Is there any rhyme or reason to when they exercise ROFR?

[redrosesix]

I was reading through the whole thread of DVC contracts that made it through ROFR, focusing mostly on AKV since we are following those prices. But one of them stood out for me -- a 65 point contract at $96 per point that was ROFR'd in Jan. 09. Shocking, since several other contracts with lower price per point were passed.

Any thoughts on this?

BTW, I was reading through a similar thread about HGVC exercising ROFR and one posted stated that Hilton will exercise ROFR if the potential buyer recently rescinded a contract or attended a tour but did not buy from Hilton. Not sure if this could be the case with DVC, but just putting it out there.

 

[chalee94]

I was reading through the whole thread of DVC contracts that made it through ROFR, focusing mostly on AKV since we are following those prices. But one of them stood out for me -- a 65 point contract at $96 per point that was ROFR'd in Jan. 09. Shocking, since several other contracts with lower price per point were passed.

Any thoughts on this?

it would make more sense if it were BCV, but if they are getting low on a given UY month and are certain that they have buyers lined up (BCV has had a number of waitlists for add-ons in the past), then it's not out of the question.

smaller contracts (under 100 pts) are also slightly more likely to get ROFRed.

BTW, I was reading through a similar thread about HGVC exercising ROFR and one posted stated that Hilton will exercise ROFR if the potential buyer recently rescinded a contract or attended a tour but did not buy from Hilton. Not sure if this could be the case with DVC, but just putting it out there.

i doubt this is an issue. (i suppose it's not completely impossible, though.)

 

[redrosesix]

it would make more sense if it were BCV, but if they are getting low on a given UY month and are certain that they have buyers lined up (BCV has had a number of waitlists for add-ons in the past), then it's not out of the question.

smaller contracts (under 100 pts) are also slightly more likely to get ROFRed.

I went back and checked after I read your post. There was another Sept. contract besides the one that was ROFR'd, but all of the ones that passed were 160 or more points (although there were many less than 100 that passed in 2008)

 

[CarolAnnC]

Often times there are folks on the DVC waiting list waiting for points at sold out resorts. ROFR is how DVC picks up points to sell to these clients. Supply and demand...

 

[Dean]

Not too much consistency. One of the main goals of this program IS to keep you guessing so you'll buy retail and not resale in many situations.

 

[Opie100]

BTW, I was reading through a similar thread about HGVC exercising ROFR and one posted stated that Hilton will exercise ROFR if the potential buyer recently rescinded a contract or attended a tour but did not buy from Hilton. Not sure if this could be the case with DVC, but just putting it out there.

This is an interesting question - I'd like to know if they keep track of people who have toured and if they are more likely to ROFR someone they think they have a chance at buying retail.

 

[redrosesix]

This is an interesting question - I'd like to know if they keep track of people who have toured and if they are more likely to ROFR someone they think they have a chance at buying retail.

I know! Makes you kinda think twice about taking a tour (even though doing a tour would be pretty important) Not having taken a tour myself, I don't know what kind of information they keep on prospective clients.

 

[3card]

I know! Makes you kinda think twice about taking a tour (even though doing a tour would be pretty important) Not having taken a tour myself, I don't know what kind of information they keep on prospective clients.

We took a tour at GC this past weekend. They keep incredibly extensive notes of every contact with a guide. We had been dealing with a different guide previously, so when we sat down, our guide asked us to wait for a few moments while he read through the contact history and comments. It was actually a nice thing to not have to re-explain what we wanted, but every interaction is recorded in detail.

That said, I'm very concerned we will not be able to buy a re-sale now.

 

[Mama2Matthew]

BTW, I was reading through a similar thread about HGVC exercising ROFR and one posted stated that Hilton will exercise ROFR if the potential buyer recently rescinded a contract or attended a tour but did not buy from Hilton. Not sure if this could be the case with DVC, but just putting it out there.

We rescinded a VAKL contract back in September (actually, we never signed the contracts) and just got ROFR'd on a BWV resale. It was a low offer -$76 pp/ buyer pays closing/seller pays MF/ points for 09 and forward- but there have been similar contracts that have passed. I had been wondering if the rescission played a role, too.

 

[logan115]

I just can't believe that it's worth it for DVC to ROFR someone just cuz they took a tour are aren't buying direct. Think that price is a much bigger factor than that, but then again I'm just guessing how the black box works.

