ROFR question!

[Nolamom3]

This may have been asked in a previous post but what are some reasons why Disney would use ROFR? We're looking into resale and would like to be prepared for possibitie scenarios!

 

[bradisgoofy]

Low price per point and/or resort with high demand for more points that Disney doesn't have

 

[graychef]

This may have been asked in a previous post but what are some reasons why Disney would use ROFR? We're looking into resale and would like to be prepared for possibitie scenarios!

It helps Disney control the market a little. Also, Disney can buy resale and sell the contract as new.

 

[Nolamom3]

Good to know! So there's a good chance to get a ROFR. We found a decent deal for BLT but now I'm not getting my hopes up!

 

[Disney LOVE Travel]

I'm currently waiting for ROFR with a BLT contract as well. It's nerve wracking but I'm hoping since we offered more than market value (still much less than direct but we were in a small time crunch and it was the perfect contract). Fingers crossed! Next contract I will take a bigger gamble. I'm a fellow Who Dat as well! Love your profile pic! Might need to find one for myself.

 

[Nolamom3]

I'm currently waiting for ROFR with a BLT contract as well. It's nerve wracking but I'm hoping since we offered more than market value (still much less than direct but we were in a small time crunch and it was the perfect contract). Fingers crossed! Next contract I will take a bigger gamble. I'm a fellow Who Dat as well! Love your profile pic! Might need to find one for myself.

Feel free to take this one! I can share! I'll keep my fingers crossed that you get your contract! Can you keep me updated on your progress? I'm interested to hear how the process works for different people.

 

[graychef]

Here is another thread full of individual timelines. Buyers use different brokers and closing companies. It'll give you some perspective.

http://www.disboards.com/threads/the-timeshare-store-timeline.3269615/

 

[Disney LOVE Travel]

Feel free to take this one! I can share! I'll keep my fingers crossed that you get your contract! Can you keep me updated on your progress? I'm interested to hear how the process works for different people.

Of course! I should hear back within the next week as it was submitted on January 14. I've been seeing quite a few being passed that were submitted on the same day. Estimated closing date isn't until March 13 though so anything can happen! THANK YOU for sharing.

 

[Nolamom3]

Thank you graychef! I'll check those out.

 

[supersnoop]

This may have been asked in a previous post but what are some reasons why Disney would use ROFR? We're looking into resale and would like to be prepared for possibitie scenarios!

Mainly, if they have someone in the phone who wants to buy those points when it comes across their desk, they'll exercise their right of first refusal and sell it themselves. There really is no rhyme or reason.

 

[KAT4DISNEY]

Mainly, if they have someone in the phone who wants to buy those points when it comes across their desk, they'll exercise their right of first refusal and sell it themselves. There really is no rhyme or reason.

It doesn't seem to be quite that methodical. Dart board would better describe it.

For example there are people reporting to be on waitlists to buy VGC and yet they report seeing contracts make it thru ROFR with the UY's they are waiting for.

 

[disneynutz]

This may have been asked in a previous post but what are some reasons why Disney would use ROFR? We're looking into resale and would like to be prepared for possibitie scenarios!

Money, period.

We don't really know why or when but the bean counters tell them which contracts to ROFR. To us it seems like there isn't a pattern or reason but believe me there is.

Bill

 

[chalee94]

having been an owner through the "great recession" i can tell you that disney doesn't use ROFR to "control the market." (disney probably has better economic information than most of us, so if the market is about to collapse, disney will probably figure it out before you do and bail on ROFR entirely.)

i think the main reason is money - disney can use ROFR to pick up great deals on contracts without the hassle of involving themselves in negotiations. so long as they have a machine in place at the parks/resorts to resell these ROFR'ed pts, it's a nice way to make a few extra bucks (although it is true that they make much more money on new developments like the poly.)

it's also true that part of the rationale behind ROFR is to annoy and disrupt enough resale buyers to drive them into giving up and paying direct prices.

 

[disneynutz]

having been an owner through the "great recession" i can tell you that disney doesn't use ROFR to "control the market." (disney probably has better economic information than most of us, so if the market is about to collapse, disney will probably figure it out before you do and bail on ROFR entirely.)

i think the main reason is money - disney can use ROFR to pick up great deals on contracts without the hassle of involving themselves in negotiations. so long as they have a machine in place at the parks/resorts to resell these ROFR'ed pts, it's a nice way to make a few extra bucks (although it is true that they make much more money on new developments like the poly.)

it's also true that part of the rationale behind ROFR is to annoy and disrupt enough resale buyers to drive them into giving up and paying direct prices.

