Anyone made it through (or not made it through) ROFR recently? - Section I

[iankh]

I am in week two of waiting for closing papers.

 

[Beca]

Beca,

With regard to our PM, I can only assume that the resale company had a serious, heart-to-heart discussion with the seller about the ethics of reneging on a full-price contract. I assume that THIS contract is offered in good faith by both the seller and resale company...but I won't be bidding on it.

I guess the watchword is, and will remain, "Caveat Emptor."

Jim,

I sure hope you are right!! I would hate for other buyers to go thru what you did with that seller!! Anyone who makes a contract, and then tries to get the buyer to pay more should be shot (okay, maybe that's a little strong), but I think "banned" from listing with the same reseller would be a good start!!!

Just for the record, that was an OKW contract, right? (I want to make sure I don't bid on that one!!)

Thanks for the info!!



Beca

 

[JimMIA]

Jim,

I sure hope you are right!! I would hate for other buyers to go thru what you did with that seller!! Anyone who makes a contract, and then tries to get the buyer to pay more should be shot (okay, maybe that's a little strong), but I think "banned" from listing with the same reseller would be a good start!!!

Just for the record, that was an OKW contract, right? (I want to make sure I don't bid on that one!!)

Thanks for the info!!



Beca

Yes, OKW. We've now made another offer on a different OKW property, and if that get's accepted I'll let you know and you can add it to the waiting list.

 

[Beca]

Okay....all of you waiting for ROFR....hold onto your socks for this one. I have a friend who just got this contract:

DVC I/BCV/OCTOBER/200 pt contract

130 2003 points

200 2004 points

200 2005 points

$86 per point

plus closing costs

and reimburse 2005 dues

Seller

Paid DVC TRANSFER FEE and ORNAGE County,Florida RECORDING FEE



Nice contract....but, here's the real "WHOPPER"...He went to ROFR on Feb 16th (Tues.) and heard from his agent yesterday that he had passed on Monday!!!! That is 4 business days for ROFR!!!!!

I would LOVE to hear theories as to why he got thru so quickly, and others are taking so long. I don't think it is a "random" thing. Do any of you think there is a correlation between how long it takes for DVC to review your contract, and the chance that they will buy it back? Do you think DVC "sits" on some contracts for awhile to deliberate about them?

I would love to hear your ideas on this!!



Beca

 

[reesecup]

Wow!!!! Beca, That's the one I was soooo very close to getting. And I could have gotten it had I told you know who that I wanted it right when I called her. It was still for sale then. But, I decided we wanted to see how our first contract goes before we add on. I'll be kicking myself I'm sure. (Already am, really since it went through...I thought it would have been bought back, honestly).

 

[reesecup]

Wow!!!! Beca, That's the one I was soooo very close to getting. And I could have gotten it had I told you know who that I wanted it right when I called her. It was still for sale then. But, I decided we wanted to see how our first contract goes before we add on. I'll be kicking myself I'm sure. (Already am, really since it went through...I thought it would have been bought back, honestly).

Yes, I'm making a statement about my statement. I got the contracts mixed up. That was the one I called about that was sold in like 5 minutes. The 100 pt one was the one I could of had but let it slip by me.

 

[JimMIA]

It seems to me that we sometimes overanalyze these things -- at least I know I do!

On this particular contract, I can think of two reasons which might have made this a no-brainer for DVC and led to the quick approval.

The first reason is they may have some constraint which makes it impossible for them to refund dues which have already been paid by the seller. If for some reason they just can't do that, there is no way they could meet the terms of the contract and they would have no choice but to pass it.

The second possible explanation (and I've heard this here before) is that they may not consider loaded points. That's counterintuitive to us as buyers, but there may be some reason why they either can't use them, or they don't choose to factor them into their calculations and base everything on the forward points. If you only look at points forward, this contract is $86+$4 in 2005 annual dues+ more than $2 closing costs = $92+ per point.

That's not to say this isn't a great contract for the buyer and seller -- it just might not have been a good contract for DVC.

 

[ColoradoBelle1]

Yes, Beca, I do think Disney looks at the contracts and then their waitlist to see if they have someone waitlisted at the $89 cost and if buying the contract at whatever price it is at...gives them a cushion to make money.

For this contract, Disney would have to pay the seller and resale broker the contract fee $86.00 plus reimburse his 2005 dues at about $4.00 a point, taking the cost past the $89 they would sell it for, before considering Disney's closing costs...which, while much less than the title company closing costs IS something. So it wasn't worth it to them, even considering the free 2003 and 2004 points which they could then rent for a goodly amount of money.

That it passed in only 4 days is amazing because one would think they would at least have called the waitlist people to check...and considering the holiday, getting in touch with those people would have been difficult.

I guess: ONLY THE SHADOW KNOWS for sure.
Congrats to the new owners!
Hope my ROFR is as quick!
Colorado Belle

 

[jnrrt]

Hi all,

I'm reading about how long everything takes to get in the system and close and everything, and just wondering, we've just started the ROFR process. Assuming we pass, do you think there's any way we could use this for a trip in May? That's when we were thinking of going before we even started this DVC thing and it would be great if we could, but now I don't know if we'll even be done. And do any of you have any experience with last minute bookings? Will there even be anything left? We understand that we'd have to be willing to take whatever, and it would be off-season.

