ROFR Thread July to Sept 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[MISCdisney21]

MISCdisney21---$135-$7904-50-BWV-Dec-0/20, 0/21, 50/22, 50/23- sent 6/15, passed 7/14

Party Time!!!

 

[DKZB]

I have never sold a DVC contract but for those who have, when Disney Buys it back instead of it going to another person, do you ever think “Dang I wish I had bumped that rate up?” just to get a little more from the mouse?

ABSOLUTELY! The problem though is finding a buyer to pay more. In the end, whether Disney takes it or Disney passes, I agreed on a price.

Just an FYI Disney’s closing costs are typically less than most brokers charge when they take a contract via ROFR. If you think your contract is likely to get taken, you should consider grossing up the sale price and seller paying closing costs. That way, if the mouse does take it, you make a few more $$.

 

[Sandisw]

I have never sold a DVC contract but for those who have, when Disney Buys it back instead of it going to another person, do you ever think “Dang I wish I had bumped that rate up?” just to get a little more from the mouse?

I just sold and I knew that the price was low and that it would most likely go to Disney. But, personally, that Never entered my mind.

 

[LadybugsMum]

I haven't sold a DVC contract either, but there are a ton of things you could second guess about. If it were priced higher, maybe a buyer wouldn't have bid on it. Or maybe it would have passed ROFR with a higher price. Maybe if it were listed a month earlier or later, the buyer wouldn't have seen it or maybe they would have already bid on a different contract. Buyer and seller and Disney are all trying to optimize their positions.

And as somebody here has mentioned before, Disney lets the buyer & seller do all the hard work, and then they swoop in to catch some deals with ROFR.

Yes, it crossed my mind; however, my contracts were on the market for 7 weeks before getting any offers. Now that the market has slowed down, I don't think it works as well. But, it also depends on the resort as well. I am selling SSR not VGC or BC or another more popular one.

 

[RamblinWreck]

I'm surprised so many posters here have sold contracts that have been taken in ROFR.

I would assume most people here would be selling above that line. Were you all just motivated to move it as quickly as possible?

 

[Sandisw]

I'm surprised so many posters here have sold contracts that have been taken in ROFR.

I would assume most people here would be selling above that line. Were you all just motivated to move it as quickly as possible?

The one I just sold that was taken in ROFR, was indeed priced to move because I had added on VGF and didn’t care to wait it out.

A few others were on the lower end and I thought they would take them, but they all went through.

 

[Jimmy Geppetto]

Congratulations! Can I ask which broker/title company combo allowed one closing fee for both contracts? Every time I've asked about this I've been met with a firm and resounding NO.

Any reputable Broker will know that this is permitted, or will at least offer to reach out to a title company to confirm. Maybe some brokers receive a referral fee from the title insurer, and as a result provide Misinformation. i would hope this is not the case, but wouldn’t be surprised to hear it as a possibility.

 

[NVDISFamily]

I have never sold a DVC contract but for those who have, when Disney Buys it back instead of it going to another person, do you ever think “Dang I wish I had bumped that rate up?” just to get a little more from the mouse?

Interesting thought/question. This made me think of this model of thinking about buying/selling DVC points. There are three factors to consider and you get to pick two (at the expense of the third priority).

$$$$ (paying less as buyer / getting more as seller)
Time (getting points faster / selling contract faster)
Getting More Points (buying more points for your $ / selling more points)

This also plays in to the selling a large contract will take more time and be for less $ per point understanding that is common in the community.

Based on this understanding if you were a seller and wanted to ask for more $$ to get more from the mouse you might impact your time to sell or ability to sell more points (depending on your situation). What makes it hard is that the ROFR process doesn't kick in until a buyer in the market agrees to the deal and they have an inverse incentive to consider with the same three buckets and can only pick two.

On the other side of everything is direct points and offers that take one of the factors to the extreme. In terms of time, they get you your points in hours and that feels great...... And if you are looking to make a purchase of a good number of points the $ gets close enough to tempt people.