If SSR is going for around $70, and after the tour you decided to buy a resale at $75, I can't believe that DVC would buy that one back just to spite you. Because then you try the next resale and offer $80, they buy that back via ROFR. Then $85, $90, $95 ??? How many points are they gonna buy back to get you to pay $112 pp ? If they have to add more inventory to sell to you they're simply giving themselves more that they have to sell, which is not ideal in this environment. Somewhat like a reverse public offering - they end up buying it all back !!

Also guessing that DVC has a much lower cost than $70 pp, and they would make more on the resorts that are currently being sold by selling out of their existing inventory, as opposed to excercising ROFR and selling out those as they have a higher cost basis in those. A different story on the older resorts that have already sold out, because those are just free money if DVC has a member that will pay $106 or so for BCV add-on and a contract comes thru @ $86. Take the $20 pp and run.

Perhaps my view is tainted by the hope that this isn't true, as I visited the models a few weeks ago, and am currently waiting on ROFR for my resale

Has been less than a week since the contract went to DVC and let me tell ya, as Tom Petty once said, "The waiting is the hardest part.........."

Chris

 

[redrosesix]

We took a tour at GC this past weekend. They keep incredibly extensive notes of every contact with a guide. We had been dealing with a different guide previously, so when we sat down, our guide asked us to wait for a few moments while he read through the contact history and comments. It was actually a nice thing to not have to re-explain what we wanted, but every interaction is recorded in detail.

That said, I'm very concerned we will not be able to buy a re-sale now.

Don't worry about what hasn't happened yet. Remember, the rumour I posted was about Hilton, not DVC, so it may have no bearing on DVC ROFR's.

It is definitely worth trying resale on the chance that NOTHING will go wrong.

 

[Dean]

This is an interesting question - I'd like to know if they keep track of people who have toured and if they are more likely to ROFR someone they think they have a chance at buying retail.

I'm not aware of any anecdotal evidence to suggest they do it out of spite or select out those that have toured or contacted them previously.

 

[3card]

Good to hear that!

 

[tor]

There is no secret if there is money to be made by taking it back then they ROFR.

 

[Mickey'n'Me]

We had a ROFR a couple years ago when buying at Saratoga. Our agent said that if there are a lot of banked points usually Disney will ROFR them so they can basically get rid of the banked points before they sell them to someone else. We took his advice and placed a bid on points that did not have any banked points and it went through. Just another tid bit to think about when bidding on resales!!

 

[redrosesix]

We had a ROFR a couple years ago when buying at Saratoga. Our agent said that if there are a lot of banked points usually Disney will ROFR them so they can basically get rid of the banked points before they sell them to someone else. We took his advice and placed a bid on points that did not have any banked points and it went through. Just another tid bit to think about when bidding on resales!!

Good advice, since I'm sure that a lot of people would think a contract with banked points would be the one to choose.

 

[logan115]

I'm waiting to hear back on a contract with a full years worth of banked points because it is a better contract for me. If they ROFR me, I'll look for the next good contract and go from there. Since they've just dropped prices with the new round of incentives, I can't believe they're doing that because things are selling like hot-cakes, which leads me to believe that there will be fewer contracts that they are ROFRing because they don't want the inventory back.

Now if I was trying to sneak AKV by at $75, I'd fully expect that to get ROFRd as that's well below anything I've seen, but I think that as long as your above anything posted on Donald's #1 ROFR thread that they'll be content to welcome a new member as opposed to buying back contracts and having to spend the money to resell them - provided this is a resort that they're still actively selling. For the "sold out" resorts like BCV/BWV/VWL/OKW I think it will still depend on whether or not they have a member looking for an add-on.

Who knows - guess we shouldn't spend too much time figuring out how something works that we can't control !!

Chris

 

[CMOORE185]

Take a look at the thread called, has anyone made it thru ROFR lately. Nothing is getting ROFR'D anymore. I think you can get away with just about any price right now.

 

[Buckeye Fan]

This is an interesting question - I'd like to know if they keep track of people who have toured and if they are more likely to ROFR someone they think they have a chance at buying retail.

FWIW, we took a tour and decided to purchase. When I got home, I did some more research and made offers on two resale contracts about a week later. At that point, I called Dis and cancelled our contract through them (never did sign the papers). Both contracts passed (it honestly should have, as our offer was above the ROFR floor at that time), so it didn't impact our purchase.

 

[redrosesix]

FWIW, we took a tour and decided to purchase. When I got home, I did some more research and made offers on two resale contracts about a week later. At that point, I called Dis and cancelled our contract through them (never did sign the papers). Both contracts passed (it honestly should have, as our offer was above the ROFR floor at that time), so it didn't impact our purchase.

I was so happy to read this.

Unfortunately, it means there might be no discernible reason for why they ROFR some contracts.