Does Disney ever resell the older properties?

[SnowyWhite]

What happens to a contract if Disney refuses it (Right of First Refusal )? Does Disney ever resell DVC memberships to the older properties?

 

[REL1203]

Yes, they do, but at a higher rate $100+/point. Sometimes you have to get on a waiting list, sometimes they have them right away.. You have to ask. If your a new member, when you talk to your DVC guide, tell them your only interested in which one ever one you really want. If your doing an Add On, just call and ask.

 

[dianeschlicht]

Yes, and that is the main reason for them to excersise ROFR. It gives them cheaper points back which they can then profit from by reselling as "new" points. Because they are the developer, they do not need to keep the points in the same package they ROFR'ed. That is where DVC gets the additional points to sell folks when they either want to add on at existing resorts or sell a new contract at a "sold out" resort. See, no timeshare is ever really "sold out".

 

[disneykidatheart]

If you want to purchase points in an older resort, be firm when speaking with your guide. When we took the tour four years ago, DVC was selling Saratoga Springs. We loved everything about the concept of DVC and were sold on it. However, the maintenance fees bothered me. When the guide "left the room so we could talk it over", I told my husband I liked the feel of OKW and the idea that the first 12 years or so of maintenance fees were already accrued into the current fee. As we don't expect to be around past 2042, I couldn't see the value of a 50 year resort.

When the guide returned I asked about OKW. He acted like I had two heads for even thinking I might want OKW and made me feel stupid. We ended up putting down a deposit on SS. After a lot of discussion with my husband later and on the way home the next day, I called my guide and cancelled the sale. He lost his commission but in my heart I knew I made the right decision. I found the Timeshare Store website on my own and started reading the DIS boards. A few months later I found an OKW contract that was a perfect fit for us to get our feet wet, so to speak. We have added two more smaller contracts and have just about the amount of points we need (well maybe just one more). In each case we were able to buy without financing and never had the expense of a big contract to worry about. Even with closing costs we have come out of the process paying less than purchasing through DVC. Yes, it does take longer but it didn't matter for us. None of our offers were RORF'd. For us, our decision was a win-win situation.

 

[Dean]

Yes, and that is the main reason for them to excersise ROFR. It gives them cheaper points back which they can then profit from by reselling as "new" points. Because they are the developer, they do not need to keep the points in the same package they ROFR'ed. That is where DVC gets the additional points to sell folks when they either want to add on at existing resorts or sell a new contract at a "sold out" resort. See, no timeshare is ever really "sold out".

Diane, got to disagree. The MAIN reason is to shape the resale market and limit fire sale opportunities driving potential resale buyers to retail instead.

 

[FLYNZ4]

Diane, got to disagree. The MAIN reason is to shape the resale market and limit fire sale opportunities driving potential resale buyers to retail instead.

Dean,

I totally agree. Most timeshare companies do not have ROFR, and their resale prices tank as a result. Since it is cheaper for any TS company to "build" a new point... rather than buy it from a current owner... most of the timeshare companies will not buy back any points. I think this is a huge benefit of DVC... but of course it will evaporate IF DVC ever chooses to stop protecting prices.

/Jim

 

[Dean]

Actually DVD likely makes very little on those bought ROFR when you consider that they are competing with their own developer sales, paying staff including extra to deal with ROFR and marketing type costs. I'd estimate their costs to run the program likely in the $15-20 a point range before they made any profit.

 

[ZekeKelso]

I totally agree. Most timeshare companies do not have ROFR, and their resale prices tank as a result.

What keeps prices from tanking is market demand, not ROFR. There are people willing to pay 80-90% of retail for resale DVC contracts. ROFR doesn't create that demand - the desirability of DVC does.

 

[BWV Dreamin]

What keeps prices from tanking is market demand, not ROFR. There are people willing to pay 80-90% of retail for resale DVC contracts. ROFR doesn't create that demand - the desirability of DVC does.

A good case in point...look at Vero Beach and HHI resale prices compared to on site WDW resorts. That does support your theory of supply vs. demand.

 

[Dean]

What keeps prices from tanking is market demand, not ROFR. There are people willing to pay 80-90% of retail for resale DVC contracts. ROFR doesn't create that demand - the desirability of DVC does.

What ROFR does is establish a relative floor. It's actually more designed to do that while keeping everyone guessing else they'd just say what the lower limit was. It prevents the fire sales situation where someone simply isn't aware of their options or are so desperate as to not care. It's a little like the media coverage of the current economy, it becomes a self fulfilling prophesy. If you hear that I bought at $50 a point last year, you are unlikely to want to pay $80 a point now. Once everyone knows about a couple of cheaper purchases, potential buyers start waiting to get it at that price and thus those at higher prices don't sell driving their price down as well. That's exactly where I find myself at the present time with a potential non DVC purchase. I'm waiting on the best price and I know I'll eventually get it even when others are paying twice as much. I couldn't do that with DVC and be successful.

 

[CarolA]

What keeps prices from tanking is market demand, not ROFR. There are people willing to pay 80-90% of retail for resale DVC contracts. ROFR doesn't create that demand - the desirability of DVC does.

I disagree. ANd I think the difference with VB and HH is that even Disney doesn't want them back. DIsney uses ROFR to keep the prices up, it's in their best interest.

I don't think it's "demand" at all. I think "demand" would be a lot higher at $20 point lower LOL!

 

[FLYNZ4]

What keeps prices from tanking is market demand, not ROFR. There are people willing to pay 80-90% of retail for resale DVC contracts. ROFR doesn't create that demand - the desirability of DVC does.

I agree with Carol,

Yes... WDW DVC units have lots of demand, but Disney works hard to keep prices as high as possible. Dean's example of setting a price floor is spot-on. Look at what happens with other timeshares on eBay. People look at the prices for completed sales... and that becomes the new "price to beat". People that I know in the timeshare resale business describe ebay as "a race to the bottom". I believe that Disney's ROFR program is extremely effective of preventing that race.

/Jim