I agree, we will also see an increase in ROFR when new inventory decreases or new sales slow. DVD has a budget to maintain and when the cash coming in slows down, they do things to help pay their bills and meet their goals.

Bill

 

[Nolamom3]

I can definitely see them wanting to discourage people. When my husband did the math on how much we will save going through resale (with purchasing WAY more points) vs direct, I couldnt believe it. We'll wait it out if our current contract doesn't go through bc it's too much money to waste buying direct.

 

[wdrl]

Sometimes I wonder if Disney Vacation Development has a limited amount of money allocated to its ROFR activity. It takes cash to buy each deed and DVD may only have so much money it wants to tie up in resale transactions at any given time. I can see DVD's ROFR manager being given a budget and told that he or she has to stay within the budget and meet certain targets, such as profit amounts, return on investment, etc. If all of the manager's budget is tied up in other pending transactions, then he or she can't ROFR another deed, no matter how appealing it might be.

Another factor may influence DVD's ROFR activity is the rate and volume of foreclosures. I imagine DVD keeps track of deeds that are in the process of being foreclosed, as well as deeds that are on the verge of foreclosure. By knowing it may be adding these foreclosed deeds to its inventory in the near future, DVD may decide that it does, or doesn't, need to ROFR other deeds today.

 

[Nolamom3]

Another question!

It's all speculation as we dont know their methods but I assumed they would be looking for smaller (50, 100 pt) contracts to buy back. My reasoning is the guide I spoke to said we would have to be wait listed for any BLT points. When she looked at the available points coming to them, she said they would possibly have to split them into two deeds in order to get the 250 we wanted. If they bought back the points and put them back into one big pool, why would they have to do that? As I started to read more, people think they look for bigger contracts to get the most points (this would put us at risk for ROFR). Anyone have any opinions on this theory?

 

[Nolamom3]

Also, hopefully Disney didn't put us on the blacklist! When my husband told the guide that we decided to hold off on any purchases for now, she promptly told him to remember that Disney has the ROFR for any other means of purchasing DVC He got off the phone and said "I think we've been threatened!". I guess time will tell!

 

[supersnoop]

Another question!

It's all speculation as we dont know their methods but I assumed they would be looking for smaller (50, 100 pt) contracts to buy back. My reasoning is the guide I spoke to said we would have to be wait listed for any BLT points. When she looked at the available points coming to them, she said they would possibly have to split them into two deeds in order to get the 250 we wanted. If they bought back the points and put them back into one big pool, why would they have to do that? As I started to read more, people think they look for bigger contracts to get the most points (this would put us at risk for ROFR). Anyone have any opinions on this theory?

They can only put points into one big pool per declared unit, and each unit has a specific use year. So, they should be able to make more money buying larger contracts and splitting them up. It seems like it would be much easier to split up a larger contract than to combine smaller ones. Plus, larger contracts tend to sell for lower prices per point, so they should have a higher margin on those.

 

[wdrl]

Also, hopefully Disney didn't put us on the blacklist! When my husband told the guide that we decided to hold off on any purchases for now, she promptly told him to remember that Disney has the ROFR for any other means of purchasing DVC He got off the phone and said "I think we've been threatened!". I guess time will tell!

No, I seriously doubt DVD maintains any kind of a "blacklist." DVD does a volume business and sells well over 100,000 points each month. Your 250 point purchase is very big to you, but in the grand scheme of things its not a show stopper for Disney.

It doesn't surprise me that your Guide said they may have to sell you 250 points in two or more deeds. Points for each DVC resort are allotted into Residential Units. The number of points and the Use Year for each Unit is set for the life of the resort. When DVD reacquires a deed, the points from the deed are returned to the Unit from which they were issued; the points cannot be moved to a different Unit. BLT has 223 Residential Units and, according to my data, 37 Units have less than 250 points that can be sold to the general public. Although the other 186 Units may have more points unsold, DVD may be using some of those points to fund cash reservations it has made for the near future.