ROFR, commisions and closing costs

[Mississippian]

I listed and contracted to sell 150 Boardwalk points with The Timeshare Store for $73 per point (roughly 53 available, 150 coming August 2010). I really didn't think I was selling all that cheap, but I got a voicemail today that Disney was excercising their ROFR.

What happens as far as commission and closing costs are concerned? Does TTS get their commission, or does Disney subtract the commission or is it my ducky lay?

Thanks

 

[chalee94]

I listed and contracted to sell 150 Boardwalk points with The Timeshare Store for $73 per point (roughly 53 available, 150 coming August 2010). I really didn't think I was selling all that cheap, but I got a voicemail today that Disney was excercising their ROFR.

What happens as far as commission and closing costs are concerned? Does TTS get their commission, or does Disney subtract the commission or is it my ducky lay?

ROFR has no impact on the seller.

ROFR means that disney has kicked your original buyer out of the picture and will step into their shoes as the new contractual buyer.

seller gets their money. broker gets their commission. buyer who lowballed gets to start over and try again.

 

[disneynutz]

I listed and contracted to sell 150 Boardwalk points with The Timeshare Store for $73 per point (roughly 53 available, 150 coming August 2010). I really didn't think I was selling all that cheap, but I got a voicemail today that Disney was excercising their ROFR.

Looks like the price was lower than Disney thought it should be. I'm surprised that the Broker let you list it so low.

 

[Mississippian]

Looks like the price was lower than Disney thought it should be. I'm surprised that the Broker let you list it so low.

Take a look at the listing prices of other sellers. It's not really low. Prices have dropped.

 

[Mississippian]

ROFR has no impact on the seller.

ROFR means that disney has kicked your original buyer out of the picture and will step into their shoes as the new contractual buyer.

seller gets their money. broker gets their commission. buyer who lowballed gets to start over and try again.

What about closing and closing costs?

 

[RobDoc]

What about closing and closing costs?

The contract will go thru with the same terms you had already accepted. If the buyer was to pay closing costs, Disney will pay those costs. If the seller was to pay closing costs, you will still pay them.

As far as the terms of the offer you accepted, everything is the same - the seller will get the same amount they would have, the broker still gets the same commission and the buyer (in this case, Disney) will pay the same amount already agreed to.

 

[Mississippian]

The contract will go thru with the same terms you had already accepted. If the buyer was to pay closing costs, Disney will pay those costs. If the seller was to pay closing costs, you will still pay them.

As far as the terms of the offer you accepted, everything is the same - the seller will get the same amount they would have, the broker still gets the same commission and the buyer (in this case, Disney) will pay the same amount already agreed to.

Thanks Doc. I'm surprised Disney is ROFRing $73 when there are a number of contracts offered at that price on TTS listing page.

 

[ClarabelleCow]

there may be many listed, but people may not have made an offer. So you accepted a sale at 73.00, doesnt have any effect on you.

I'm considering selling off a bunch of little 24-38 point contracts for VWL, do the smaller contracts usually sell higher than the larger ones?

 

[chalee94]

I'm considering selling off a bunch of little 24-38 point contracts for VWL, do the smaller contracts usually sell higher than the larger ones?

yes, smaller contracts (50 or fewer) historically sell for a small premium:

1) for buyers who don't want to start with 160 pts, this is the only way into the DVC system

2) since administration costs are comparable regardless of contract size (and DVC would naturally rather administrate fewer contracts), DVC may be a little more eager to ROFR smaller contracts, requiring a higher price to get through.

 

[chalee94]

Thanks Doc. I'm surprised Disney is ROFRing $73 when there are a number of contracts offered at that price on TTS listing page.

could be a random ROFR just to get people's attention.

if you as the seller were paying closing costs, that would reduce the actual price per pt and might have pushed you under the ROFR bar.

could be something as simple as DVC having a buyer for pts from your use year.

 

[KerriL]

Well, I made an offer on a 150 point contract for BWV for $79.00 per point, and on Oct 4 Disney ROFR'd it.
$73.00 is not getting through.
Kerri

 

[Donald is #1]

You may want to check out our ROFR thread Anyone made it through ROFR

You can get an idea on the reports that have been posted on what has passed & failed.