ROFR Thread July to Sept 2020 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Lovinallthingsdisney]

Apparently, all I had to do was complain today about my impatience in order to get ROFR waived!

Lovinallthingsdisney—$110–$23,024–200–BWV-Dec-94/19, 203/20, 200/21.
Seller pays 3/4 MF’ 20. Sent 7/13, passed 8/19
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Revised for format:

Lovinallthingsdisney---$110-$23024-200-BWV-Dec-94/19, 203/20, 200/21- sent 7/13, passed 8/19

 

[bensation]

Ouch, I was caught in the wave of ROFR today

Bensation-$150-$15,640-100-VGF-Aug-0/19,0/20,100/21-sent 7/14, taken 8/20

 

[Royal Consort]

Ouch, I was caught in the wave of ROFR today

Bensation-$150-$15,640-100-VGF-Aug-0/19,0/20,100/21-sent 7/14, taken 8/20

As someone that just added on at VGF, that would hurt.

 

[bensation]

Back to the drawing board. I have 100 points Riviera so was hoping to get VGF to be close to Magic kingdom.

 

[poofyo101]

Also keep in mind ssr hadn’t been bought back for a few months prior to covid and vgf was also a rare buy back for several months so they could just be looking to fill those up.

 

[bobbiwoz]

Ouch, I was caught in the wave of ROFR today

Bensation-$150-$15,640-100-VGF-Aug-0/19,0/20,100/21-sent 7/14, taken 8/20

Sorry that happened.

 

[CastAStone]

The size of the gap at this point between what they buy and sell VGF for certainly has made it much more attractive. VGC they barely make anything reselling, especially if they have to add points back into it. But the gap here is around $100 now, and a similar margin % to ROFRing OKW and AKV, The two they were buying in spades this winter.

 

[CherryDB]

Question: when Disney buys back these contracts, they are allowed to break up the points? Say they have 3 ppl on waitlist for 100 points at SSR and they buy back a single 300 point contract, they can resell that to those 3 ppl or they have to match it with a buyer looking for a 300 pt contract?

 

[HMfan82]

Ouch, I was caught in the wave of ROFR today

Bensation-$150-$15,640-100-VGF-Aug-0/19,0/20,100/21-sent 7/14, taken 8/20

I’m stunned that got taken because my 100 VGF passed the other day for $156pp.

 

[Sandisw]

Question: when Disney buys back these contracts, they are allowed to break up the points? Say they have 3 ppl on waitlist for 100 points at SSR and they buy back a single 300 point contract, they can resell that to those 3 ppl or they have to match it with a buyer looking for a 300 pt contract?

Yes, they can repackage them any way they want.

 

[CherryDB]

Yes, they can repackage them any way they want.

Thank you! So they can really just accumulate the points then. Making me nervous now, I have a BLT one that is about to go through ROFR.

 

[poofyo101]

I’m stunned that got taken because my 100 VGF passed the other day for $156pp.

Mine got through at 145 with seller paying dues and closing cost prior to covid.

 

[3 DD love princesses]

Which broker did you use? I used Fidelity Resales. A little worried now seeing the Closing thread because I let them choose the title company, and they used First American who sometimes seem a little bit slow to send the closing paperwork.

I contacted Fidelity yesterday and they said to expect to wait another week to hear back. But they did respond which was good - I've found sometimes when I email my agent they are very slow to respond.

I used fidelity and my broker was great she called me with updates. So much better than my last couple experiences with other companies.

 

[Zimwicket]

Our AKV passed ROFR today, we have been waiting since June!
Disneynana44---$96-$14971-150-AKV-Feb-0/19, 143/20, 7/21- sent 6/29, passed 8/19

This definitely gives me hope for mine passing at $104!

 

[Cyberc1978]

Mine got through at 145 with seller paying dues and closing cost prior to covid.

Mine too, I guess we both bought at the right time, when DVC' ROFR guards was down, now I get the feeling they are sort of hoarding points.

 

[poofyo101]

Mine too, I guess we both bought at the right time, when DVC' ROFR guards was down, now I get the feeling they are sort of hoarding points.

I think possibly just targeting the ones that they werent buying back for a few months prior to covid maybe due to low stock?
SSR
VGF
and of course OKW they will continue to buy with the 2042 2057 issue.

The AK making it through for sub 90 is pretty impressive as disney was buying them pretty steadily at sub 100 prior to covid.

 

[DaveNan]

Yes, they can repackage them any way they want.

Not only can they split the points into smaller contracts, they can also switch UY independently with those smaller contracts. They always had the right/ability to divide contracts. It wasn't until the last 2 years they got the right/ability to switch UY. I am not sure if it was a POS/contractual update or an IT/information management upgrade, but about 2 years ago they announced they had the right/ability to switch UY on resold points at sold out resorts. Both of these abilities are limited to Disney, owners/members can't do either of these.

