Another dumb DVC question

[Debi]

I've been lurking a lot on the DVC board, and have been debating a lot about purchasing DVC. I have yet another silly question: what does ROFR stand for? Thanks!

 

[JimMIA]

Not a dumb question at all -- it happens to be the most important acronym involved with a DVC resale purchase.

It means "Right of First Refusal." On all resale contracts, Disney reviews the contract and has the option of stepping in and taking the place of the buyer at the same terms the buyer and seller agreed to. It's there way of keeping resale prices in a reasonable range compared to the "new" prices at SSR.

 

[jimmytammy]

Debi

No question is dumb. Unless you already know the answer

So to answer yours....ROFR stands for right of first refusal. This means DVC has the option to buy back a contract on the resale market before the contract is sold on the secondary market.

Hope this helps!

 

[MommaluvsDis]

It stands for Right of First Refusal. Disney gets the first chance to buy back any contracts that are for sale. That's why we get so excited when someone passes ROFR. That means that Disney did not buy that particular contract and the person who wanted to purchase it gets it.


There are no silly questions. On these boards you can ask whatever you want to!

 

[Debi]

Thanks, everyone!!

 

[Caskbill]

If you're looking at purchasing a resale contract, iROFR is very important.

Suppose you found what was a great deal, a DVC contract at only $50/point. You want to buy it, but Disney sees it and says they want to buy it at $50/point. So they get the purchase and you don't. The seller gets their $50/point either way. Makes no difference to them whether you bought it or Disney bought it. Disney will then resell the contract at the current SSR price level.

Now you see a contract at $120/point. Disney will not ROFR that one. They're not going to pay $120 so they can sell it for $98. So you get that purchase, but it wasn't really a good deal.

The 'trick' is to find the best deal you can that will still pass Disney's ROFR. If it's a real good deal, Disney will take it. If it's a bad deal, Disney will refuse it and you get it, but you overpaid. If it's a good deal, but not quite good enough for Disney to bother with buying and reselling it, then you get it. You win.

 

[Shawn]

Debi
No question is dumb. Unless you already know the answer

Or as an old teacher of mine used to say, "The only dumb question is the 'dumb' question.".

The 2nd dumb referring to the definition of dumb as something 'unspoken or unarticulated'.

-Shawn

 

[byoung]

Now that you know good luck on your decision.

 

[T.E. Yeary]

Talk with the staff at The Timeshare Store, Inc.

They handle these questions everyday about what to offer that will pass ROFR and get you a good deal at the same time.

They are not always 100% accurate, but they do have a great deal of experience and your best interests at heart.

We want lifetime customers so the agents will go the extra mile to see that you have the best advice we possibly can give you.

I think most of those who have used our company will attest to that.

Sincerely,
Tom

 

[JimMIA]

Talk with the staff at The Timeshare Store, Inc.

They handle these questions everyday about what to offer that will pass ROFR and get you a good deal at the same time.

They are not always 100% accurate, but they do have a great deal of experience and your best interests at heart.

We want lifetime customers so the agents will go the extra mile to see that you have the best advice we possibly can give you.

I think most of those who have used our company will attest to that.

Sincerely,
Tom

I agree with this 100%. When we bought, I was going to make an offer on an OKW contract which was priced at $73. I asked about offering $72 (NOW I know better, but I didn't then!). It was suggested to me that $73 would probably pass ROFR and $72 probably would not.

We offered $73 and the rest is history. Others submitted contracts during the same period at $72 and got ROFR'd.

Prices have increased somewhat since I bought, but I recently saw a contract on the ROFR thread with an entire year of free points. It was a big contract, so there were a TON of free points. I looked at the price, looked at other contracts that had been ROFR'd for exactly that price -- and at contracts which had passed for $1 more -- and I wished that person had offered one more dollar. They didn't, and they lost a tremendous contract over $1 per point.

You've got to pass ROFR. If you don't, nothing else about that contract matters.

 

[1000th happy haunt]

When we bought through The Timeshare Store, the seller actually wanted $75/point for OKW. Jason recommended we first offer $73/point. He said that judging by recent history that amount would probably also pass ROFR. If the seller wouldn't sell at $73 we authorized Jason to raise our offer.

The seller did accept $73 and we did pass ROFR.

 

[bongo59]

ROFR is useful to DVC.......hinders those buyers in the resale market but we bought our last contract through Mr Yeary business and got 370 points at SSR with 280 banked points for 75 dollars about 8 months ago..........resales can be had..........you just need to know what you want and make the offer asap..........The TTS had my check in about 23 hrs.................

 

[T.E. Yeary]

Thanks everyone for chiming in and relaying your experiences. I can talk until I'm blue in the face, but bottom line is a new customer will listen to people that have been in their same position, before anything I might say.

Happy "magical" Vacationing,
Tom