ROFR Thread January to March 2024 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[AstroBlasters]

That resale one you changed your mind on...what was the asking price/accepted offer? It's hard to get an idea of small VGC contract prices where there are just never any out there.

It was a full price accepted offer… but we e-signed on Friday morning and by Monday night the sellers had not.

I text my agent to see if there were any issues earlier in the day and she said she noticed it too and would reach out to the seller.

5 hours later I text her back to let her know that we had access to some direct points and were going to go that direction instead.

With the lower closing costs and other things it was only another $1k to go direct vs resale…. but the points carry flexibility and benefits for another 35 years.

My wife asked about getting a small amount of direct BCV points too because it was so easy… but at $275pp direct that is $16pp buy in + dues…. that makes absolutely no financial sense….

 

[kerrbear]

I signed it on 1/30

Oh man, it really did reset the clock for you.

I was hoping on ours that it wouldn’t. We have a delayed closing (end of April) and Dvc came back and requested a number of days before closing (rather than after April …). I was hoping that since they requested it, it would move through quicker.

I know it doesn’t matter considering we have to wait anyway, it would just be nice to know.

 

[Jimmy Geppetto]

You're saying I don't need 600 Aulani Subsidized points?

I'm sorry I thought this was America.

No. You need 800.

 

[ClaraOswald]

It was a full price accepted offer… but we e-signed on Friday morning and by Monday night the sellers had not.

I text my agent to see if there were any issues earlier in the day and she said she noticed it too and would reach out to the seller.

5 hours later I text her back to let her know that we had access to some direct points and were going to go that direction instead.

With the lower closing costs and other things it was only another $1k to go direct vs resale…. but the points carry flexibility and benefits for another 35 years.

My wife asked about getting a small amount of direct BCV points too because it was so easy… but at $275pp direct that is $16pp buy in + dues…. that makes absolutely no financial sense….

Nice. I figured the price was probably pretty similar since small contracts are so pricey. I'm concerned even resale small contracts might be more than I want to spend. I guess it's a good thing there are never any out there to tempt me. Ha!

 

[AstroBlasters]

Nice. I figured the price was probably pretty similar since small contracts are so pricey. I'm concerned even resale small contracts might be more than I want to spend. I guess it's a good thing there are never any out there to tempt me. Ha!

The resale ppp definitely drops at 100 points and higher….

 

[Grapefruit]

The first contract we put an offer on was accepted! Let’s see what happens with ROFR.

Grapefruit---$94-$17138-160-AKV-Dec-0/22, 159/23, 160/24, 160/25- sent 2/13

We just heard that we passed ROFR! Woohoo! Now, on to closing!

Grapefruit---$94-$17138-160-AKV-Dec-0/22, 159/23, 160/24, 160/25- sent 2/13, passed 2/27

 

[WinterSolider]

Has something shifted in the past few years where standard practice is no longer for sellers to reimburse buyers for the dues on points that they've already spent?

I've had three different sellers and three different brokers think it was weird that I wanted a credit for 2025 dues on stripped contracts in the last few days.

Or maybe it was always this way and I just never noticed because I did most of my buying during the COVID borrowing restrictions, so there WERE no contracts this stripped?

 

[ClaraOswald]

The resale ppp definitely drops at 100 points and higher….

I might just have to convince my husband we'll need 100 more points instead of 50.

 

[ClaraOswald]

Has something shifted in the past few years where standard practice is no longer for sellers to reimburse buyers for the dues on points that they've already spent?

I've had three different sellers and three different brokers think it was weird that I wanted a credit for 2025 dues on stripped contracts in the last few days.

Or maybe it was always this way and I just never noticed because I did most of my buying during the COVID borrowing restrictions, so there WERE no contracts this stripped?

The contracts I was looking at still had 2025 points on them so I have no idea but I'm curious to hear the answer. That's super shady that a seller wouldn't pay dues on points they used!

 

[JackosinDIS]

Has something shifted in the past few years where standard practice is no longer for sellers to reimburse buyers for the dues on points that they've already spent?

I've had three different sellers and three different brokers think it was weird that I wanted a credit for 2025 dues on stripped contracts in the last few days.

Or maybe it was always this way and I just never noticed because I did most of my buying during the COVID borrowing restrictions, so there WERE no contracts this stripped?

No, I would say it was entirely normally for sellers to offer a credit for dues on stripped points

 

[Denamac]

Has something shifted in the past few years where standard practice is no longer for sellers to reimburse buyers for the dues on points that they've already spent?

