ROFR Thread Oct to Dec 2021 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[gskywalker]

Any great business model is a situation in which the customer enjoys the process and the business.

I’m with you in the sense that I enjoy the “chase” for a good deal, and Disney gets to enjoy the time everyone takes to find the best deals.

Absolutely disney has me as a sweet unpaid employee

 

[Missa1227]

Since my three tries for AKL didn't work out, we decide to switch it up...

Missa1227---$157-$24279-150-BCV-Feb-0/20, 150/21, 150/22-seller pays MF 2021- sent 11/9

 

[gskywalker]

Since my three tries for AKL didn't work out, we decide to switch it up...

Missa1227---$157-$24279-150-BCV-Feb-0/20, 150/21, 150/22-seller pays MF 2021- sent 11/9

Hopefully they banked the points? Otherwise it will be tough to use the 21 points unless you live on WDW's doorstep in which case I don't like you and never speak to me again

 

[rubybutt]

Absolutely disney has me as a sweet unpaid employee

I resemble that statement

 

[princesscinderella]

So sad for all of you who had your contracts taken in ROFR. They seem to be taking them super quick so at least you can get back in the game and choosing your next contract to send to the Mickey Mouse maze of ROFR

 

[Paul Stupin]

ROFR is a great business model for Disney:

People spend tons of hours going through all the listings at every resale site, then negotiate the best price and terms possible…then Disney comes in and takes the best deals.

I also try to get the best deal, but not ones that have virtually no chance to pass.

At some point I place a value on my time, and my ability to start using points, as opposed to the off chance my unicorn of a deal passes ROFR.

I’m with you on this. I’m always for a good deal as well, but I’m not up for spending months and months making lowball offer after lowball offer, or even making 10 lowball offers at a time, in the hopes that one will pass ROFR and give the buyer bragging rights and generally a few thousand dollar savings. Sounds exhausting and endless.

 

[Drewski77]

I’m with you on this. I’m always for a good deal as well, but I’m not up for spending months and months making lowball offer after lowball offer, or even making 10 lowball offers at a time, in the hopes that one will pass ROFR and give the buyer bragging rights and generally a few thousand dollar savings. Sounds exhausting and endless.

I got a fair price on an SSR in April, used the points in September and the price has gone up since then.

Glad I pulled the trigger on merely a “good deal” at $116 for a loaded contract.

 

[gskywalker]

I got a fair price on an SSR in April, used the points in September and the price has gone up since then.

Glad I pulled the trigger on merely a “good deal” at $116 for a loaded contract.

Yup there were so many contracts that now would be an amazing deal when they were mediocre a year ago. For me like many there were too many uncertainties this year. I got the one contract and after that I didn't plan to buy anymore between covid killing my job and all the Disney cuts. Little did I know my wife wanting more points would win over logic.

 

[Sandisw]

Wow....today was a bad day for those waiting. But, what is so interesting is that the decisions for many were pretty fast. At least something is working better and closer to the way it should..even if it is bad news...

 

[Bearval]

It seems like a great deal comparatively, but you can get a RIV contract for $167pp right now with the current incentives. And those points can be used anywhere, no restrictions. I agree with @rubybutt and that without ROFR, the floor is not established. What baffles me is that we are seeing the opposite with Aulani resale. I guess AUL has seen some price increases now that its selling at $201pp and they don't have restrictions, but to pay anything more than $100pp on AUL resale seems crazy to me.

ROFR has only a minimal impact on resale prices if any at all since they are not bidding up prices, they only buy after the market determines the price.

 

[DKZB]

ROFR is a great business model for Disney:

People spend tons of hours going through all the listings at every resale site, then negotiate the best price and terms possible…then Disney comes in and takes the best deals.

I also try to get the best deal, but not ones that have virtually no chance to pass.

At some point I place a value on my time, and my ability to start using points, as opposed to the off chance my unicorn of a deal passes ROFR.

