ROFR Thread July to Sept 2020 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[CastAStone]

Really? Good to know, I’ve got a 120 point in ROFR at $140

I was told 0 buy backs ever on poly. There was owner user here that had it bought back at the very beginning of poly dvc history but since then no reported cases.

I've thought about this before and I don't think it has much of anything to do with why Disney exercises ROFR. Look at PVB and the way that price has slipped. Direct is $245, resale can be had for $135 or less. That's an even larger spread than the aforementioned VGF and it's another very popular monorail resort, and yet Disney has continued to let those go.

Poly was the last resort to fully sell out. When a resort fully sells out for the next several years DVC is dealing with a pile of foreclosures, auctions, and deed-in-lieu-of-foreclosures.

According to the Orange County records, Disney has "taken back" or won at foreclosure auction 133 Polynesian contracts this year without ROFRing a single one.

For comparison, Saratoga Springs, which is 3.5X the size of Poly, has had just 109 contracts taken year to date either by ROFR, foreclosure, auction, or deed-in-lieu-of-foreclosure

Edit: Here is the number of contracts Disney has acquired by any method (ROFR, auction, deed in lieu, etc) by resort since 1/1, plus a ratio comparing it to the size of the resort. Remember AKV and OKW are the 2 they were aggressively ROFRing in Q1.

 

[John Purcell]

I still think the over-arching theme is that Palm Financial was killing ROFR, at least for the last few months. The DVC folks had too many “hard sells” to those young families who should not have, just awful...

But Disney now owns many of those again, alongside the handful of other desirable contracts that they can resell for so much more..... but in fairness to DVD, they have their marching orders - to make $$$$$.

 

[3 DD love princesses]

Worst fears confirmed....disney took my contract:

Jbreen2010---$94-$23984-225-SSR-Jun-0/19, 225/20, 225/21, 225/22- sent 7/1, taken by Disney 8/7

Back to the drawing board

Disney hasn't taken contracts since 3/30 and now they took mine. I guess I should go play the lotto!

Sorry I know how you feel I’ve been there several times. Hope you find an even better contract.

 

[KristinM]

Update Passed 7/21

KristinM---$95-$15548-150-SSR-Oct-0/18, 0/19, 300/20, 150/21-splitting closing- sent 6/8 This is our 3rd contract. Couldn't resist!

 

[Paul Stupin]

Poly was the last resort to fully sell out. When a resort fully sells out for the next several years DVC is dealing with a pile of foreclosures, auctions, and deed-in-lieu-of-foreclosures.

According to the Orange County records, Disney has "taken back" or won at foreclosure auction 133 Polynesian contracts this year without ROFRing a single one.

For comparison, Saratoga Springs, which is 3.5X the size of Poly, has had just 109 contracts taken year to date either by ROFR, foreclosure, auction, or deed-in-lieu-of-foreclosure

Edit: Here is the number of contracts Disney has acquired by any method (ROFR, auction, deed in lieu, etc) by resort since 1/1, plus a ratio comparing it to the size of the resort. Remember AKV and OKW are the 2 they were aggressively ROFRing in Q1.
View attachment 516530

This info is fascinating. Thanks!

 

[Paul Stupin]

I still think the over-arching theme is that Palm Financial was killing ROFR, at least for the last few months. The DVC folks had too many “hard sells” to those young families who should not have, just awful...

But Disney now owns many of those again, alongside the handful of other desirable contracts that they can resell for so much more..... but in fairness to DVD, they have their marching orders - to make $$$$$.

Personally, I‘ve never experienced any direct purchase DVC hard sells from Disney. If anything, just the opposite.

 

[Kickstart]

Argh!... now I'm really nervous about my $123 200 point BLT contract (sent on 7/30)

It will be a good test of @sethschroeder theory that they won’t take stripped contracts in the near future. Your contract isn’t getting more points for over 15 months.

Would this also apply to contracts where the seller agreed to bank 2020 points into 2021?
My contract had full 2020 points, but the terms of the agreement included the seller banking these points.
I'm also paying 2020 fees... so maybe that helps?

Do we know if the taken contracts had the seller or buyer paying 2020 fees?

 

[John Purcell]

Personally, I‘ve never experienced any direct purchase DVC hard sells from Disney. If anything, just the opposite.

Agree with you, they’re so cordial. However, the messages of prices going up in xx days, or you need to buy xxx points by this time before Blue Card benefits have point increases, or that they will crack down on renting points : While not high pressure, they are fear invoking folks into purchasing (now). Again, not fact, just my personal opinion....

 

[A2DisneyMom]

Any thoughts on whether Disney is more or less likely to exercise ROFR on a contract, depending on if buyer or seller pays closing costs & MF?

 

[Cyberc1978]

Any thoughts on whether Disney is more or less likely to exercise ROFR on a contract, depending on if buyer or seller pays closing costs & MF?

Disney haven’t informed about specific criteria’s but one of them is definitely price. The lower the price the more likely it is to be taken but again price is not the only criteria.

 

[poofyo101]

Any thoughts on whether Disney is more or less likely to exercise ROFR on a contract, depending on if buyer or seller pays closing costs & MF?

