Does DVC ever buy points back...

[cruisinpan55]

New to this thread. What is ROFR?

Thanks

 

[FreeTime]

Right of First Refusal

 

[RobDoc]

ROFR= Right of First Refusal.

All accepted offers to sell must be submitted to Disney before they can be closed. Disney has 30 days to pass on the sale, buy it themselves at the same terms as the submitted offer or allow the 30 days to expire without comment.

 

[cruisinpan55]

THANKS!!!!!!!!!

 

[No1HawkFan]

Marriott also will repurchase at times. The main reasons most developers won't repurchase is they've have to sell again. If they have sold out the property, not worth fooling with. If they haven't, then it's competing against themselves. Points programs are unique in that it's the only legal way I kinow of to sell the same unit more than once as a "new" unit, at least in the US. The $55 per point is in the range where they'd need to do so to make enough money to make it worthwhile. If Disney started a resale program, 35-40% commission is the expected range.

$55 per point is in the range where they'd need to do so to make enough money to make it worthwhile? That doesn't make sense to me. I could sell my Beach Club points to Disney for $55 per point, however, if I listed with TSS for $75 per point Disney would buy it back as well once they (TSS)found a buyer for me. In my opinion Disney is trying to take advantage of these people offering them $55 per point. I understand, however, Disney is a company that needs to make money to pay their employees as well.

 

[Dean]

$55 per point is in the range where they'd need to do so to make enough money to make it worthwhile? That doesn't make sense to me. I could sell my Beach Club points to Disney for $55 per point, however, if I listed with TSS for $75 per point Disney would buy it back as well once they (TSS)found a buyer for me. In my opinion Disney is trying to take advantage of these people offering them $55 per point. I understand, however, Disney is a company that needs to make money to pay their employees as well.

The purpose of ROFR is intended to drive potential buyers directly to Disney, not as a money making entity directly. I'd estimate the break even for Disney in excess of $20 per point range. But remember that any point sold this way is in competition with retail sales with even more profit.

 

[Disney Doll]

The point being missed here is that - except for those DESPERATE to sell a contract quickly, Disney will get very few takers at $55 per point when sellers can easily get $25-$35 more per point (and Disney will still exercise ROFR).

If you are depending on getting BCV points from Disney repurchasing at $55, there is likely to be quite a wait. Their greatest sources for contracts at sold out resorts are ROFR and foreclosure. Offering to purchase at $55 is a token gesture at best, IMO.

Well said Doc!!!