New ROFR Information

[ABE4DISNEY]

Hey-
I just looked at the new information posted with Jaki and **** for Rofr's this month. Some really interesting numbers and trends coming about. Check it out at

http://activerain.com/blogsview/592923/ResalesDVCcom-DVC-ROFR-Oct-and-Nov-2008

 

[RevBob]

What I find interesting in this, is at times it looks that it makes no sense as to what is ROFR'd and what isn't. For example: SSR has several recent contracts passed at $59, $57, $60, $57, $65, and $66 per point and then there are ones that were ROFR'd at $67, $69 and $66. (These are all contracts that came back just during this past month.) While we don't know the particulars on these contracts, such as banked points available, who was paying current MF's and closing costs, but even taking that into consideration, why are some $57 per point contracts passing, while some contracts in the mid to high 60's aren't? There seems to be no ryhme or reason to the process!

 

[Kelblum]

What I find interesting in this, is at times it looks that it makes no sense as to what is ROFR'd and what isn't. For example: SSR has several recent contracts passed at $59, $57, $60, $57, $65, and $66 per point and then there are ones that were ROFR'd at $67, $69 and $66. (These are all contracts that came back just during this past month.) While we don't know the particulars on these contracts, such as banked points available, who was paying current MF's and closing costs, but even taking that into consideration, why are some $57 per point contracts passing, while some contracts in the mid to high 60's aren't? There seems to be no ryhme or reason to the process!

I thought that was interesting as well. As someone still waiting on ROFR I kind of thought it seemed like there was no rhyme or reason to some of them. Am I missing something??

 

[heynowirv]

My guess without looking at them is that the larger contracts ,over say 150 points were passed at a lower number while the smaller contracts were ROFR'd at the lower prices.

 

[DeeCee735]

I agree that the larger contracts are passing at lower price per point, but I'm also thinking the stripped contracts are passing for less as well.

 

[logan115]

Well, for what it's worth here's one more data point.

Just found out I passed ROFR this morning, 160 Mar UY SSR points, all 2008s (banked), 2009/10s for $68, with us paying 09 MFs and closing.

So the mystery of what passes/gets bought back continues !

Chris

 

[mickeys girl 52]

I THINK THEY ROFR MONTHS THAT THEY HAVE PEOPLE WAITING TO PURCHASE POINTS DIRECTLY FROM THEM. tHAT WOULD ACCOUNT FOR THEM PASSING UP LOWER POINT CONTRACTS FOR A HIGHER POINT CONTRACT WITH A DIFFERENT MONTH.

 

[TammyAlphabet]

I sold a SSR, stripped but with all 09, buyer pays closing costs and maintenance fees: 66 per point. It passed two days ago. (150 points)

 

[Kelblum]

I sold a SSR, stripped but with all 09, buyer pays closing costs and maintenance fees: 66 per point. It passed two days ago. (150 points)

Congrats!!

 

[Kelblum]

I THINK THEY ROFR MONTHS THAT THEY HAVE PEOPLE WAITING TO PURCHASE POINTS DIRECTLY FROM THEM. tHAT WOULD ACCOUNT FOR THEM PASSING UP LOWER POINT CONTRACTS FOR A HIGHER POINT CONTRACT WITH A DIFFERENT MONTH.

What is the most popular UY?? The one I am waiting for ROFR is a Dec. UY, am I in trouble??

 

[mickeys girl 52]

What is the most popular UY?? The one I am waiting for ROFR is a Dec. UY, am I in trouble??

I don't think that there is any particular popular use year. I just think that Disney has a certain amount of points in each use year and as they are sold they need to be replenished to be sold directly to anyone looking to buy directly through Disney.
I have no personal knowledge of this, it is just my own thoughts on the subject.
I hope your sale passes ROFR. I am sure it will. Good LUck

 

[Brownie54]

I THINK THEY ROFR MONTHS THAT THEY HAVE PEOPLE WAITING TO PURCHASE POINTS DIRECTLY FROM THEM. tHAT WOULD ACCOUNT FOR THEM PASSING UP LOWER POINT CONTRACTS FOR A HIGHER POINT CONTRACT WITH A DIFFERENT MONTH.

This is the first possible answer that makes any sense.

 

[mickeymit]

This is all a big mystery to me

 

[drusba]

What I find interesting in this, is at times it looks that it makes no sense as to what is ROFR'd and what isn't. For example: SSR has several recent contracts passed at $59, $57, $60, $57, $65, and $66 per point and then there are ones that were ROFR'd at $67, $69 and $66. (These are all contracts that came back just during this past month.) While we don't know the particulars on these contracts, such as banked points available, who was paying current MF's and closing costs, but even taking that into consideration, why are some $57 per point contracts passing, while some contracts in the mid to high 60's aren't? There seems to be no ryhme or reason to the process!

