Buying DVC and ROFR

[Pidge]

Hello,

We are still hoping to become DVCers but had a question. When I spoke to Disney about purchasing direct, I was told 160 was the smallest master contract I could purchase, even on a sold out property. They mentioned that if I wanted to buy on the secondary market, I could try for a smaller contract but Disney would most certainly exercise their ROFR and buy out the points from the seller because they have waiting lists and can easily turn around and sell at a profit. Yet from reading these boards (where I learn so much!) it seems folks do make it through ROFR, although the Disney rep made it seem like we wouldn't have a chance of getting through ROFR and going direct was the only way to go. True?



Pidge

 

[chalee94]

Yet from reading these boards (where I learn so much!) it seems folks do make it through ROFR, although the Disney rep made it seem like we wouldn't have a chance of getting through ROFR and going direct was the only way to go. True?

yes, it is true that many/most folks who do make a reasonable offer on a resale contract make it through ROFR and get the contract. (i myself picked up a nice 40 pt contract at OKW.)

yes, it is also true that many DVC reps make it seem like almost no one gets through ROFR.

 

[Rose&Mike]

Not true. We just closed on a 100 point contract this month through resale (our first contract). There is a thread about ROFR where members can post which contracts made it through and which didn't. It's a good place to start to see what's making it through and what isn't. Good luck!


Here's the thread if you haven't found it yet:
http://www.disboards.com/showthread.php?t=1710667

 

[Cap]

There is a certain relatively fixed cost to DVC to administer a contract on a yearly basis (e.g. annual mailings, billing). If you are not already a member, I think it is less likely that they will let you buy a small contract, say 60 points or less, than they would a 100 - 150 point contract.

We initially purchased directly from Disney and then added on via resale. I wish I had known about resale when we purchased direct.

When / if you make an offer on resale, look at the total cost, not just the per point cost. There are lots of threads here that can help you make the financial analysis. Since there are lots of resale contracts for sale now, don't hesitate to make a lower price offer. If you get it, great. If not, then there are others out there for just a dollar or two more / point.

If you have the cash or cash flow, then I think this is a great time to buy a Disney resale contract. 30+ years left on the contracts and lots of time to enjoy your contract.

 

[kristenrice]

Hello,

We are still hoping to become DVCers but had a question. When I spoke to Disney about purchasing direct, I was told 160 was the smallest master contract I could purchase, even on a sold out property. They mentioned that if I wanted to buy on the secondary market, I could try for a smaller contract but Disney would most certainly exercise their ROFR and buy out the points from the seller because they have waiting lists and can easily turn around and sell at a profit. Yet from reading these boards (where I learn so much!) it seems folks do make it through ROFR, although the Disney rep made it seem like we wouldn't have a chance of getting through ROFR and going direct was the only way to go. True?



Pidge

I had a similar experience with a DVC rep. I only stopped by the kiosk to ask where I could get a list of the "Over 500 member getaways". We chatted a little (although he couldn't tell me anything I didn't already know) and he tried to get me to take the tour. I told him that, although I was interested in DVC, I would not be interested in buying directly from Disney because we'd only need 100 points for our vacations. He tried to tell me how my vacations may change and how I might want to send my DD's to Hawaii on their honeymoons (and 100 points ain't gonna do that! ) etc, etc... I responded by pointing out that we can always add on, but for the next 10 years or so, 100 points is plenty. He actually told me, "Well, it really doesn't matter WHERE you get the points. You STILL have to buy a minimum of 160." I thanked him for his time and left. I understand that they are, in fact, SALESPEOPLE, but it left me with a bad taste in my mouth, so to speak. Either this guy was purposefully lying to me or he didn't know what he was talking about. I think that they know full well the extent of the resale market and that there are definite advantages to purchasing via resale. I think they are really trying to actively discourage people from even considering resale...like it is a total waste of time because you won't/can't get what you want anyways.

All I know is that we are currently awaiting ROFR on our 100 points at AKV!

 

[CarolAnnC]

I had a similar experience with a DVC rep. I only stopped by the kiosk to ask where I could get a list of the "Over 500 member getaways". We chatted a little (although he couldn't tell me anything I didn't already know) and he tried to get me to take the tour. I told him that, although I was interested in DVC, I would not be interested in buying directly from Disney because we'd only need 100 points for our vacations. He tried to tell me how my vacations may change and how I might want to send my DD's to Hawaii on their honeymoons (and 100 points ain't gonna do that! ) etc, etc... I responded by pointing out that we can always add on, but for the next 10 years or so, 100 points is plenty. He actually told me, "Well, it really doesn't matter WHERE you get the points. You STILL have to buy a minimum of 160." I thanked him for his time and left. I understand that they are, in fact, SALESPEOPLE, but it left me with a bad taste in my mouth, so to speak. Either this guy was purposefully lying to me or he didn't know what he was talking about. I think that they know full well the extent of the resale market and that there are definite advantages to purchasing via resale. I think they are really trying to actively discourage people from even considering resale...like it is a total waste of time because you won't/can't get what you want anyways.

All I know is that we are currently awaiting ROFR on our 100 points at AKV!

The folks who man the DVC Kiosks are not actually salespeople nor DVC Guides. They are basically people who are appointment makers. So his job is to sign you up for a DVC Tour and chat you up on DVC itself.

That being said, they should be well informed, not to the extent of a Guide, but should know the basics. However, I don't think they are qualified nor expected to talk one out of a resale purchase. Actually there is a limited offer to purchase 100 pts at AKV direct from Disney itself for first time owners.

That being said, I would encourage anyone to take the DVC tour prior to purchasing either direct or via resale. You will gain valuable knowledge and background that will make you a more well informed purchaser, and be able to view the models in person.

 

[5forDiz]

There are no set in stone reasons why Disney allows a contract to pass ROFR or not . Although smaller contracts ( 100 pts or less ) tend to price a bit higher you can still find some good deals. If you are attempting to buy into DVC for the first time do not feel discouraged that a resale contract of 100 points or less will not pass ROFR - they often do. So don't rule out the resale market because there is much to choose from and a competitive offer has an excellent chance of passing.

As said by other posters a good offer is important especially if the contract has banked points. Other things to take into consideration would be is seller or buyer paying all/part MF's, closing costs.
And expiration year : extended OKW contracts expire 2057 and AKV expire 2057. SSR expire 2054. All others expire 2042 - unextended OKW contracts, BCV, BWV, VWL, VB & HHI.

You'll learn alot from others experiences here. Good luck & on your decision & hope to welcome you home soon.

 

[Belle & Ariel]

We did the tour at SSR earlier this month. We did not want AKL and asked prices for the sold out resorts. We were shocked they were in the $100+ per point range and told him we would be buying through resale. He told us it would cost more, take many months if it closed at all, might not have points for a few years, would not pass ROFR, etc.
I'm sure he works for a commission and would have loved to give him the sale, but I want honesty and a fair price. We saved about $4000 going through **********.com, and have all 2007 and 2008 points in the resort of our choice.
I do agree with PP about doing the tour at Disney. I learned so much and had all my questions answered, so when I looked at the resale market, I knew just what I wanted.
I thought DVC would be a traditional hotel room. You can actually see the studio and one bedroom units which also combine to make a two bedroom. They are on display at SSR and BWV.

 

[jrsmom]

We just purchased resale through The Timeshare Store. We bought 120 SSR points , we were not really interested in AKL. The process has been great so far. We are just waiting on closing.