AKL / SSR / OKW - Direct Price Increase to $200pp

[MickeyismyCat]

I have an offer for 130pp for 160 point contract at AKL that is waiting ROFR and has been for about 2.5 weeks now. Reading this I doubt I will be able to purchase it...

I'll be watching to see how you and others do with ROFR over the next few weeks.

Hoping this price increase scares potential direct buyers away for a month or so limiting ROFR buying.

I sent a deposit a few days ago on a pretty attractive AKV contract. It was a flip of the coin if it got ROFR in my opinion 2 weeks ago. What this increase does to resale ROFR threshold is a mystery.

Besides the money grab by DVC, is this a sign that direct demand is that strong?

I assume we will see these resorts ROFR threshold climb another $10-15 over the next month or so. Too early to see if brokers are readjusting prices up yet on existing inventory. Price increases and asking on AKV appeared to be stalling the last 2 months in my opinion. I know after I submitted my sub asking price offer to the particular broker I used they slashed quite a few AKV contracts about 5% a week or 2 back.

From what I gather, this increase was practically unannounced. Which works out the best for us that have contracts already in the purchasing/ROFR phase. Out of the hundreds of thousands of owners or perspective buyers, I'm sure 1000 or so would of added on to lock in old pricing if they knew it was being raised. I assume that would in turn create a massive ROFR purchasing drive by DVC... Us currently buying might of dodged a bullet.

 

[MickeyismyCat]

One more point, if I was on the fence about buying resale at one of these resorts, I would probly pull the trigger today before prices start scaling up. I'm debating if its worth cherry picking another contract right now. I'm going to be broke.

 

[Deeleebaker]

One more point, if I was on the fence about buying resale at one of these resorts, I would probly pull the trigger today before prices start scaling up. I'm debating if its worth cherry picking another contract right now. I'm going to be broke.

Right? That $165 fully loaded AKV is looking nice now. /muttering I will not buy more before my next trip

 

[MickeyismyCat]

Right? That $165 fully loaded AKV is looking nice now. /muttering I will not buy more before my next trip

I'm around $130 - 1.5x 22, full 2023. dues split. Offer accepted about a week ago.
Original asking was about 14% higher then that and it sat for months until I offered a market realistic price.

I think 128-135 is reasonable for a fairly loaded contract at AKV and to pass ROFR. Dues and closing costs are a bonus if you can negotiate it.
Brokers or sellers are pushing to hard to get top dollar right now. Board sponsors email blast today had AKV's all the way up to $150. Good grief. Sure all the 2021 points are banked, but even at $19 a point on the rental market, that extra $15 more per point vs a contract at say $135 is not worth it unless its a premium contract. (sub 75 points)

I appreciate the brokers listings, but they work for the sellers and that sweet sweet commission. Negotiate and lowball until you find someone willing! Negotiate!

 

[BWV Dreamin]

I'm around $130 - 1.5x 22, full 2023. dues split. Offer accepted about a week ago.
Original asking was about 14% higher then that and it sat for months until I offered a market realistic price.

I think 128-135 is reasonable for a fairly loaded contract at AKV and to pass ROFR. Dues and closing costs are a bonus if you can negotiate it.
Brokers or sellers are pushing to hard to get top dollar right now. Board sponsors email blast today had AKV's all the way up to $150. Good grief. Sure all the 2021 points are banked, but even at $19 a point on the rental market, that extra $15 more per point vs a contract at say $135 is not worth it unless its a premium contract. (sub 75 points)

I appreciate the brokers listings, but they work for the sellers and that sweet sweet commission. Negotiate and lowball until you find someone willing! Negotiate!

Great price. Lucky you were able to get that offer presented. Many brokers won’t even present those offers.

 

[nlenguyen]

Does the profits from these sales go towards the overall DVC budget or does it stay at that resort? I think for $200 a point, they should improve some of their resorts/buildings. For example building a new pool, etc.

 

[CarolynFH]

Does the profits from these sales go towards the overall DVC budget or does it stay at that resort? I think for $200 a point, they should improve some of their resorts/buildings. For example building a new pool, etc.

The developer is Disney Vacation Development, DVD. All money from purchase of points goes to them. Each DVC home resort is a separate Condominium Association and levies annual member fees (dues), part of which goes to capital reserves for maintenance and refurbishment of the resorts themselves. Both funding streams are completely separate. BTW the Moonlight Magic events are paid for by DVD from their marketing budget. DVC member fees do not pay for MM, which is why those events can be restricted to blue card owners only.

 

[sethschroeder]

subsidizing a higher direct price per year by spreading it over my geriatric decades.

