ROFR Thread April to June 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[AKVDisneyFan]

Anybody have experience going through a delayed closing as either buyer or seller? I'm inching towards the 7 month mark on the last trip I plan to take on these two contracts, and I'm trying to decide whether to list them right away once the reservations are in place and the points stop moving (June) or wait until closer to my travel dates (January).

I'm not desperate to sell or close quickly, I'm just repaying the investments I moved around to buy my Aulani (until I un-repay those investments to buy Poly 2, which is almost guaranteed).

I bought a contract in 2020 that passed ROFR in July and had a delayed closing for the end of December. The process went pretty quickly on DVC’s side after closing.

 

[Chuckdlc]

Come on 4/26!

I'm 4/29 and Vero. I am genuinely shocked that they didn't turn it around quicker knowing how much they're going to be collecting from me in maintenance fees each year. lol

 

[dmcfa2504]

I'm 4/29 and Vero. I am genuinely shocked that they didn't turn it around quicker knowing how much they're going to be collecting from me in maintenance fees each year. lol

I was hoping to hear today, I think I basically offered the exact average for CCV, so hopeful we get it. And hopeful it doesn't take too much longer.

 

[Chuckdlc]

I was hoping to hear today, I think I basically offered the exact average for CCV, so hopeful we get it. And hopeful it doesn't take too much longer.

I got a good deal for Vero but it's Vero. Are they really going to take that? I mean if so more power to them but it's a hefty price in MF's for them to give up or cover.

 

[1stTimeLongTime]

nothing finer than the dvc email for the activation code

 

[Einstein509]

Anybody have experience going through a delayed closing as either buyer or seller? I'm inching towards the 7 month mark on the last trip I plan to take on these two contracts, and I'm trying to decide whether to list them right away once the reservations are in place and the points stop moving (June) or wait until closer to my travel dates (January).

I'm not desperate to sell or close quickly, I'm just repaying the investments I moved around to buy my Aulani (until I un-repay those investments to buy Poly 2, which is almost guaranteed).

I wouldn't wait. As I mentioned, you don't know what the economy will look like 6-7 months from now. It's not trending positively and you may have a tougher time unloading the contracts at that point.

 

[Bearval]

All of that just means prices should be coming down. But Disney isn't allowing them to. There are plenty of wannabe resale buyers, but not at SSR $140.

No matter what happens to the supply curve or what happens to the demand curve, they always intersect at some price and quantity. But ROFR is blocking the market from reaching equilibrium.

This would be an indication that the price will begin to drop, not enough buyers bidding on contracts at the current asking prices so if DVD "NEEDS" direct points to sell they have to exercise ROFR on fewer contracts that have offers on them. As more owners need to sell sooner than later they will have to drop their asking price. There is always some delay when the market changes before demand and price intersect. Right now it appears sellers are holding on that their asking price is what the current market will still pay.

 

[CaptainAmerica]

This would be an indication that the price will begin to drop, not enough buyers bidding on contracts at the current asking prices so if DVD "NEEDS" direct points to sell they have to exercise ROFR on fewer contracts that have offers on them. As more owners need to sell sooner than later they will have to drop their asking price. There is always some delay when the market changes before demand and price intersect. Right now it appears sellers are holding on that their asking price is what the current market will still pay.

DVD doesn't (primarily) exercise ROFR because they need direct points to sell. DVD exercises ROFR to inflate the price of Resale.

Buying Saratoga at $140 to sell at $200 nets them $60. Driving up the price of Saratoga to $145 so that buyers say "dang, resale isn't all that much cheaper than direct so I'm just going to buy VGF2 instead" nets them $200.

 

[dmcfa2504]

Dmcfa2504——-$169-$42,250-250-CCV-Dec-177/21, 250/22, 250/23– sent 4/26

Dmcfa2504——-$169-$42,250-250-CCV-Dec-177/21, 250/22, 250/23– sent 4/26 passed 5/24

Super. Pumped.

 

[Sandisw]

I got a good deal for Vero but it's Vero. Are they really going to take that? I mean if so more power to them but it's a hefty price in MF's for them to give up or cover.

They don’t pay the MFs for operating costs on the points. So, other than what part of the deal, once owned, they go back as unsold inventory, which means being exempt for the guarantee to the rest of us.

