Skunked by ROFR

[JohnNJ]

I know there's some people that like to know this kind of info so...

Disney bought the contract I bid on under ROFR.

It was 270 points at BWV with an April use year.

No points for 2003 and only 80 coming up in 2004.

Seller to pay all annual dues for 2003 and 2004 and pay all closing costs.

My bid was $65 per point.

The process took 20 days.

 

[Lisa F]

I'm not really surprised given the reports we've heard. Has disney let anything under $70/point at any of the WDW resorts go by recently? What a great deal if you had gotten it, though, especially those free 80 points. Were you serious about the contract and really surprised that Disney exercised its ROFR or were you trying to push the envelope to see how low you could go?

Lisa

 

[JohnNJ]

Originally posted by Lisa F
Were you serious about the contract and really surprised that Disney exercised its ROFR or were you trying to push the envelope to see how low you could go?

The cash was in my hand ready to send out. I've seen contracts go through for less than $70 per point. They have a specific formula they use to decide whether they'll buy it back. They don't have to make money but they can't lose money. I'll just keep trying.

 

[MMS1439]

We passed through the ROFR process on BWV at the end of July . We got through at $69 a point, April use year, 150 point, all 2003, 38 banked from 2002.

It took forever for it pass through Disney (almost a full month) so I don't know if that might meant they considered not passing or just a holiday slow down.

 

[Johnnie Fedora]

Was your time-line 20 days from the time the offer went to Disney??

Disney probably bought it back because the seller was paying all the 2003-4 dues and closing costs.

 

[WDWorld2003]

Sorry to hear you lost to ROFR. We lost a BWV contract in June for 270 pts (all 2002 and 2003 pts) - March use year - $72/pt. seller to pay 1/2 2003 and buyer to pay closing....

We bid on another contract and made it through ROFR at BWV 271 pts. (200-2002 pts. and all 270 banked 2003 pts) March use year - $73/pt. - we paid all 2003 main. and closing costs.

I think Disney buys more contracts back if the seller is willing to pay maintenance and/or closing costs. Wishing you better luck on your next contract!

 

[Maistre Gracey]

Keep your eyes peeled, as there will be other contracts...

 

[tinksmom]

I have to agree with WDWorld2003. It seems the less Disney has to pay out to buy back a contract, the more likely it is they will option the ROFR. The broker we used told me Disney had to meet whatever was agreed upon by the buyer and sellar. That's why we kept our deal at $70 and paying all 2003 fees/taxes.

Keep your chin up and another will come your way!

 

[I Luv Disney Cruise]

We just got (with no ROFR) into a 350 pts/year at Old Key West with 211 pts banked from 2002 and all of 2003 pts.

We made a offer of $72/pt and pay 9 months of maintenance for 2003, which the original offer was $70/pt and pay all of 2003 maintenance.

From the time that Disney got the offer in their hands it took 1 1/2 weeks for it to go through.

I am sorry you didn't get the deal. Maybe you will get the next one that comes around.

 

[KANSAS]

this question is directed at the DVC Experts on this board
IF the buyer, had paid, all closing costs, would the deal, have had much greater chance, to get by ROFR

 

[Dean]

Originally posted by KANSAS
this question is directed at the DVC Experts on this board
IF the buyer, had paid, all closing costs, would the deal, have had much greater chance, to get by ROFR

I'd put this one right at the cutoff with the price pp and closing costs paid by the seller. Frankly, one would have been better off paying the fees and closing getting current and banked points, even at a much higher price of say $72 pp.

 

[6bowmans]

I doubt Disney would have let the deal pass them by, even with the buyer paying the closing cost.

For the best odds to ensure the resale goes through, I think the minimum payment is $72/pt and the buyer either pays the closing cost or the maintenace fee for the remaining months in the year.

