Disney currently waiving ROFR...

Fidelity can have crazy deals at times. Didn't the $100 point BLT contract go through a main site as well? Although I suppose you mean if a contract was like $30/point.
My pending SSR is through them. A couple of things on them...so far so good. Signed contracts 7/9 and escrow deposit/ROFR submitted 7/14. Communication has been good and prompt so I’m happy so far. They differ from other sites in that they do charge an admin fee (mine was $195) so when comparing to other sites listings price per point, please also factor that in. Even if I factor in the fee, still less than other sites (<$10 per point).
 
Hi all. Just wondering if anyone has had a small contract (<30 points) in which Disney exercised ROFR. In looking at the ROFR threads the smallest contract I saw taken in the past 3 years was 60 points and just wondering if anyone experienced otherwise. Does DVD shy away from small point contracts in general? I know it’s a non-issue since it appears Disney has been waiving ROFR on all contracts the last 3 months but just curious. Thanks for your input!

CCV direct
SSR (pending ROFR)
Not 30 points, but we had a 40 point OKW contract taken back by Disney at $87/point in September. It was through Fidelity.
 
Not 30 points, but we had a 40 point OKW contract taken back by Disney at $87/point in September. It was through Fidelity.
Uh oh! Good to know. Guess I will see what happens. Thanks! It looks like they haven’t picked up any SSR at/over $105 recently so I’m hoping I’ll make it through. Time will tell. If not, I’ll start over.
 
Anyone have any thoughts about when DVD may start buying back again? I know Disney has been hurt by park closures etc. As much as they want everyone to buy direct, I think they like to see higher resale prices. In turn, I’m sure that helps keep direct higher. It’s definitely been a buyers market with a ton of inventory. I wonder at what point they step back in. If resale prices drop as demand drops if inventory grows, resale will continue to appeal more to first time buyers over direct. Right now I feel like most (not all) prefer their first contract direct to get the incidental benefits (blue card). If direct prices remain stable but resale prices drop, I think more will look to resale (which some do already because they see the point savings greater than blue card benefits). To keep resale prices stable long term, I feel at some point they will need to start buying back. I am curious what you think. Thanks!
 


Anyone have any thoughts about when DVD may start buying back again? I know Disney has been hurt by park closures etc. As much as they want everyone to buy direct, I think they like to see higher resale prices. In turn, I’m sure that helps keep direct higher. It’s definitely been a buyers market with a ton of inventory. I wonder at what point they step back in. If resale prices drop as demand drops if inventory grows, resale will continue to appeal more to first time buyers over direct. Right now I feel like most (not all) prefer their first contract direct to get the incidental benefits (blue card). If direct prices remain stable but resale prices drop, I think more will look to resale (which some do already because they see the point savings greater than blue card benefits). To keep resale prices stable long term, I feel at some point they will need to start buying back. I am curious what you think. Thanks!
I haven't seen anything to suggest that in the last 12 months, Disney has executed ROFR with the intent of propping up resale prices. Maybe that has happened before, but what I've seen recently is more consistent with the idea that they ROFR contracts primarily to buy points cheap so that they can resell them at $70-$100 above what they bought them for.

Disney can't sell a contract to save their lives right now. So I wouldn't worry too much. When they do start ROFR again I think it will be slow and start with the contracts that go for rock bottom prices via sketchy resale sites, Craigslist, and foreclosure auctions - it doesn't matter to Disney how a contract got to be so cheap, they will just take the cheapest one. If the market crashes due to a surge in supply, Disney will not be able to ROFR enough contracts to effectively prop up prices because they have to sell whatever they buy and demand is already a problem. In any case, they're trying to sell Riviera and Aulani, for which they are sitting on over a Billion dollars in points, and everything else is noise.
 
I haven't seen anything to suggest that in the last 12 months, Disney has executed ROFR with the intent of propping up resale prices.
I don't think they ever have. There have been enough inconsistencies in what passes/does not pass over the years to convince me that there isn't some Grand Pricing Strategy behind ROFR decisions. I think it is much more likely that ROFR is primarily a mechanism to obtain inventory when prospective buyers have a strong interest in sold out resorts and there is sufficient traffic at the resorts in active sales to spend Guide time on these other resorts.

It may not seem like it, but even a spread of 50% between retail and resale prices is probably not all that helpful to Disney. Best practice in the timeshare inventory is that cost of goods is somewhere between 20%-30% of eventual sale price. In other words, even if I buy for $100/pt and sell for $200/pt, I am paying more for that ROFR'd deed than I would if I were just building a brand new shiny resort. Cost of constructing that new resort selling for $200/pt was probably more like $50/pt.
 
I don't think they ever have. There have been enough inconsistencies in what passes/does not pass over the years to convince me that there isn't some Grand Pricing Strategy behind ROFR decisions. I think it is much more likely that ROFR is primarily a mechanism to obtain inventory when prospective buyers have a strong interest in sold out resorts and there is sufficient traffic at the resorts in active sales to spend Guide time on these other resorts.

It may not seem like it, but even a spread of 50% between retail and resale prices is probably not all that helpful to Disney. Best practice in the timeshare inventory is that cost of goods is somewhere between 20%-30% of eventual sale price. In other words, even if I buy for $100/pt and sell for $200/pt, I am paying more for that ROFR'd deed than I would if I were just building a brand new shiny resort. Cost of constructing that new resort selling for $200/pt was probably more like $50/pt.
Very insightful. Good points! Thanks
 



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