Just wondering.

 

[ColoradoBelle1]

jnrrt...
I am in the same boat re using my points IF I pass ROFR. Perhaps we could 'rent' points from a willing DVC memeber with the addendum that once we get our own points we can give them back the points that we rented and get our rental money back or something.

I imagine that going through Disneya and not resale is advantageous for this one reason...it seems that Disney direct (re waitlist) gives you 'membership' privileges right away. Bummer.

Colorado Belle

 

[bobbiwoz]

You were asking about last minute bookings. I was able to make reservations for this weekend, Saturday and Sunday 2 weeks ago. I also was able to add Monday night to this ressie this morning. This is for a studio in OKW.

Bobbi

 

[jnrrt]

I'm glad to hear that! I assume that you could get at least some hotel whenever you decide to go as long as it isn't Christmas or something, but I really don't know how booked out the DVC places get when.

And I agree, that's the one big advantage of using Disney vs. resale that I see - and of course knowing that you're done and not going to find out you didn't pass ROFR!

 

[NYsHiddenMickey]

My response to the quick disney waiver at $86.00:

Although there are only a select few people in thsi world that actually know how disney arrives at its ROFR decisions, I would bet that they have a department that handles the process and it is probably split into small groups for each DVC property.(The bigger, more active properties have bigger teams)-

Those teams are given guidelines on which properties DIsney will exercise its ROFR option on. Of course the rules are not static, and the waitlist must be consulted, and a calculation is made regarding the money Disney will make on the contract. If enough will be made, the contract is bought back. NOW, even BCV has a price that is so high, that DIsney will not make enough money. I am certain, that given the current add-on price of $89.00, Disney has a policy that contracts over a certain amount of money do not have to be dicussed, and as soon as they come in, they are approved. I would imagine that the number is probably in the 85$ range. Ask yourself, -How suprised would you have been if Disney exercised its ROFR on an 86$ contract. The answer is VERY!, even at BCV.

 

[Beca]

My response to the quick disney waiver at $86.00:

Although there are only a select few people in thsi world that actually know how disney arrives at its ROFR decisions, I would bet that they have a department that handles the process and it is probably split into small groups for each DVC property.(The bigger, more active properties have bigger teams)-

Those teams are given guidelines on which properties DIsney will exercise its ROFR option on. Of course the rules are not static, and the waitlist must be consulted, and a calculation is made regarding the money Disney will make on the contract. If enough will be made, the contract is bought back. NOW, even BCV has a price that is so high, that DIsney will not make enough money. I am certain, that given the current add-on price of $89.00, Disney has a policy that contracts over a certain amount of money do not have to be dicussed, and as soon as they come in, they are approved. I would imagine that the number is probably in the 85$ range. Ask yourself, -How suprised would you have been if Disney exercised its ROFR on an 86$ contract. The answer is VERY!, even at BCV.

However, Magicalfun took a LOT longer to go thru (another BCV contract) and her's was at $88 per point. Seems like that would be a "no brainer" as well, but it wasn't.

It's just very interesting!!



Beca

 

[jnrrt]

Yes, we first were considering a resale at BCV, and when we figured out the per point cost to us after adding in closing fees, it was a good bit higher than the price at Disney. So since they pay the closing, it only stands to reason that they would not be buying back contracts that they would lose money on. Therefore, I would think there would be very little discussion once a contract got past a certain number - it would just obviously go through.

 

[reesecup]

Well, I just got an email from our closing company and they said they just got the account info. from Disney. She said she is going to try and get out documents prepared and out tommorow. I was thinking they would be emailed though. I may need to email her back to see. Or maybe that would be 'bugging' them too much. Anyway, that sounds hopeful at least and I thought I would pass it along.
Our contract passed on 2/9

 

[Cinderpals]

My 1st set of closing papers were emailed. I haven't received my other set yet though.

There was a place to check if you wanted the documents emailed on the 'open escrow' papers.

 

[Cinderpals]

About the BCV $86 per point contract. It was loaded with '03 and '04 points wasn't it? Small contract at 80 pts, but it already had 160 available. I remember that one!

 

[JeffPort]

Here's one to add to the list:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&rd=1&item=4356926769

According to my calculations, the buyer is paying $120 per point, plus closing costs. To top it off, there are only 4 points available until Dec 2006. This ought to get some laughs at the ROFR committee when they review it in the next couple of weeks.

Somebody either didn't do their homework, or really wanted to own at the Boardwalk.

 

[JimMIA]

Here's one to add to the list:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&rd=1&item=4356926769

According to my calculations, the buyer is paying $120 per point, plus closing costs. To top it off, there are only 4 points available until Dec 2006. This ought to get some laughs at the ROFR committee when they review it in the next couple of weeks.

Somebody either didn't do their homework, or really wanted to own at the Boardwalk.

Yeah, there have been a couple of threads running for a week watching that action. ROFR is always a guess at best, but my hunch is that one passes! I think there is a new one up on Ebay now.

On the other hand, for anyone thinking of selling, it certainly opens up a world of possibilities. Maybe buying direct from DVC and selling on Ebay is the best way to go? Certainly fewer hassles and uncertainty.