ROFR'd - ???

[abner1776]

I just saw on the ROFR'd list that Disney bought back a 50 point BWV (mar) contract at $87. What surprises me is that the contract is really stripped..no 2006 points and only 17 remaining from 2007.
What will Disney do now with that contract ? Can they put the 2006 and 2007 points back onto the contract and resell it at $92 ? If they try to sell it at $92 "as is" who would buy it ?
I can't believe that Disney bought it back !!! are they that desperate for BWV points ??

 

[boatboatboat]

I called my guide to buy more bw points and was told I would need to wait for my use year.

IMO Disney is trying to build an inventory of pts to sell to current dvc members.

DVC wants people to build larger and larger contracts, so that DVC owners will rent larger and larger rooms.

when you rent a larger room that means you may be bringing guest with you...... guest of dvc members are WONDERFUL prospects for dvc.

I think DVC is very calculated in wanting to have pts to sell for add ones.

 

[LIFERBABE]

DVC will not have to sell that contract "as is". They will replace the used points and then sell it for $92 per point.

What happens is, if the points were stripped, the seller was most likely picking up Maintenance Fees for the used points.

DVC looks at that as free money when they are considering ROFRing a contract because they have developer points to restore stripped contracts.

 

[Blue&Gold]

Don't get confused... Once ROFR'd, that contract doesn't exist anymore. Disney just bought for their inventory 17 '07, 50 '08, 50 '09, 50 '10, etc. points that they pour back into their developer inventory. They can then commit those points to contracts with new buyers, but not necessarily in a 50-point chunk.

 

[abner1776]

OK...so Disney doesn't give a hoot about stripped or loaded...they are just looking at the total remaining points to dump into "inventory." Therefore, it would follow that the price would be the major deciding point for Disney whether or not to ROFR. Then why did Disney not exercise ROFR on a 170 point contract the previous week at $80. I know they like the smaller contracts...but $80 is far cheaper than $87 and the points can still be sold at $92.

 

[Paging Tom Morrow]

Abner,

That was "my" contract you are referring to, and honestly it surprised us that it got ROFR'd. I'm guessing the price increase was a factor too.

The $87 a point was just the starting point, we were also responsible for closing costs, which pushed the total cost per point to $91.40 per point. Considering they are reselling that portion, they are making just $.60 per point on that contract when they resell (plus any interest if the new buyer uses Disney financing).

I know other have pointed to other benefits DVC members receive, but I think the largest one - $100 off an annual pass, really doesn't apply to smaller contract members. Seriously with 50 points or even 100, would it be beneficial for me to purchase an AP instead of a standard MYW non-expiring 10 day ticket?

We'll try again, probably a couple of dollars higher per point and then again if we get ROFR'd again.

 

[greenban]

OK...so Disney doesn't give a hoot about stripped or loaded...they are just looking at the total remaining points to dump into "inventory." Therefore, it would follow that the price would be the major deciding point for Disney whether or not to ROFR. Then why did Disney not exercise ROFR on a 170 point contract the previous week at $80. I know they like the smaller contracts...but $80 is far cheaper than $87 and the points can still be sold at $92.

Ahhhhh grasshopper, you must also consider Use Year when pondering the mysteries of ROFR.

Disney has a waiting list for many specific UY's especially at BCV & BWV. If Disney has an owner waiting and a contract comes up, they well may ROFR it, even at an apparent loss, for harmony between the Owner and the DVC.

ROFR is an 11 dementional, Supergravity representation, poorly understood in our 3 dimensional world.

-Tony

 

[DebbieB]

Abner,

That was "my" contract you are referring to, and honestly it surprised us that it got ROFR'd. I'm guessing the price increase was a factor too.

The $87 a point was just the starting point, we were also responsible for closing costs, which pushed the total cost per point to $91.40 per point. Considering they are reselling that portion, they are making just $.60 per point on that contract when they resell (plus any interest if the new buyer uses Disney financing).

I know other have pointed to other benefits DVC members receive, but I think the largest one - $100 off an annual pass, really doesn't apply to smaller contract members. Seriously with 50 points or even 100, would it be beneficial for me to purchase an AP instead of a standard MYW non-expiring 10 day ticket?

We'll try again, probably a couple of dollars higher per point and then again if we get ROFR'd again.

Was this your first contract? I've heard that they are more likely to ROFR if the buyer is a new member with a small contract. They have expenses involved with each member (accounting, mailings, etc) and it may not be worth it for someone with only 50 points.

 

[senecabeach]

abner1776....

There are many DVC members on "wait lists" for add on's for their specific UY.
And...please don't flame me..but..IMHO..members should be considered as first preference for available pts., but aren't.

I was on for 100 pts. at the BCV's last Jan 4th '05.
It was just sooooo frustrating all year to see "newbies" get their pts., wishing I had a different UY, and how much I thought my UY must have been discontinued.

I got 70pts. ...11 months later ..12/11/05 ..then... 30pts. Jan 11th 06.

AND....paid the "old" Jan 05 prices for both (not $ 89. or $92.) but cheaper. Now...set for life...I'm DONE !!

My guide was/is sooooo wonderful.
He sent me a "Special" package in the mail ....totally on his own...all DVC logo things..... 2 red DVC ball caps, travel mugs, christmas ornaments...+ other things as a "HEY..happy to get YOU your pts."
WOW was I surprised!

