Disney and ROFR

[RLevy29]

Disney just exercised their ROFR for an OKW contract of 88 points that we had put an offer on. There were no points for 2003 or 2004. Points would become available August 2005. I'm just curious- would Disney be able to sell this contract to people on a waiting list or would they have to wait until the points are available? Can they change the use year? What experiences have other people had with ROFR?

 

[DBBN]

I can answer only one of your questions...they can not change the use year. Sorry I can't answer the others.

Would you mind saying what price per point the contract was written up with?

I ask because we just offered $66 per point for a 300 point OKW contract and we're waiting for the seller to accept or reject the offer. The information you provide will help us decide wether we should increase the offer or simply look for another listing. Thanks in advance.

 

[RLevy29]

Their asking price was $65 a point. We offered $62. The agent thought that it might pass because of the point situation.
Good luck with your contract!

 

[DBBN]

Thanks for the information and the kind words.

I'll report here on the details as they develop.

 

[Disney Enthusiast]

Originally posted by DBBN
I can answer only one of your questions...they can not change the use year.

I have a question about that DBBN. I am working w/ my DVC rep to look for an add-on for me at one of the older resorts. He told me I would definitely get my Oct UY no matter what. I thought UY's couldn't be changed as well, but after hearing that, I questioned him and he said that that is one of the perks for paying more money and going thru Disney....... you get the same UY as your original contract. Does this mean he is waiting til one comes up w/ my UY or is he just changing it? Maybe you know the answer. I'm just curious. Thanks.

 

[DBBN]

Disney Enthusiast


I believe your guide is waiting for a contract with an October Use Year.

There is a set number of points available for each use year, for each resort and I have never seen any information indicating these numbers could change.

My wife is on the waitlist for June OKW points and I'm on the December OKW waitlist. If points from one use year could be moved to another I would think there would be one waitlist for all use years and as points became available they would be converted to the needed use year.

Further you may have noticed as resorts get close to being sold out certain use years sell out first. Those use years that sell out first are in fact sold out. Otherwise one use year would not sell out before another...they would simply move points from one use year to another use year with higher demand.

 

[CRobin]

I would agree with DBBN; your guide is waiting until an October use year becomes available.

Interesting sales pitch, though I would hardly consider that a "perk" of going direct though Disney; you could be waiting a long time where instead you might have an equal chance of an addon through resale. That all depends on how many points you are looking at and whether or not you really want the same use year. Buying resale, you can get any use year you want.

 

[Disney Enthusiast]

Interesting. I would have taken whatever came to be available first....UY was not too much of an issue for me, so I was happily surprised when he just assumed I would want October, hence my question to you. I was resigned to be waitlisted, but it didn't sound as if that was going to happen. Guess I just misunderstood him. Thank you for clarifying that for me. Happy Holidays to you all!!!

 

[Disney Enthusiast]

DBBN

Well, that is exactly what he was doing.... waiting for an Oct UY. Apparently I am 30 to 40 people behind on the waitlist.

Thanks for your info.

 

[DBBN]

Happy to help Disney Enthusiast.

UPDATE: We just found out the seller accepted our $66.00 per point offer for a 300 point December OKW contract. Here are the Details.(This link is no longer valid). Now we wait for ROFR. I prefer a smaller contract but at this price with the available points I'd be happy.

I believe I have only a fair chance of passing ROFR. If I don't get to own these I'll at least have helped the seller sell their points and someone on the December OKW waitlist will get a call from their guide soon.




***On 1/13/04 this post was edited to indicate the link above is no longer valid.

 

[Poorman]

I keep telling people that if Disney exersizes the ROFR ,they can counter offer if they really want the contract. I would contact your agent and tell them right now if Disney does that increase your offer. If the seller goes along with it you still may have a chance to get the points.

It's been done,I did it.

http://www.disboards.com/showthread.php?s=&threadid=334893



Good luck.


Rich

 

[DBBN]

Thanks for the information Poorman.

I'm not sure I'm willing to pay any more than I offered. I'm just not that fond of a 300 point contract. But it's nice to know I can change the offer if Disney excercises their ROFR.

 

[DeeP]

Originally posted by RLevy29
Disney just exercised their ROFR for an OKW contract of 88 points that we had put an offer on. There were no points for 2003 or 2004. Points would become available August 2005. I'm just curious- would Disney be able to sell this contract to people on a waiting list or would they have to wait until the points are available? Can they change the use year? What experiences have other people had with ROFR?

I don't think this question has been answered yet. Does anyone know the answer?
If Disney buys back a contract that has all pts used up through 2004, can they turn around and resell those pts with having the pts available immediately or would the new owners have to wait until 2005 to have usable pts? I know this is how it works with a resale but is it the same when buying through Disney for points that they acquired through ROFR?

 

[RLevy29]

I did not know that you could counter-offer when Disney used ROFR. I did e-mail my agent to ask her if we could up our bid. I'll keep you posted.

 

[DebbieB]

Disney can allow a counteroffer as a courtesy, but the contract states that they can exercise ROFR and close immediately. I don't know if they ever say no to a counteroffer.

 

[dcfromva]

Originally posted by DeeP
I don't think this question has been answered yet. Does anyone know the answer?
If Disney buys back a contract that has all pts used up through 2004, can they turn around and resell those pts with having the pts available immediately or would the new owners have to wait until 2005 to have usable pts? I know this is how it works with a resale but is it the same when buying through Disney for points that they acquired through ROFR?

DeeP,
That is a very good question. I'm curious about the answer, too. Disney could not very well sell a stripped contract (at full price). They would have to get the points from somewhere....
Would they wait until points are available to sell it at full price? I would think that would be impractical as it would probably be expensive for them to do that as Disney would pick up maint costs and interest expense for a couple of years.
Would they be able to take some of the allocated reserve points for this?
Or, could they use points that folks have sold back to Disney via the MB program?

-DC

 

[RLevy29]

dcfromva:
I never thought about what they do with the points from magical beginnings. But that does make sense. I guess they have it all figured out so that the cost of resales does not go too low.

 

[Shamus]

Originally posted by dcfromva
DeeP,
That is a very good question. I'm curious about the answer, too. Disney could not very well sell a stripped contract (at full price). They would have to get the points from somewhere....
Would they wait until points are available to sell it at full price? I would think that would be impractical as it would probably be expensive for them to do that as Disney would pick up maint costs and interest expense for a couple of years.
Would they be able to take some of the allocated reserve points for this?
Or, could they use points that folks have sold back to Disney via the MB program?

-DC

I agree with your thoughts here dcvfromva,

I would think that Disney could use points from the Developer's Inventory to make the contract "whole", but in this instance it would likely be cost prohibitive to do so. They would likely sit on the contract until It has current points ( or until another cost increase )

Shamus

 

[RLevy29]

Posted by Poorman:

I keep telling people that if Disney exersizes the ROFR ,they can counter offer if they really want the contract. I would contact your agent and tell them right now if Disney does that increase your offer. If the seller goes along with it you still may have a chance to get the points.

I contacted my agent about a counter offer and she told me that once Disney takes over there is nothing that you can offer. It is a done deal. Oh. well we'll just wait for something else to come along.

 

[Poorman]

Who was your agent? It can be done I did it. The seller has to agree. If your agent told you it was a done deal I don't think they were serving your best interest. They might be figuring you would try another one and make two sales.

Good luck.