Has DVC stopped exercising ROFR?

[calypso*a*go-go]

It seems as though everyone has posted success w/passing ROFR over the last few months. Has anyone on this board, or anyone you know, not passed ROFR recently? Do you think that the price increase @ SSR along with brisk sales has driven resales up just high enough that DVC isn't interested? Whatever the reason, we sure have had some happy campers lately!

 

[tjkraz]

Here's my best guess.

ROFR helped set a floor on resale prices. However, the resale market seems to be sustaining itself above the perceived ROFR level. I've not noticed any real decrease in the sale prices for contracts, so it seems that supply and demand is keeping prices above a level that would typically interest DVC.

People buying contracts through a resale agent probably have a higher likelihood of getting through ROFR. Those agents (Timeshare Store and others) know the "going rate" for points, and advise sellers accordingly.

There will always be people who are desperate to sell, and others who engage in private transactions without really knowing the true value (expecially if it's a contract that was purchased a decade ago for $50 per point). Those types of contracts may get scooped up via ROFR, but we probably never hear about it.

 

[Mark099]

My opinion is that DVC will start buying back resales once SSR is close to being sold out and will continue until the pre-sale of a new resort begins.

 

[Happy Birthday Cat]

I think they have a formula that we are not aware of that takes into account a variety of factors. The re-sellers are very aware of what some of the factors are and advise sellers and buyers what to do. But at any given moment I think you will see a slew of ROFR that Disney exercises. They seem to come in bunches both ways.

HBC

 

[JeffPort]

Disney exercised ROFR on my VB resale back in mid-May.

In any case, keep in mind that many DIS members have also been reporting success in acquiring add-on points to the DVC-I resorts. The only way that Disney could be able to make these add-on points available is for Disney to be active in its use of ROFR.

 

[LIFERBABE]

Especially BCV contracts.

The Timeshare store listed a 25 point contract for BCV and it was $76 ppt. With closing of $375 each point was $94. I was one of the first to call and it was still available but decided I'd wait for DVC.
If you were new to DVC and looking to get a foot in the door then it was a good deal.

I've been keeping an eye out and most contracts have used 2004 points and many have borrowed against 2005. They are still selling for $74 and up.

With DVC selling for $84 ppt. they would lose money if they ROFR'd these contracts as they would have to give current year points or discount them.