What is "ROFR" and other DVC questions

[Eyore4Ever149]

Hello DVC experts! Well I have been hanging out on the other threads for years....and today I'm migrating over here.

While on a vacation on Cape Cod we were invited to a timeshare presentation, we passed, but noted their paperwork stated they were affiliated with DVC...I figured I'd rather own at DVC than an "affiliate".

Yesterday I spoke to a DVC sales rep, and am awaiting the DVD and paperwork to read over.

Pricing he gave- $49 pr month in dues, $101 pr point, with a discount of $10 pr point (although I see their website says $1500)- does this mean theres a limit on the # of points they will apply the discount to?

This is for Saratoga Springs (SSR) until 2025, Why does it matter what resort is "home" if I can stay at any resort? 7 months seems like a large lead time anyway.

Is price per point negotiable?

Is it better to buy a resell or buy direct from DVC?

Does it matter when I plan to go on my next trip as far as when I want to buy into DVC?

Can dues be raised? Negating the price benefit of purchasing DVC?

Finacing was offered at around 10%- is this good?

What other ways are there to purchase points at a lower price?

 

[WeddingPavilion]

Hello DVC experts! Well I have been hanging out on the other threads for years....and today I'm migrating over here.

While on a vacation on Cape Cod we were invited to a timeshare presentation, we passed, but noted their paperwork stated they were affiliated with DVC...I figured I'd rather own at DVC than an "affiliate".

Yesterday I spoke to a DVC sales rep, and am awaiting the DVD and paperwork to read over.

Pricing he gave- $49 pr month in dues, $101 pr point, with a discount of $10 pr point (although I see their website says $1500)- does this mean theres a limit on the # of points they will apply the discount to?

This is for Saratoga Springs (SSR) until 2025, Why does it matter what resort is "home" if I can stay at any resort? 7 months seems like a large lead time anyway.

Is price per point negotiable?

Is it better to buy a resell or buy direct from DVC?

Does it matter when I plan to go on my next trip as far as when I want to buy into DVC?

Can dues be raised? Negating the price benefit of purchasing DVC?

Finacing was offered at around 10%- is this good?

What other ways are there to purchase points at a lower price?

I'll try to answer a few. If I'm wrong I will most certainly be corrected. ROFR is Right of First Refusal which basically means Disney has the right to buy back your contract before anyone else,if you decide to sell. Your monthly dues depend on how many points you buy. I believe the length of your contract would be until roughly 2056. I highly doubt the price is negotiable. You would have to do the math when considering a resale,see what works out better for you.

 

[WeddingPavilion]

Hello DVC experts! Well I have been hanging out on the other threads for years....and today I'm migrating over here.

While on a vacation on Cape Cod we were invited to a timeshare presentation, we passed, but noted their paperwork stated they were affiliated with DVC...I figured I'd rather own at DVC than an "affiliate".

Yesterday I spoke to a DVC sales rep, and am awaiting the DVD and paperwork to read over.

Pricing he gave- $49 pr month in dues, $101 pr point, with a discount of $10 pr point (although I see their website says $1500)- does this mean theres a limit on the # of points they will apply the discount to?

This is for Saratoga Springs (SSR) until 2025, Why does it matter what resort is "home" if I can stay at any resort? 7 months seems like a large lead time anyway.

Is price per point negotiable?

Is it better to buy a resell or buy direct from DVC?

Does it matter when I plan to go on my next trip as far as when I want to buy into DVC?

Can dues be raised? Negating the price benefit of purchasing DVC?

Finacing was offered at around 10%- is this good?

What other ways are there to purchase points at a lower price?

I'll try to answer a few. If I'm wrong I will most certainly be corrected. ROFR is Right of First Refusal which basically means Disney has the right to back back your contract before anyone else,if you decide to sell.Those prices you received were more than likely the minimum you can buy which is 150 pts. Your monthly dues depend on how many points you buy. I believe the length of your contract would be until roughly 2056.SSR is the only resort you can buy at right now and that would be your home resort which gives you an 11 month booking window as opposed to 7 months at others.Sometimes other resorts are tough to get at 7 months. If your plans are set in stone you would book at your home and then hope to change it at 7 months if you wanted to stay elswhere.At the very least you have a room. I highly doubt the price is negotiable. You would have to do the math when considering a resale,see what works out better for you. I'm sure you will get more responses with more detail.But that is my 2 cents worth.