Yes but you really never know… Disney passed on a loaded SSR contract at $120 with buyer paying part of my closing costs and then within days there were a series being taken in the $125 range. Who would’ve thought and I’m sure glad I didn’t offer more.

 

[Lorana]

ROFR has only a minimal impact on resale prices if any at all since they are not bidding up prices, they only buy after the market determines the price.

But it affects the next set of prices. While this group maybe a minority of resale buyers, brokers use the data for ROFR to advise sellers as to what price to set. But you can even see it here in action as a microcosm.

I tried to get CCV at $153/point as, at the time I made the offer, it was still possible to pass. Unfortunately I made my offer when Disney started buying back and they took it (my first ever ROFR :-( ), and you can see it in the fact that many CCV contracts are now having offers of $170 or more. Yet a year ago, I had a 100-point CCV resale pass at $134/point.

 

[CaptainAmerica]

ROFR has only a minimal impact on resale prices if any at all since they are not bidding up prices, they only buy after the market determines the price.

Depends on the contract, particularly the size of the contract. I'm paying $140 for a 100 point Animal Kingdom contract, which is probably where the market would be without ROFR. To get a 200 point contract, you're probably going to need to pay $135 to get past ROFR, which is likely above market price.

 

[rubybutt]

ROFR has only a minimal impact on resale prices if any at all since they are not bidding up prices, they only buy after the market determines the price.

So you are saying if you take the biggest buyer of resale contracts off the market it will have no effect?

 

[DKZB]

Im thinking of buying more points and renting the excess. Does anyone regularly rent points? Is it a pain? Is it worth it? How long does it usually take to get rented privately or with the sponsors site and has anyone had the experience of listing but nobody was willing to rent?

 

[DonMacGregor]

ROFR has only a minimal impact on resale prices if any at all since they are not bidding up prices, they only buy after the market determines the price.

They are not bidding up prices, but they ARE setting the threshold for ROFR, and encouraging sellers to list above that threshold, as they know buyers aren’t bidding on contracts they know Disney will take. Conversely, those buyers will be more motivated to meet those prices for fear of losing out to Disney.

If today, the market establishes a price of $120 for ABC resort, and Disney starts buying contracts at $120, then sellers are encouraged to offer contracts above $120 and buyers are disinclined to make an offer at $120, based on the possibility it will get ROFR’d.

The market then moves upward until it reaches a price point at which Disney is unwilling to exercise ROFR.

 

[Bearval]

So you are saying if you take the biggest buyer of resale contracts off the market it will have no effect?

It wouldn't matter much since they are not bidding up the price. What drives the price up is direct pricing.

 

[CaptainAmerica]

Im thinking of buying more points and renting the excess. Does anyone regularly rent points? Is it a pain? Is it worth it? How long does it usually take to get rented privately or with the sponsors site and has anyone had the experience of listing but nobody was willing to rent?

The standard advice is to only buy points that you intend to use. Don't buy points with the intent to rent or to make a profit on resale later.

 

[CaptainAmerica]

It wouldn't matter much since they are not bidding up the price. What drives the price up is direct pricing.

False. They're de facto bidding up the price.

A seller and I agree to $130 per point. It's taken in ROFR. When I go to make my next offer, I'm going to be aware that Disney is taking ROFR at $130 so I'm going to go above $130.

Taking Contract 1 in ROFR doesn't bid up Contract 1, it bids up Contract 2.

 

[DonMacGregor]

It wouldn't matter much since they are not bidding up the price. What drives the price up is direct pricing.

In essence, they are. They are saying “If you want to buy this resort resale, you’ll need to pay more than the price I am exercising my right of ROFR at”. The market needs to keep moving up to avoid ROFR.
Now sellers don’t need to list at a dollar more than the current ROFR threshold, as they get their money regardless. But how many are going to leave money on the table knowing that if they list above that ROFR threshold, buyers will pay a premium to actually complete a sale?

We literally have people in this very thread offering more money on contracts almost identical to ones they lost to Disney, because eventually they’d like the points