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Old 06-20-2013, 09:51 PM   #1
New England Eeyore
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Stripped contract?

I'm looking to buy a BWV or BCV resale and have been watching the listings. There have been a couple stripped contracts that might match my needs for points, etc. that have caught my eye. The stripping itself isn't a deal breaker for me, as I may even want to wait until late 2014 to take my first trip on points, but I don't want to cheat myself out of the value of that first year's points. Plus, I'd be paying this money now but not getting to really use it until a year from now.

What is a reasonable adjustment to make for a stripped contract when making an offer? Lower price per point? What typically happens with the maintenance fees for that first year? Will the seller adjust for that?

I'm sort of thinking that whatever adjustments I could get on the sale wouldn't be enough to balance my perceptions of those "lost" points. (i.e. If I had them, and I still waited to take at trip until the 2014 UY, I could have rented those 2013 points and made some money.)

I appreciate any input.
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Old 06-20-2013, 10:06 PM   #2
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The points from those stripped contracts are for sale here at Rent/Trade board for $10 per point. So you should deduct $10 per point and explain that to the seller. Look at my logo, I have Rent/Trade Plan so that is what I would do if I am selling my contracts.

Or look at it the other way, you can also buy a loaded contract, come here, rent out those points and get $10 per point for your purchase, it's the same idea.

So one the seller already did that for you. The other one you have to do it yourself. Either way, the price difference should be accounted for.
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Old 06-20-2013, 10:09 PM   #3
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No 2013 points or No 2013 & no 2014 points? Stripped of 2013 points, I would pay $10 pp less than market on a contract that had the points. If stripped for both 2013 & 2014, I would pay $15-$20 pp less than market on a contract that had the points. However, since those are 2 very popular resorts, I am not sure how much wiggle room there is with the demand & limited supply of those contracts. Smaller contracts are even more rare. Even under those circumstances, I still would not pay in excess for a stripped contract & would not consider a contract that did not have 2014 points. Unless I could get the 2013 stripped contract for the right price, I would just hold out for the right contract to come along. Ultimately comes down to personal preference.

I would not pay MF on points that I was not getting. If a contract was stripped of 2014 points, you would have to figure that into the price as Disney bills for MF in January & I think you would get billed for those. If you are not getting 2014 points, then the seller should adjust for that.
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Old 06-20-2013, 10:22 PM   #4
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I think the answers already given are good, but I'd just caution you that people don't seem to be perfectly rational about the pricing on these contracts. It really should be that people reduce the price of their contract by about $10/point if it doesn't have current-year points. But in practice it seems like there's almost no price differential, at least in listing prices. Maybe a few dollars plus or minus, but if so it's swamped by other pricing factors.

In the end the right offer is the one you can get a seller to agree on. It's important to remind yourself that your time is valuable and getting to an agreement is worth something. No matter what, you're saving a bundle over buying direct, and with BWV and BCV you're probably going to close either faster than direct or not much slower. So savor the savings. It'll help. Maybe.

Good luck!
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Old 06-20-2013, 10:33 PM   #5
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Quote:
Originally Posted by dmunsil View Post
I think the answers already given are good, but I'd just caution you that people don't seem to be perfectly rational about the pricing on these contracts. It really should be that people reduce the price of their contract by about $10/point if it doesn't have current-year points. But in practice it seems like there's almost no price differential, at least in listing prices. Maybe a few dollars plus or minus, but if so it's swamped by other pricing factors.

In the end the right offer is the one you can get a seller to agree on. It's important to remind yourself that your time is valuable and getting to an agreement is worth something. No matter what, you're saving a bundle over buying direct, and with BWV and BCV you're probably going to close either faster than direct or not much slower. So savor the savings. It'll help. Maybe.

Good luck!
Very true. Therein lies the financial vs. emotional ties to a contract. There seems to be little, if any, variance in pricing in stripped vs. loaded on the small BCV & BWV contracts. We bought a small, loaded BCV a couple months ago seconds after it was listed. After we contracted, there were even several back up offers on the contract. Similar sized, stripped BCV contracts are selling for more now than what I paid a couple months ago for my loaded contract.

Finding the right contract @ a price you feel good about is what it comes down to. Good luck!
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Old 06-21-2013, 05:41 AM   #6
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I agree with dmunsil and Nolefan - especially if you are looking at a smaller contract (100 points or less).

It's a sellers' market right now for BWV and BCV (and BLT and VWL and VGC). If you really want one of those contracts, you probably need to offer full price and do it quickly. If you don't someone else will.
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Old 06-21-2013, 06:48 AM   #7
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Quote:
Originally Posted by dmunsil View Post
I think the answers already given are good, but I'd just caution you that people don't seem to be perfectly rational about the pricing on these contracts. It really should be that people reduce the price of their contract by about $10/point if it doesn't have current-year points. But in practice it seems like there's almost no price differential, at least in listing prices. Maybe a few dollars plus or minus, but if so it's swamped by other pricing factors.

In the end the right offer is the one you can get a seller to agree on. It's important to remind yourself that your time is valuable and getting to an agreement is worth something. No matter what, you're saving a bundle over buying direct, and with BWV and BCV you're probably going to close either faster than direct or not much slower. So savor the savings. It'll help. Maybe.

