Cancelling contract to resubmit higher offer before ROFR?

[tommcp516]

Here's our situation:
We have a signed contract for 260 points at BWV at $145 (Aug UY with 520/2022 and 260/2023).
It was sent to Disney on 1/25 and today is the last day to cancel under the contract w/o penalty.

It had been listed at $150 in early January. Before we offered $145 I had researched Dec 2021 ROFR numbers and $140 had been the top buyback price for BWV that month (and with the buyback price being on an upward trend over the previous months). The agent had suggested we'd probably be safe even offering around $143.

After our offer was accepted at $145, the direct price for BWV increased from $210 to $230. I then started to notice some posts in the ROFR thread about a BWV contract for 200 points being taken at $150 and other posts noting that Disney seemed to be really focused recently on buying up contracts for the 2042 resorts.

Maybe I'm second guessing myself, but I have the sense that its becoming more and more likely that Disney will take our contract at $145. While there's no guarantee that they wouldn't have also taken it at the seller's original price of $150, is it even feasible to notify our agent to contact the seller to tell them that we'd like to cancel our contract at $145 and immediately replace it with an offer to buy at a higher price before Disney pulls the ROFR trigger?

It would mean an increase of around $1000, but I figure that over the life of the remaining years it would be worth the additional cost to try to prevent us losing it altogether. It was a perfect contract for us in terms of location, UY, and points. Has anyone ever gone this route of cancelling an existing contract to immediately offer a higher price as a hedge against losing out to ROFR? Would a notification to Disney today that the contract has been cancelled prevent them from exercising ROFR after such notice?

Any feedback would be appreciated.

 

[thank_the_phoenicians88]

I know it's a different resort, but DVC just took my BCV at $160 a point, which I thought was a safe amount based on ROFR and previous posts. I'm seeing a lot of posts about DVC coming hard for the 2042 resorts. Honestly, if you really want this resort, the $1,000 extra seems worth it to give you a better chance at not having it taken at ROFR. You also have a fully loaded contract, which I would think is an attractive proposition to DVC. If I was in their shoes, I'd rather take that than a similarly priced BWV that doesn't have an 2022 points.

And I don't think DVC can exercise ROFR if you submit notice of cancellation. From the sellers perspective, they may be annoyed that the process is starting over, but they are gaining from the cancellation!

 

[Sandisw]

Never gone this route but to be honest, you could raise the price and it still gets taken.

No guarantee that you will get it. It’s a tough call but only you can decide if it’s worth starting the process.

And, the owner might decide they want more than the $150 now. IMO, I’d keep it and hope for the best.

 

[RoseGold]

I resubmitted to ROFR because the title company screwed up and I changed title companies. The seller agreed, we just started from scratch. Thankfully the old title company cooperated too. I don't see why the seller wouldn't agree. You have to resubmit if you change anything. Closing date, title company, names on deeds, etc. You should be able to do this just agreeing to resubmit.

I agree I'd just keep it and try again if it fails.

 

[Bearval]

Here's our situation:
We have a signed contract for 260 points at BWV at $145 (Aug UY with 520/2022 and 260/2023).
It was sent to Disney on 1/25 and today is the last day to cancel under the contract w/o penalty.

It had been listed at $150 in early January. Before we offered $145 I had researched Dec 2021 ROFR numbers and $140 had been the top buyback price for BWV that month (and with the buyback price being on an upward trend over the previous months). The agent had suggested we'd probably be safe even offering around $143.

After our offer was accepted at $145, the direct price for BWV increased from $210 to $230. I then started to notice some posts in the ROFR thread about a BWV contract for 200 points being taken at $150 and other posts noting that Disney seemed to be really focused recently on buying up contracts for the 2042 resorts.

Maybe I'm second guessing myself, but I have the sense that its becoming more and more likely that Disney will take our contract at $145. While there's no guarantee that they wouldn't have also taken it at the seller's original price of $150, is it even feasible to notify our agent to contact the seller to tell them that we'd like to cancel our contract at $145 and immediately replace it with an offer to buy at a higher price before Disney pulls the ROFR trigger?

It would mean an increase of around $1000, but I figure that over the life of the remaining years it would be worth the additional cost to try to prevent us losing it altogether. It was a perfect contract for us in terms of location, UY, and points. Has anyone ever gone this route of cancelling an existing contract to immediately offer a higher price as a hedge against losing out to ROFR? Would a notification to Disney today that the contract has been cancelled prevent them from exercising ROFR after such notice?

Any feedback would be appreciated.

I would just ride it out. The seller may just want to re-list if the going prices are higher.

 

[kboo]

+1 wait and see how it goes.

Back in 2017 (?) we had a very good deal on a resale VGF contract and while it was in ROFR, direct prices went way up. Disney could have made close to $20k on it. We were past our rescission date, so there was nothing to be done except wait and bite our nails. It all worked out fine! And - as has been said many times here - they can't take them all. If this one does get taken, you will find another one.

