Recent experiences with ROFR on Vero Beach?

[stlrod]

Was wondering if anyone has had recent experiences on what has either passed or not passed ROFR at Vero. Looking to but a 60-80 point add-on sometime in the next six months. Thanks.

 

[Candace]

I would like to know this also.

 

[Happy Birthday Cat]

Originally posted by stlrod
Was wondering if anyone has had recent experiences on what has either passed or not passed ROFR at Vero. Looking to but a 60-80 point add-on sometime in the next six months. Thanks.

There are so many resales for VB right now that I suggest you go really low on the initial offer for a contract that you really want. If DVC scoops it up from you through ROFR, make a counter offer and go a little higher. Even if you lose it, there are just so many more for sale that you could afford to gamble a bit by bidding low.

HBC

 

[Candace]

HBC - how low do you suggest?

 

[Happy Birthday Cat]

Originally posted by Candace
HBC - how low do you suggest?

I would start in the very low sixty dollar range (depending on if there are banked or current points). Just be prepared to either have the owner say no or for Disney to use ROFR. Just remember that if they do use ROFR, you can counter offer.

Another thing to keep in mind is that on a small contract the closing costs will add a lot of cost per point as well if you are paying.

I just think there is no harm in trying. There are just so many VB contracts out there.

HBC

 

[rphjr]

I had a vero contract bought from under my by Disney. Was December used year, 27 banked points, 59.00 per point, 150 points Owner paid closing costs. This was a year ago February.

 

[ClarabelleCow]

I really don't understand this counter offer thing. It is just not making any sense to me.

For Example:

Say I offer 60 pp, the owner says no, so I up it to 62, the owner agrees, it goes to Disney for $62.00, Disney scoops it up. Why would Disney allow it to go back to the original buyer to up the price, If the owner already agreed on $62.00, then shouldn't it be a done deal. Why would Disney allow this? Yes it's good for the seller, but not for Disney, then it would go back to disney for another ROFR? Seems it would be more work for Disney?

 

[Happy Birthday Cat]

Originally posted by ClarabelleCow
I really don't understand this counter offer thing. It is just not making any sense to me.

For Example:

Say I offer 60 pp, the owner says no, so I up it to 62, the owner agrees, it goes to Disney for $62.00, Disney scoops it up. Why would Disney allow it to go back to the original buyer to up the price, If the owner already agreed on $62.00, then shouldn't it be a done deal. Why would Disney allow this? Yes it's good for the seller, but not for Disney, then it would go back to disney for another ROFR? Seems it would be more work for Disney?

In a way it doesn't make sense the way you are thinking about it but you actually can counter offer if Disney takes it through ROFR. Here is a link to a post by calypso*a*go-go where this actually took place:

Counter Offer Post

HBC

 

[rocketriter]

Disney has a strong interest in keeping the per-point price high at DVC resorts (unlike in most parts of the time-share world, where resales go for a sorrowful fraction on the dollar). So Disney--as is their right per contract--will themselves buy up any contract that they feel is selling for too low a price. When they do, they'll either turn around and sell it themselves at their current price point of $84, or they'll keep the room in inventory for cash visitors.

Look at it another way. If they allow us to sell our points for $50 (which could happen, for example, during the distress of an estate sale) then it would become much harder for Disney to sell the same points for $84, or to sell SSR for $95.

In the end, once we've paid the tariff to become members, this policy helps us as well. It keeps the point price up so that we'll also get more if we have to sell. It's also the main reason why the price of DVC membership (including resales) has gone up over the years, when it's gone down just about everywhere else in the time-share industry.

 

[ClarabelleCow]

HBC - I read the post, while I don't doubt it happened, I just don't get why Disney would have allowed it? I just wonder if the agent lied to the buyer, so the price was upped? Granted why wouldn't the seller have just said no the first time, but I just don't see the business benefit of allowing this?

 

[JudyS]

Originally posted by ClarabelleCow
...Say I offer 60 pp, the owner says no, so I up it to 62, the owner agrees, it goes to Disney for $62.00, Disney scoops it up. Why would Disney allow it to go back to the original buyer to up the price, If the owner already agreed on $62.00, then shouldn't it be a done deal. Why would Disney allow this? Yes it's good for the seller, but not for Disney, then it would go back to disney for another ROFR? Seems it would be more work for Disney?

I wasn't clear exactly what you meant in your post. Disney doesn't get to consider ROFR until the contract is signed. So, in the example you give, Disney would never hear about your $60 pp offer. Disney wouldn't hear about the deal until you and the seller signed a contract at $62.

Now, it's true that sometimes when Disney wants to buy a contract under ROFR, the seller and buyer simply agree to a higher price instead, and then the new offer passes ROFR. Perhaps you are asking why Disney allows buyers to raise their bids.

I'm not sure of the answer, but I see two possibilities:
1) Good customer relations -- maybe Disney does it just to keep customers happy.

2) Florida law -- perhaps sellers are under no obligation to accept Disney's ROFR offer, and can take their property back off the market (or look for a higher purchase price) instead.


At any rate, buyers can't count on getting a second chance if Disney wants to exercise ROFR. Many sellers would probably just take Disney's offer and be done with it, rather than go back to negotiating with the buyer, back to waiting on ROFR again, etc.

 

[DebbieB]

Here's how it reads in the contract:

>>If DVD elects to exercise its right of first refusal, DVD shall notify Purchaser (the current member) in writing of such election, and the purchase by DVD shall be closed on or before the proposed closing date.<<<

It sounds to me that they could exercise ROFR and close. I think it's more of a customer courtesy to allow a counteroffer.

 

[Dean]

Originally posted by ClarabelleCow
HBC - I read the post, while I don't doubt it happened, I just don't get why Disney would have allowed it? I just wonder if the agent lied to the buyer, so the price was upped? Granted why wouldn't the seller have just said no the first time, but I just don't see the business benefit of allowing this?

Disney has always allowed one to up their offer and resubmit for ROFR. Years ago, they would ask you if you wanted to do so. Now they don't go that far but if you know it's been "bought back" early enough, they will let you resubmit for a higher amount. The problem is that they notify the seller and not the broker so it could be too late by the time you hear about it.

Since the reason is to keep the resale prices high and they don't really make any money on the points they buy back, I doubt it matters to DVC at all.