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

[DKZB]

Do you know what costs would be lower if Disney takes the contract? I thought Disney was just stepping in as the buyer, but everything else would be the same. I would think the closing costs are dictated by the title company and out of Disney's control.

When disney takes a contract via ROFR they handle the closing. The original title company is no longer involved.

The terms are still the same because the contract says buyer pays X dollars and seller pays closing costs estimated at Y dollars.

In my case, the original title company (Mason Title) wanted around $750 for the closing but when Disney took the contract the closing costs only came to around $250 leaving the difference (around $500) for me as the seller. This is because Disney is still obligated to pay the X dollars originally agreed on but the closing costs are now less.

 

[TheDailyMoo]

Question from an outsider who is interested...will Disney keep buying back their properties as long as it's below the ROFR threshold or do they have an internal budget number that they can't go beyond? I know this borders on the hypothetical but if there was a major influx of people just wanting to get rid of their contracts would Disney buy them into infinity? And are they really selling them back quick enough or do they hold a glut of inventory because of ROFR.

Sorry have been very curious about this for a long time and don't know any Disney execs in the DVC department to ask over drinks!

 

[Ginamarie]

Question from an outsider who is interested...will Disney keep buying back their properties as long as it's below the ROFR threshold or do they have an internal budget number that they can't go beyond? I know this borders on the hypothetical but if there was a major influx of people just wanting to get rid of their contracts would Disney buy them into infinity? And are they really selling them back quick enough or do they hold a glut of inventory because of ROFR.

Sorry have been very curious about this for a long time and don't know any Disney execs in the DVC department to ask over drinks!

We always say “they can’t buy them all.” And they don’t buy them all. You will see some slip through at low prices while others get taken at higher prices.

 

[TheDailyMoo]

We always say “they can’t buy them all.” And they don’t buy them all. You will see some slip through at low prices while others get taken at higher prices.

Interesting! This is exactly what I was wondering. Thanks!

Also I assume when they feel like they can't buy 'em all, they probably prioritize the really low balls and have what...maybe like a $5-10 leeway on their usual numbers?

 

[kmill99]

AdventurerKat---$138-$5112-30-AKV-Dec-0/20, 0/21, 60/22, 30/23- sent 7/15

Here's hoping the ROFR monster doesn't care for snack size AKL contracts.

Dang. So YOU'RE who snatched this before we could make a play!

Well done.

 

[achinforsomebacon]

When disney takes a contract via ROFR they handle the closing. The original title company is no longer involved.

The terms are still the same because the contract says buyer pays X dollars and seller pays closing costs estimated at Y dollars.

In my case, the original title company (Mason Title) wanted around $750 for the closing but when Disney took the contract the closing costs only came to around $250 leaving the difference (around $500) for me as the seller. This is because Disney is still obligated to pay the X dollars originally agreed on but the closing costs are now less.

Thanks! Interesting though because I didn't think they could change the title company. Hasn't most of the work already been done by the title company prior to ROFR? They've at least done some work. Do they just not get paid anything for what they did?

 

[achinforsomebacon]

I’m shocked everyone still sending SSR so low. Mine was taken at $135 just a few weeks ago. I have seen up to $142 get taken. I’m pulling for all of you- we gave up and just bought PVB. I hope they eventually get too many SSR points back and quit. Kind of looks like that might be happening at AKL. But boy you all are more patient than me- I had one taken and said oh forget it, I’m going with what I know will pass

But there are SO many listed in the $120s that are just sitting there...Disney has been gobbling up SSR but there has to be a breaking point right? It's definitely interesting how many points they're sitting on with these buybacks. What are they up to???

 

[HIRyeDVC]

But there are SO many listed in the $120s that are just sitting there...Disney has been gobbling up SSR but there has to be a breaking point right? It's definitely interesting how many points they're sitting on with these buybacks. What are they up to???

My guess is to amass a huge amount of points and have a huge fire sale, like $48 pp discount if you buy 300+ points direct. They did this exact thing with BLT a few months back. The goal is to eat away at the resale market by offering huge direct incentives. Someone looking to add on SSR might think twice about buying resale at 135pp if direct costs $155pp.

 

[Ginamarie]

Interesting! This is exactly what I was wondering. Thanks!

Also I assume when they feel like they can't buy 'em all, they probably prioritize the really low balls and have what...maybe like a $5-10 leeway on their usual numbers?

It’s really hard to say. Stick around this thread long enough and you will see a lot of theories on things like stripped vs loaded contracts, small vs large contracts, etc. if there’s a formula, there’s no way to decipher it.

Usually— if you have an international seller, you’re pretty safe.
If you’re buying a resort in active sales- you’re pretty safe (right now GFV, RIV, AUL and usually PVB).
Sometimes you will see a resort getting taken like crazy and then they back off and focus somewhere else.

