How Soon Do the ROFR Takes Start After Resort Sells Out?

[foreUT]

Sorry for the inelegant phrasing. I've never purchased resale immediately after a Resort sold out, but thinking seriously about doing just that w CCV. We stayed in the 1 bedroom this summer and will be staying in a cabin this December and would love the Home Resort option. However, I need to wait until end of year to purchase.

It concerns me there is such a disparity in resale v. Direct in price and there will be a demand for points, even after sell out. Any input on how quickly you think DVC will initiate the ROFR executions once the Resort is sold out (now at 95%) or will that $210 price tag keep purchases at minimum until the other resorts catch up?

 

[Sandisw]

I don't think anyone really understands the rhyme or reason with ROFR. The only piece I have heard/know is that typically, when a resort is still in active sales, ROFR doesn't happen (or is extremely rare).

My suggestion is to always decide what you want to pay, and find a contract that suits your needs. If you are happy with the price and the aspects of the contract, go for it. Don't worry about ROFR. If it happens, you re-group and try again!

 

[Yinn]

Sorry for the inelegant phrasing. I've never purchased resale immediately after a Resort sold out, but thinking seriously about doing just that w CCV. We stayed in the 1 bedroom this summer and will be staying in a cabin this December and would love the Home Resort option. However, I need to wait until end of year to purchase.

It concerns me there is such a disparity in resale v. Direct in price and there will be a demand for points, even after sell out. Any input on how quickly you think DVC will initiate the ROFR executions once the Resort is sold out (now at 95%) or will that $210 price tag keep purchases at minimum until the other resorts catch up?

Based on PVB, I don't think CCV will be ROFR any time soon. The resale prices haven't dropped yet, and there doesn't seem to be a flood of contracts. Once it sells out, I think it'll be about 5 years before ROFR gets exercised on it. Based on what I've seen, 60% of direct price seems to be a target bottom for resales; but there have been contracts that have been passed on below that threshold. CCV currently resales for about 65-75% still.

 

[foreUT]

Thanks for the responses. I didn't remember PVB ROFR for quite awhile after sell-out, either, so hope that is the norm. That "95% sold" number has been on the website for several months, which makes me think that the final sales should be before the end of year. I have been looking for the perfect contract, but financial-wise would rather wait until later this year or early 2020.

 

[mustinjourney]

VGF "sold out" end of 2014 and when I bought in mid 2016, I don't think they had done any ROFR on it (I saw some pass for $118 a point in 2016). Not sure when they started taking some -- but I think it was around 2017 or 2018.

 

[tnicks]

Based on PVB, I don't think CCV will be ROFR any time soon. The resale prices haven't dropped yet, and there doesn't seem to be a flood of contracts. Once it sells out, I think it'll be about 5 years before ROFR gets exercised on it. Based on what I've seen, 60% of direct price seems to be a target bottom for resales; but there have been contracts that have been passed on below that threshold. CCV currently resales for about 65-75% still.

Well that's not good. Mine waiting on rofr I think is around 58%...

 

[Yinn]

Well that's not good. Mine waiting on rofr I think is around 58%...

They’ve passed on ones that have been 50% so all hope is not lost. You’re close enough, and it’s a good time of year (fiscal end)

 

[Boomatt]

If there are people on the direct waitlist and the margins on the resale offer vs. the direct price make sense then they will buy immediately after the property closes sales.

 

[iheartglaciers]

I had a Poly contract taken in late Feb 2018, and I believe the resort sold out in early Jan 2018 (this was at the time when the minimum buy-in for perks was going from 25 to 75 points). The broker was really surprised that it was taken, but the price was low ($130/point) and it was a loaded contract (though now they seem to love stripped contracts for whatever reason). So who knows when they will ROFR.

 

[Yinn]

I had a Poly contract taken in late Feb 2018, and I believe the resort sold out in early Jan 2018 (this was at the time when the minimum buy-in for perks was going from 25 to 75 points). The broker was really surprised that it was taken, but the price was low ($130/point) and it was a loaded contract (though now they seem to love stripped contracts for whatever reason). So who knows when they will ROFR.

I think the change has to do with the time period to sell. If the turn around is quick, then a loaded contract acts as incentive To a prospective buyer.

But a stripped contract allows them to hold it at no/minimal cost. Annual dues are already paid while they wait to sell. The seller already took a trip to their parks. So they’re not losing visits. They’re not losing money per se other than the interest on money they used to execute ROFR. But stripped contracts are generally 10-20% cheaper anyway. This way they can prop up the resale market while also continue pushing their primary resorts knowing a buyer will eventually come around anyway.

Just my 2c on it...