One crazy thought I had that might bring some balance to the mix is if we could change the law to require Disney to pre-clear their ROFR decision as part of the listing process. For example if you listed 100 points at SSR for 135 a point your selling broker would send that to Disney as soon as it was listed. Shorten the time Disney has to make their ROFR decision to two weeks. During that time the contract would be in a non-cleared ROFR state and someone could buy at the 135 price but Disney could still take it. If no buyer made an offer in the two week period Disney would have to decide to buy it at 135 or not. If they didn't the broker could change the status to cleared ROFR and a buyer would know if they offered the asking price it could close quickly. Would even be better if the system is automated where lets say Disney didn't decide they wanted it at 135 but would take it at 125. If the seller lowers the price the broker could enter the new price in a site and it would auto respond if it's still cleared or if Disney is now taking it at the lower price.

Sorry for my crazy ideas LOL. Just some thoughts about the market and what might fix these issues.

 

[Sandisw]

Interesting thought/question. This made me think of this model of thinking about buying/selling DVC points. There are three factors to consider and you get to pick two (at the expense of the third priority).

$$$$ (paying less as buyer / getting more as seller)
Time (getting points faster / selling contract faster)
Getting More Points (buying more points for your $ / selling more points)

This also plays in to the selling a large contract will take more time and be for less $ per point understanding that is common in the community.

Based on this understanding if you were a seller and wanted to ask for more $$ to get more from the mouse you might impact your time to sell or ability to sell more points (depending on your situation). What makes it hard is that the ROFR process doesn't kick in until a buyer in the market agrees to the deal and they have an inverse incentive to consider with the same three buckets and can only pick two.

On the other side of everything is direct points and offers that take one of the factors to the extreme. In terms of time, they get you your points in hours and that feels great...... And if you are looking to make a purchase of a good number of points the $ gets close enough to tempt people.

One crazy thought I had that might bring some balance to the mix is if we could change the law to require Disney to pre-clear their ROFR decision as part of the listing process. For example if you listed 100 points at SSR for 135 a point your selling broker would send that to Disney as soon as it was listed. Shorten the time Disney has to make their ROFR decision to two weeks. During that time the contract would be in a non-cleared ROFR state and someone could buy at the 135 price but Disney could still take it. If no buyer made an offer in the two week period Disney would have to decide to buy it at 135 or not. If they didn't the broker could change the status to cleared ROFR and a buyer would know if they offered the asking price it could close quickly. Would even be better if the system is automated where lets say Disney didn't decide they wanted it at 135 but would take it at 125. If the seller lowers the price the broker could enter the new price in a site and it would auto respond if it's still cleared or if Disney is now taking it at the lower price.

Sorry for my crazy ideas LOL. Just some thoughts about the market and what might fix these issues.

The POS defines in detail what the ROFR process is all about. It does not kick in until an owner has a bona fide offer and buyer for the contract.

Once it is sent, the POS says DVD must be given at least 30 days prior to closing to decide.

So, no way to change the process without changing the POS and there is no benefit to DVD to make the process faster.

 

[DVCBeachBum]

Well, would you look at that. I’m off to edit my signature to add a bright shiny new bumper sticker. I really thought this had no chance. Don’t ask me to explain it! It’s not an international seller.

DVCBeachBum---$130-$32500-250-AKV-Dec-0/20, 0/21, 347/22, 250/23-Seller pay MF Close- sent 6/10, passed 7/13

Our broker seemed pretty surprised that estoppel was also issued in “one fell swoop”. From all the comments I have read here since starting this process it seems pretty common. Why would they NOT do that? She has been doing this a long time so her surprise surprised me

 

[Sandisw]

Our broker seemed pretty surprised that estoppel was also issued in “one fell swoop”. From all the comments I have read here since starting this process it seems pretty common. Why would they NOT do that? She has been doing this a long time so her surprise surprised me

They didn’t always do that. It’s only been happening for the last year or so. It seems that when ROFR began taking so long, DVD changed the process to issue both at the same time.

Maybe with the staff shortages they have experienced, they now have the same people working on both and before they did not?

 

[NVDISFamily]

The POS defines in detail what the ROFR process is all about. It does not kick in until an owner has a bona fide offer and buyer for the contract.

Once it is sent, the POS says DVD must be given at least 30 days prior to closing to decide.