Does not matter in my experience. IF its low enough in price they buy it. If you have the seller pay for MF and closing its all built into the price cost. I think disney does the total cost of a contract including all the fees and divides it by the points it has to figure out a TRUE cost PP.

I have had contracts taken that were me paying both. Had contracts taken with sellers paying both. Had contracts taken with the fees split in half. Also had them pass all 3 ways. The main deciding factor is the price. Everyone has their own opinions on things that matter and thing that do not matter in ROFR. Im a believer that price is 75% of it. Also if they need more inventory of a certain resort, however if the price is cheap enough and they do not need inventory they'll buy it back anyway outside of the resorts that are not sold out or recently sold out. Personally do not think the loaded and stripped contract matters but I know alot of people do.

 

[poofyo101]

Argh!... now I'm really nervous about my $123 200 point BLT contract (sent on 7/30)




Would this also apply to contracts where the seller agreed to bank 2020 points into 2021?
My contract had full 2020 points, but the terms of the agreement included the seller banking these points.
I'm also paying 2020 fees... so maybe that helps?

Do we know if the taken contracts had the seller or buyer paying 2020 fees?

Disney does not care who pays the fees IMO its based upon the true cost PP by adding all the fees together and cost of the contract then dividing the amount of points. There is no way to get it through by changing whos paying the fees. The easiest way to get it through it to just pay more, which did not seem like it mattered yesterday as the prices they were buying them back at was quite high.

 

[Cyberc1978]

Personally do not think the loaded and stripped contract matters but I know alot of people do.

IMO points matters when it comes selling the contract. When DVC sells a contract it always comes with Points from current UY.
If they ROFR a contract without current points they either need to wait selling it or move points from another contract. It’s just much easier to sell a contract with current point.

 

[poofyo101]

IMO points matters when it comes selling the contract. When DVC sells a contract it always comes with Points from current UY.
If they ROFR a contract without current points they either need to wait selling it or move points from another contract. It’s just much easier to sell a contract with current point.

I thought the same but when I researched it heavily last year disney buys back just as many stripped contracts as they do loaded contracts. IT possibly could be more because stripped usually cost less than loaded. Again just my thoughts on ROFR as no one knows for sure.

 

[A2DisneyMom]

I thought the same but when I researched it heavily last year disney buys back just as many stripped contracts as they do loaded contracts. IT possibly could be more because stripped usually cost less than loaded. Again just my thoughts on ROFR as no one knows for sure.

So there’s another active thread on recent ROFR with decent evidence Disney is now exercising ROFR to address current waitlists for sold out resorts. If so, then possibly stripped contracts may be easier to pass right now? (given the lack of points to immediately sell?). Or am I looking at this completely wrong?

 

[poofyo101]

So there’s another active thread on recent ROFR with decent evidence Disney is now exercising ROFR to address current waitlists for sold out resorts. If so, then possibly stripped contracts may be easier to pass right now? (given the lack of points to immediately sell?). Or am I looking at this completely wrong?

What your saying is logical, however historically ROFR has not been the most logical thing to try to predict. Everyone else's opinion is just that, an opinion as no one knows for sure.

 

[A2DisneyMom]

What your saying is logical, however historically ROFR has not been the most logical thing to try to predict. Everyone else's opinion is just that, an opinion as no one knows for sure.

Thanks! Admittedly, as a scientist, I struggle with things where there isn’t a clear pattern. Really appreciate your perspective!

 

[pkrieger2287]

When it comes to Disney exercising their ROFR again, we need to look at the bigger picture of Disney Vacation Club’s direct sales. While we can argue until we are blue in the face whether Disney’s Riviera Resort is selling well, what can’t be argued is that Riviera is not selling as well as they had hoped it would. That being the case, the current pandemic has allowed them to re-evaluate their sales technique. Instead of a preview center, DVC now has Villas available in each Disney Vacation Club property that you can tour throughout Walt Disney World.

So imagine for a minute that you are touring a Cascade Cabin at Copper Creek or a Grand Villa at the Grand Floridian as your first ever exposure to DVC. You are then given another resort option to purchase, but it is not the one you fell in love with and see you and your family staying at for the next 40-50 years. What are a few more thousand dollars to get that sold-out resort and that vacation dream you want? I believe this is exactly the line of thinking Disney wants people to have moving forward. They will still get plenty of people who opt to purchase the shiny new Riviera Resort, but why not appeal to the others and make money off those points that they can scoop up and repackage for double what they paid to get them? I think what we are seeing is a cultural shift in how DVC does business, and it is a move many of us have been surprised hasn’t occured sooner.

 

[Brianstl]

I think in the past Disney didn’t necessarily care if a contract was stripped are not because they had points in there inventory they could put on a stripped contract from breakage and members using their points on things like cruises.

 

[ForWhomTheMouseTolls]

Disney is using ROFR to feed the waitlist. If I were to call and ask for 150 points at VGF, they’d likely find the most attractive way to service that contract, take it from a prospective buyer and give it to me. Expect more of this as it’s a super simple way of making profit for them right now.