DVC ROFR timing question

[gwylie]

Does anyone know how Disney actually does this?

I submitted a contract for $125 a point at BWV which I believe is a bit towards the high end for current resale. Do you think they have a list of the resorts with a buyback threshold?

For example:
BWV $110 --- Buyback BWV $111 and above Pass
PVB $150 ----Buyback PVB $151 and above Pass

I would think they have some sort of system that expedites things for them and buyers. I can't believe that they sit and scrutinize/agonize over every contract. How many contracts are submitted weekly for ROFR?

Thanks!

 

[CastAStone]

Does anyone know how Disney actually does this?

I submitted a contract for $125 a point at BWV which I believe is a bit towards the high end for current resale. Do you think they have a list of the resorts with a buyback threshold?

For example:
BWV $110 --- Buyback BWV $111 and above Pass
PVB $150 ----Buyback PVB $151 and above Pass

I would think they have some sort of system that expedites things for them and buyers. I can't believe that they sit and scrutinize/agonize over every contract. How many contracts are submitted weekly for ROFR?

Thanks!

No it’s not that simple.

they pretty clearly buy back everything below ~50% of the price they sell it for, except at CCV AUL and RVA, where they are not currently exercising ROFR. They also seem to let everything about 62% of what they sell for go, no matter the resort (although SSR is pushing that line right now). In between it seems to vary significantly by resort and by day.

My personal theory is they make these decisions a few times per week and the exact buyback price that day depends on how many direct points they are projecting to sell for a given resort vs how many they have; if they don’t have enough to cover projected demand they are willing to pay a bit more.

In addition, the exact structure of the contract matters (does it have 2021 points to sell? What is the UY?) as does the exact structure of the deal (what is the all-in cost per point, accounting for dues, fees, etc).

Then finally I believe they are (sometimes) looking to buy specific units back and will pay a small premium for them. If they have 22 points for unit 12D and a contract with 130 points for unit 12D comes to market, suddenly they can turn 22 points they can’t sell into an 150 point contract to sell to someone, or a 100 and a 50, etc, and they’ll pay a premium for that. This paragraph is unfounded speculation on my part but also I’d bet that I’m right.

So the TLDR is no, there’s no exact science, good luck!

 

[CastAStone]

PS it’s not as many contracts as you might think, so I think a human does do it, and if it was automated, it wouldn’t take so long during busy times. It certainly could be automated.

 

[Sandisw]

From info I’ve been given over the years it is not set and goals change. It is meant to be that way so that there may be no rhyme or reason to it.

There are trends that we can garnish from info here but even then you see them let one pass and similar ones not.

Like SSR under $100 is more at risk right now but I got it in the $70s 3 years ago.