So, no way to change the process without changing the POS and there is no benefit to DVD to make the process faster.

I was more saying that if we grabbed our pitchforks and torches and got some changes in the law to create a better system that could be a way to do that. Disney would likely never do it voluntarily. The major lag in trying to buy resale is one of the reasons some may buy direct. I’m one of those who is now a big fan of direct if the delta isn’t too large.

 

[Sandisw]

I was more saying that if we grabbed our pitchforks and torches and got some changes in the law to create a better system that could be a way to do that. Disney would likely never do it voluntarily. The major lag in trying to buy resale is one of the reasons some may buy direct. I’m one of those who is now a big fan of direct if the delta isn’t too large.

The FL timeshare law doesn’t require ROFR in anyway so it’s something a developer gets to do if they want it. it does cover certain aspects of resale that a developer must include in the contracts.

And, I can’t see the state trying to put in rules such as that to force developers to act in such a way

I don’t think the process of at least 30 days is an unreasonable ask and I would be surprised to find it something thr FL legislative branch would feel is needed. They are more concerned that consumers are protected when buying and given them the time to review things and back out if the contract with the developer isn’t what they want.

 

[Jenglish13]

The FL timeshare law doesn’t require ROFR in anyway so it’s something a developer gets to do if they want it. it does cover certain aspects of resale that a developer must include in the contracts.

And, I can’t see the state trying to put in rules such as that to force developers to act in such a way

I don’t think the process of at least 30 days is an unreasonable ask and I would be surprised to find it something thr FL legislative branch would feel is needed. They are more concerned that consumers are protected when buying and given them the time to review things and back out if the contract with the developer isn’t what they want.

This would only benefit the resale market in general, which DVD seems to have no interest in. Maybe Florida politicians are still bitter enough over 'don't say gay' to make them do it!
It would also force them to act in a rational, calculated manner and the drunken monkey would likely be out of a job and we'd have much less to talk about here!

I'm curious, does DVD ever make offers to resale sellers directly or do they only reacquire points via ROFR?

 

[Flash_Sloth]

... I'm curious, does DVD ever make offers to resale sellers directly or do they only reacquire points via ROFR?

Well, this happened almost a year ago, but it sounds like the buyback offers were notably lower than what contracts were going for on the resale market:
https://www.disboards.com/threads/u...your-disney-vacation-club-membership.3850732/

 

[PolynesianPip]

Our broker seemed pretty surprised that estoppel was also issued in “one fell swoop”. From all the comments I have read here since starting this process it seems pretty common. Why would they NOT do that? She has been doing this a long time so her surprise surprised me

Ha, my email notification said the same thing.

 

[guppy1013]

Guppy1013---$127-$21114-150-SSR-Oct-0/20, 111/21, 150/22, 150/23- sent 6/11, taken 7/14

 

[TraJon]

Guppy1013---$127-$21114-150-SSR-Oct-0/20, 111/21, 150/22, 150/23- sent 6/11, taken 7/14

 

[NVDISFamily]

The FL timeshare law doesn’t require ROFR in anyway so it’s something a developer gets to do if they want it. it does cover certain aspects of resale that a developer must include in the contracts.

And, I can’t see the state trying to put in rules such as that to force developers to act in such a way

I don’t think the process of at least 30 days is an unreasonable ask and I would be surprised to find it something thr FL legislative branch would feel is needed. They are more concerned that consumers are protected when buying and given them the time to review things and back out if the contract with the developer isn’t what they want.

Hope it's clear that my post and thoughts were more a silly daydream and something I'd try and fix if I was made grand benevolent dictator of DVC/Disney for a year.

About the 30 day thing though.... why did they take 45 days on my first round of ROFR. That just seemed a little long to just say yes

Likely just some vacation time and such, but those last 15 days.... I needed to know!!!

 

[NVDISFamily]

I'm curious, does DVD ever make offers to resale sellers directly or do they only reacquire points via ROFR?

I believe I saw some videos from Pete and crew on their YouTube videos that years ago Disney was reaching out to select members with 2042 OKW contracts and making very low ball offers on points to buy them back. Seemed like they were offering well under market value at the time.