I've had three different sellers and three different brokers think it was weird that I wanted a credit for 2025 dues on stripped contracts in the last few days.

Or maybe it was always this way and I just never noticed because I did most of my buying during the COVID borrowing restrictions, so there WERE no contracts this stripped?

I just bought BLT UY Feb, no points until 2025. Seller paid ‘24 dues. I will pay ‘25 dues which is fair because those will be mine to use. I wouldn’t pay dues on points I didn’t/couldn’t use.

 

[WinterSolider]

I just bought BLT UY Feb, no points until 2025. Seller paid ‘24 dues. I will pay ‘25 dues which is fair because those will be mine to use. I wouldn’t pay dues on points I didn’t/couldn’t use.

Right, the ones I've been engaged with were February but with 2025 stripped also. So I said I wanted a credit and they came back with "how would you calculate the credit when 2025 dues haven't been posted yet?" I was taken aback because I assumed there would be some kind of standard practice where THEY would recommend to ME what the best course of action would be (understanding that all of this is negotiable).

 

[Denamac]

Right, the ones I've been engaged with were February but with 2025 stripped also. So I said I wanted a credit and they came back with "how would you calculate the credit when 2025 dues haven't been posted yet?" I was taken aback because I assumed there would be some kind of standard practice where THEY would recommend to ME what the best course of action would be (understanding that all of this is negotiable).

Exactly! Like take ‘24 dues and calculate average increase. I’m no math wiz, but it can’t be that hard! I’m starting to look again and also don’t need the points until ‘26 so I’ll be looking at stripped contracts too. That will definitely deter me from those wanting me to pay for points I can’t use!!

 

[Jimmy Geppetto]

Right, the ones I've been engaged with were February but with 2025 stripped also. So I said I wanted a credit and they came back with "how would you calculate the credit when 2025 dues haven't been posted yet?" I was taken aback because I assumed there would be some kind of standard practice where THEY would recommend to ME what the best course of action would be (understanding that all of this is negotiable).

Standard practice is to provide a credit based on 2024 MFs. So in theory the seller hedges against inflation.

Very common for a buyer to be credited for any of the 2025 dues which were used.

 

[WinterSolider]

Exactly! Like take ‘24 dues and calculate average increase. I’m no math wiz, but it can’t be that hard! I’m starting to look again and also don’t need the points until ‘26 so I’ll be looking at stripped contracts too. That will definitely deter me from those wanting me to pay for points I can’t use!!

And I can't tell if I should be annoyed with the seller or the broker. I think the broker may have submitted my offer at $70 per point. Well no, it wasn't $70 per point. It was $90 per point but credit for 2024 and 2025 dues.

 

[Ruttangel]

Always better to buy a contract with 2023 points as they are free from dues and the cost increase from a stripped contract is nowhere near the amount you could rent them for

 

[WinterSolider]

Always better to buy a contract with 2023 points as they are free from dues and the cost increase from a stripped contract is nowhere near the amount you could rent them for

Good tip. I was making offers so low that this wasn't the case but the sellers aren't biting.

 

[tom1944]

Right, the ones I've been engaged with were February but with 2025 stripped also. So I said I wanted a credit and they came back with "how would you calculate the credit when 2025 dues haven't been posted yet?" I was taken aback because I assumed there would be some kind of standard practice where THEY would recommend to ME what the best course of action would be (understanding that all of this is negotiable).

Why would anyone buy them with that condition?

 

[HyperspaceMountainPilot]

Good tip. I was making offers so low that this wasn't the case but the sellers aren't biting.

I think the conventional wisdom drawn from this thread is that many buyers don’t appropriately value stripped contracts versus loaded contracts, and in general, you’re going to come out ahead on loaded contracts whereas a stripped seller will hold out in hopes of finding a buyer who doesn’t understand how much value is lost in a stripped contract.

 

[GrumpyInPhilly]

Has something shifted in the past few years where standard practice is no longer for sellers to reimburse buyers for the dues on points that they've already spent?

I've had three different sellers and three different brokers think it was weird that I wanted a credit for 2025 dues on stripped contracts in the last few days.

Or maybe it was always this way and I just never noticed because I did most of my buying during the COVID borrowing restrictions, so there WERE no contracts this stripped?

IMO, those sellers are crazy asking for dues on points already used. I'd never agree to pay them.