 

[Sandisw]

Anybody have experience going through a delayed closing as either buyer or seller? I'm inching towards the 7 month mark on the last trip I plan to take on these two contracts, and I'm trying to decide whether to list them right away once the reservations are in place and the points stop moving (June) or wait until closer to my travel dates (January).

I'm not desperate to sell or close quickly, I'm just repaying the investments I moved around to buy my Aulani (until I un-repay those investments to buy Poly 2, which is almost guaranteed).

Done it 4 or 5 times now. No issues. Most delayed we’re about 4 months but it worked because there are buyers out there who like not having to come up with funds so quickly.

 

[Bearval]

DVD doesn't (primarily) exercise ROFR because they need direct points to sell. DVD exercises ROFR to inflate the price of Resale.

Buying Saratoga at $140 to sell at $200 nets them $60. Driving up the price of Saratoga to $145 so that buyers say "dang, resale isn't all that much cheaper than direct so I'm just going to buy VGF2 instead" nets them $200.

You are wrong. DVD exercising ROFR does not inflate the price of resale. DVD is not competitively bidding and driving up the resale price. They only step in and replace the buyer for an agreed price that it was going to sell for anyway.

 

[redboat45]

You are wrong. DVD exercising ROFR does not inflate the price of resale. DVD is not competitively bidding and driving up the resale price. They only step in and replace the buyer for an agreed price that it was going to sell for anyway.

sure it does. If DVD didn't buy the contracts resale would be almost non existent! If DVD wasn't buying then a resale buyer could get the price very low and the seller would have no choice (at some point) to sell it at a low price.

Ask me why I'm stuck with my Tahiti Village time share in Vegas. lol

 

[Sandisw]

You are wrong. DVD exercising ROFR does not inflate the price of resale. DVD is not competitively bidding and driving up the resale price. They only step in and replace the buyer for an agreed price that it was going to sell for anyway.

Except buyers and sellers use the data for ROFR to make decisions.

So, they have an impact on the market, regardless of the reason. If there was no ROFR, then the market would settle at different prices.

ETA. And DVD doesn’t need to do the bidding…they let others make the deals and then decide if it’s worth becoming the buyer. Only way to see ROFR not impact is if buyers decide that they are willing to lose over and over again….I sold SSR at $120 because I wanted a quick buyer but knew going in it would get taken…just didn’t care..

 

[wdw4rfam]

You are wrong. DVD exercising ROFR does not inflate the price of resale. DVD is not competitively bidding and driving up the resale price. They only step in and replace the buyer for an agreed price that it was going to sell for anyway.

They absolutely drive up the price. I see a ton of OKW $110-115. I bid $125 just to attempt to get it to pass ROFR. Still didn’t. So now I’m bidding $138 on SSR. I could easily have got a OKW $110, but I’m not going for it because I know it’s not going to pass. Therefore disney IS driving up costs because people are paying more to try and get past ROFR.

 

[Bearval]

sure it does. If DVD didn't buy the contracts resale would be almost non existent! If DVD wasn't buying then a resale buyer could get the price very low and the seller would have no choice (at some point) to sell it at a low price.

Ask me why I'm stuck with my Tahiti Village time share in Vegas. lol

That is not true, what keeps price up is public demand. Unfortunately you purchased a timeshare in Vegas that has little demand.

 

[CaptainAmerica]

You are wrong. DVD exercising ROFR does not inflate the price of resale. DVD is not competitively bidding and driving up the resale price. They only step in and replace the buyer for an agreed price that it was going to sell for anyway.

I'm willing to sell SSR at $120. Buyers are willing to buy SSR for $120. Disney will not allow SSR to pass at $120. Buyers and sellers know this. So the buyers who are willing to buy at $120 won't bother to offer and the sellers who would otherwise take $120 are going to ask for more.

 

[pianomanzano]

Me patiently waiting for another Econ 101 supply demand curve

 

[redboat45]

That is not true, what keeps price up is public demand. Unfortunately you purchased a timeshare in Vegas that has little demand.

All the other timeshares have the same problem when there is not an active ROFR policy.

 

[Brian Noble]

Except Marriott. And Hilton.

You know, the ones with good name recognition and a rental market that supports high valuations. Kind of like Disney.

And yes Marriott has ROFR, but they use it much more sparingly. Hilton may, but almost never does.