Is a stripped contract more likely to pass ROFR?

[MamaBear12]

We’re planning on buying in later this summer (resale, cash). We’ve done our homework. I know there’s a lot of speculation regarding which contracts Disney takes. Now that they can change the UY, do you think a stripped contract has a better chance of passing ROFR? I was originally discounting stripped contracts, but now I’m thinking a good deal on a contract with a chunk of 2019 points missing (Dec UY) would be a good move as it would be a less attractive contract for Disney since they would have to wait to resell it until it’s a “whole” contract again. Or can Disney add points from elsewhere to make it sellable immediately?

 

[aoconnor]

It actually appears to be the opposite- stripped contracts get taken more frequently. The thought is that Disney doesn't like having to pay MF's on the current years points, and they have a large pool of developer points they can replenish the contract with for the new buyer.

Example: A stripped contract at $100 vs a contract with full points at $110. The stripped contract costs Disney $100, while the full contract costs ~$117 (including MF's). They'd rather buy the $100 contract and re-fill it with their own points, and charge the next buyer the MF.

 

[skippytx]

DVD seems to have changed their preference lately. They really seem to like stripped contracts these days. My observation was a year or 18 months ago they preferred to buy contracts with current UY points to fulfill their waitlist for direct points. It seems now they're stocking up on stripped contracts they can sit on until they become current and resell at a nice profit.

 

[stewart715]

Fully loaded contracts with unpaid dues are the most unlikely to be taken via ROFR.

 

[MamaBear12]

It actually appears to be the opposite- stripped contracts get taken more frequently. The thought is that Disney doesn't like having to pay MF's on the current years points, and they have a large pool of developer points they can replenish the contract with for the new buyer.

Example: A stripped contract at $100 vs a contract with full points at $110. The stripped contract costs Disney $100, while the full contract costs ~$117 (including MF's). They'd rather buy the $100 contract and re-fill it with their own points, and charge the next buyer the MF.

Gotcha. I wasn’t sure if they could replenish it from their own stock or if they had to sit on it until the UY had full points available. Good to know! Thanks! Guess I’ll focus on loaded.

 

[KAT4DISNEY]

Just bid on contracts that you like and are comfortable with the price. They don't take every contract and you just never know what will go thru and what won't.

 

[Ecstatic Eeyore]

Our stripped bay lake contract got swiped by the mouse after waiting 30 days.

 

[scot@dvcstore]

I agree with KAT4DISNEY.....find the listing that fits your plans at a price your comfortable with. Don’t over think ROFR. Enjoy the resale purchase experience which can be very rewarding buying experience if you use the right broker