What Dvc Looks At In Rofr???

[TravelingJen24]

I'm waiting for ROFR and was curious if anybody had any ideas as to what DVC looks for when they decide whether or not they want a property. I'm not sure if anyone does, but also if anyone has any idea as to why some take longer then others I would hope to know that too. Thanks.

 

[Ksp]

bump
I'd like to know, too!
Good luck with your ROFR

 

[Beca]

The going thought on this one is "bottom line" cost. But, I have also heard that the more money DVC has to "put out front" for the contract (i.e. buyer pays closing, mf, transfer fee, etc), the less likely they are to purchase. I also heard that DVC is not as interested in "stripped" contracts since they have to add points back to them to sell them (or hold onto them when until points become avail...while paying mf's. DVC will not re-sell contracts with stripped points...you always this year's points when you buy from them...they have to take points from the developer's inventory. When they're offering a promotion that takes $10 off SSR OR a vacation....DVC is valuing those points at $10 per point. I am assuming you can adjust the "bottom line" figure SOMEWHAT for that (definitely not $10 per point, but probably $2 or $3)). But, then again...you really are paying a lot for a stripped contract (especially if it is a small one when you add closing costs) if you bid at the going rate and pay mf's for a year (or two) with no points.



Beca

 

[RuthnPaul]

Originally posted by Beca
I also heard that DVC is not as interested in "stripped" contracts since they have to add points back to them to sell them (or hold onto them when until points become avail...while paying mf's

Hi, Beca! Was in contact with Jaki (at A Timeshare) yesterday and asked her if Disney had exercised ROFR on any her contracts this past week. She said that Disney exercised ROFR on a BCV contract, $72pp, no points available until October 2005! There doesn't seem to be any rhyme or reason (or at least that's obvious to me) for what passes and what doesn't!!

RuthM

 

[Beca]

I am SOOO shocked!!!! Isn't that EXACTLY what Poohnpiglet paid for theirs???

And, it was my guide that told me DVC RARELY buys back contracts with stripped points. Maybe that is because by the time he sees them, they are no longer stripped. Who knows???!!!! I am beyond guessing!!

Good luck with yours...I REALLY hope you get through ROFR!!!



Beca

 

[RuthnPaul]

I messed up when I posted this originally! I just looked at the e-mail from Jaki and the ROFR'd contract was for BWV, not BCV -- but still!!! Sorry for posting incorrectly!

 

[Beca]

Wow!!! That's even MORE strange!! I CERTAINLY didn't think BWV points were SO hard to come by that DVC would need to take a "stripped" contract!! There seem to ALWAYS be BWV contracts for sale.

Now, this is really confusing!!



Beca

 

[Dean]

DVC seems to go for the Pavlov's Dog theory. Reinforce the behaviour part of the time and keep them guessing so they don't know what's coming. Over the years it's been my impression that DVC looks more at the actual per point cost and pays LESS attention to the other issues. They are prone to letting one contract go through and then buying another that is the same or not as good.

 

[jmatias]

I certainly have no clue how Disney exercises ROFR, but I do agree with Dean in that I believe they try to keep potential buyers "off balance".

Since I've been reading about resales and ROFR there was a time when nothing seemed to get past ROFR, then a period that ROFR seemed non-existant, and now ROFR is in full swing again.

No consistentcy....I think Disney likes it that way.

 

[rchristiansen]

Originally posted by RuthnPaul
Hi, Beca! Was in contact with Jaki (at A Timeshare) yesterday and asked her if Disney had exercised ROFR on any her contracts this past week. She said that Disney exercised ROFR on a BCV contract, $72pp, no points available until October 2005! There doesn't seem to be any rhyme or reason (or at least that's obvious to me) for what passes and what doesn't!!

RuthM

Jaki told me the same thing yesterday and that they are buying all sorts of contracts back.

 

[Beca]

Yikes!! This is SO crazy!! Eventually the dust will clear, and we will all be able to see what Disney's new "level" for buybacks is. The inconsistencies show that, at this point, Disney may not even know what that level is. I wonder if they really even "have a plan" as to how much inventory they want to have on hand? It seems like a basic premise, but sometimes...I just wonder!



Beca

 

[Cap]

I would think that DVC is using some type of rational model that considers:

- their inventory (why buy OKW or VB points if you have a big inventory at a given time),

- demand (related to inventory, but also to any waiting list they have),

- use year (some potential customers want a specific use year, based on when they are likely to reserve, so they can cancel without penalty, if necessary; or to align with an existing contract for ease of point management),

- profit margin (selling price less total cost to DVC {cost / point, recording / transfer fees, dues, etc}).

- status of banked, current year, and borrowed points (DVC needs to bring contracts to a full current year available state to sell, and thus may welcome banked points, but has a cost to use developer inventory to replace borrowed points).

Such a model would drive different behaviors based on inventory and demand.

 

[poohnpiglet3]

You're right - there doesn't seem to be a rhyme or reason. My BCV contract at $72 /pt was waived by Disney this week. 224 points available now and full 270 more coming in march of 05.

Wow... I'm just glad we passed! I would think BCV has much more demand than BWV (because of limited size.)

*Phew!*

Sherri

 

[buckylarue]

It could be that they had people on the waitlist for BWV points that the contract would cover, and didn't have the same demand for BCV right at the moment...just a guess of course; it could be that they throw darts at a target, flip a coin, toss the I Ching...who the heck knows!

 

[Beca]

Originally posted by buckylarue
it could be that they throw darts at a target, flip a coin, toss the I Ching...who the heck knows!

Now you're on to something!!!



Beca

 

[jcanary]

Could also a deciding factor be the use year. You don't see very many June use years available for resale so is their demand greater than others? Maybe people should post the use years that Disney is buying back, more so than the price or availability of points. Just a thought.