A buyer should look for resales with banked and unused points. For example, a resale for 200 points, Dec use year, with all 200 points available for 03 and 100 banked points from 02 (300 total) at $74/point is a much better deal for a buyer than the same 200-point resale with all points already used from 03 (no points available until 12/04) at $66/point. The difference in price of the resale is $1600, but the value of the 300 points is either a very nice week in a 2-bedroom or $3000 ($10/point). Disney cares about the price per point. They make money in the difference between what they pay for it and what they sell it for. The 100 banked points are of no use to them. Disney's gain is further negated if the buyer pitches in another $500 for the closing cost.

IMHO, people selling their DVC timeshare for less than $70/pt are looking to get rid of the timeshare quickly. They entice buyers with the "lower" price, but they know at the least, Disney will buy the points. And really is $2/pt ($400 total - less than 3% of the total price) worth the agony of not buying into DVC and having to go through the process all over again? I don't think so.

I have a resale going through ROFR now. I'm hoping to pay $72/pt for 400 pts at VWL, Sept use year, with 175 points banked from 02 and all 400 available for 03. I also agreed to pay the annual dues for Oct-Dec 03. Hopefully, my logic will lead to a successful purchase.

JohnNJ, I'm sorry your purchase did not go through. However, if at first you don't succeed.......

 

[5infam]

I agree with the others that said that if you would have paid the fees, you may of had a better chance. The problem is, we really don't know what their formula is. I wonder if it also has to do with the existing demand on the waitlist to buy more points? I know when I checked a few weeks ago, BWV was all sold out of April UY. Maybe the demand was there on the waitlist, and the price was good, so Disney figured they could make some more money!!

I hope you get your next one!! Best of luck to you!!!

 

[I Luv Disney Cruise]

KANSAS: I'm not a DVC expert and you don't have to be to see what Disney is practicing as far as ROFR. I do know what my broker, Jaki at "A Timeshare" told me when we trying to purchase the resale. She told me that Disney has been practicing ROFR for those offers with $70/pt or less and not paying maintenance fees.

So I stuck to her advice and offering more per point but in turn only reimbursing the seller 9 months of fees instead of 12... and it worked.

 

[Richyams]

That was a tough one. Since it didn't have any current points and only 80 '04 points coming, it only merits a low offer. I think that was a tough one to see coming. Compared to a contract with all current points intact, that contract was worth more than $10 less since it had no current and only partial next year's points.

Really, $65 was high to bid for that.

Sorry to hear about it, but all the armchar quarterbacking in the world couldn't have predicted that. I just wonder what is valuable in a contract with no current points and part of next year's gone....I wonder if they will suplememnt it with developer points and bring it full for its first year and then sell it.

 

[5infam]

Richyams,

That's a great question!! Does any one know what the rules are for Disney when they buy back points and then resell them? I'm curious if there are rules in writting somewhere, or they just get to do whatever they want?

 

[chris1gill]

AWWW... I'm sorry $65 per point is really low these days though, they seem to snap up anything under 70 & sometimes under 72.....

Maybe you could try again on another contract?

 

[Richyams]

The bad part is that a contract with no current points and a good part of next year's used, really isn't even worth $65 per point when you can get one with all next year's, and complete current year's for $72.

 

[LoveMyDVC]

Disney would be crazy not to buy that one back!

Seller paying all costs? There is no way a contract that low would pass. Seller must have really wanted to get rid of it.

 

[KellyDVC]

is buy resales 1) that have current and/or banked points, 2) offer something around $68-70 dollars (minimum), and 3) don't get too caught up in negotiations on who pays fees and closing costs. In May, we bought OKW 310 pts, $70 per pt, with all 2001, 2002 and 2003 pts available, and we paid 2003 fees and closing. I personally value points in the $10-12 range, so factoring in the 2001 - 2003 pts into the price, I think we got a steal. ROFR only took 2.5 weeks.

If you know your offer price and the fees you'll pay, simply wait until a contract comes along that has the use year and total available points that make it a great buy for you and/or your family. By the way, we bought through Timeshare Store (again), and saw the above contract on their site (called ten minutes after seeing it).