I got ROFR'd on 25 points at OKW!

[cgcruz]

I got a call from my resale rep to tell me that disney decided to buy the contract I was going to get! I was going to pay $80 per point! The contract had all 2005 and 2006 points, so it was pbbly too good for disney to pass up... But still, $80 a point??!! I don't know now what I should do. I definately dont need 150 points, and I dont want a stripped contract!

 

[TammyAlphabet]

I am so sorry about that! I am quite surprised about it! That is kinda high to be ROFR'ed. But, that happens from time to time where there is no reason for the ROFR! Usually, another contract comes along that is even better. Here is some pixie dust!!

 

[DisFlan]

Wow! I wouldn't have thought Disney would grab it at that price for a small contract. But don't give up! Something you like will come along.

DisFlan

 

[DebbieB]

What was the agreement on closing costs and dues?

 

[bavaria]

ouch! We've seen several small (25 and 50 point contracts) pass at this price this year, including my own.

Best of luck - another one WILL come along!

 

[Happy Birthday Cat]

It shows there is very little "rhyme or reason" to the points that Disney buys back. I never would have predicted that one.

HBC

 

[bobbiwoz]

I'm sorry to hear that, and I too hope that you get a chance for something else that's suitable for you!

Pixie Dust!

Bobbi

 

[kmc33]

I am sorry to hear that!!

I really thought yours would go through at $80 pp. I agree that it just shows that it's hard to predict. Maybe DVC needed a 25 point add-on for someone

 

[Caskbill]

Buy it at $80, pay closing costs, sell it at $98. It's probably still a profit for them, depending on the other costs.

I wonder if what gets ROFR'd might depend on what kind of waiting list might be out there. If they already had someone who wanted 25 OKW points and was willing to pay $98 then why not ROFR and get that contract? It makes sense.

 

[spiceycat]

boy at $80 a point for oKW and you didn't get it.

I can't believe that Disney would make anything even selling it immediately.

not with the closing costs and giving a commission to their selling agent (our guides)...

does this mean that Disney is about raise resell prices on the older resorts again?

 

[TammyAlphabet]

I think that they set a point buyback for all contracts at each resort and then throw the rest into a pile and occasionally pull one out to ROFR just to keep us guessing. Sort of like a lottery....

 

[vascubaguy]

Buy it at $80, pay closing costs, sell it at $98. It's probably still a profit for them, depending on the other costs.

I wonder if what gets ROFR'd might depend on what kind of waiting list might be out there. If they already had someone who wanted 25 OKW points and was willing to pay $98 then why not ROFR and get that contract? It makes sense.

$98 for SSR, $92 for sold-outs... (right?)

If the contract was for $80 per point and the seller pays all closing and MN fees for 2005, then I can definately see why they would buy it back.

Now if you tag on the minimum closing costs (no title insurance) of 262.00, that throws the per point cost over $90 per point. In that case DVC would gain $50 in profit off that sale?

Who knows...

 

[ACDSNY]

I wonder if what gets ROFR'd might depend on what kind of waiting list might be out there. If they already had someone who wanted 25 OKW points and was willing to pay $98 then why not ROFR and get that contract? It makes sense.

I think you right on target with this, especially if it was for a specific UY of some one on the waiting list.

cgcruz - Don't give up, with a little patience maybe a better contract will come along.

 

[cgcruz]

I was going to buy this at $2,2262 with closing cost. If Disney has to pay the buyer what I was willing to pay, including closing cost... And Disney selling it at $92 per point I think they would only make $38 in profit, which makes no sense. Argh!

 

[BillPA]

My guess is Disney is cracking down on buyers that don't have the 150 point entry level required to be a member.

 

[Dean]

If I were DVC, I'd buy back most every contract that wasn't close to 150 points or going to a current member for the same use year, regardless of price. I'm actually surprised DVC hasn't taken this approach as the costs involved are just as much for someone with a 25 pt contract as one who owns 200, likely more in some cases.

 

[Caskbill]

Good point. Disney may be saving money in the long run by offering the 25 points as an add-on to an existing member, rather than all the paperwork and management required for a brand new member who only owns 25 points.

A 25 point contract would only return about $100/year in dues. DVC may spend that much annually just to manage the contracts, send out the mailings, and so on.

 

[CarolMN]

Good point. Disney may be saving money in the long run by offering the 25 points as an add-on to an existing member, rather than all the paperwork and management required for a brand new member who only owns 25 points.

A 25 point contract would only return about $100/year in dues. DVC may spend that much annually just to manage the contracts, send out the mailings, and so on.

And I think Disney probably has people on its payroll to do all the closings (and only pays the fees the government agencies charge). If those folks aren't busy at any particular time, it may very well play into the number of contracts ROFR'd - better to keep them busy and productive than to let them sit idle.

Best wishes -

 

[bicker]

I think Dean hit the nail on the head. Even if they lose a little money ROFRing and reselling the points, the association will save money in the long-term from having to manage small contracts.

 

[DeborahKlein]

I got a call from my resale rep to tell me that disney decided to buy the contract I was going to get! I was going to pay $80 per point! The contract had all 2005 and 2006 points, so it was pbbly too good for disney to pass up... But still, $80 a point??!! I don't know now what I should do. I definately dont need 150 points, and I dont want a stripped contract!

Oh dear! NOT having a good feeling then. We have a 25 point resale contract offer in for VWL for $76.00 per point. Of course it is stripped through 04/07. Maybe that will help.

Good luck in finding another contract. We found that by hitting all the resale boards we had bookmarked every noon and evening we could find a few contracts just after they were posted.

Deb