Thing is you are much more likely to get more money back out of the contract as well. So when you hit 2042 and BWV is worth $0 you can cash out CCV/RIV for $$ most likely.

Yes price can always go like other time shares but I don't ever plan on holding that long. I don't exactly have plans to sell but if I see DVC becoming "worthless" then I will punch out sooner, get something back, and then look to just rent from people who can't sell their contracts.

It would make more sense if you really paid more but in the end there isn't much of a price difference in getting a 40+ year contract vs a 22 year contract.

 

[dvc lover 1970]

I don't think I would have purchased DVC today at these prices. 200 per point for SSR, OKW and AKV - they are definitely trying to push sales to direct. what they do not realize is they are going to price people out completely.

 

[Red Dog Run]

That was me. After losing 5 contracts to ROFR I was just trying to get anything for a reasonable price. Very thankful I got it.

So sorry I got the wrong person, but I sure do remember the price. GREAT job on that one.

 

[Red Dog Run]

Not me - I only got AUL direct when it was $133 recently........

But I did also get BLT resale in the $135's......

Gotcha. A new memory arises- lots and lots of points...

 

[perchy]

I don't think I would have purchased DVC today at these prices. 200 per point for SSR, OKW and AKV - they are definitely trying to push sales to direct. what they do not realize is they are going to price people out completely.

They need to lower the minimum buy-in. 150 points at $200 pp is a lot of money. I liked being able to buy 50 direct. I need to start small.

 

[ncgator]

I have 3 resale contracts (2 from 2014, so grandfathered with most benefits), but last year needed a small add on so went with 65 direct points at OKW. My intention was to eventually buy another 85 direct as I feel like one day I’d like to go on a member cruise. Luckily when I checked this site yesterday evening, I read about the price increase and snuck a purchase in at the lower price. This is going to be the most expensive cruise ever!

 

[Kjdisney]

They need to lower the minimum buy-in. 150 points at $200 pp is a lot of money. I liked being able to buy 50 direct. I need to start small.

I agree, I know that was the reason I bought a small contract at BW. I want DLT, but not 150 pts. We will never spend more than 2 nights at DL, so really don’t need any more than 100 pts. I would also rather have smaller point contracts.

I don’t have an excuse for why I bought the second BW.

 

[The Jackal]

I don't think I would have purchased DVC today at these prices. 200 per point for SSR, OKW and AKV - they are definitely trying to push sales to direct. what they do not realize is they are going to price people out completely.

They are pushing new buyers to RIV. RIV makes more sense when you look at years remaining and cheaper buy in, with incentives.

 

[Daisyrey]

I’m a new member so wonder if any of you that have been watching the prices for many years (unlike me) think it might actually cause resale prices to reduce?
My thinking is less people will buy the older resorts direct as financially it makes less sense at $200, so Disney don’t have the customers needing points so they ROFR less, so cheaper prices slip through.
Unless of course Disney keep ROFR at a similar level and periodically offer deals on the older resorts to shift points they have built up.

 

[Sandisw]

I’m a new member so wonder if any of you that have been watching the prices for many years (unlike me) think it might actually cause resale prices to reduce?
My thinking is less people will buy the older resorts direct as financially it makes less sense at $200, so Disney don’t have the customers needing points so they ROFR less, so cheaper prices slip through.
Unless of course Disney keep ROFR at a similar level and periodically offer deals on the older resorts to shift points they have built up.

I think it could go either way. DVD doesn’t want to sell sold out resorts…they want to sell those in active sales,

People buy resale to save money but they do get a slightly different product..which for many doesn’t matter because the savings is a nice one.

However, if the savings between resale and direct is not as great as it once was, then sellers will have to lower their prices to increase that difference as buyers may choose to go direct instead.

 

[dvc lover 1970]

At what point point do people decide to buy a condo instead of timeshare?

 

[Duckbug.Ducktales]

At what point point do people decide to buy a condo instead of timeshare?

The guy from the my dvc points did that! I've thought about this, too. BUT! I can't get a condo next to MK... And just walk over for a while then go back to the room and relax... Pop back out for a dole whip and then head back in time to get ready for a dinner reservation... Then just walk back to the villa after dinner instead of driving off property...

So it might work for some but not for the way we want to vacation at WDW. But we only ever stay a week to 10 days. If you're spending months and months in Orlando, that would change things. But I wouldn't spend months there, I'd rather reverse-snow bird and go to Chicago to escape NC's humid, sweltering summers

 

[CarolMN]

At what point point do people decide to buy a condo instead of timeshare?

What @DuckbugDucktales said and:
Surfside Condo Collapse. I don't want to deal with the maintenance and other issues of a second home from afar via an HOA.