 

[CarolMN]

I'd also just wait and move to the next contract if it fails to pass.

Remember, ROFR is about more than just price. None of us know what DVD is currently looking for. Don't let a second guess make your decision.

 

[MICKIMINI]

I'd stay with what you have. No one knows the magic formula for taking contracts and you have as good a chance now vs paying more. Good luck!

 

[vicarrieous]

I know it's a different resort, but DVC just took my BCV at $160 a point, which I thought was a safe amount based on ROFR and previous posts. I'm seeing a lot of posts about DVC coming hard for the 2042 resorts. Honestly, if you really want this resort, the $1,000 extra seems worth it to give you a better chance at not having it taken at ROFR. You also have a fully loaded contract, which I would think is an attractive proposition to DVC. If I was in their shoes, I'd rather take that than a similarly priced BWV that doesn't have an 2022 points.

And I don't think DVC can exercise ROFR if you submit notice of cancellation. From the sellers perspective, they may be annoyed that the process is starting over, but they are gaining from the cancellation!

DANG! 160! We are thinking about picking up another BCV contract and 160 was more than we were hoping to pay. Can I ask your details of the contract you bid on?

 

[thank_the_phoenicians88]

DANG! 160! We are thinking about picking up another BCV contract and 160 was more than we were hoping to pay. Can I ask your details of the contract you bid on?

Of course! It was a 150 point contract with a December use year. $160 per point. 44/21, 150/22, 150/23. Our broker said she has seen a large increase for the 2042 resorts, but didn’t venture to guess why. My only guess is that there are families who want direct and love BCV. Plus going direct is a lot easier than resale. Still, I can’t make the math work for buying direct over resale when you consider it only has 20 years left and is $265 point direct. To each their own, I guess! Some have speculated Disney is up to something, but I’m not sure what that could be other than turning a quick profit.

 

[vicarrieous]

Of course! It was a 150 point contract with a December use year. $160 per point. 44/21, 150/22, 150/23. Our broker said she has seen a large increase for the 2042 resorts, but didn’t venture to guess why. My only guess is that there are families who want direct and love BCV. Plus going direct is a lot easier than resale. Still, I can’t make the math work for buying direct over resale when you consider it only has 20 years left and is $265 point direct. To each their own, I guess! Some have speculated Disney is up to something, but I’m not sure what that could be other than turning a quick profit.

That is so interesting and a bummer for you. We bought 150 point resale contract about a year ago and paid 146. At that time they weren't taking ANYTHING so it is strange that they are taking some now at higher price points. Granted everything has shot up and demand is there. We were that family that didn't mind the 2042 expiration because we wanted to be at BCV and new we needed the 11 month booking window. Best of luck, I hope you can get a new contract soon! I agree we couldn't make the $265 pp work.

 

[Robbie Cottam]

I have added points direct twice.
Both times I was told it was a matter of someone with right use year, right number of points, and right price on the contract.

If Disney need a June use year to resell they may pass on the ROFR, and grab a contract with a higher price.

It all about the demand, and the variables.

 

[thank_the_phoenicians88]

That is so interesting and a bummer for you. We bought 150 point resale contract about a year ago and paid 146. At that time they weren't taking ANYTHING so it is strange that they are taking some now at higher price points. Granted everything has shot up and demand is there. We were that family that didn't mind the 2042 expiration because we wanted to be at BCV and new we needed the 11 month booking window. Best of luck, I hope you can get a new contract soon! I agree we couldn't make the $265 pp work.

I’ve given up, haha. I usually don’t have issues getting a week in a beach club studio in the summer, so I’ve instead opted to add on with a PVB resale. Maybe when Disney resells BCV in 2042, I’ll sell off my contracts and put the money toward that resort instead!

 

[limace]

There’s always another contract. I’d keep it and see what happens.

 

[Brian Noble]

Wait and see what happens: ROFR is not nearly as predictable as it might seem.

 

[tommcp516]

Thanks to all who replied and helped talk me back from the ledge re: cancelling to replace with a higher offer.

Now we just wait and see...

 

[sndral]

…
If Disney need a June use year to resell they may pass on the ROFR, and grab a contract with a higher price.
…

I thought DVC gave itself the right to change use year on the points they acquired via ROFR a few years ago?

 

[Matty B13]

I thought DVC gave itself the right to change use year on the points they acquired via ROFR a few years ago?

You are correct, it really allowed them to ROFR more points.

 

[Robbie Cottam]

That maybe true,
i have not added points at a sold out resort in a few years…
my info my be dated

 

[RoseGold]

I take back my answer. the BLT incentives today (2/3) were disruptive to the whole market. As a buyer, if I am in the 10 day cancel period, I am canceling whatever contract I'm in.