DVC Exercising ROFR

[Royal Consort]

From what I heard though once the resort sells out they just stop offering fixed weeks though. Its why POLY and VGF didn't have fixed weeks for direct sale supposedly anymore? Maybe that information is incorrect then?

They cant deed new fixed weeks on sold out resorts, you're correct. But if Disney buy a fixed week back, they can sell that. At least, that's the way it has been for years.

 

[past_or]

When it was new but they stopped selling them after it sold out supposedly. Maybe they brought them back because sales are that bad?

I think the poster needs to clarify and make sure the fixed week addendum is in their contract. Maybe Disney bought back a fixed week so they resold it?

It is a fixed week contract. Week 49. Signed for on property this past week.

 

[CastAStone]

It is a fixed week contract. Week 49. Signed for on property this past week.

Did you pick week 49 or did they tell you that they had a week 49 fixed week available?

 

[past_or]

Did you pick week 49 or did they tell you that they had a week 49 fixed week available?

We chose it. I asked back in February if they had a week 49 or 50 available. I believe we got one of the last, if not the last 49, and I think 50 is gone. Standard view.

 

[past_or]

They sold you a fixed week at VGF this week? Interesting - thought they stopped this once a resort sold out.

I think that they got back some points....we started inquiring early this year and points were very limited. Those points could be utilized in a fixed week if the week was available.

 

[Royal Consort]

We chose it. I asked back in February if they had a week 49 or 50 available. I believe we got one of the last, if not the last 49, and I think 50 is gone. Standard view.

If you asked in Feb and they didn't have any , it sounds like Disney must have reacquired the FW through foreclosure or ROFR. Sounds like you were lucky and an awesome contract.

 

[MBTigger]

For a company in desperate need of rapid cash, buying a product at $95 that you already have a buyer for at $165 seems a great way of making money without requiring a large Capital outlay. You can try and get people to buy the new shiny @$190, but if they don't want it you have a money making fallback. This could be the future model until enough reserves are there to build the next DVC.

 

[DebbieB]

I completely agree. If they are truly putting a delay/stop on Reflections, then they are basically going to have to take over the resale market to have any DVC to sell after Riviera runs out. And with Disney so heavily using Riviera rooms for cash guests, I wouldn’t doubt if they’re happy to sell that one a bit slower even.

Disneyland, rumored 2023. I was wondering if that was part of their decision to stop Reflections. There should be a lot of demand for Disneyland.

 

[Kickstart]

For a company in desperate need of rapid cash, buying a product at $95 that you already have a buyer for at $165 seems a great way of making money without requiring a large Capital outlay. You can try and get people to buy the new shiny @$190, but if they don't want it it you have a money making fallback. This could be the future model until enough reserves are there to build the next DVC.

Agreed, but what has me confused is how large can the pool of direct buyers be for the sold-out resorts right now?

It's hard to imagine DVC is busy showing model rooms at these resorts... Sure there will always be some buyers (and die-hard Disney fans like us) looking to buy in when there's a savings opportunity, but sales must be very anemic right now. Last I checked, 15 states have quarantine requirements when you return from Florida. Additionally, IMHO, most people don't want to spend money on a luxury vacation with limited "services" that includes wearing a mask all day in Florida in the summer. Except for people planning ahead, and who are optimistic about the 6-12 month outlook for Disney, I just don't see there being much DVC demand for the next 6 months.

So... if the reason for these buybacks is for immediate resell then it should be a rare occurrence. It will be interesting to see how many more we see over the next week.

 

[MBTigger]

I was just thinking that sales reps will be more encouraged to sell at ANY resort rather than push people to Riviera. Before anyone even THINKS of buying resale, sales reps can say "For 25% less you can buy in at SSR with lower yearly dues, but the contract is for 15 years less".
If DVC is showing demo rooms at each resort (of THAT particular resort), rather than just 2 or 3 demo rooms of the latest and greatest at SSR, it points to the idea of selling people the properties they are visiting...

 

[BruinEd03]

Those are also larger point contracts (200+), which is interesting. Less interested in taking smaller point contracts I suppose?

My uneducated guess is that these have lower point costs - why would they want to pay more per point for a smaller contract? In addition, they can split up the contract, so with limited personnel, it might be more efficient to just acquire a large contract and split it up versus ROFR two separate transactions.

I also wonder if they have a stack of these cases, and a ROFR request comes in. The person that does the ROFR then looks through the stack, and these just happen to be the ones that the person sees that fit within the pricing criteria that the person is authorized to spend on a per point basis for a contract.

 

[iflyjetzzz]

Another datapoint. My Fidelity broker called me yesterday and said that DVC ROFR'd my contract that I was selling. 100 SSR Aug pts. First pts available are 50 in Aug 2021. I sold the contract for $90/pt ... paid $75/pt in Jan 2020 from a bankruptcy auction.
Am currently using the 2020 and borrowed 2021 pts at Bay Lake Tower.

