What is ROFR?

[SandrainNC]

Sorry. I tried to do a search and can't find it. I am at the early stages of DVC research and can't figure out what that means.

Thanks!

Sandra

 

[chalee94]

disney has Right Of First Refusal on resales...if i agree to sell my contract to you for $60 a point to give you a good deal, disney has the right to step into your shoes as the buyer and take the contract away from you (to resell later at a higher price.)

 

[SandrainNC]

Oh, ok. Thank you very much!

Sandra

 

[SanDeeKath]

Just curious -- does the seller have to then sell the contract to Disney? Or can they just withdraw it and keep it for themselves?

K

 

[TisBit]

Just curious -- does the seller have to then sell the contract to Disney? Or can they just withdraw it and keep it for themselves?

K

No, the seller cannot back out at that point. It is part of the contract, so it is basicly a done deal when it goes to Disney and they give a thumbs up or down.....

 

[Caskbill]

Step 1: You decide to sell your points and engage a broker, etc.

Step 2: A buyer is found

Step 3. A binding contract is signed with the buyer which details everything about the sale including points, point status, closing costs, et al.

Step 4. The contract is given to Disney for review.

Step 5. If Disney considers the deal to be in their best interest, they get the contract for the exact same terms.

Step 6. The seller sells to Disney for the exact same thing that the 'buyer' had agreed to in step 3. Thus it makes absolutely no difference to the seller. The buyer however is left out and gets to start all over.

Step 5A. If Disney does not exercise their right of first refusal, the contract is returned to the 'buying party'

Step 6A. The 'buyer' completes the purchase and gets the contract.

Note that only binding contracts go to Disney for review. Either they take it or they let the buyer get it. The seller cannot just change their mind and get the contract back. (Just like selling a house, once a contract is signed, it is binding)

 

[Karenj2]

Sorry to revive this post, but I had an additional question... I'm trying to understand timeshare resale - can you offer less per point than the amount you see at the resale stores? Any other conditions etc. you can add?

DH and I bought our first house as young-uns, and probably got ripped off, because we didn't know we could bargin with the builders... We haven't moved since, so we still know very little about timeshares/resales, etc.

Thanks!

 

[shortypots]

You can offer whatever you like on whatever contract you want. Negotiation is part of the resale process, just don't expect tthe sellers to accept what you offer unless it is reasonable. In other words, if the going rate for BCV is $95/pt for a small contract, don't offer $87 and expect a response (not to mention, this one would probably not pass ROFR).

We recently made an offer on a resale and it was accepted by the seller. We only asked them to pay the closing costs, we otherwise accepted their price per point.

 

[JimMIA]

Sorry to revive this post, but I had an additional question... I'm trying to understand timeshare resale - can you offer less per point than the amount you see at the resale stores? Any other conditions etc. you can add?

EVERYthing in a resale is subject to negotiation.

However, you need to remember that the most important number in a resale is the number needed to clear ROFR -- NOT the lowest price the seller will take. If you don't pass ROFR, nothing else about the deal matters, because you didn't get the contract.

I think it's also helpful to keep the right perspective on the per-point price. You are buying a long-term asset -- something you're going to be using for many years. It's borderline stupid to find a contract that perfectly meets your family's needs...and then lose it over $1-2 per point.

And yet, we see that happen often here. People lose great contracts for $200. In makes no sense, but they seem to get so caught up in the game of "the deal" that they forget the object of the exercise completely.

 

[corky441]

EVERYthing in a resale is subject to negotiation.

However, you need to remember that the most important number in a resale is the number needed to clear ROFR -- NOT the lowest price the seller will take. If you don't pass ROFR, nothing else about the deal matters, because you didn't get the contract.

I think it's also helpful to keep the right perspective on the per-point price. You are buying a long-term asset -- something you're going to be using for many years. It's borderline stupid to find a contract that perfectly meets your family's needs...and then lose it over $1-2 per point.

And yet, we see that happen often here. People lose great contracts for $200. In makes no sense, but they seem to get so caught up in the game of "the deal" that they forget the object of the exercise completely.

Boy how true is this. I was playing with numbers for weeks before making my first offer on a re-sale at SSR. I finally put it all down on paper and realized that over the life of the contract at SSR ( expires 2054) it amounted to to sooooooooooooooo little on a yearly basis. I can't imagine losing out on a great deal because of nickel & diming it to death...

 

[Grandbuddy]

Sometimes it appears to be about something other than the money. We've seen some low prices get through - while what appears to be the same price (or even better) gets ROFRd. Don't know if it is based on what resorts and UYs they have waiting lists for, or some other factor, but the forces behind ROFR are not always evident.