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View Full Version : Disney's first right of refusal


icydog
02-19-2003, 08:15 AM
I have spoken to my disney Rep and then a real estate reseller, and the going rate for buy backs is now 72 or more dollars. Disney is aggressively buying back resales lower than 72 a point. This is good for me because I want to sell some OKW and buy BCV at 74 with MB

patsal
02-19-2003, 10:00 AM
Wow, at $72 plus closing costs it makes it rather cost ineffective to purchase a resale! I would imagine once MB isn't factored in though the resale could look more attractive on paper.

Dean
02-19-2003, 01:13 PM
LOL, I have a contract before DVC presently. It's a swap for one of my other timeshare for 50 OKW points. I don't see anyway they could match the offer since my "payment" is not in cash, it's a unique item. I'll let the group know how it goes.

kem330
02-19-2003, 01:37 PM
Dean, you sure know all the angles! Seriously, what will this do to the resale market? Unless someone really wants a different property than BCV, there seems to be no advantage. So if the resale buyers market dries up- you would not even get Disney to exercise ROFR if there are no offers to counter. Or will Disney start buying resales directly from the brokers?

Caskbill
02-19-2003, 02:07 PM
Dean: Very nifty move....:smooth:

Be sure to post back.


KEM330: Interesting questions. I suppose if someone wants something other than BCV they'll be able to get other resorts thru Disney, simply buying what Disney purchased from the resale market through their ROFR.

Does anybody know what Disney can do once they get a ROFR contract? We all know that WE can't sell part of a contract, but I wonder if Disney got a 300 point contract, for example, can they partition that up into say six 50 point contracts or three 100-point contracts and sell to those wanting smaller add-on's. I presume they could by just doing the legal work and paying the closing fees.

patsal
02-19-2003, 02:21 PM
Well, my resale agent confirmed the 72 pp price. I wonder if this is a phase or the new protocal? I guess we will have to wait and see.

reneesam
02-19-2003, 02:27 PM
My guide once told me that Disney can break larger contracts into smaller ones for resale if needed.

JOC
02-19-2003, 02:36 PM
Do you think that $72/pp price is straight across the board for all DVC properties? What about other factors, such as banked points, contract with no current points, etc.?

Disney50
02-19-2003, 02:39 PM
I have just learned how aggressive they are becoming, they exercised their ROFR on an offer I placed on 170 points for OKW.

At first I was upset but then I called my DVC guide and got 170 points at BCV and used MB and am very happy now.

The real kicker is (other than the fact that I am at BCV now) that since they pay all the closing cost and bought back my first years points (MB), I am practically paying the same price as I was on the re-sale. Plus through the streamlined process with DVC, my deed will actually be recorded three weeks prior to when my re-sale deed was planned on being recorded.

I was told by my guide that the talk around there is that Disney is aquiring so many points through the MB's buy back program that they are thinking of stopping the offer. Has anyone else heard of this?

ClarabelleCow
02-19-2003, 02:54 PM
This all makes great sense, just not good for the resale agents. If Disney buys back all they can, then they have all points, they can in turn sell for the higher price, raise the price if they want, I am sure they have counsel on hand to do the closings from the agencies, so thats not a big deal. But, does buying all the contracts up make it easier to get into resorts, or does this make more room to rent out rooms for cash??? If this was a fixed week timeshare, then there would be more inventory for Disney to rent out, does it work the same for points??

lacool
02-19-2003, 04:31 PM
If Disney exercises ROFR, the resale agent still gets the commission. If Disney stops offering MB soon, then the resale market will be off and running once again. While for the moment resales are less attractive while Disney is offering MB, you do still have to give up 1st year's points to Disney, but can get a resale with banked points if you are lucky. I don't think the resale market will suffer for too long...my guess is that this MB/Buyback frenzy will be temporary.

That said ... Boy, am I glad I got in under the wire for my $70/pp resale purchase!

crisi
02-19-2003, 05:47 PM
I think Disney will continue to buy back contracts as long as their are people on waiting lists for add ons.

Once Disney can no longer churn over the sales, they may let more contracts go. They don't want to be in the business of having to market OKW or BWV as resorts to new DVC members - but they probably regret not having enough points on hand in the past so that people interested in becoming new members who "would have bought at OKW, but you are only selling VWL now" aren't lost to the resale market - or the DVC family entirely.

But as long as there are people waiting months/years to add on at their current resort, it doesn't make a lot of sense for Disney to not buy back these contracts - particularly if they are getting some economy of scale from their own closing process.

WDWguruDH
02-19-2003, 06:22 PM
We just bought 150 VWL, September use year from Disney. We looked at resale, but the agent told us that we shouldn't go below $70 a point with nothing available or banked or Disney would exercise its' ROFR. With MB coming from 2002 use year, we got the same number of points for $74. If you add in closing costs on the resale, we only paid a couple hundred more and we get the contract now.
As stated above, I think Disney is doing it to get people like us to buy from them. They have long wait lists of people who prefer to buy from them, so now they fill it and make money. I think this will probably continue until SSR opens, they will sell out of BCV soon and need something to sell. Even if they don't make a ton of money on it with MB, they at least cover their overhead until they need it for SSR.

CarolA
02-19-2003, 06:38 PM
So Disney50, if you don't mind, what was your offer that was refused? (Why do I care, I don't really need more points, I just want more points!)

