ROFR Question

[GregBuch]

The boards have been great source of info on current buy back offers taken by Disney. I was curious if anyone has ever looked into the possibility that Disney would buy back more 'add-on' contracts vs new member contracts? When Disney gets the contract to decide ROFR, do they know if it will be for someone who already is a DVC member or would be a new member? I would assume they would want to encourage new DVC members even if it via resale? Or maybe its just a numbers game and this really doesn't matter?

 

[Suzabella]

I've never gotten the impression that it matters. It's about the $ and the value to them of having those points.

 

[cedricandsophie]

When you complete a form to purchase you need to tell them if you are a current owner and where. They ask for member Ids. We just put in purchase for 220 points at OKW for 95 a point. We lost a contract to Disney in the spring for 94 a point so we will see what happens. We already have over 1000 points st other resorts and just sold two contracts, one at wilderness and another at animal kingdom, both of which we bought on resale market a few years. We made a decent profit on both and now want to use some of those proceeds to buy OKW which has turned into our favorite resort.

 

[Deb & Bill]

... I would assume they would want to encourage new DVC members even if it via resale? Or maybe its just a numbers game and this really doesn't matter?

They want new members paying retail price. Otherwise, why would they eliminate perks for resale purchase?

 

[Marionnette]

When you complete a form to purchase you need to tell them if you are a current owner and where. They ask for member Ids.

That’s not done for ROFR purposes. The title company wants the info so that they can ensure the deed gets titled the same as other deeds in your name (if that’s your intention). And the member ID number is so that the agent can advise DVC to add the contract to that membership after closing.

 

[Suzabella]

They want new members paying retail price. Otherwise, why would they eliminate perks for resale purchase?

Of course they do but they also use ROFR to keep the prices up and obtain points to sold out resorts which they sell at a higher price point than what they bought it at. They'd rather you purchase resale than walk away. They still stand to gain by people spending at parks and DS...year after year after year. That gain is better than no gain.

 

[jerseyduke]

Do not think it matters in the least.
If a contract gets ROFRed, most people just try again.

Disney wants points they can resell at a good margin, and maintain their required 2% ownership.

Of course they do but they also use ROFR to keep the prices up and obtain points to sold out resorts which they sell at a higher price point than what they bought it at. They'd rather you purchase resale than walk away. They still stand to gain by people spending at parks and DS...year after year after year. That gain is better than no gain.

The use of ROFR does affect resale prices, but I don't think that Disney gives a **** that you purchase resale as opposed to walk away. You are buying a resale contract. Whoever owned that was already going to the parks, spending money, etc. The only thing that changes is who is using it. They only get additional gain by new direct sales - thats new rooms being filled. Otherwise, its a room that was already being filled just being filled by an a different group of people.

 

[stuartsong]

I have been a DVC owner since 2001 and own at all DVC resorts through some direct but mostly resales. I have had total of 7 contracts ROFR'd. I have no clue why Disney took the contract. Trying to figure it out is a waste of time. Just get back on the horse and try for another contract.