UPDATE in post #34: "Time Sensitive Information about Your Disney Vacation Club Membership"

[RoseGold]

They clearly didn't spend much time getting reactions to or personalizing the e-mails sent out (lots of e-mails to people who recently stayed at the resorts or have upcoming reservations), which really makes it come off as a poorly executed initiative.

Let's help! Dear Member Family, Please sell us back your points below market so we can please shareholders. Have a Magical day!

 

[JETSDAD]

Even without ROFR, they aren't necessarily quicker. Had a friend sell 2 contracts - one was ROFR'd and one wasn't. They got the funds quicker on the resale even with ROFR.

It's not a question of whether or not it gets taken in ROFR. With this there is no ROFR process so that 30+ days that ROFR takes isn't there.

 

[Yinn]

Yes, $88 includes the 10% bonus depending on the "status" of the points in the contract.

So now I know to offer lowball offers of $88.01 to every OKW contract I see.

 

[kilik64]

You folks who got the letter at other resorts besides OKW need to call and find out what they are offering!

 

[WebmasterDoc]

So now I know to offer lowball offers of $88.01 to every OKW contract I see.

I hope you are successful with that approach. DVC is already using ROFR on offers well over $100/pp for OKW.

Maybe offering that for a direct OKW will work for you!

 

[WebmasterDoc]

Makes me wonder how the resale brokers feel about this move from DVC...

potential loss of sales?

I think they are delighted with the offers DVC is making to owners - it make the current resale market look very good for those wanting to sell.

For those wanting to buy, keep in mind that contracts DVC/DVD takes via ROFR and via this offer are sold only at direct prices - currently $170 at OKW. I'm not aware of any lower offers being successful for direct purchases. The price they offer is the price you'll pay is my understanding. Resale buyers deal with DVC owners wanting to sell - who are often willing to work with potential buyers a bit.

It's not like DVC will resell these purchases as if they are resales. DVC proudly displays their purchase pricing as a take-it-or-leave-it option for buyers - after all, those purchases all come with a blue card assuming the number of points meets the current minimum.

The original minimum was 230 points so the current minimum is a real bargain!

 

[The Jackal]

Apparently we go too much, no email offering to buy our points, but emails to buy more points. I’m glad to see when Webmaster Doc talked to the CM, they told him you can get more money selling it on the market.

 

[Bearval]

$88/point is just insulting. So they’re just trying to pick up some points from old folks who don’t know about resale. This money-grubbing phase of DVC is not its finest moment.

It may be a fair price for large contracts like 500 + points especially since you would not have to pay a 10% commission.

 

[RoseGold]

It may be a fair price for large contracts like 500 + points especially since you would not have to pay a 10% commission.

$88 is not market price on a loaded contract and hasn’t been for a long time. That’s even worse than the $80 on the stripped one.

The cheapest, stripped contract on the board sponsor, after 9% commission, would be about $93 vs the $80 offer. That’s 14%, assuming Disney doesn’t add some kind of broker fee also, which i wouldn’t put past them.

 

[Brian Noble]

The value proposition of a Disney buyback isn't really the dollar figure; it's the simplicity---much as it is for a purchase.

 

[RoseGold]

The value proposition of a Disney buyback isn't really the dollar figure; it's the simplicity---much as it is for a purchase.

It might not be simpler. Sure, it skips ROFR, but why does the seller care about that? It was certain for the seller either way. There's still the title company and the financial intermediaries. Maybe they skip the title company and do their own DVC title search. That still takes time, and DVC is not known for speed. In ROFR, Disney is not a quick payer. Why would it be quick now?

I've closed weeks before scheduled closing when ROFR went fast, title company was ready, sellers went fast, and I wired that day. I doubt Disney is on that timetable.

 

[Bearval]

The value proposition of a Disney buyback isn't really the dollar figure; it's the simplicity---much as it is for a purchase.