Cruelladeville
02-19-2003, 06:40 PM
Disney has a long list of people waiting to buy add-on packages at $84 per point--including me--and many of us wait years to get those points. In the mean time they have a staff of reps who sold a contract to thousands of people, but can't provide more of the product, so people go to the resale market, and give a healthy salary to an entirely new group of people, while Disney reps are sitting empty-handed. They could sell thousands of points to current customers--us--if they could. Somehow, it finally occured to someone up top at Disney that if they bought back contracts that were being sold, they could make ANOTHER commission on points that they have already sold once! The beauty of all this is that they could still make millions of dollars for the company AND NEVER BUILD ANOTHER RESORT. I'm just surprised they didn't think of it sooner.;)

Jollymon
02-19-2003, 07:52 PM
So, say I want to sell my points. Can't I sell them myelf to my business partner at $70 pp hoping that Disney swoops in and buys them from me?

In other words, what if the actual sale is not really meant to be a sale, but rather the chance to sell my points to Disney by pretending to sell them to my partner.

I would think that if thought out well, there could be a loophole in the system....

Andrew

Disney50
02-19-2003, 08:01 PM
CarolA: I don't mind at all. I offered $68 a point, but then was paying right at $600 for closing. So that would make it around $71.50 a point. Going through DVC after MB it worked out to $74.00 per point. not that big of difference.

The major difference is that with the re-sale I would have had 132 points still left until October to use right now. With the DVC buy at BCV, I have to wait til my Sept use year for my points (unless I borrow).

Dean
02-19-2003, 08:04 PM
Originally posted by Jollymon
So, say I want to sell my points. Can't I sell them myelf to my business partner at $70 pp hoping that Disney swoops in and buys them from me?

In other words, what if the actual sale is not really meant to be a sale, but rather the chance to sell my points to Disney by pretending to sell them to my partner.

I would think that if thought out well, there could be a loophole in the system....

Andrew I suspect this would work. I'm sure it's been done before.

icydog
02-19-2003, 08:31 PM
WDWGURU:
I did not understand your post. Are you saying you purchased VWL from Disney using MB for $74? I must be reading this wrong, because Disney doesn't sell sold out resorts with MB, right?

MY DH and I already have so many points, really too many, but I really want to buy BCV at the $74 MB price. I just love the resort and the pool, more than our home resorts of BWV and OKW. What I figure we will do is buy BCV now and when Disney stops this Magical Beginnings promo we will sell some of our OKW points to make up some of the money.

CarolA
02-19-2003, 09:00 PM
I think what WDWGURU is saying is that if you take MB, you actually only pay $74 a point (84-10), but you don't have the points for a year.

However, I am thinking that if I do another add -on it will be thru Disney. I have been looking for a 50 to 100 point OKW. If it is going to get up to $72 or more per point plus closing I think that I may go with a 50 point BCV addon.

Dean
02-19-2003, 09:04 PM
Originally posted by icy-dog
WDWGURU:
I did not understand your post. Are you saying you purchased VWL from Disney using MB for $74? I must be reading this wrong, because Disney doesn't sell sold out resorts with MB, right?

MY DH and I already have so many points, really too many, but I really want to buy BCV at the $74 MB price. I just love the resort and the pool, more than our home resorts of BWV and OKW. What I figure we will do is buy BCV now and when Disney stops this Magical Beginnings promo we will sell some of our OKW points to make up some of the money. DVD opened up some points to sell after they had limited it to add ons. They still had some points at WLV (for anyone) last I heard.

WDWguru
02-20-2003, 12:41 AM
I'll answer for DH since he's zonked out on the couch :o

We DID get MB on the VWL points from Disney. They're doing MB of $10 per point on any sale of 100 points or more at BCV and VWL, or $15 a point at HH and VB. I'm not sure if that would also be available for add-ons at BWV or OKW that come up on the waitlist.

It actually worked out nicely as our use year is September - I don't think we'd have been offered 2002 points (or the possibility of MB) if we'd waited past the end of this month. From what I've heard they won't give you past year's points if it's past six months into the use year.

We've already got everything planned and booked using current points and don't need the extra until our 2004 use year anyway, so it worked for us.

We really didn't expect them to have the points, but our guide called us back Monday and said they had 1,000 available for VWL September use year. I'm not sure how many may be left, but that's what they had as of Monday.

icydog
02-20-2003, 06:34 AM
[QUOTE]Originally posted by WDWguru
[B]I'll answer for DH since he's zonked out on the couch :o

We DID get MB on the VWL points from Disney. They're doing MB of $10 per point on any sale of 100 points or more at BCV and VWL, or $15 a point at HH and VB. I'm not sure if that would also be available for add-ons at BWV or OKW that come up on the waitlist.

When I spoke to my DVC Sales Rep he said I could buy any number of points as an add on. He said new members had to buy 150 points but DVC members were ok to buy what they wanted. Thanks for the info on the VWL. I like BCV so I will probably buy there but I couldn't believe Disney is selling points at a "closed out" resort.
Marylyn

icydog
02-20-2003, 06:43 AM
Hey GUYS,
I cannot figure out how you get "Quotes" incorporated in your posts. When I select the quotes option below a posting it just shows up as normal text when I reply. (See my post directly above this one) Now check the reply to question to WDWGURU. The one about wdwguru is separated by lines and it says "quote".
I don't want to whine but I want my posts to look like that too.
Marylyn

roelongo
02-20-2003, 07:40 AM
I think this new procedure is a way to ensure that DVD will have inventory to sell once BCV sells out and before SSR opens. They will have aquired points at sold at resorts that they can now sell. Just my 2cents worth