Questions on ROFR?

[pjadtl]

Can anybody tell me where I can get more information on ROFR? I've been reading your threads on contracts, passing, etc. It is all very confusing to me and I would LOVE to add-on points eventually. I really appreciate your time!

 

[Granny]

What do you want to know about ROFR? It is Disney's right to purchase any contract that is being sold on the resale market if they think the price is too low.

The way it works is someone comes to an agreement to sell their DVC contract to a buyer for a specific amount of money per point. Before the sale can be final, Disney has the right to look at the contract and buy it for the same agreed upon price. The seller gets their price that they already agreed to, and Disney gets the contract. The buyer gets nothing since Disney stepped in and "took their place", so to speak. The buyer then has to go look for another contract to buy, and has a better idea of how much to offer if they want to buy it and not have Disney buy it.

The thread about Who is going through ROFR is the best source of current information on where Disney stands on exercising that right.

Not sure what else you want to find out about? Ask away!

 

[Happy Birthday Cat]

You could call the major re-sellers and ask what they could tell you but I have to agree with Granny. That one thread will probably tell you a lot more than anything else.

HBC

 

[pjadtl]

Thanks for the info-
Ok now, after Disney buys the contract, what happens to it then? They resell it at the low price? Is it available for us to purchase? How do we get the info on contracts for resale and what's the process?

 

[Splash Mountain Fan]

Thanks for the info-
Ok now, after Disney buys the contract, what happens to it then? They resell it at the low price? Is it available for us to purchase? How do we get the info on contracts for resale and what's the process?

After Disney buys the contract, they add the points to their inventory for sale at their "sticker" price (the price when directly buying through them).

 

[LisaS]

Thanks for the info-
Ok now, after Disney buys the contract, what happens to it then? They resell it at the low price? Is it available for us to purchase? How do we get the info on contracts for resale and what's the process?

Disney has waiting lists of current members wanting to add on. So if someone tries to buy BCV on the resale market for, say, $80/point, Disney will certainly step in and purchase the contract via ROFR. They will then sell those points to people on the waiting list for $95/point.

Every DVC resort is available for purchase directly from Disney. The current price for SSR is $101/point, but there are usually $8/point incentives available, bringing the price down to $93/point. BCV, BWV and VWL are priced at $95/point. I'm not sure about the prices for OKW, HHI and VB because there were some discounts on those recently, but they might have been available only to current members looking to add on points.

For most of the resorts, you'll save money by buying resale. Resale prices of BCV are so high, it's a toss up whether to buy from Disney or via resale, but there is usually a long wait for BCV points from Disney, especially if you want a particular Use Year.

 

[pjadtl]

I haven't been to BCV yet but by the boards and your response it sounds like it's worth it.
So if I wanted to add-on I would contact DVC directly? How am I hearing about people on the ROFR threads getting contracts for $75 and $76?! That's great! I'm assuming you put a deposit down.
Also, does anybody know about this Timeshare Store? What is that about? Can you get better offers through them?

 

[Granny]

So if I wanted to add-on I would contact DVC directly?

An add-on is what people refer to when they already own DVC points and want to add more. Technically, you can only add-on through Disney and it is connected to the originally purchased contract. However, people here use the term more loosely to mean any additional purchase of points after the initial purchase. You can purchase points through Disney or through the resale market, but a true add-on can only be done through Disney.

How am I hearing about people on the ROFR threads getting contracts for $75 and $76?! That's great!

I haven't read that thread but I would assume that any contract passing ROFR at that price is probably stripped. In other words, there are probably no points available in the current use year because the owner has already used them. And they might even have next year's points stripped by borrowing. The resale market gets contracts that are already "in use", so you need to know the exact position of all available points.

Also, does anybody know about this Timeshare Store? What is that about? Can you get better offers through them?

The Timeshare Store is a broker. They are a sponsor of this board and very reputable. There are some other reputable brokers who also handle a number of DVC contract sales. But if you contact TTS, they can probably handle your needs and will walk you through the resale process.

 

[diznyfanatic]

pjadtl - The Timeshare Store is the sponsor of this forum and very reputable. We purchased our first contract through them for BWV because we didn't want to have to buy the 150 points that are required for new members direct from Disney. They are excellent to deal with and I, among lots of other people here on the DIS, highly recommend them. You can see a list of what they have available by clicking on the link for them at the top of the page.

The people getting points at $75 are probably either buying resale (not direct from Disney) at OKW, or HH. VB can probably be gotten at between $65-70 right now resale. All of the other DVC resorts are well above $80 with BC being the most expensive resale.

The only way to buy directly through Disney as a new member is to buy 150 points, and then you might have to go on a waitlist to get them, if they don't have the inventory. If they do have them, you will get them immediately but pay $95 per point at most of the resort. OKW, HH and VB are slightly less through Disney.

If you want less than 150, or want them right away (as soon as you close which can take 8 weeks) if Disney doesn't have at least the 150 with the same UY for a new member, you'll have to go the resale route and also have to pass ROFR.

 

[LisaS]

So if I wanted to add-on I would contact DVC directly? How am I hearing about people on the ROFR threads getting contracts for $75 and $76?! That's great! I'm assuming you put a deposit down.
Also, does anybody know about this Timeshare Store? What is that about? Can you get better offers through them?