I did not see any passed SSR's in the list below $64, are you referring to another list? Factors for variations can likely include quality of contract (stripped/unstripped), number of points, use year needed by Disney, seller agreeing to pay closing costs or remaining dues for the year (if so a fairly high priced contract may be ROFR'd), existing Disney loan (Disney may be buying contract where seller is paying bulk of sale price back to Disney to clear loan), buyer is a known professional renter.

 

[mickeymit]

That is an interesting comment about the buyer being a known professional renter. Does Disney dislike this. Do they jack the price up on a professional renter. Do they make it easier for these renters? Enquiring minds want to know.

 

[Opie100]

While we don't know the particulars on these contracts, such as banked points available, who was paying current MF's and closing costs, but even taking that into consideration, why are some $57 per point contracts passing, while some contracts in the mid to high 60's aren't? There seems to be no ryhme or reason to the process!

I think the poster answers their own question here. MF and closing costs can significantly influence the net price per point of a given contract. A $75 per point offer can net out to $85 (or $65) offer depending on these factors. Disney supply could be playing a role as well, but I think the overall cost is the key consideration.

 

[SFD998]

I THINK THEY ROFR MONTHS THAT THEY HAVE PEOPLE WAITING TO PURCHASE POINTS DIRECTLY FROM THEM. tHAT WOULD ACCOUNT FOR THEM PASSING UP LOWER POINT CONTRACTS FOR A HIGHER POINT CONTRACT WITH A DIFFERENT MONTH.

I recently attended the DVC show in Boston. My two previous DVC purchases have both been resale. This time I bought directly from Disney. When I requested the add on points for AKV be in UY April they went to their list and checked what they had available. At the time there was a very limited number to draw from for AKV UY April. It stands to reason that they may in fact act on the ROFR when they need to build up certain months and resorts in order to be able to offer it when requested.

 

[Chic]

What I find interesting in this, is at times it looks that it makes no sense as to what is ROFR'd and what isn't. For example: SSR has several recent contracts passed at $59, $57, $60, $57, $65, and $66 per point and then there are ones that were ROFR'd at $67, $69 and $66. (These are all contracts that came back just during this past month.) While we don't know the particulars on these contracts, such as banked points available, who was paying current MF's and closing costs, but even taking that into consideration, why are some $57 per point contracts passing, while some contracts in the mid to high 60's aren't? There seems to be no ryhme or reason to the process!

Are you mistaken? I just looked at the recent contracts passed at SSR and the lowest was $64 a point. The contracts selling in the $50's were all bought back.

 

[drusba]

That is an interesting comment about the buyer being a known professional renter. Does Disney dislike this. Do they jack the price up on a professional renter. Do they make it easier for these renters? Enquiring minds want to know.

Renting is allowed unless you are conducting a commercial enterprise, i.e., meaning essentially that you are in the business of renting. Disney adopted a rule of presumption that if you make more than 20 reservations a year, you are presumed to be violating the rental rule. The change in the transfer rule from being able to make unlimited number of transfers per use year either out or in (but not both) to being able to only make one per use year (which it actually was in the old days) was driven by the desire to curb professional renters from using transfers as a way to conduct business. Also, there have been those who have set up websites just to rent DVC points and Disney has taken some action against them. Though it is not likely a large group, there has always been in the last 10 years or so those who are really engaging in the business of renting points. They also engage in canabilizing key vacation times such as Christmas and then renting those times. The rule on this site for the rent/trade board that prohibits trying to rent specific dates was itself adopted to curb professional renters. Some exceed the maximum allowed points you can own (2,000 at any resort, 5,000 overall) by simply having other family members or trusted partners make the purchases. Disney has at times sent warning letters to those it has identified as professional renters. Seeing those known renters attempting to buy more points in the resale market is a factor that could possibly trigger excercising ROFR.

 

[Lost in Neverland]

We just went through ROFR in May. The first contract we made an offer on was refused. It was an OKW with 220 points. The contract still had all of 2008,2009 and was going to recieve 2010 in Jan.The offer was $65/pt. The only thing Jaki could figure out was that the contract was loaded and basically we were getting 3 years worth of points for a very low offer. Our second attempt was successful with the same number of points but the offer was $70/pt. It had 2008, 2009 points but we would not recieve 2010 until March 2010. For some reason Disney liked this offer. To me it was the same thing with just a higher offering price. It really seems as if they wre trying to keep prices from falling so low they may not recover. If they fell much lower they could possibly impact the new buyers for BLT and AKL due to those properties having a much higher cost. Who knows sometimes I think it is just they draw names out of a box and those get approved.