This would definitely be true for holders of very large individual contracts (think close to 1000 points and higher) Does anyone know what the last 1000 point OKW 2042 resale contract actually sold for ? ( not the asking price). Buyers of these large contracts are almost non-existent and when they are the price per point would be LOW since the buyer for these large contracts would have all the leverage. Not many people would drop 80k to 88k for a 20 year timeshare. 80 to 88 a point for a 1000 point contract is probably a pretty fair offer.

 

[Brian Noble]

Simplicity doesn't necessarily mean faster (though I suspect in this case it will mean that, at least on average). It means less to think about. You don't have to investigate which brokers are reputable. You don't have to think about a selling price and you know exactly what you are going to get. There's no chance of the listing languishing longer than expected.

None of these things probably matter in practice. But, they might feel like they matter, and for some people that's all that counts.

In other words: this offer is not a dollars-and-cents offer, it is a peace of mind offer, with a dollar figure that is bad but not ludicrous. There will be some owners for whom that's worth doing. Probably few if any DISers. But, as I've said many times, the DIS DVC frequent fliers are not at all representative of the typical owner.

And, at the risk of repeating myself: the fact that this offer is (or appears to be) targeted to people who are not using their points suggests that it is also a defensive maneuver against the Postcard Companies. You might not think a DVC owner would fall for that, but I've seen DVC listings on some of the PCC resellers, so it happens.

 

[JETSDAD]

I think it could also be used with existing owners looking to buy new contracts....while we sit here we will offer you $xx,xxx that we will just take off this new $xx,xxx+++ contract. People like easy...just like trading in a used car on a new one even though you could get more money selling elsewhere.

 

[Shelly F - Ohio]

This would definitely be true for holders of very large individual contracts (think close to 1000 points and higher) Does anyone know what the last 1000 point OKW 2042 resale contract actually sold for ? ( not the asking price). Buyers of these large contracts are almost non-existent and when they are the price per point would be LOW since the buyer for these large contracts would have all the leverage. Not many people would drop 80k to 88k for a 20 year timeshare. 80 to 88 a point for a 1000 point contract is probably a pretty fair offer.

This would be good for those with 1000 contract this way they don't have to pay the sales commission to a resale company.

 

[miprender]

Apparently we go too much, no email offering to buy our points, but emails to buy more points. I’m glad to see the when Webmaster Doc talked to the CM, they told him you can get more money selling it on the market.

Same.... no offer on our AKL or Boulder Ridge

 

[RoseGold]

I think it could also be used with existing owners looking to buy new contracts....while we sit here we will offer you $xx,xxx that we will just take off this new $xx,xxx+++ contract. People like easy...just like trading in a used car on a new one even though you could get more money selling elsewhere.

Interesting idea. I know in many states, you only pay car sales taxes on the difference, so they kind of let you roll it when you upgrade a car.

Real estate not so much. Uncle Sam wants his cut.

 

[sschriever@prodigy.n]

I was offered $98.15 per point for 400 points at SSR. Is that a good offer? I had problems understanding the CM’s accent. I am going to call back today to see if they will clarify the offer and maybe raise their offer.

 

[pianomanzano]

I was offered $98.15 per point for 400 points at SSR. Is that a good offer? I had problems understanding the CM’s accent. I am going to call back today to see if they will clarify the offer and maybe raise their offer.

They’re taken back contracts going for as high as 125 this past month (board sponsor also reported that they took back a contract at 132pp). Lots of caveats there, including size of contract and loaded/stripped and not sure what the market is for larger contacts like yours. If you listed it for 120, you’d probably get like ~108 out so after fees. I’d say better off trying to list first and see what you can get before selling directly to DVC!

 

[Sandisw]

I was offered $98.15 per point for 400 points at SSR. Is that a good offer? I had problems understanding the CM’s accent. I am going to call back today to see if they will clarify the offer and maybe raise their offer.

Wow. I paid only $73 for my SSR contract. If I wanted to just sell, and not replace, I might consider it just to make it easier! But, alas, I want my points!! LOL