DVC has open houses going on for all resorts; I looked at the BLT open house. No real effort to sell the product and no mention of pricing. They did mention that I could look at units at every property if I wanted.

My Fidelity broker also mentioned that at least half a dozen other contracts were ROFR'd.

 

[AaronEuth]

I think we can expect ROFR to be back to normal. I don't think it is a coincidence that the that the earnings was last week and by the end of the week we see them taking contracts. I suspect that Disney, in anticipation of the losses they would post last quarter, straight up banned it until after earnings. Now the Rofr monkey is back, and he be hungry.

 

[CastAStone]

Another datapoint. My Fidelity broker called me yesterday and said that DVC ROFR'd my contract that I was selling. 100 SSR Aug pts. First pts available are 50 in Aug 2021. I sold the contract for $90/pt ... paid $75/pt in Jan 2020 from a bankruptcy auction.
Am currently using the 2020 and borrowed 2021 pts at Bay Lake Tower.

DVC has open houses going on for all resorts; I looked at the BLT open house. No real effort to sell the product and no mention of pricing. They did mention that I could look at units at every property if I wanted.

My Fidelity broker also mentioned that at least half a dozen other contracts were ROFR'd.

Do you mind posting it in the ROFR thread?

 

[Spinster Travel]

I was just thinking that sales reps will be more encouraged to sell at ANY resort rather than push people to Riviera. Before anyone even THINKS of buying resale, sales reps can say "For 25% less you can buy in at SSR with lower yearly dues, but the contract is for 15 years less".
If DVC is showing demo rooms at each resort (of THAT particular resort), rather than just 2 or 3 demo rooms of the latest and greatest at SSR, it points to the idea of selling people the properties they are visiting...

I have been discussing a Direct purchase with a DVC guide over the last few weeks. On our first call, she asked right out of the gate about my thoughts on Riv; when I told her that the resale restrictions were a non-starter for me, she immediately understood and then asked what I was interested in...from there we only discussed sold out resorts and not once has she tried to redirect me to RR, AUL or CC. In short, she is listening to the buyer and for that I am appreciative. A sale is a sale and I'd imagine that they are doing what they need to do.

 

[sethschroeder]

I think we can expect ROFR to be back to normal. I don't think it is a coincidence that the that the earnings was last week and by the end of the week we see them taking contracts. I suspect that Disney, in anticipation of the losses they would post last quarter, straight up banned it until after earnings. Now the Rofr monkey is back, and he be hungry.

Except they knew this for a while and their quarter started at the start of July and ends next month at the end of September. So they are already 1/3rd of the way through the quarter.

 

[sethschroeder]

I have been discussing a Direct purchase with a DVC guide over the last few weeks. On our first call, she asked right out of the gate about my thoughts on Riv; when I told her that the resale restrictions were a non-starter for me, she immediately understood and then asked what I was interested in...from there we only discussed sold out resorts and not once has she tried to redirect me to RR, AUL or CC. In short, she is listening to the buyer and for that I am appreciative. A sale is a sale and I'd imagine that they are doing what they need to do.

Same thing I got, hard sell on RIV followed by could get anything. This was right after they reopened as well.

 

[Kickstart]

Does makes sense... sell whatever you can considering the current state of vacation travel.

I just didn't think there would any demand for the sold-out resorts at the direct price point (even with the incentives).
Small add-on contracts make sense to me, especially if your other points are "blue card" points.
Regarding new member direct - I would be (am) really shocked there's much business right now. Such a premium over resale, even if you paid asking resale.

On that note, I guess if you're a perspective new member who wants a sold-out resort with "future-proof" points, OKW and SSR would be your cheapest options (at least for initial buy-in cost), followed by AKV.

 

[iflyjetzzz]

I think they also get inventory from foreclosures...is it possible that they aren’t allowed to foreclose due to eviction bans? I doubt that applies to timeshares but would pretty funny if it did

DVC uses a nonjudicial foreclosure system. It streamlines the process and makes it less costly.

But the foreclosure and eviction ban only applies to residential mortgages and tenants so it shouldn't apply in this case, even absent DVC using a nonjudicial (trusteee) foreclosure process.

 

[EM Lawrence]

DVC uses a nonjudicial foreclosure system. It streamlines the process and makes it less costly.

But the foreclosure and eviction ban only applies to residential mortgages and tenants so it shouldn't apply in this case, even absent DVC using a nonjudicial (trusteee) foreclosure process.

Just a thought, but I know in some states the court systems are closed or operating at reduced capacity due to Covid. Is it possible this could affect foreclosures in Florida?