ROFR - Direct v. Resale

Discussion in 'Purchasing DVC' started by ALittleOverwhelmed, Nov 27, 2013.

  1. ALittleOverwhelmed

    ALittleOverwhelmed Earning My Ears

    Joined:
    Nov 27, 2013
    Messages:
    1
    My family is considering the purchase of a DVC membership. I'm a little overwhelmed and therefore taking the time to read these boards and doing as much due diligence as possible. Specifically, I've been reading to various posts on "direct vs. resale." My question deals with DVC's RIFR (right of first refusal).

    I can buy 270 points direct from DVC (Grand Floridian) at $150/point.
    I see Bay Lake Tower resales (same number of points) for $94/point.

    A few assumptions for this analysis:
    +We consider both resorts to be relatively similar. (So we don't care which our home resort would be.)
    +We don't care about using points outside of WDW. (So the limitations that accompany resale purchases don't concern us.)
    +The end date of the membership for each resort is close enough that we're treating them equally.

    Based upon the above, it would seem obvious that the better financial outcome would be the Bay Lake Tower purchase via resale ($25k v. $45k). However, it seems too good to be true. So I asked my DVC sales consultant. She advised that DVC would almost certainly invoke its ROFR for resale purchases at BayLake Tower for that ($94) price range. She further stated that DVC is currently reselling Bay Lake Tower memberships for $165/point when they get them and there is a significant waiting list. So....should I buy direct or risk the ROFR?

    Thanks! pirate:
     
  2. Avatar

    DIS Sponsor The Official Ticket Center is Orlando’s #1 discount attraction ticket agency, selling millions of Walt Disney tickets around the world.



    to hide this adverts.
  3. davidl81

    davidl81 Mouseketeer DVC Gold

    Joined:
    Aug 12, 2008
    Messages:
    98
    I think you have a really good shot of passing ROFR at $94 per point at BLT(75%). If it were me I would go the resale route. Worst case it does not go through and you try again.
     
  4. Annielkd22222

    Annielkd22222 Mouseketeer

    Joined:
    Mar 16, 2013
    Messages:
    270
    Mine passed at 98. That's pretty close. I think they are lying to you.
     
  5. crisi

    crisi DIS Veteran

    Joined:
    Feb 25, 2002
    Messages:
    22,897
    They have 30 days to exercise ROFR. If you aren't in a rush, call their bluff. Worst that happens is that you decide you've spent enough time and buy direct when they exercise ROFR. It won't slow you down because direct goes faster and once they have the deposit in hand, they'll make a reservation for you (with resale, you have to close AND get into the system before you can get a reservation). I agree with the consensus, they are bluffing.
     
  6. DVC Dude

    DVC Dude Disney World Rocks!

    Joined:
    Oct 5, 2006
    Messages:
    763
    I would advise BLT resale for two important reasons:

    1. The price for BLT is significantly less than VGF
    2. The annual dues at BLT is less than VGF
    3. VGF point requirements for rooms are 30% more than BLT

    I think ROFR for BLT only kicks in for something in the $90 or less range and at $94pp, you should easily pass ROFR. Besides, who cares about ROFR as there are many BLT contracts out there.
     
  7. Mflaherty

    Mflaherty Mouseketeer

    Joined:
    Jan 23, 2013
    Messages:
    243
    Buy resale. I was skeptical too. No reason to be. I've told friends to do it and they still buy direct. I have NO idea why one would waste the money( if you don't cruise etc). That said I bought 2 resales. One at boardwalk (58pp 250 points)and the other at Saratoga( 88pp 60 points) Both passed rofr. It's worth the risk for such a great savings. I'd put my money on you passing. It seems the ones that get snatched by Disney are the loaded contracts with points say from as far back as 2012. And if it doesn't pass rofr just try again. Good luck! Dvc is so much fun!
     
  8. JessLCH

    JessLCH DIS Veteran

    Joined:
    Oct 24, 2006
    Messages:
    678
    We had three BLT contracts go through ROFR in the past several months.One got taken. it was a loaded 600 point contract at $85. We passed on a similar contract at $90. We passed another BLT contract this week at $98 but it came with a year and a halfs points "free" in that that we did not have to pay dues on them. that brought the real total cost of the points closer to the Low 90s.
     
  9. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

    Joined:
    Dec 11, 2006
    Messages:
    19,358
    Here is my suggestions for new buyers based on years of being an owner and owning 26 contracts at 6 resorts both direct and resale.

    Take the time to understand the rules, policies, and restrictions of ownership. It really isn't a club just some people who pre-paid for Disney rooms.

    Take the time to visit/stay at all of the WDW resorts. If necessary buy a small cheap contract and plan fact finding stays at the different resorts. We bought BLT, thought we would love it and we don't. If we had stayed there a couple of times we would not have bought.

    Realize that you probably won't keep the contract(s) full term so end date isn't that important.

    Understand that when you sell, the contract(s) may be worth nothing.

    Owning gives you the right to book a room at 11 months at your home resort, nothing more. Perks and policies will change. You will have competition booking at your non-home resorts.

    The cost of doing Disney will increase each year and you will spend hundreds of thousands of dollars there.

    :earsboy: Bill
     
  10. missycj96

    missycj96 DIS Veteran

    Joined:
    May 11, 2003
    Messages:
    1,345
    If you lose a contract to resale, it's no big deal. You just have to start the process over. As you can learn from this board, the only difference on resale is not being able to book the disney collection. Not only are these bad "values" but the point requirement makes them unrealistic regular options for most owners.
     
  11. Minniesgal

    Minniesgal DIS Veteran

    Joined:
    Mar 29, 2013
    Messages:
    2,299
    Reading your post I'm not even sure why you are looking at direct. You would be much better off with the BLT contract. Make an offer on it and if it passes ROFR great if not you have lost nothing and direct VGF will still be there as will other resale BLT contracts.

    It is a very bad idea to ask direct salespeople about resale you are unlikely to get an unbiased opinion. Much like asking your new car salesman about the second hand car for sale down the road.
     
  12. disneygirlinnj

    disneygirlinnj DIS Veteran

    Joined:
    Nov 24, 2007
    Messages:
    3,083
    Even if you find a contract for $95 or $100 per point, it's still saving a ton of money over buying direct. I just purchased 200 points at BLT for $100/point and while it's more money than a bunch of the other BLT sales that have recently been accepted, I'm happy with my purchase and definitely saved at least $15k from buying direct. I'm happy :)
     

Share This Page