I only just realized that you are already a member. The prices I quoted in my earlier response ($95/point buying directly from Disney) are for NEW members. Since you are already a member, the add-on price is currently $92/pt for BCV, BWV and VWL; I think the others (OKW, HHI, VB) are a few dollars/point lower. But the price is going up on July 1st to the prices I quoted earlier ($95/pt).

If you add on through Disney, you must purchase a minimum of 25 points if paying cash, 50 points if you want financing. The points can be at any resort and must be the same Use Year as your master contract. If for some reason you wanted a different Use Year, you would have to buy at least 150 points and they would set it up as a separate contract. Your annual dues for the current year would be pro-rated from the date you get your points which is usually within 24 hours of paying your deposit. Currently there are no closing costs through Disney.

The lower prices you quoted ($75/pt) are typical for OKW and HHI on the resale market through brokers such as The Timeshare Store. Click on the "DVC Resales" link at the top of this page to see their current listings. If you wanted to purchase BCV you would have to pay in the high 80s/point, in the mid 80s for BWV, SSR or VWL. On top of that, you would pay closing costs ($350-ish for a small contract, $500 for contracts of 150-250 points? These are guesstimates on my part). And in addition, the seller often expects the buyer to reimburse all current-year dues. Both closing costs and dues reimbursements are negotiable between buyer and seller, as is the asking price though if you negotiate too good of a deal, Disney will just step in via ROFR and take the contract.

When purchasing on the resale market, you can purchase any Use Year. I prefer having all my points be the same UY because as a newbie, I find it easier to manage them. If you add on via a resale and purchase the same UY, you can usually get Disney to set it up as an add-on to your master contract, but it doesn't always happen that way.

 

[diznyfanatic]

LisaS - Great taste in DVC choices!

I think that $92 price per point for current members is only valid if they became members prior to 4/1/06. If they became members after that, the add on price is $95 per point, until sometime in July (not sure of this date, it might be the end of June) when everyone will pay $95 . We officially became members in May.

We just added on at VWL and BWV and had to pay $95, so just thought I should point that out. We didn't pay closing costs, but from what I understand, new DVC members buying directly from Disney will have to start paying that too, I think in July sometime. Old members adding on won't have to pay closing costs.

If our paperwork was wrong and we should have only been charged $92, I would love to know that though. It would save us close to $400.00.

 

[LisaS]

LisaS - Great taste in DVC choices!

I think that $92 price per point for current members is only valid if they became members prior to 4/1/06. If they became members after that, the add on price is $95 per point, until sometime in July (not sure of this date, it might be the end of June) when everyone will pay $95 . We officially became members in May.

We just added on at VWL and BWV and had to pay $95, so just thought I should point that out. We didn't pay closing costs, but from what I understand, new DVC members buying directly from Disney will have to start paying that too, I think in July sometime. Old members adding on won't have to pay closing costs.

If our paperwork was wrong and we should have only been charged $92, I would love to know that though. It would save us close to $400.00.

Now that you mention it, I do remember now that when the prices went up (from $92 to $95 for nonmembers) that someone said the new price would also apply to anyone becoming a member after the price increase. Thanks for correcting this!!

With different prices by resort, by member vs. non-member, and by the date one became a member, it's getting really hard to answer what should be a simple question, i.e., "What is the price of XYZ resort?" !!!

 

[NJOYURLIFE]

LisaS - Great taste in DVC choices!

I think that $92 price per point for current members is only valid if they became members prior to 4/1/06. If they became members after that, the add on price is $95 per point, until sometime in July (not sure of this date, it might be the end of June) when everyone will pay $95 . We officially became members in May.

We just added on at VWL and BWV and had to pay $95, so just thought I should point that out. We didn't pay closing costs, but from what I understand, new DVC members buying directly from Disney will have to start paying that too, I think in July sometime. Old members adding on won't have to pay closing costs.

If our paperwork was wrong and we should have only been charged $92, I would love to know that though. It would save us close to $400.00.

We just closed on our small resale contract in order to get into the DVC system two weeks ago and then we did an add on last Friday for Hilton Head and paid 92 less the 5 discount per point for a net of 87. Going by this, we were not members prior to 4/1/2006, but we still only paid $92.

Now, this is a long shot, we did use to own DVC points but then sold them last fall. So maybe they counted this as us being members already? I don't know, but if I were you, I'd doublecheck that $92 price per point.

Hope this helps.

 

[pjadtl]

Thank you everybody for your help! I can't wait to look into thie more! I just can't get enough!

 

[diznyfanatic]

We just closed on our small resale contract in order to get into the DVC system two weeks ago and then we did an add on last Friday for Hilton Head and paid 92 less the 5 discount per point for a net of 87. Going by this, we were not members prior to 4/1/2006, but we still only paid $92.

Now, this is a long shot, we did use to own DVC points but then sold them last fall. So maybe they counted this as us being members already? I don't know, but if I were you, I'd doublecheck that $92 price per point.

Hope this helps.

This all gets very confusing but I think that is because you added on at HHI.

Our guide told us that OKW, HHI and VB would not have a price increase and would remain at $92.00 per point and that HHI and VB would offer the additional incentive of $5.00 per point resulting in the final price that you reported.

Since we added on at VWL and BWV, we weren't able to take advantage of those prices/incentives and had to pay $95. I will definitely double check with our Guide however. Thank you very much for reporting your information. I really appreciate it.