ROFR logic

[eileenfk]

Hi,

I am wondering if DVC recently implemented a new ROFR strategy more for the purpose of boosting SSR sales.

Personally, I have always thought that ROFR was an un-fair practice. Originally it was one of the things on my list of negatives, when I was contemplating a purchase. I just didn't think it fair, that Disney could wait until someone else had decided to buy the contract, and at that point be allowed to buy it for the same price, without even having to make an offer themselves.

I guess if I ever decide to sell, then I might be glad that DVC has kept the prices up.

- Eileen

 

[CRobin]

I suspect their strategy is multifold....

1). Protect their own selling price by keeping resale prices up.

2). Address what must be a fairly sizeable list of requests for add-ons @ the DVC resorts (and make a buck at it, buying at $72, selling for $89)

3). Potentially build up some inventory of points for currently sold-out on-site resorts so that they could sell them in "new" 150 point contracts.

I agree, I am sure it doesn't come off as fair to someone who frets over making a DVC investment and then gets whacked by ROFR. Unfortunately, that is a term of the agreement that we all have to live with.

 

[southtown]

Honestly I think its a good thing that Disney has a ROFR. I read somewhere that most timeshares lose half there value once you sign on the dotted line. Could you imagine buying at $90/point and once you sign they would only be worth $40-$50/pt. Doesnt sound like a good idea to me. I bought at BCV 2 years ago for $74/pt counting the $10 rebate. I am positive get $74/pt. if I put them up for sale today. So all I would have paid is the maintence fees and have had two awesome stays at DVC. If DVC didnt have ROFR I am not sure if the prices would be as high as they are because some desperate people might sell real cheap and then when other potential buyers see that they would expect to get a deal like that to. I have no problem with the ROFR. If I wanted to sell for $74/pt., I wouldnt care who bought them as long as I got my money

 

[TinksDH]

Having just gone through ROFR (and passing it!) I must admit it IS a little stressful, but at the same time I know our investment is protected. Compare that to another timeshare we currently own, where we bought it 2 years ago for $1.25/pt, they're selling new contracts right now for $1.85/pt, but the resale market is around $0.80/pt. I'd love for them to buy back mine even at $1.00/pt so I could turnaround and buy more DVC points!

 

[Dean]

The reasoning is simple. Create a price and environment where the buyer is just as happy, or more so, to go through DVC directly than otherwise. They will not make enough money on the buy backs to fool with for that reason.

 

[AmyBeth68]

Even though I am currently awaiting ROFR for the 2nd time, after not passing the first time, I believe the process is solid. To me, it just offers another level of investment protection. Between the Disney name AND the fact that they have ROFR, I feel quite secure in an industry that generally is not considered such. I've always thought of timeshares as a bit risky, but with Disney it feels less so. Nothing is guaranteed, but DVC seems to run a really tight ship. While I'm not going in this to make money, it sure feels good to know that DVC resales are strong in the event I would need to sell due to changing circumstances.

I'll be sweating it out, waiting to see if we pass, but I know in the end something will come through for us. And once all is said and done, I'll know I've made an excellent purchase. I just wish we had done this a few years ago . That hindsight!