Good luck!
We closed last week on a 250pt SSR Aug UY Contract. It had 16 points from 2012 available 8/13 and all 2014 pts. Buyer was asking $60pp, we offered $50pp and they accepted right away. So you're statement was right on for us!
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Old 06-21-2013, 07:54 AM   #8
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OP if you are not going to travel until later 2014 why not wait and see what comes up - there are new contracts all the time. Back in March I had an offer accepted BWV 55.00PP all 2013 points and forward Disney took this contract, April we had BWV 65.00PP 2011, 2012 & 2013 points Disney took that one also right now I have BWV 79.00PP all 2012, 2013 will be there in Aug and all points forward. As you can see prices keep climbing but if this contract goes through - which I think it will I am going to rent out 2012 points and bring my cost down to 67.00PP (12.00PP should be easy to get I have a full year). I may even rent 2013 points since we are not sure if we are going again until mid to end of 2014 again bringing my cost down to 55.00PP!

I was not even going to consider stripped contracts since I really think prices will stabilize once inventory increases. A month ago there were NO BWV contracts to be had everything was selling the day it was listed now I see stripped contracts for 85.00PP sitting! If people are not willing to pay that then prices will have to drop a bit if the sellers really want to sell!

And as I said there are new contracts every week hitting the market.
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Old 06-21-2013, 12:40 PM   #9
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Another thing to consider is when in 2014 you are travelling? Would you need the 11 month booking advantage? F&W? Holidays? That would mean possibly booking in the next 6 months? Buy a stripped (no 2013) & rent / transfer points for your stay or buy loaded with possible opportunity to rent out points? I would say stripped for the right price (but not stipped beyond no 2013) or hold out for loaded. If small, loaded contract- be prepared to act fast & pay asking. Sure, all is negotiable but these small, loaded contracts go fast & there is always someone behind you waiting for it. We bought both- stripped with no 2013 points @ right price & loaded @ premium. Happy with both purchases. Budgeted for points transfer with stripped contract so we could get our fall & winter trips in where we would not have made the 7 month window for booking so home resort advantage was a moot point. Ended up with BCV & BWV split stay for F&W & VWL for December. I am more than happy- those were my ideal reservations during those times. Good luck with your search. Find the right contract @ a price YOU are happy with.
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Old 06-21-2013, 12:43 PM   #10
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Quote:
Originally Posted by New England Eeyore View Post
What is a reasonable adjustment to make for a stripped contract when making an offer? Lower price per point? What typically happens with the maintenance fees for that first year? Will the seller adjust for that?
If you are trying to compare two different contracts, one stripped and one without, then you could value the points at their MF if you were planning to use them yourself or at the current rental rates ($10-$12) if you would rent the points out. Doing this allows you to compare one contract to another contract in their value to you. This has nothing to do with what is a reasonable adjustment to an offer.

In a market with limited supply and lots of demand, sellers have the advantage and they can be as unreasonable (with in reason if they actually hope to sell) as they want. The current market is a seller's market. Last year was a buyer's market. What next year will be, who knows!

Good luck finding something
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Old 06-21-2013, 12:52 PM   #11
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Quote:
Originally Posted by dbs1228 View Post
I was not even going to consider stripped contracts since I really think prices will stabilize once inventory increases. A month ago there were NO BWV contracts to be had everything was selling the day it was listed now I see stripped contracts for 85.00PP sitting! If people are not willing to pay that then prices will have to drop a bit if the sellers really want to sell!

And as I said there are new contracts every week hitting the market.
Definitely $85 and stripped is the current top of the market, but lots of BWV contracts are selling for just a little bit less than that. Of the 5 "Sale Pending" BWV listings at TTS, none had a full years of points and 4 were originally listed at over $80. The 4 remaining BWV listings are all above $80. So I think that the new norm here is that BWV contract will continue to be listed in the low 80s as people have already shown they are willing to pay those prices.
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Old 06-21-2013, 01:09 PM   #12
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OP if you are not going to travel until later 2014 why not wait and see what comes up - there are new contracts all the time.
This is my thought process as well. I see purchasing a stripped contract as no different from taking a credit card that already has charges on it. If we want to compare apples to apples, would you start making mortgage payments on a house today if you could not live there for a full year? Everyone has different valuations for such purchases but that's how the situation feels to me.
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Old 06-21-2013, 02:49 PM   #13
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I recently put an offer in on a stripped contract. I deducted points from the asking/market value based on the missing points. The selling agent seamed a little taken back by my offer and the seller rejected it. I got kind of an "I told you so" type of email from the agent. I was offering 60 pp on a 150 pt ssr stripped. Just looks like you keep trying and see what happens.
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Old 06-21-2013, 03:14 PM   #14
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Lots of great things to think about - thanks.

I am not in a huge rush, but the goal is to take the first trip for F&W 2014 so I would need to make sure I closed in enough time to make my 11 month booking window. I will keep watching and try to jump on something that looks reasonable.

It does seem that when compared apples to apples there is not much difference between the asking price for stripped vs intact, and I know there is high demand for these two resorts.
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Old 06-21-2013, 04:38 PM   #15
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I recently put an offer in on a stripped contract. I deducted points from the asking/market value based on the missing points. The selling agent seamed a little taken back by my offer and the seller rejected it. I got kind of an "I told you so" type of email from the agent. I was offering 60 pp on a 150 pt ssr stripped. Just looks like you keep trying and see what happens.
That's interesting. In the past month I closed on two SSR contracts, both triple loaded, one for $57 and another for $60.50.
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