Rofr ???

[kra623]

Hi All,

I am still weighing all of my options. This may have been addressed already but I haven't found it. If Disney buys back the contract what is the buyer out?? Do you lose your deposit? What fees are involved that you won't get back if it's taken?

Does anyone think that a seller will lowball a price so that they know someone will bite quickly then they will win either way because Disney or the seller will scarf it up quickly??

Just some questions so that I know what I am getting into?

Thanks in advance,

Rachel

 

[bobbiwoz]

Hi!

I suppose that some sellers are only interested in selling and not in a specific price, and I imagine someone will bite.

Disney ROFR'd one of our attempts to buy, and we only lost time. We received a full check for the amount of our deposit.

Bobbi

 

[RobDoc]

If Disney exercises ROFR, the buyer will get a full refund of any deposit paid. The seller will get the same amount in either case, so a motivated seller can certainly offer a lowball listing, hoping to get a fast offer and allow DVC to purchase the contract. Some have suggested offering more on a contract they feel is otherwise a good bargain - just to try to pass ROFR.

Bottom line is that the buyer will not have any financial loss in the event of ROFR.

Good luck!

 

[rocketriter]

If Disney exercises ROFR, you aren't out anything except your time.

It's possible that a seller might lowball a price to trigger easy ROFR, but it's not that likely. These properties are in sufficient demand that a seller who does this would be shooting himself (or herself) in the foot. I can imagine scenarios where this might happen--such as an estate sale where the seller doesn't understand DVC, or a situation where a seller has to act very quickly--but they're probably not that common.

Take a look at typical resale prices at the Timeshare Store. You can spot the occasional lowball and avoid it. After that, it's simply luck of the draw. Some months DVC wants to refill their inventory so they ROFR everything except the most expensive properties, but other months they sit back and let almost everything go by.

If you want the cost savings that usually comes from buying through a reseller rather than through DVC direct, have patience with the ROFR process and you'll eventually get something you like.

 

[kra623]

Thanks for the info. I know that I've been asking alot of questions and I really appriciate your time and expertise. I hope to be able to share my knowledge with newbies at some point.

 

[JoeEpcotRocks]

IMHO, if you are buying resale the ROFR "threshhold" is more important than the seller's price (assuming the seller's price is reasonable).

If you are buying, review Beca's "Whose made in thru ROFR recently" thread to get a feel for what will make it thru ROFR and what might not. Obviously, not a perfect science, though.

 

[kra623]

Just an update guys!

I just submitted an offer on 90 points for Vero Beach with a Feb UY, all points for this year, no maintance fees until 2006. I know the maintance fees are higher but I think it could really work for me. Wish me luck!!

If I wanted to stay at Disney, OKW or SSR, do you think that I would have trouble in June or September??

Thanks for all the answers, I hope to be a DVCer very soon!!!! The price per point is pretty low, but they haven't bought back much Vero beach. Keeping my fingers crossed. I'll have Beca add me to the list of waiting as soon as the contract comes through!

 

[andriade]

Where's Beca's Who has made it through lately? Is it under here somewhere or in another section of these boards?

 

[Happy Birthday Cat]

Where's Beca's Who has made it through lately? Is it under here somewhere or in another section of these boards?

I keep it close at hand. Never know when the add on urge will hit. Here's a Link.

HBC