all points plus some banked), so I thought that was maybe a pretty competitive price. I guess I'll just have to wait and wait and wait

Yeah, there's a reason that contract went so quickly. It was underpriced.

Originally Posted by Disneymooner07

What do most people offer in relation to the listing price? Eg. $10 below listing? $5 below listing? Or just wait until a listing is at exactly the price point you expect to pay? (Though I don't think I've seen very many listed below $60 yet the ROFR indicates many people pay less than that, so I just assumed lots of negotiating is the norm. Maybe it's not?)

There are threads dedicated to this very question. People who have been waiting for a specific use year or don't want to "lose" a contract go in and offer full price. Bargain shoppers like myself go in with a very low offer hoping to find a motivated seller. (Note: this has a very low success rate.) From what I've been reading on here, I think the norm is $5-10 less than asking price which usually results in immediate acceptance or one counter offer and then acceptance.

Originally Posted by Disneymooner07

I have to admit I'm fairly confused by the agent's role in all of this. Do they all make commission off the sales? I understand that the buyer pays a fee as well, but it seems it would be much less than the potential commission on a 200+ point contract.

Sellers pay a commission to the broker in the neighborhood of 10%. The buyer's fee is new and as far as I know only Fidelity is charging it (but I could be wrong about that).

Originally Posted by Disneymooner07

Okay, that is kind of what I thought - I guess I just have to be patient Is it generally true that the bigger the contract, the lower the price per point? I know there's variability depending on how stripped the contract is, but that seems to be the trend?

Point availability aside, smaller contracts tend to sell for more (sometimes significantly more) than larger contracts. There is a much higher demand for small contracts. Fewer buyers are looking for larger contracts. The laws of supply and demand are in full effect here.

Originally Posted by Disneymooner07

Thanks everyone for your feedback! I guess I just need to be patient! I just want to be able to book by this summer for a trip next summer. I guess that's still months away, but with how long it takes to get through ROFR and clearing the title, etc., I somehow feel like it's kind of urgent I'm still adjusting to how far in advance all this DVC planning has to occur - I'm planning out vacations for 2014 and 2016 already!

Be patient for the process, but if you see a contract you want you should jump on it. The average time it takes a contract to go from offer to point availability is about 10 weeks. So you have until September to close on a contract if you are looking at a trip for next August. DVC planning is best done 11 months in advance. Good luck finding something!

[fmer55]

Originally Posted by MDdriver

I am waiting ROFR on a contract for 200pts @ $50pp. No 2012 pts, all 2013 and beyond pts. Buyer pays closing costs and MFs. I could have offered less but I figured somebody would have bought it at asking price. Hope I hear by the end of next week.

You beat me by about an hour on that one. As soon as i saw it I called and it was gone. February UY right?

[MDdriver]

You are right. Feb UY. I got up and by chance looked at fidelity. I called about 9:05 in the morning.

[CarolMN]

Originally Posted by ELMC

........(snip)......you have until September to close on a contract if you are looking at a trip for next August. DVC planning is best done 11 months in advance. Good luck finding something!

While this is true, August is one of the easier months to book BWV at 7 months. So IMO, she doesn't need to stress out about finding a contract by September. Even if she can't book until December 2013 (& probably even later), she should easily be able to get into BWV for an August vacation.

[gatorgirl02]

I will add in there that although all brokers are essentially created equal in the services that they provide, some are more buyer-friendly, while others clearly cater more towards the seller. Generally, Fidelity would be who I buy from, as they never balk at any offers and they will generally negotiate, whereas other brokers tend to stick to their guns on price and leave little wiggle room for negotiating, let alone offers way below (say $10pp below) asking price.

[CarolMN]

Originally Posted by gatorgirl02

I will add in there that although all brokers are essentially created equal in the services that they provide, some are more buyer-friendly, while others clearly cater more towards the seller. Generally, Fidelity would be who I buy from, as they never balk at any offers and they will generally negotiate, whereas other brokers tend to stick to their guns on price and leave little wiggle room for negotiating, let alone offers way below (say $10pp below) asking price.

Maybe this is more a reflection of the type of sellers each broker gets. Fidelity gets a large share of its inventory as a referral from Disney. My belief is that many of those are underwater or have other reasons for wanting to sell quickly. Those sellers are more likely to be receptive to lower offers than someone who has had their membership for several years and is just ready to move on. FWIW, some sellers tell their brokers up front that their selling price is firm and not to bother them with lower offers. They may change their mind if the contract goes unsold for a while.

IMO, one should check out all the brokers' inventories and look for the contract that best fits their needs.

[a742246]

Originally Posted by gatorgirl02

I will add in there that although all brokers are essentially created equal in the services that they provide, some are more buyer-friendly, while others clearly cater more towards the seller. Generally, Fidelity would be who I buy from, as they never balk at any offers and they will generally negotiate, whereas other brokers tend to stick to their guns on price and leave little wiggle room for negotiating, let alone offers way below (say $10pp below) asking price.

As OF 1/1/13 Fidelity is charging an extra 195.00 processing fee. I do not believe the other resellers are though.

[Disneymooner07]

Originally Posted by CarolMN

While this is true, August is one of the easier months to book BWV at 7 months. So IMO, she doesn't need to stress out about finding a contract by September. Even if she can't book until December 2013 (& probably even later), she should easily be able to get into BWV for an August vacation.

