If you were buying OKW points from a good friend,

CarolMN

DVC Co-Moderator
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Aug 18, 1999
What would you consider to be a fair price per point? Assume February use year with all 2005 points still available, none banked from 2004, and buyer is paying closing and 2005 annual dues.

Neither wants to take advantage of the other (good friends who want to stay that way) - just want a "fair" price that will pass ROFR.

TIA for any input.
 
I'd say there are several factors.

I'd check with TTS to see where they feel ROFR is right now at OKW. The highest I've seen on Beca's thread is $70, but I know TTS has had some at $72. I'm just not sure how current that is, because Tom posted those numbers several weeks ago. Also, I'd be wondering if ROFR levels will be rising soon in conjunction with the SSR price increase. I'm sure they will eventually; the question is whether that will affect your transaction. Obviously, you want to clear ROFR.

Secondly, I assume since you're buying directly from a friend that they are not going through a realtor. That means the friend is saving 10-12% commission. They should not lose all of the benefit of that savings, but neither shoud you pay top dollar and have them get it all. If they've owned OKW for a while, they're probably making a tidy profit already.

Third, even without a realtor, someone will have closing costs and the DVC transfer fee (which I think is $200).

I'd be tempted to say set a price a few bucks over the ROFR line and split the costs/savings down the middle. That would be a good deal for both of you, and also a fair deal for both.

For example if they have 200 points and you agreed on $76 -- That's $15,200 + about $500 closing + $200 transfer - $1,520 commission = $14, 380. That's a net of $71.90 per point for each of you - a modest saving for both.
 

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