ROFR question

[mouseketeer_times_2]

I saw on another site a spreadsheet of ROFR's that have been approved or disapproved. I am shocked. Is it common to have a sale refused by Disney? Why does this happen?

 

[Granny]

I think you are misunderstanding Disney's Right of First Refusal.

Disney doesn't "disapprove" a sale....it steps in and replaces the buyer if the price is "too low".

Disney does this for two reasons that I can think of.

1. Helps prop up the sale of new DVC contracts by keeping the selling price on the resale market higher than it normally would be. Without Disney's ROFR policy, resales would be much less expensive than new contracts through Disney, and they'd no doubt have a much harder time selling new construction.

2. If the price is low enough, Disney can turn around and sell them at their rate. Thus they can make a profit on the resale of points that they buy at "bargain" rates.


I think you are thinking that Disney just kills the sale altogether? No, they just take the place of the buyer, and it is the prospective buyer who is out of luck.

Let us know if your question is different from what I think it is.


By the way, I see this is your first post. Welcome to the DIS boards!!

 

[mouseketeer_times_2]

I think you are thinking that Disney just kills the sale altogether? No, they just take the place of the buyer, and it is the prospective buyer who is out of luck.

OOOOHHHH, I get it now. ROFR means they have the right to accept the offer instead of the buyer. YUCK! Does the buyer lose any fees etc. if Disney does this?

 

[Blue&Gold]

Buyer shouldn't lose anything other than some effort... The resale contract I purchased was clear in that in the case of a ROFR, I would get my escrow $$$ back.

 

[vascubaguy]

OOOOHHHH, I get it now. ROFR means they have the right to accept the offer instead of the buyer. YUCK! Does the buyer lose any fees etc. if Disney does this?

They buyer is only out the time and effort. To submit the contract for ROFR waiver, the buyer has to put down a deposit which is placed in escrow. If Disney decided to ROFR the contract, the money can either remain in escrow to be applied towards another contract, or it can be refunded. The buyer doesn't lose any money.

 

[mouseketeer_times_2]

A question just occured to me.... what does Disney do with the ROFR's they buy back?

 

[vascubaguy]

A question just occured to me.... what does Disney do with the ROFR's they buy back?

They put those contracts back into their inventory and will rent out rooms for $$$ based on those points or sell them for $92 per point ($98 per point for SSR).

 

[mouseketeer_times_2]

Thanks everyone for helping answer all of my newbie questions Just when I got Disney figured out I learned about DVC and became all sorts of confused again!

 

[1000th happy haunt]

Mx2,

Are you considering buying into DVC? This is the place to ask your questions.

 

[mouseketeer_times_2]

Yes, we are considering it. I would like to purchase a small number of points and from what I can see, Disney doesn't offer packages of less than 150 points. It just seems to make sense to me to buy a piece of the pie rather than staying at much smaller accomodations for just as much money.

 

[vascubaguy]

Yes, we are considering it. I would like to purchase a small number of points and from what I can see, Disney doesn't offer packages of less than 150 points. It just seems to make sense to me to buy a piece of the pie rather than staying at much smaller accomodations for just as much money.

If you buy direct from DVC you are required to purchase a minimum of 150 points. However, if that is more than what you would like to purchase right now, you can buy smaller contracts via the resale market (as low as 25 points) and still get the full membership benefits.

Check with the site sponsor, The Timeshare Store (the banner is at the top of this page). You can look at what they currently have available and if you are interested in the smaller contracts, you can give them a call and they'll let you know when contracts fitting your needs comes available.

If you have any questions, just ask away. Folks here are glad to help out.

 

[JimMIA]

If you buy direct from DVC you are required to purchase a minimum of 150 points. However, if that is more than what you would like to purchase right now, you can buy smaller contracts via the resale market (as low as 25 points) and still get the full membership benefits.

Also, once you are a DVC member, you can add on in small increments directly from Disney. You can purchase as few as 25 points at a time direct from Disney (50 minimum for financing), subject to availability, of course. For a number of months, Disney has had points available pretty much on demand, except at BCV for certain use years.

Very small contracts are occasionally available via resale, but they are hard to find and go quickly. If you are interested in a small resale contract, I'd call The Timeshare Store and tell them what you are looking for. They will put you on a call list and will notify you before they advertise something that meets your needs.

 

[mouseketeer_times_2]

Thanks for the info! Jamie from the Timeshare store has put me on her email list and is watching for me. I'm glad to know that if we want to get more later we can.

I had looked at buying direct from Disney but I couldn't justify spending that much money when we wouldn't use that many points every year. We work odd shifts and it is hard to get away from work at the same time. It is a major event when we can take more than a 3 day trip anywhere!