 

[dfan_welcomehomeall_19]

Not only can they split the points into smaller contracts, they can also switch UY independently with those smaller contracts. They always had the right/ability to divide contracts. It wasn't until the last 2 years they got the right/ability to switch UY. I am not sure if it was a POS/contractual update or an IT/information management upgrade, but about 2 years ago they announced they had the right/ability to switch UY on resold points at sold out resorts. Both of these abilities are limited to Disney, owners/members can't do either of these.

Great point about use year! For DVD, I think it’s all about total contract value and waitlist demand. Looking at the threads, it’s rare (but can happen) for them to buy a sub 100 point contract. Because they can divide contracts and modify use years it appears they target larger contracts (usually have a lower price per point). Also as buyer if there are closing costs, I assume it makes sense for them to pay once vs multiple on smaller contracts). None of us really know what the actual threshold or trigger for buyback is but this thread is a great way to get an idea of what passes and what doesn’t. Thanks to all of you! Definitely helped me.

On another note, I really wonder if waitlists are growing and DVD is pivoting it’s approach. For them, it’s always made more sense for them to sell “new” properties because the margins are higher. With reflections likely on the shelf, I really wonder if we will continue to see a spike in contracts not passing ROFR. On the DVC website, they have a new “add on” tool for sold out resorts. It’s the first time I’ve seen something like this front and center. Although the margins are lower on exercised ROFR vs new resorts like Riviera, those add on requests have to be profitable and a revenue generator for them otherwise they wouldn’t advertise it. I know they are still selling Riviera but with no new resort after that maybe they are trying something new?

 

[Spinster Travel]

On another note, I really wonder if waitlists are growing and DVD is pivoting it’s approach. For them, it’s always made more sense for them to sell “new” properties because the margins are higher. With reflections likely on the shelf, I really wonder if we will continue to see a spike in contracts not passing ROFR. On the DVC website, they have a new “add on” tool for sold out resorts. It’s the first time I’ve seen something like this front and center. Although the margins are lower on exercised ROFR vs new resorts like Riviera, those add on requests have to be profitable and a revenue generator for them otherwise they wouldn’t advertise it. I know they are still selling Riviera but with no new resort after that maybe they are trying something new?

I'm not sure about the waitlists for sold out resorts, but when I spoke to a sales Guide a few weeks back, she said she had "inventory on hand" for the sold-out resorts in which I was inquiring (Boulder Ridge, Polynesian, Animal Kingdom, SSR and OKW). I think they are having to adjust the sales tactic....while many Direct buyers may not know the options they really have, I think they are struggling to sell the "current 3" to educated buyers like those on these boards. I'd gladly buy at Copper Creek if the price per point was not skyrocketed. Same thing with the Poly - I'm not going to pay $245/point Direct, but if it was in line with what they are asking for RR or Aulani, I'd buy Direct today. I think it's simple for Disney - make the price per point for sold out resorts a tad more reasonable and in turn you'll see buyers find Direct far more appealing.

 

[davidl81]

I'm not sure about the waitlists for sold out resorts, but when I spoke to a sales Guide a few weeks back, she said she had "inventory on hand" for the sold-out resorts in which I was inquiring (Boulder Ridge, Polynesian, Animal Kingdom, SSR and OKW). I think they are having to adjust the sales tactic....while many Direct buyers may not know the options they really have, I think they are struggling to sell the "current 3" to educated buyers like those on these boards. I'd gladly buy at Copper Creek if the price per point was not skyrocketed. Same thing with the Poly - I'm not going to pay $245/point Direct, but if it was in line with what they are asking for RR or Aulani, I'd buy Direct today. I think it's simple for Disney - make the price per point for sold out resorts a tad more reasonable and in turn you'll see buyers find Direct far more appealing.

I think that is a great point! If I could buy Poly or BLT direct at $160 a point (RIV cost at the point amount I am looking at) I would buy that in a heartbeat. But there is no way I could ever justify $245 a point unless it was a super small 25 point type of contract that total cost is not a huge factor.

My guess though is the cost for Disney to acquire those points is much higher (ie SSR ROFR @95 or BLT ROFR @150) so that is why there is the big delta in direct pricing for the two. I also think they know there will be very few buyers at $245 so its why those contracts are not taken very often. SSR on the other hand if you buy say 200 points is $154 a point direct. While that is a jump over resale, it is not an unreasonable price like $245 is. And if Disney keeps ROFR SSR under $100 then you really have to consider direct to an extent for SSR (just from a time frame stand point etc).

My current resale is in ROFR now and I am at day 31. I am hoping to hear something today, but if they take it I am honestly considering just buying direct at SSR or maybe buying a Poly resale contract. We shall see.