Resale and Disney's Right of Refusal

[pixie3]

We have been looking at DVC. On our recent cruise we had some meetings with their team. When the subject of resale came up the woman said, "You can't get it cheaper because we have first right of refusal and never sell under what it's currently selling for ie. $104pt in order to protect you.:

Is this true. I'm thinking if they turn it down all the time then how does the timeshare store sell anything if everything is refused?

 

[Mtnman44]

I'd like to hear the salesman answer that one...

I'm thinking if they turn it down all the time then how does the timeshare store sell anything if everything is refused?

Obviously, your salesperson gave you incorrect information. You can buy resales contracts, usually for a good discount vs. direct from Disney. There are no awesome, amazing, fantastic deals, (i.e. a little old widow who only used her DVC for chruch on Sunday just needs to sell it because she can't use it anymore and just wants to get rid of it for any price...) This is Due to ROFR.

However, when you factor in the time and trouble and additional closing costs associate with resales, it's not a HUGE difference in price. IMHO

 

[bookwormde]

Obviously the statement was not true.

It really depends on what you want. If you want BC then you may not be able to save anything, but you may be able to get UY, which DVC does not have. With AKV you might save $5/pt after extra settlement costs and point and maintenance fees adjustments.
SSR is a very different situation. You can save between $12-18/pt if you are patient and can find a “loaded” contract. With OKW only 2057 contracts are available from DVC so if you want a 2042 contract you have to go resale and will save $25-30/pt but you are getting a contract with 15 less years. The other resorts savings tend to be in the $8-15/pt range. You do have to be more patient (the process takes about 2 months) and you have to understand the process and market to get these savings without going through the ROFR process multiple times or paying to much.

I took my time and got an OKW 2042 with almost all of its current and future points for $68/pt but that was right at the limits of ROFR for those contracts so it could have just as easily have been bought back by DVC.

bookwormde

 

[JimMIA]

Disney's "Guides" don't usually tell outright lies. Not usually. But some of them do on occasion.

And all of them certainly only present that information which helps their case for buying from them. So they won't usually lie, but they'll certainly tell you only 20-30% of the information! They will also grossly exaggerate the difficulties of buying resale.

Prior to our initial purchase, my guide told me she had just come from a "special meeting" where it was announced that DVC was going to begin ROFRing ALL resale contracts. Needless to say, that was a barefaced lie.

We went on to purchase OKW resale, with banked points, for MUCH cheaper than we could have bought through DVC directly.

 

[rinkwide]

When we first looked into DVC our guide said all contracts were bought back and resold, but only to existing members looking to add-on. He pushed SRR way too hard, even refusing to put me on the Beach Club waiting list. Two months later we had no trouble passing ROFR.

But you know, karma is a funny thing. We'll be doing an add-on at the Contemporary when it's announced but a simple phone call last month guaranteed out EX-guide won't get the commission.

 

[KAT4DISNEY]

Hmmmm...just take a look at this thread. http://www.disboards.com/showthread.php?p=25409513#post25409513

Scroll up a bit and you'll see the list of people on this board that have passed ROFR. Approximately 1 month ago we closed on a VWL at $82/pt. I think around the same time someone had Disney exercise their ROFR for that amount, but obviously they don't exercise all. I believe thru Disney VWL is now $101/pt.