DVC resale, possible ROFR?

[murphy t]

We put an offer in on a DVC resale at BWV 150 points at $72 per point, which was accepted by the seller on July 3rd. After the paper work and check etc. was sent to the Timeshare Store, the contract was presented to Disney for ROFR on July 11 or 12. I called yesterday to see if anything had been heard from Disney since it had been over 3 weeks, and our broker said we should have heard something and was going to look into it. I have a sinking feeling that Disney is going to take this one back!

 

[Poorman]

I doubt it. Were there any banked points? That would maybe flag it , but $72 should be good.

Good luck.

 

[jekjones1558]

Keep us posted. I see on other threads that Disney has been exercising ROFR, but in June we got 150 BWV points with all points from 2003 and forward for $72. We paid 2004 fees and closing. Ours was also delayed for heaven knows what reason. Good luck!

 

[DIZNYFAN]

Yes LisaSt posted about their BWV purchase that didn't pass ROFR at 73 something. Good luck but that seems like an awfull long time for them to be sitting on it if it was a yes you would have thought it would have cleared by now. I hope you get it.

 

[murphy t]

There were only 5 banked points from 2003, all 2004 points avail with October use year. We paid closing costs and MF for 2004 points, so hopefully this will make the contract less attractive to Disney!

 

[Mike]

Good Luck!

 

[tamu91]

I can't imagine your $73/pt contract not passing ROFR. $68-$69 per point contracts were passing ROFR in record times less than 2 mos ago. Has the DVC market caught on fire lately that Disney feel the need to jump in and join the party

 

[Mike]

Originally posted by tamu91
Has the DVC market caught on fire lately that Disney feel the need to jump in and join the party

I think the fact that they raised the prices for resales from $84 to $89 and are now exercising ROFR on some contracts says it has and they are.

 

[tamu91]

Originally posted by Mike
I think the fact that they raised the prices for resales from $84 to $89 and are now exercising ROFR on some contracts says it has and they are.

I'm glad we got our contract when we did but I wonder how this is going to affect the resale market, especially if we start thinking about adding points to our original contract.

It's just hard to explain how DVC manages to defy timeshare logic. Marriott, HVC, and other top end timeshare properties lose as soon as you make the purchase, like buying a car, but not DVC. Sure, we pay little more in maintenance dues and on-site convenience but what else keeps the price from falling like a rock ROFR? Doesn't the other timeshare properties have similar arrangements.

Some of my family members and friends were against us purchasing DVC because 'it's a timeshare, don't you know' but I'm sure glad I did. And get this, we haven't even set foot in any of the DVC resorts or seen more than one(BWV) from outside

 

[LisaSt]

Our BWV contract was ROFR'd by Disney and it was a 150 point contract at 73.25/point.

 

[idratherbeinwdw]

Originally posted by LisaSt
Our BWV contract was ROFR'd by Disney and it was a 150 point contract at 73.25/point.

I keep seeing your posts mentioning this ROFR, and I don't doubt your word for one second. But I am wondering why we haven't seen more posts like yours. Was there something unique or different about your contract that made Disney excercise ROFR?

 

[jel0511]

Originally posted by idratherbeinwdw
I keep seeing your posts mentioning this ROFR, and I don't doubt your word for one second. But I am wondering why we haven't seen more posts like yours. Was there something unique or different about your contract that made Disney excercise ROFR?

This particular deal had the seller paying closing costs, bringing the deal down to approx $70 per point. Usually the seller paying closing costs raises a red flag for Disney and they are more apt to buy them back.

 

[DIZNYFAN]

I read her post and it was seller paid closing and all MF's were paid prior to the deal going through so that may be why it was taken by Disney.

 

[RuthnPaul]

Spoke to one of the resale brokers we use who said Disney exercised ROFR last week on a HHI contract she submitted last week.

One thing to consider is that the number of people who post on this board is a VERY small percentage of DVC members. This percentage is even smaller if you factor in those posters who are actively in the process of purchasing a contract from a reseller. So what's happening on the board may or may not reflect what's happening in the larger DVC community.

 

[TravelingJen24]

This may be a small minority of people that are trying to go through ROFR, but I talked to a dis rep and she said that now because of the $89 resale price, they will probably be buying back a lot more. Now I don't know how true that is but that is what she told me this morning.

 

[idratherbeinwdw]

Originally posted by RuthnPaul
Spoke to one of the resale brokers we use who said Disney exercised ROFR last week on a HHI contract she submitted last week.

One thing to consider is that the number of people who post on this board is a VERY small percentage of DVC members. This percentage is even smaller if you factor in those posters who are actively in the process of purchasing a contract from a reseller. So what's happening on the board may or may not reflect what's happening in the larger DVC community.

I'm not sure what you base your comment on regarding these boards being a small percentage of members. Is that a fact or an opinion?

In any case there were no cases reported at all on the boards of ROFR being exercised until yours and the ones you refer to. You'd think there would be at least some, but I haven't seen any in the past few months, at least not on a resale that was priced in the usual ranges. As has already been posted Disney probably redflagged your contract because the 73.5 per point would really have been 70/pt due to your seller paying closing costs.

I truly think the original poster has nothing to worry about. I agree with tamu 91 that what you paid for your contract will pass. Let us know what happens Murphy, and you too Jen!

 

[Mike]

Originally posted by idratherbeinwdw
I'm not sure what you base your comment on regarding these boards being a small percentage of members. Is that a fact or an opinion?

In any case there were no cases reported at all on the boards of ROFR being exercised until yours and the ones you refer to. You'd think there would be at least some, but I haven't seen any in the past few months, at least not on a resale that was priced in the usual ranges. As has already been posted Disney probably redflagged your contract because the 73.5 per point would really have been 70/pt due to your seller paying closing costs.

I truly think the original poster has nothing to worry about. I agree with tamu 91 that what you paid for your contract will pass. Let us know what happens Jen!

I think you are dismissing the fact that DVC just raised their price for resales by $5. If contracts keep going to ROFR review at the same prices they were last week, it is only common sense that more of them are going to be bought by Disney. They have a waitlist of people willing to pay $89 so their profit margin has just increased by $5/pt - an increase of 40%. I think there is cause for concern. The demand is there and an attractive profit margin is now there as well.

 

[jandklumley]

Is there a fee for ROFR? If so, what happens to the $ if ROFR is exercised?

 

[RuthnPaul]

IDRATHERBE....I don't disagree that there has been very little mention of ROFR over the last few months (we've passed on 2 separate contracts ourselves). I'm basing this on what several others have posted (and I've heard) the last day or two. Perhaps there is absolutely no connection that several people reported they did not pass ROFR on the very same day that Disney implemented a new pricing/procedure policy for add-ons, but perhaps there is. It will be interesting to see what shakes out over the next weeks and months.

Mike, thanks for your input. I am in total agreement with you that resale prices have no where to go but UP or else every contract that gets submitted to Disney for ROFR won't pass!

 

[Poorman]

Originally posted by jandklumley
Is there a fee for ROFR? If so, what happens to the $ if ROFR is exercised?

If Disney exercises ROFR then they get the contract for whatever the buyer was to get it for. The buyer can up the offer only if the seller agree's before hand and doesn't accept Disney's offer.
The agent gets their fee.