considering DVC, tell me the good, bad & ugly

[GOOFY D]

I have been told that ROFR is based on adjusted price, points, and pending waitlist. It takes them a couple of minutes to make a decision but they wait 30 days to make resale less desirable to impatient buyers.

Bill

What is "adjusted price?"

 

[disneynutz]

What is "adjusted price?"

They have to buy the contract as written so who pays dues, if seller pays closing, loaded with banked points verses striped are all taken into consideration to adjust the final price or value of the price being paid.

Bill

 

[chalee94]

Why would a seller be upset if the contract was ROFR by Disney? If I were selling, and had agreed to a price, then I don't think I would care whether Tom, Dick, Harry......or Mickey ended up being the buyer.

while price is not the only factor - i suspect DVC will ROFR an occasional random contract just to annoy resale buyers - i believe it to be the main factor.

so it would bother me if a broker encouraged me to sell at $60 per pt when i could have sold at $80 per pt if they had given me more information about ROFR patterns. it's not always true, but usually if you get ROFRed, it means you left money on the table.

(and sure, the sellers ought to do their homework but some just go along with what they are told.)

 

[skier_pete]

Why would a seller be upset if the contract was ROFR by Disney? If I were selling, and had agreed to a price, then I don't think I would care whether Tom, Dick, Harry......or Mickey ended up being the buyer.

while price is not the only factor - i suspect DVC will ROFR an occasional random contract just to annoy resale buyers - i believe it to be the main factor.

so it would bother me if a broker encouraged me to sell at $60 per pt when i could have sold at $80 per pt if they had given me more information about ROFR patterns. it's not always true, but usually if you get ROFRed, it means you left money on the table.

(and sure, the sellers ought to do their homework but some just go along with what they are told.)

Yes, this was what I was indicating, if the sales agent tells the seller "Oh yeah, go for $60 per point" just to get the sale through, and then the seller later realizes after ROFR that they were hosed on getting a fair value for their points. Now some of that blame should also lie with the seller for not paying attention to fair value on their own, but some people just don't pay close attention to such things.

 

[supersnoop]

Yes, this was what I was indicating, if the sales agent tells the seller "Oh yeah, go for $60 per point" just to get the sale through, and then the seller later realizes after ROFR that they were hosed on getting a fair value for their points. Now some of that blame should also lie with the seller for not paying attention to fair value on their own, but some people just don't pay close attention to such things.

You used that word, "agent." The seller works with a "broker." The contracts are very clear, and usually in big, bold print, that the broker does not have any fiduciary responsibility to the seller. If a seller accepts an offer because the broker said it was a good price, that's a problem. But, if the seller was happy with that price, then they'll get their money whether Disney takes the contract or not.

My point is, increasing the price just to avoid ROFR does not work. If Disney would take the contract at $72, then they'd take it at $85. A BLT was recently taken at $100, while others are passing at $88. There's no reason for a buyer to offer more than they're willing to pay in an effort to out-smart the ROFR process.

 

[skier_pete]

You used that work, "agent." The seller works with a "broker." The contracts are very clear, and usually in big, bold print, that the broker does not have any fiduciary responsibility to the seller. If a seller accepts an offer because the broker said it was a good price, that's a problem. But, if the seller was happy with that price, then they'll get their money whether Disney takes the contract or not.

My point is, increasing the price just to avoid ROFR does not work. If Disney would take the contract at $72, then they'd take it at $85. A BLT was recently taken at $100, while others are passing at $88. There's no reason for a buyer to offer more than they're willing to pay in an effort to out-smart the ROFR process.

I apologize that I am not familiar with the right terms. Nor am I suggesting a buyer should overpay to avoid ROFR. However, there is strong evidence that if an offer is too low that Disney would indeed grab it up. The "Broker" or "Agent" or whoever gets commission on the sale could benefit in this case, while neither the seller (who got a low price for his property) nor the buyer (who didn't get anything out of the sale) would really be pleased by the sale. However, angering the buyer and seller would not be a good business policy, regardless of commission.

 

[supersnoop]

I apologize that I am not familiar with the right terms. Nor am I suggesting a buyer should overpay to avoid ROFR. However, there is strong evidence that if an offer is too low that Disney would indeed grab it up. The "Broker" or "Agent" or whoever gets commission on the sale could benefit in this case, while neither the seller (who got a low price for his property) nor the buyer (who didn't get anything out of the sale) would really be pleased by the sale. However, angering the buyer and seller would not be a good business policy, regardless of commission.

But the seller gets the price he negotiated. Do you think the seller of the $100 ROFR'd BLT got upset? He got paid much more quickly than if he had to go through a normal closing, and still got his above-market price.

Heck, some sellers don't care, or might even want to be ROFR'd. I had considered buying loaded contracts, renting out all the points, and then listed the stripped contract at an artificially low price. It's a quick way to get out of a contract.

 

[DVCMomBLT]

I apologize that I am not familiar with the right terms. Nor am I suggesting a buyer should overpay to avoid ROFR. However, there is strong evidence that if an offer is too low that Disney would indeed grab it up. The "Broker" or "Agent" or whoever gets commission on the sale could benefit in this case, while neither the seller (who got a low price for his property) nor the buyer (who didn't get anything out of the sale) would really be pleased by the sale. However, angering the buyer and seller would not be a good business policy, regardless of commission.

The seller got exactly how much he agreed to sell it for. The price would be the same regardless if it got ROFR'd or not.

 

[JimMIA]

I will give the main "uglies" I see for a DVC purchase:

1. DVC is an expensive timeshare to buy...even resale. You can buy many fine timeshare contracts on eBay for $1, often with free closing.
2. DVC is a very expensive timeshare to use, especially when you consider the points costs per room night and the maintenance fees (which DVC calls "annual dues.") When I exchange into DVC using my Wyndham points, I do so for about HALF what I would have paid using my OKW points.
3. DVC is extraordinarily limited. DVC has only 12 resorts -- 8 of which are located at WDW. Other systems have dozens of resorts all over the place to choose from.
   
   If you want to be onsite at WDW, and that is all you will ever use your points for...and you are satisfied with that equation -- DVC is a wonderful vehicle for WDW vacations.
   
   Anywhere else DVC has a resort there are better, cheaper alternatives.
   
   And I don't even want to discuss using DVC/RCI because the options there are so unbelievably limited.

Miscellaneous comments:

• I have bought and sold twice each with The Timeshare Store. I heartily recommend them for product and market knowledge, efficiency, and professionalism.
• With regard to the ROFR price question, I can't tell you how many disappointed prospective buyers I've seen over the years. Invariably, they were trying to squeeze every last penny out of the purchase price to get a "good deal," and they lost a contract that would have been perfect for their family...for $100-$200. I'm sorry, but that's just silly.
• I think the main question everyone should answer before buying is, "Is ANY timeshare the best option for my family?" My experience has been that most people buying DVC (including myself) are not knowledgeable about timeshares and might well find one of the many, many other options more beneficial for their families. But they don't even consider this fundamental question. "It's DISNEY! I'll buy it!"
  

 

[Joe T.]

We have been owners since 1995, and we own two other TS. By far DVC is the best - best service and WDW. We were not delighted when DVC changed to RCI as its exchange company. But, the fact is we have never exchanged from a Disney Resort. Although we own a minimum number of points, we have been to WDW every year, except one. It takes planning and good use of the banking and borrowing options. We have had magical vacations with our grandchildren and friends. While it may seem expensive now, remember you are locking in the cost of your future vacations. True, the annual fees increase, but nothing compared to the rise in cost of the rooms.