 

[NVDISFamily]

My guess is to amass a huge amount of points and have a huge fire sale, like $48 pp discount if you buy 300+ points direct. They did this exact thing with BLT a few months back. The goal is to eat away at the resale market by offering huge direct incentives. Someone looking to add on SSR might think twice about buying resale at 135pp if direct costs $155pp.

One additional crazy thought to add to the pile…..

They have a fairly large DVC visitors center and show room there at SSR. Saw a bit of it during my tour a few weeks ago. Perhaps they get enough visitors who cross that pond on the boats, go for a tour, and then say yes to a 100 ish point contract at 200 a point? Heck it’s “only” 20k. And one thing to consider is SSR has a somewhat okay point chart where 100 points can actually get you a few nights at the Paddock. If I put on my used car salesman hat I could see that as a easy sale to those coming in from Disney Springs…… Just a thought.

 

[Sandisw]

Interesting! This is exactly what I was wondering. Thanks!

Also I assume when they feel like they can't buy 'em all, they probably prioritize the really low balls and have what...maybe like a $5-10 leeway on their usual numbers?

ROFR is a mystery and trying to figure it out exactly won’t happen because just when you think you do..bamm..they do something else.

But, knowing the general vicinity that seems to be the cut off is helpful. If they are taking SSR under $130 for the most part..then bidding under that has a higher chance of getting taken than one at $135.

 

[macman123]

They put the contracts on a dart board and start throwing - web cam in the ROFR office

 

[Sweet T n Me]

But there are SO many listed in the $120s that are just sitting there...Disney has been gobbling up SSR but there has to be a breaking point right? It's definitely interesting how many points they're sitting on with these buybacks. What are they up to???

Maybe they will buy back enough points to take out the SSR treehouses and do something else with that property. My guess.

I don’t see us renewing the AP’s next year.
As a whole, I am tired of the WDW CEO‘s managing style. $$$$ grab for everything. The plastic DVC ID that WDW make us show to get discounts, was just about as cheap as it gets. Can anyone name something WDW still gives you for free?

I want to list our (details removed). I know, crazy.
It’s still cheaper than $200pp and not enough profit for WDW to buy it back.

There also seems to be limited availability in DVC rooms for the balance of the year.
This week though, cash resorts -POFQ & Riverside & most of the value, are available with FL residents & AP discounts. Before Covid & the 50th that would never be, especially FQ with discounts within a week.

 

[hglenn]

But there are SO many listed in the $120s that are just sitting there...Disney has been gobbling up SSR but there has to be a breaking point right? It's definitely interesting how many points they're sitting on with these buybacks. What are they up to???

Makes you wonder why they would wait for one to come through ROFR and take it at $135 when they could just buy the ones listed in the $120's. Heck, my guess is that some of those that have been sitting there would take less just to offload it.

 

[pianomanzano]

One additional crazy thought to add to the pile…..

They have a fairly large DVC visitors center and show room there at SSR. Saw a bit of it during my tour a few weeks ago. Perhaps they get enough visitors who cross that pond on the boats, go for a tour, and then say yes to a 100 ish point contract at 200 a point? Heck it’s “only” 20k. And one thing to consider is SSR has a somewhat okay point chart where 100 points can actually get you a few nights at the Paddock. If I put on my used car salesman hat I could see that as a easy sale to those coming in from Disney Springs…… Just a thought.

Except that the minimum direct is 150 pts, and sales for SSR direct and have been super slow recently. Last month of available data was under 3k.

 

[Leight19]

Makes you wonder why they would wait for one to come through ROFR and take it at $135 when they could just buy the ones listed in the $120's. Heck, my guess is that some of those that have been sitting there would take less just to offload it.

This is what makes me believe decisions are not just about whether they can turn for profit but also whether they can turn a resale buyer into direct buyer if they make resale inconvenient.

 

[disjseag]

disjseag---$165-$27600-155-CCV@WL-Dec-0/21, 155/22, 155/23- sent 7/16

This is our first contract and first offer! I really wish we have done this when we first considered it in 2009, but better late than never. Now, the waiting begins. . . .

 

[AdventurerKat]

Dang. So YOU'RE who snatched this before we could make a play!

Well done.

Sorry about that. I knew it wouldn't last long so I jumped on it.

 

[NVDISFamily]

Except that the minimum direct is 150 pts, and sales for RIV direct and have been super slow recently. Last month of available data was under 3k.

Ah good point. So the sale would be 30k vs 20k. What we forget is they are also selling financing and though some don’t like to admit it, many people live on monthly payments. So 6k down and 320 ish a month to get 30 years at SSR. Well it’s just an idea, but the must have that DVC sales center there for a reason. I would guess a reasonable amount of luck converting people to sales plus they just have the space there.

 

[sggb1992]

SGGB1992---$141-$38329-250-AKV-Aug-0/21, 250/22, 250/23, 250/24- sent 6/15, passed 7/16