ROFR Update: Didn't Work Out

[AmyBeth68]

For those of you interested, I thought I'd post my news. We just lost our OKW contract due to Disney exercising ROFR.

It was a 190 point contract, $70/point, 133 points available now, all 190 points coming in June '05. I think one of our problems was that we paid seller 50% of the maintenance fee for current use year instead of offering full.

Since we knew that this was probably not going to pass, given the fact that Disney was buying up lots of contracts, we were ready to put an offer on another OKW. Fortunately, one was available today and we're trying again. According to Jaki (our broker) she had to inform two other people trying to purchase OKW today that they didn't pass ROFR. She said many of her contracts have not gone through recently.

That's the news from here. We're not disappointed, we realized we should have bid on a higher point contract anyway, so maybe it will work out for the best.

 

[Beca]

Sorry to hear that!!

Good luck with your next contract!!



Beca

 

[DBBN]

I've never seen Disney buy back at this high a price for OKW points.

Good luck on your next attempt.

 

[rinkwide]

Originally posted by AmyBeth68
...we realized we should have bid on a higher point contract anyway...

Sounds like a pretty good silver lining to me.

 

[kaw1106]

Sorry to hear that, we lost one last week and put in another. We too offered much more for the second. Good luck.

 

[smjj]

We had a contract very similar to AmyBeth68 go thru for $69.00 a point just this last May. It was also a June use year for 190 pts. at OKW. Disney must have a reason. Does anyone know what if might be..smjj

 

[DVCconvert]

I just found out that DVC ROFR'ed me on a 700 point contract at BCV at $ 70 per point, with me paying the closing costs.

 

[DIZNYFAN]

Disney has been buying back lots of contracts lateley especially with the new waitlist and pricing of the add on points purchased through DVC. I lost a VWL contract a week or so ago and I know there were a few others that have lost contracts recently also.

 

[RuthnPaul]

Originally posted by smjj
We had a contract very similar to AmyBeth68 go thru for $69.00 a point just this last May. It was also a June use year for 190 pts. at OKW. Disney must have a reason. Does anyone know what if might be..smjj

smjj, Disney recently implemented a waitlist procedure for members wanting to add on. They also raised the price for sold-out resorts (all but SSR) to $89 per point. In order to get the points to sell to members on the waitlist, they are exercising ROFR on more contracts than in the past few months. This has just happened within the last 2 weeks!

 

[Deep-Thots]

Originally posted by DVCconvert
I just found out that DVC ROFR'ed me on a 700 point contract at BCV at $ 70 per point, with me paying the closing costs.

Was that the big contract that was advertised for a fairly long time on A Timeshare Store's website?

I found myself wondering about that one, since it occupied such a prominent place on the website for such a long time.

Ouch. Sorry about that!!

 

[DVCconvert]

Was that the big contract that was advertised for a fairly long time on A Timeshare Store's website?

I'm afraid so.

 

[pumpkinboy]

Originally posted by DVCconvert
I just found out that DVC ROFR'ed me on a 700 point contract at BCV at $ 70 per point, with me paying the closing costs.

I guess they've filled a lot of waitlists for that Use-Year for BCV. What was the UY on that, BTW?

 

[offtheice]

Originally posted by DBBN
I've never seen Disney buy back at this high a price for OKW points.

Good luck on your next attempt.

This is getting real easy . .Supply and demand. Disney takes back the contracts , and sells them for 89 pt.. The demand is there via disney because how easy it is to finace through them.

 

[DVCconvert]

pumpkinboy asked:

I guess they've filled a lot of waitlists for that Use-Year for BCV. What was the UY on that, BTW?

It was a Feb. UY, and I was offering to pay the MF's on 350 pts - as only 288 pts were going to be available..

 

[las3888]

I am really just theorizing here, but in my mind, I imagine there are some fairly lengthy waitlists for add-on contracts at the sold out resofts with Disney - honestly I'm surprised they don't buy more back or really the majority of the resales. I've always kind of wondered this. Seems they let alot go sold as resales (I know ours for sure), while they still have customers waiting in line for them to cough up extra points at the sold out resorts.

I'm sure there is a method to the madness, but I've always kind of thought that in the back of my head.

 

[lillasmom]

I'm wondering about those of us who live in states that can't buy from Disney. Those that got ROFRed, do you live in states that can buy from Disney? I also wonder what the prices are going to be when contracts start passing ROFR again. Any guesses?

 

[laceemouse]

I agree with las3888, if Disney has lists of folks wanting to buy more points from them, why would they not buy ALL of the resale contracts and re-sell them to those on the list? Why don't they just cut out the middle man and buy contracts back from people who want/need to sell instead of going through all of these hoops? ROFR protects our investments, but as someone with extreme "add-on itis" I hate to see prices going quite so high....ouch!

 

[SoCalKDG]

I'm wondering about those of us who live in states that can't buy from Disney. Those that got ROFRed, do you live in states that can buy from Disney? I also wonder what the prices are going to be when contracts start passing ROFR again. Any guesses?

I'm one, here in California, just passed ROFR last week. $73 per point at BWV for a 150 pt contract, I paid MF's on 110 pts, plus closing.

I'd say $74 -$76 should be safe for BWV, VWL, and BCV, while $71-$72 at OKW should work.

 

[TravelingJen24]

We live in California also and cannot buy through Dis. We passed ROFR last week with OKW 280 at 71 pp. We paid MF's for this year because all points were still available. Good Luck on the next one.

 

[BEACHCLUBVILLAS]

Here's a theory...

If Disney exercises ROFR on all the contracts, then the price per point on resale contracts will go up to the point where its just easier to buy from Disney instead of resale. Unless, of course, Disney has no more points to sell at the older resorts because the price was too high thru resale that no one made any offers and therefore Disney could not exercise ROFR. Thus, forcing buyers to purchase SSR.