ROFR? Direct or Resale?

[MandM22]

My DW & I are doing our research before we buy into DVC. We vacation alot in WDW so the $$$ makes sense.

I am not sure whether to buy direct from Disney or from a reputable resale. We like VWL & BCV the best so resale would be the only option.

I keep seeing information talking about ROFR. "Right of first refusal" What does this mean exactly? Can the purchase be declined?

I'm a little concerned about buying our first DCV timeshare from a resale. I don't want to make a mistake on such a large important purchase.

Any help or advice would be greatly appreciated.

 

[DisDaydreamer]

I keep seeing information talking about ROFR. "Right of first refusal" What does this mean exactly? Can the purchase be declined?

Kind of... not.

It doesn't mean the purchase is declined, but rather that disney becomes the buyer at the low price you have agreed to buy at. This way Disney maintains the public market value and is the beneficiary of any lip smacking deals.

 

[LisaS]

I am not sure whether to buy direct from Disney or from a reputable resale. We like VWL & BCV the best so resale would be the only option.

You can purchase VWL and BCV and any other "sold out" resort directly from Disney. Prices are $95/pt for BCV, BWV and VWL with small closing costs. You will probably have to go on a waiting list for BCV but a couple of people were able to buy points there within 2 weeks by specifying they would take any Use Year. There are often points available at VWL so you might get points there right away, again depending on which Use Year you want.

I keep seeing information talking about ROFR. "Right of first refusal" What does this mean exactly? Can the purchase be declined?

Disney reviews every purchase agreement. If they feel the deal is too good, they will step in as the buyer. The seller gets the same deal but the original buyer is out of the deal. This creates a selling price "floor" for each resort. Check out the ROFR thread on the Operations board to get an idea of the price you will have to pay to pass ROFR. As long as you offer the going rate or $1-$2/pt above, you should pass ROFR. Those who are compelled to negotiate the lowest possible price and test the system usually end up losing the contract to Disney and having to start over.

Here is a link to the ROFR thread: http://www.disboards.com/showthread.php?t=720134 Start on the last page and work your way backwards through the thread until you find the latest summary of contract sales data.

I'm a little concerned about buying our first DCV timeshare from a resale. I don't want to make a mistake on such a large important purchase.

Many of us have purchased resale contracts. The Timeshare Store (this board's sponsor) is reputable and great to work with and will make the process very easy. Check out their latest listings by clicking on "DVC Resale Listings" at the top of this page.

Good luck!

 

[DisDaydreamer]

You can purchase VWL and BCV and any other "sold out" resort directly from Disney. Prices are $95/pt for BCV, BWV and VWL with small closing costs. You will probably have to go on a waiting list for BCV but a couple of people were able to buy points there within 2 weeks by specifying they would take any Use Year. There are often points available at VWL so you might get points there right away, again depending on which Use Year you want.

Disney reviews every purchase agreement. If they feel the deal is too good, they will step in as the buyer. The seller gets the same deal but the original buyer is out of the deal. This creates a selling price "floor" for each resort. Check out the ROFR thread on the Operations board to get an idea of the price you will have to pay to pass ROFR. As long as you offer the going rate or $1-$2/pt above, you should pass ROFR. Those who are compelled to negotiate the lowest possible price and test the system usually end up losing the contract to Disney and having to start over.

Here is a link to the ROFR thread: http://www.disboards.com/showthread.php?t=720134 Start on the last page and work your way backwards through the thread until you find the latest summary of contract sales data.

Many of us have purchased resale contracts. The Timeshare Store (this board's sponsor) is reputable and great to work with and will make the process very easy. Check out their latest listings by clicking on "DVC Resale Listings" at the top of this page.

Good luck!

I just love it when you explain things...

 

[boysmom5150]

We just purchased at VWL resale through the timeshare store. Everything went smooth as can be. They know there stuff and were right on the ball with everything. Good luck!!

 

[HockeyKat]

We are in the process of purchasing BWV from the TSS. So far, everything has gone incredibly smoothly. We passed ROFR w/ an $85/pt purchase price, in about 5 business days.

We looked into it and decided that $85/pt through resale equated to about $86/pt because of extra closing costs. Plus, we got all 210 2006 points and the use year we wanted, so that really added another $2100 credit to the price (or brings it down to $76/pt). Disney was offering BWV at $95/pt, so it seemed like a no-brainer to me.

Resale does take longer, approx. 4-8 weeks, and you can't put the deposit on a credit card. Just make sure that you find a contract that is not "stripped", meaning, has no points available until '08 or '09.

-Kat

 

[LisaS]

Plus, we got all 210 2006 points and the use year we wanted, so that really added another $2100 credit to the price (or brings it down to $76/pt). Disney was offering BWV at $95/pt, so it seemed like a no-brainer to me.

Disney also gives you a full set of current-UY points with your purchase. Those with Mar UYs and later would get 2006 UY points with a purchase made today, those with a Feb UY would start with 2007 points. Disney also pro-rates the first-year dues from the date you get your points.

 

[HockeyKat]

If I bought through Disney today and my use year was September, which year's dues would be due? 2007 or 2006?

 

[LisaS]

If I bought through Disney today and my use year was September, which year's dues would be due? 2007 or 2006?

You would get Sep '06 points with your purchase. You would pay pro-rated dues for 2007, starting from the day you get your points. If you are adding on, you usually get your points within 24 hours of paying your deposit for the add-on. So if you bought an add-on and got the points on Mar 1st, you would owe 10/12ths of the 2007 annual dues.

Dues are paid on a calendar year basis, not a Use Year basis. I'm not really sure how to relate annual dues to points but I suppose one way to look at it is that the 2007 annual dues covers 8/12ths of your 2006 points and 4/12ths of your 2007 points. So if you purchased an add-on on Mar 1st, you still get the full set of 2006 points, but don't pay the 4/12ths that normally would have been paid on those points in 2006 and won't pay for the first 2 months of 2007. So you get the full set of 2006 points but only pay 6 months of dues on those points.

 

[dunnhorn]

If you want to purchase VWL or BCV, I would suggest getting on the email distribution list from TSS. They will email you every day with new listings - and just monitor it. You can negotiate with the sellers through your agent - but remember that the best ones (with banked points) go fast. Also, you will pay an extra point or two on the contracts with banked points. Anyway - start watching the listings, and compare them against the thread above about what contracts have made it through ROFR... it helps to be educated when you make your offer!

I think they are letting a bunch of stuff go through ROFR just to clean out Saratoga and sell it so AKL will be more valuable, and in turn SSR will be more valuable.

 

[MandM22]

Thanks to everyone who replied with info. I feel much better going into this transaction with all of the valuable information everyone has supplied. My DW and I are definitely purchasing a DVC... Now the hunt begins for the best choice. Thank you all once again.