OKW and ROFR

[myxdvz]

Hi,

It looks like DVC is exercising ROFR on OKW points. So is it safer to keep points at $50 and above? Or try and get the best deal you can get?

Is $50/pt on OKW fair?

 

[MickeyFan612]

50/ point might pass for a contract that is nearly stripped of points but if you are looking at a loaded contract it may pass for high 50's to around 60 pp!

 

[WILDERNESS FAN 55]

Hi,

It looks like DVC is exercising ROFR on OKW points. So is it safer to keep points at $50 and above? Or try and get the best deal you can get?

Is $50/pt on OKW fair?

I paid 60.00 a couple months ago but it had all 2012 pts without the MF for 2012 so a little more than what I was seeing on the boards.Frankly I wanted in so it was worth the $4-5 per pt to help avoid ROFR. It worked going in May using 2012 and 2013 pts for the whole family Best Deal is overrated IMO

 

[undchefreak]

I think it depends on many factor (some mentioned above) including use year. I had an April contract at $59 that was ROFR'd, while another contract at the same time went through at $50. There's also luck. Apparently I don't have that

 

[DougEMG]

I personally think it is best to get the best deal possible since there is no way to tell if they want your contract for something. If someone is on the waitlist and your contract is the only one that fits, they'd ROFR it no matter what you were paying.

 

[myxdvz]

Thanks everyone!

Another question:

How does the contract expiration date factor in valuation? That is:

Are OKW contracts that end 2042 lesser in value than contracts ending 2057? Vice versa? Or do those not even factor in?

 

[bighoo93]

How does the contract expiration date factor in valuation? That is:

Are OKW contracts that end 2042 lesser in value than contracts ending 2057? Vice versa? Or do those not even factor in?

They are worth less because they have 15 fewer years of use. But those years are pretty far off. You have to decide how much years 31-45 are worth to you.

 

[myxdvz]

They are worth less because they have 15 fewer years of use. But those years are pretty far off. You have to decide how much years 31-45 are worth to you.

OTOH, fewer years of use also means less MF over all. I guess depends how one thinks about it.

 

[bighoo93]

OTOH, fewer years of use also means less MF over all. I guess depends how one thinks about it.

The annual fees are part of the equation. But if additional years made a contract less valuable, then Disney would be paying you to take contracts off their hands. It is 15 more years of deeply discounted resort stays, but they don't start for another 30 years.

 

[Missyrose]

They are worth less because they have 15 fewer years of use. But those years are pretty far off. You have to decide how much years 31-45 are worth to you.

The annual fees are part of the equation. But if additional years made a contract less valuable, then Disney would be paying you to take contracts off their hands. It is 15 more years of deeply discounted resort stays, but they don't start for another 30 years.

In terms of ROFR actually, Disney only seems interested in the 2042 OKW contracts. They can ROFR the points and repackage them as an extended contract. OKW continues to be the most popular resort for Disney in terms of sales.

With regards to paying a higher price to avoid ROFR, I think that would be a mistake. Doug is right, get the best deal possible for yourself because there's little rhyme or reason to why Disney takes the OKW contracts that it has. I've seen OKW contracts ROFRed at $58 pp, but on "other" boards people have reported getting contracts through in the high $40s.

 

[wdrl]

In terms of ROFR actually, Disney only seems interested in the 2042 OKW contracts.

I beg to differ with you on this point. The data seems to indicate that DVD is quite willing to reacquire an OKW deed that has been extended to 2057. Based on records filed with the Orange County Comptroller, most OKW deeds ROFRed by DVD appear to have 2042 termination dates. However, there is a significant percentage of OKW deeds in which the owner had extended the deed to 2057 (see, for example, http://www.disboards.com/showpost.php?p=45401760&postcount=167; http://www.disboards.com/showpost.php?p=46037718&postcount=181).

 

[Missyrose]

I beg to differ with you on this point. The data seems to indicate that DVD is quite willing to reacquire an OKW deed that has been extended to 2057. Based on records filed with the Orange County Comptroller, most OKW deeds ROFRed by DVD appear to have 2042 termination dates. However, there is a significant percentage of OKW deeds in which the owner had extended the deed to 2057 (see, for example, http://www.disboards.com/showpost.php?p=45401760&postcount=167; http://www.disboards.com/showpost.php?p=46037718&postcount=181).

I totally defer to you on this, I was just going by the anecdotal evidence from the ROFR thread.

 

[ELMC]

I would like to point out again that, in the absence of any definitive reasons as to why contracts get ROFR'd, paying extra per point as insurance to pass ROFR is not money well spent. If it makes you feel better then that's great, but just know that you are more than likely paying $5 more a point to feel better, and not to give your contract any greater chance of passing.

 

[Husurdady]

I would like to point out again that, in the absence of any definitive reasons as to why contracts get ROFR'd, paying extra per point as insurance to pass ROFR is not money well spent. If it makes you feel better then that's great, but just know that you are more than likely paying $5 more a point to feel better, and not to give your contract any greater chance of passing.

With that said..................... I just saw an OKW 50 pt contract sell on the other "dvc resale" web-site sale for $74.00 per pt with another one remaining there for sale.

 

[WILDERNESS FAN 55]

I would like to point out again that, in the absence of any definitive reasons as to why contracts get ROFR'd, paying extra per point as insurance to pass ROFR is not money well spent. If it makes you feel better then that's great, but just know that you are more than likely paying $5 more a point to feel better, and not to give your contract any greater chance of passing.

You really think that paying more perpoint has equal chance to get ROFR'd? If Disney is presented 2 contracts of similar points one at $50 and one at $59 which one do you honestly think is going to get taken ? I know I know they both could go

 

[myxdvz]

I finally made an offer on a contract I saw. It's 150 pts at OKW.

Hoping that it goes thru!!!

 

[mom_rules]

Might seem like a dumb question but I'm new at this.

Lets say someone wanted to buy points for OKW direct from Disney. The perfect contract comes up on resale for less $ than buying direct.

Does Disney go-hey I have a home for that contract- direct, exercise their ROFR and then sell that contract to whom ever is next on their waiting list?

 

[myxdvz]

I'm not really sure if there's any logical rhyme and/or reason for what passes/fails ROFR.

I'm just hoping I do!

 

[WILDERNESS FAN 55]

Might seem like a dumb question but I'm new at this.

Lets say someone wanted to buy points for OKW direct from Disney. The perfect contract comes up on resale for less $ than buying direct.

Does Disney go-hey I have a home for that contract- direct, exercise their ROFR and then sell that contract to whom ever is next on their waiting list?

As good of a theory as any I've heard !!

 

[Missyrose]

Might seem like a dumb question but I'm new at this.

Lets say someone wanted to buy points for OKW direct from Disney. The perfect contract comes up on resale for less $ than buying direct.

Does Disney go-hey I have a home for that contract- direct, exercise their ROFR and then sell that contract to whom ever is next on their waiting list?

Pretty much. The sales data shows that OKW continues to be Disney's best selling resort. So if there are people waiting for direct contracts that have specific UYs requested, Disney is likely to fill those orders either through contracts that are turned in/foreclosed upon or via ROFR. They prefer the former because it costs them next to nothing for the points, but ROFR will work in a pinch.

The other wrinkle is the issue of the extended OKW contracts. The extension was such a bust with members, but some did pay for the added years. So Disney is buying up contracts that end in 2042 and selling them as contracts that end in 2057 so there will be enough owners to keep the resort running past 2042.