for all those losing resales because of Disney ROFR

[yasuern]

Okay- I know nothing about real estate/bussiness/or anthing like that - BUT....

I am trying to understand the marketing strategy of Disney's recent aggression to use their ROFR. BCV are not yet sold out and Saratoga Springs will be selling this summer - So why is WDW buying all these resales? When they purchase they have to pay closing cost and reimburse you your dues if this is one of your conditions to sell your pts? And with the economy the way it is and many folks with their jobs in limbo - why would they want to have more points to sell - because if they don't the lose the yrly dues and the almost guarantee that folks like all of us will be going to WDW 1, 2, 3 or more times a year and spending money in the parks. I think the recent DVC increase may have slowed sales so they are going to buy back points for a while until they "neutrulize" the resale market and then we will see less buy backs.
But my ? is what is the buy back price?
As you can tell from my post I am not in marketing or sales or any field that would give me proper knowledge to figure out why so many buy backs - so for those of you who are - help me understand.

 

[workingmom]

Actually, I have always wondered why Disney does not take more frequent advantage of their ROFR? Often times Disney will have a wait list of individuals wanting to add 50+ points of another DVC resort to thier existing contracts. Disney should take advantage of the profits in selling to these people rather than letting it go on the resale market. If Disney can buy these contracts using their ROFR for $65 per point (ours contract fell through at this price) and then turn around and sell them for $84. That is a pretty good return in my book! The threat of cannibalization is small because most people usually want to purchase the newest property anyway....besides, if they don't, they can always turn to the resale market. So I think Disney is smart taking advantage of their ROFR.

 

[torismom]

For the person who voted 72.01 or higher, What was your price per point if you do not mind sharing?

Thanks

 

[Desperado]

Should we have another poll about current members being able to get the add on they have been waiting for on wait lists for many months due to Disney buying more points back? I'll bet there are many success stories.

I'm glad Disney is buying more points back and offering them to current members for add ons. It doesn't make sense not to. To those purchasing, pay the few extra bucks, it's worth it.

 

[VINN127]

Does anyone notice if ROFR is higher for any perticular resort?

 

[dbkelly]

Is there a way to view the results without an answer? I think this poll is not going to representative of the truth, because in order to see the results you must submit an answer. How many people put in an answer just to see the results? Can someone report the results in a reply so people don't skew the poll?

D. B. Kelly

 

[Regina]

Hey dbkelly, all that you have to do is click on "View Results". It's on the bottom left of the poll.

It's very interesting that one of them is over $72.00. I didn't expect that.

Whatever the going price is, it sure makes my $51.00 initial purchase look better and better.

 

[Carlnne]

When you talk about the price per point- are you calculating that after the extra resale costs or before? Because that makes quite a difference. I am waiting on a 68$ pp contract but after all costs are calculated-- it is 73$.

 

[Mickmse2002]

Sorry, but I had to "vote" in order to see the results. I tried to just view it and it kicked out a message telling me I had to vote.

 

[disneyberry]

i'm just curious, for those who have encountered Disney's use of ROFR...

were these on smaller contracts (under 200pts) or large contracts??

 

[doubletrouble_vb]

Originally posted by yasuern

Yasuern...you many want to add an extra bullet point that says...Does Not Apply. That way people who click on vote have someplace to put their vote...otherwise this population will skew your results.

FYI...this all sounds good to me! Maybe I'll put my points on the market post haste! I was considering waiting until unemployment ran out (also hoping I'd get a job before that) but this may make it worth my while.

Any ideas on why they are buying back? Could it be they want another price increase and don't want the resale market languishing in the sixties? Or maybe they realize that they need a small supply of DVC's within shouting distance of themeparks.

 

[baileybrad]

For what is worth, I was able to click on view results without voting and was able to see the poll results.

 

[tiberius]

My 100 point BWV was bought back at $69.75 per point (included seller paying closing costs of $375.00).