Rofr

[heynowirv]

wherev is it?

 

[Deb & Bill]

wherev is it?

Right of First Refusal. DVC can buy out a resale contract that is set to close if they think the price is too low. DVC gets the points, the seller gets their asking price, the real estate agent gets their commission and the potential buyer gets nothing other than their deposit returned and the opportunity to find another contract that they want to buy.

 

[palaemon]

It also keeps the resale value higher than other timeshares.

 

[chalee94]

It also keeps the resale value higher than other timeshares.

disagree for the most part, but this is a common belief.

supply and demand set the market value of a timeshare. if a price offered is much lower than it should be, then ROFR gives disney the right to take advantage to acquire cheap inventory. but disney has to feel confident that they can easily resell what they acquire through ROFR (in some cases they would wait until there is a waiting list for certain properties).

the resale value for BCV is much higher than the resale value of HHI or VB because more people want to buy in at BCV to get the 11 month home resort window for booking (high demand) and it's a fairly small DVC resort (low supply)...not because DVC likes the BCV owners better and props their resort prices up with ROFR moreso than HHI.

if the economic problems cause demand to fall (and therefore, market values to fall), don't count on DVC exercising ROFR to protect the value of your DVC contract. if DVC is picking up more contracts through foreclosure than they can resell, they'll stop ROFRing contracts altogether...which is basically what they have done at this point, except for BCV contracts.

 

[hollis]

interesting ... but I agree