Well, we're going to try and book a Grand Villa for a week, so I'm worried that it'll book up pretty quickly! We're flexible if need be, but I'm sure you can all relate to wanting to get to Disney World sooner rather than later

Originally Posted by gatorgirl02

I will add in there that although all brokers are essentially created equal in the services that they provide, some are more buyer-friendly, while others clearly cater more towards the seller. Generally, Fidelity would be who I buy from, as they never balk at any offers and they will generally negotiate, whereas other brokers tend to stick to their guns on price and leave little wiggle room for negotiating, let alone offers way below (say $10pp below) asking price.

I've made two offers through Rachel at Fidelity so far and one through another company - the one at the other company is the one that made me pose this question for this thread because she kind of made me feel like I was crazy to try and make a lower offer. Rachel has been very nice and encouraging, which just makes me want to buy through Fidelity!

[radmcg]

Great Thread. To the OP I was doing the same thing looking for 100 points at BWV. Have missed 3 by being to late and 2 my offers not accepted. I have been surprised by the BWV in the 50s on bigger contracts. I finally got on one brokers resort specific list and within 2 weeks got an email with my current UY (Feb). All banked 2012 and forward. I didn't bother negotiating just paid full price. Its all in what its worth to you. Any other UY with different amount of points (80-130 was my range) and only 2013 points were contracts I negotiated on. This contract was exactly what I wanted so even if I had gotten it "right " I would have saved what 500.00. Don't get me wrong I love a deal as good as the next guy but it all comes down to value to you. Cash is cash and writing that check is not fun but like others have said: Look at the cost of the entire contract and the 1,000.00 you saved on the buy in becomes insignificant to the overall cost. Unless your an accountant and want to figure in future value of a dollar. Which right now what are your fixed investment yielding? Maybe 4% if your lucky. If its perfect buy it if its not negotiate!
Thanks to all on this site I learn something everyday.

[Disneymooner07]

Originally Posted by radmcg

Great Thread. To the OP I was doing the same thing looking for 100 points at BWV. Have missed 3 by being to late and 2 my offers not accepted. I have been surprised by the BWV in the 50s on bigger contracts. I finally got on one brokers resort specific list and within 2 weeks got an email with my current UY (Feb). All banked 2012 and forward. I didn't bother negotiating just paid full price. Its all in what its worth to you. Any other UY with different amount of points (80-130 was my range) and only 2013 points were contracts I negotiated on. This contract was exactly what I wanted so even if I had gotten it "right " I would have saved what 500.00. Don't get me wrong I love a deal as good as the next guy but it all comes down to value to you. Cash is cash and writing that check is not fun but like others have said: Look at the cost of the entire contract and the 1,000.00 you saved on the buy in becomes insignificant to the overall cost. Unless your an accountant and want to figure in future value of a dollar. Which right now what are your fixed investment yielding? Maybe 4% if your lucky. If its perfect buy it if its not negotiate!
Thanks to all on this site I learn something everyday.

Thanks for this - I feel like I'm just kind of grasping at straws through this process, but it's great having a support network here on this board I'm just trying to get into the club!

Quick question - how do you get on a broker's resort specific list?

[ELMC]

Originally Posted by Disneymooner07

Thanks for this - I feel like I'm just kind of grasping at straws through this process, but it's great having a support network here on this board I'm just trying to get into the club!

Hate to burst your bubble, but the only "club" that we actually belong to is the group of people who get a ginormous bill in the mail every December.

Originally Posted by Disneymooner07

Quick question - how do you get on a broker's resort specific list?

You ask. No seriously, tell a broker that you are are looking to buy now and what it is you are looking for. They will probably contact you when they have something come in that meets your needs. Keep in mind that this shouldn't replace your searching, as I've heard mixed stories about how well this approach does or does not work.

[Disneymooner07]

[QUOTE=ELMC;47274153]Hate to burst your bubble, but the only "club" that we actually belong to is the group of people who get a ginormous bill in the mail every December.

Haha Well, does the bill at least come with some Mickey ears on it or some pixie dust in the envelope?

I think we'll opt for the monthly payment so as to not add to the stack of bills that always follow the holidays! (Just curious, how does one sign up for the monthly payment by the way? )

[ELMC]

Originally Posted by ELMC

Hate to burst your bubble, but the only "club" that we actually belong to is the group of people who get a ginormous bill in the mail every December.

Originally Posted by Disneymooner07

Haha Well, does the bill at least come with some Mickey ears on it or some pixie dust in the envelope?

I think we'll opt for the monthly payment so as to not add to the stack of bills that always follow the holidays! (Just curious, how does one sign up for the monthly payment by the way? )

Yes, and that's the best and worst part about it. You get all excited that you got mail from Disney and then it turns out to be a bill. It's the ultimate letdown.

Talk to MS and they can put you on a monthly draw from your bank account. I actually like the January billing because my job is mostly bonus based, which comes the last week of December. It really helps to soften the blow...especially on 575 points.

[DougEMG]

[QUOTE=Disneymooner07;47274585]

Originally Posted by ELMC

I think we'll opt for the monthly payment so as to not add to the stack of bills that always follow the holidays! (Just curious, how does one sign up for the monthly payment by the way? )

Call the member services number and one of the options on it is accounting. They'll tell you what you need to do.

I just had it setup this week for myself. What's required is a US$ account in a US Bank. They had me send them a fax with a copy of my membership numbers (I have 3) and a copy of a void cheque. After faxing it in I gave them a call to confirm they had it and they told me what the monthly withdrawls were going to be.

And you pick to have the withdrawl on the 1st of the 15th of the month.