 

[JimMIA]

First of all, ROFR. As posted above, it means Right of First Refusal, but your concern with ROFR is not in the event you sell. It is in the event you decide to BUY resale.

All resale contracts go to Disney, who has the Right Of First Refusal, meaning they can purchase the contract for the same terms the seller and buyer agreed on. So, sometimes folks buy a contract resale and then have it snatched away from them by ROFR. If you're the seller, it's irrelevent, because you get your money either way.

This is for Saratoga Springs (SSR) until 2025

There are two expiration dates for DVC contracts: SSR expires 1/31/2054, and the others expire 1/31/2042. So SSR has 12 more years.

Why does it matter what resort is "home" if I can stay at any resort?

This link will take you to a thread which starts off with a discussion of home resort. http://www.disboards.com/showthread.php?t=778634

7 months seems like a large lead time anyway.

It's not. Many types of accommodations are taken shortly after the opening of the 11 month window, and ALL accommodations may well be taken for certain time periods by the time the seven month window opens. If you can't book until less than seven months out, you may still be fine if you're flexible, but you won't be able to just get anything your heart desires.

Is price per point negotiable?

Not if buying direct from Disney, but they do sometimes have extra incentives. The price (and everything else) are negotiable in a resale, but you have to remember that the most important price consideration in a resale is pricing it high enough to pass ROFR. If you don't pass ROFR, nothing else matters in a resale.

Does it matter when I plan to go on my next trip as far as when I want to buy into DVC?

It might. If you buy direct, you give them a credit-card deposit one day, and you are in the computer and able to make ressies the next day, usuallly. Resale takes some time. I'd plan on a minimum of 6-8 weeks from the time you make an offer until you are closed, fully in the system, and able to make ressies. It often takes longer than that, but if resale makes sense for you, it makes sense regardless of the time lag.

Can dues be raised? Negating the price benefit of purchasing DVC?

Dues can and will be raised. They have also occasionally been lowered. I don't think dues increases would negate the benefit, but you need to realize that your initial purchase price is only a part of the overall cost -- and not even the biggest part.

Finacing was offered at around 10%- is this good?

That's good for timeshare financing. Paying cash is better. Usually, using a home equity line is less expensive. Putting it on a credit card at 18+% is worse.

You really have to evaluate for yourself whether financing is the way to go. Some will tell you if you have to finance a luxury like DVC you can't afford it; I personally don't think I know enough about your family's finances to hazard a wild guess about what you can or cannot afford.

What other ways are there to purchase points at a lower price?

Resale should be a less expensive option. Whether it's the right option for your needs only you can tell, but I would certainly urge you to at least research resale. The Timeshare Store, the sponsor of these boards, is one reputable reseller that many of us (including me) have used and highly recommend.

 

[LisaS]

Welcome to the DVC boards!

To add to what JimMIA has said, in addition to SSR you can purchase any of the other ("sold out") DVC resorts directly from Disney as well. The price is $95/point plus closing costs. If Disney doesn't have enough points available, you can go on a waiting list. With the exception of BCV, you can buy the "sold out" resorts via the resale market for less than that, but as Jim said it comes down to time vs. money. You'll save money via resale but the process takes about 8 weeks. For a listing of resale contracts available from the board sponsor, click on the "DVC Resales" link at the top of tha page. When buying resale, you need to add closing costs to the price. The cost varies with the size of the contract, for example about $500 for contracts of 150-200 points.

As far as the 7-month window goes, if you can plan your trips more than 7 months in advance then many people on this board believe you should buy where you want to stay. We knew we wanted to stay at an Epcot resort and I didn't want to have to wait until the 7-month window to book my vacations so we bought BWV on the resale market and I'm very happy we did. But then again, the 12 extra years at SSR were not of interest to me -- as it is I'll be 88 when my BWV contract runs out and we don't have kids so it was a very easy decision to forego the 12 extra years in favor of buying points at our preferred location.

You should expect dues to go up around 4% per year. We may see a higher increase than that for 2007 given that the price of fuel has increased so significantly and Florida insurance rates are going up as well. For a historical chart of the dues per point at each resort as well as the increases, look here: http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm


Good luck with your decision!