SO....Disney certainly came thru for me, not only in pts. but price!!

 

[Blue&Gold]

Ahhhhh grasshopper, you must also consider Use Year when pondering the mysteries of ROFR.

ROFR is a riddle wrapped in a mystery inside an enigma.



(My apologies to Winston Churchill...)

 

[greenban]

ROFR is a riddle wrapped in a mystery inside an enigma.



(My apologies to Winston Churchill...)

Almost:


ROFR is a riddle wrapped in a mystery inside an enigma, on a Billboard that was announced by a prior billboard!

With apologies to no one!

-Tony

 

[Paging Tom Morrow]

Was this your first contract? I've heard that they are more likely to ROFR if the buyer is a new member with a small contract. They have expenses involved with each member (accounting, mailings, etc) and it may not be worth it for someone with only 50 points.

Not our "first" contract as we sold a previous one about a year ago, but we currently don't own one.

In hindsight, we should have added on the 50 points we wanted to keep and then sold the 150 point contract. We just didn't think far enough in advance.

We'll be back and that's why I won't remove the artwork from my signature!

 

[byoung]

Paging Tom Morrow I will be glad to Welcome you back Home.

 

[JimMIA]

The $87 a point was just the starting point, we were also responsible for closing costs, which pushed the total cost per point to $91.40 per point. Considering they are reselling that portion, they are making just $.60 per point on that contract when they resell (plus any interest if the new buyer uses Disney financing).

Nope. Actually, their cost was only a few pennies over $87. They close themselves, so their closing costs are negligible. Your true cost might have been $91.40, but theirs was much lower.

With a small contract, I think they are primarily interested in getting the contract out of circulation to lower their admin overhead. I've said many times I think that's shortsighted on Disney's part, but I guess they've never read any of our "addonitis" posts. I'd be willing to bet that almost 100% of the people who start out with a small contract add-on, and I'd bet most of them do it through Disney direct.

 

[DisneyBill]

Disney has a waiting list for many specific UY's especially at BCV & BWV. If Disney has an owner waiting and a contract comes up, they well may ROFR it, even at an apparent loss, for harmony between the Owner and the DVC.

-Tony

What? With all the controversy with the "pool temperatures" It doesn't seem as though this can be a guiding light with DVC at the moment. Although I agree it likely is.

and as boatboatboat says...when you rent a larger room that means you may be bringing guest with you...... guest of dvc members are WONDERFUL prospects for dvc. Can this be true from the same folks who made the wonderful decision to lower those pool temps?

A little vent, better now.

 

[molly2004]

Makes me wonder now...Please don't flame me! I'm just thinking out loud here.

What prevents a newbie from purchasing 150 from Disney with incentives if any, adding on 50 with incentives if any, and turning around and selling the 150 a few months later so that they're left with just 50? Cumbersome, but no ROFR and instant use of points, etc. I'm thinking there'd be no closing costs. You'd pay the maintenance fees on what you use.

 

[rinkwide]

...ROFR is an 11 dementional, Supergravity representation, poorly understood in our 3 dimensional world...

...ROFR is a riddle wrapped in a mystery inside an enigma, on a Billboard that was announced by a prior billboard...

...or maybe ROFR is just a Magic 8-Ball sitting on some executive's desk.

 

[LisaS]

What prevents a newbie from purchasing 150 from Disney with incentives if any, adding on 50 with incentives if any, and turning around and selling the 150 a few months later so that they're left with just 50? Cumbersome, but no ROFR and instant use of points, etc. I'm thinking there'd be no closing costs. You'd pay the maintenance fees on what you use.

It would cost much more doing it that way. With the current incentive you would pay $90/point for SSR. Current resale prices for SSR are around $83-$84/point and you would owe a commission to a broker when you sell that original contract (10%? 15%?). You would end up with no more than $75/point in your pocket, resulting in a net loss of at least $2250.

So your 50-point add-on through Disney would end up costing you:

50 points @ $92/point = $4600
Loss on initial contract = $2250
TOTAL COST: $6850 or $137/point.

You would be better off buying a resale contract and offering a price so high that Disney is not interested, say, $95/point.

 

[molly2004]

It would cost much more doing it that way. With the current incentive you would pay $90/point for SSR. Current resale prices for SSR are around $83-$84/point and you would owe a commission to a broker when you sell that original contract (10%? 15%?). You would end up with no more than $75/point in your pocket, resulting in a net loss of at least $2250.

So your 50-point add-on through Disney would end up costing you:

50 points @ $92/point = $4600
Loss on initial contract = $2250
TOTAL COST: $6850 or $137/point.

You would be better off buying a resale contract and offering a price so high that Disney is not interested, say, $95/point.

That would be why I'm such a newbie at all of this. Great point. Thanks for the info.

 

[LisaS]

That would be why I'm such a newbie at all of this. Great point. Thanks for the info.

Hey Molly, Welcome to the DVC boards! I'm still a relative newbie myself. I bought a BWV resale last July. I spent about a month reading tons of posts on these boards just trying to learn as much as possible before making the decision to buy. This is a great place to learn what you need to know about DVC. Don't hesitate to ask questions -- there are a lot of very helpful folks here.