Opps, Rofr Got Me

[nuthut]

ROFR got me on a 150 point BWV contract at $70 a point, Dec use year. 60-2003 points banked and all 2004 points intact with buyer paying closing. Oh well, try, try again...

 

[Luckymommyx2]

Sorry to hear about that. Hopefully it will go better next time! Good luck and keep trying!!!

 

[Kinley'sMom]

Sorry! Good luck and pixie dust for next time!

 

[tamu91]

This type of contract was passing ROFR in record times not so long ago. I guess Disney is being more aggressive with their ROFR strategy and we might not see any contracts in the mid to high 60's passing ROFR for a while

 

[jel0511]

This is upsetting news!! We have an April use year BWV contract at $71.50 waiting ROFR. There are only 30 points left in 04 and all 05's left. We're also paying closing.... Things are looking bleaker for me.

 

[RuthnPaul]

Our VWL contract was just sent to Disney last Friday so all these contracts that are not passing ROFR is not good news to us or anyone else "in the pipeline". In another post, someone said they are supposedly #1 on Disney's VWL waitlist for a September use year which is what the one we're trying to buy is! Plus it has 370 banked 2003 points and all 2004 points coming next month. We did pay $71.xx plus closing and maintenance so we'll see what happens...

 

[TravelingJen24]

Nuthut,
How long did it take for them to get back to you to let you know they wanted it, if you don't mind me asking?

 

[Beca]

Sorry to hear that!!

Just get back up on that horse and try, try again!!



Beca

 

[LisaSt]

So that is how many BWV contracts now. I hope everyone trying for VWL get theirs. So nuthut LisaSt and who else lost BWV I guess maybe we should try for a different property next time.

 

[BostonDisneyKid]

Sorry to hear you didn't get the resale. Are you going to make a counter offer or start over with a new potential resale contract?

If you plan on counter offering, please keep us updated as I am curious (think others may be as well) how this process works out as many have stated that you can counter but I'm uncertain if people actually follow through with it or just simply move on to another potential purchase. I am also curious at what price resales will get by the ROFR process as I will be looking for another resale sometime within the next year.

 

[SoCalKDG]

I'm at 73 per point on a 150 point contract, June use year, 110 points left for 2004, and I payed closing. The Timeshare store still thinks mine will pass ROFR, so I'll keep everyone updated.

They also don't think a counter is that effective because the buyer can take the money from Disney immediately as opposed to starting the whole ROFR/closing process over.

 

[tjkraz]

Originally posted by SoCalKDG
They also don't think a counter is that effective because the buyer can take the money from Disney immediately as opposed to starting the whole ROFR/closing process over.

Well, I'd insist on at least posing the question to the seller if you're inclined to go that route. Unless the owner is desperate to sell, an extra $150 - 300 from the deal might not seem to shabby.

Ethical concerns aside, remember if the agent advises you not to counter, he/she has effectively facilitated a sale of that contract to DVC and then can try to hook you into a second contract. So, in a sense, the agent has an incentive to discourage you from making a counteroffer.

Whatever time you spent negotiating terms with the seller on this contract will be saved if you go back to them and say "same terms, but I'll raise my offer to $75 per point."

 

[BostonDisneyKid]

I would seek a new resale agent if I were advised in this manner.
I agree with tjkraz on both points: A. The resale agent now has made two sales by effectively convincing the buyer not to counter and to seek another contract and B. what seller wouldn't want more money for their contract sale (unless in a financial bind)?

 

[pumpkinboy]

Don't you have enough points yet, nuthut? I would think that $70 a point at BWV with some current points outstanding would be a natural ROFR candidate, especially since they just increased their spreads at DVD. I expect jel0511's contract would be a bit safer, bcs of the higher price and the fact that it's mostly stripped. But if they ROFR, there will be other contracts, or if you're desperate just go thru Disney and keep your fingers crossed.

 

[Deep-Thots]

Originally posted by BostonDisneyKid
I would seek a new resale agent if I were advised in this manner.
I agree with tjkraz on both points: A. The resale agent now has made two sales by effectively convincing the buyer not to counter and to seek another contract and B. what seller wouldn't want more money for their contract sale (unless in a financial bind)?

I don't know about what commission, if any, the broker gets if DVD exercises ROFR, so I can't comment on your first point.

However, regarding the second point, when DVD exercises ROFR, the closing can take place within two days. Two days, and the seller has the $$ in his/her hands. This ease of closing and lack of aggravation are often worth more than the $150 or so that the seller might garner in a counteroffer by the buyer (who might not even be interested in the contract at a higher price). Why delay a $15-20k deal several weeks over $150?

 

[tjkraz]

Originally posted by Deep-Thots
I don't know about what commission, if any, the broker gets if DVD exercises ROFR, so I can't comment on your first point.

When a seller lists his contract with a broker, they enter into an agreement that once the contract sells, the broker receives a commission. I swear I read 12% on here somewhere.

So, for a puny 150 pt contract priced at $70, the total sales price would be $10,500. Regardless of whether the contract is purchased by a new member or DVC, at 12% commission the agent would receive $1260, while the seller gets the balance of $9240.

Commission would have no bearing on who ultimately purchase the contract because the agreement exists between the SELLER and the agent.

 

[Deep-Thots]

I can see that there might be an ethical issue if ulterior motives were in play here on the part of the broker.

All I can tell you is that what TTS said (see earlier post) regarding sellers, ROFR and counteroffers makes sense to me and I didn't get the sense that I was being slimed. In fact, they told me that at times, they don't even know that ROFR has been exercised until after the seller has accepted DVD's quick-and-easy offer.

That's all I know.

 

[RuthnPaul]

Originally posted by tjkraz
I swear I read 12% on here somewhere.

Think it may vary from broker to broker. We have asked two of the resellers what their commission is. Both told us it is normally 10% but, because we have done business with them in the past, it would be lowered to 9%.

 

[rphjr]

The 12% commision seems a little steep. But I guess selling time share can be tough. I haven't sold a piece od real estate in quite a few years, but on houses I though the going rate was about 6%, which usually divides amoung a listing and selling broker. Maybe it has gone up in the last 10 years. THe twelve % seems like a lot to pay when all you seem to get is a posting on a web site. No mortgage worries like a normal real estate agent would be invloved with Maybe I should get a FL broker's license. Running a web site listing would be a snap. I already have done quite a few web sites

 

[rphjr]

Also, this whole thing about ROFR. Once the seller has a signed contract and Disney matches the offer to buy it themselves, isn't the seller legally bound to sell it to Disney. Could Disney force the sale to them and not even let the seller consider a counter offer?
I think if the deal is so good to Disney they'll buy it for sure. Anyone else think that the seller would be legally bound to sell it to DVD?