ROFR Thread Jan to March 2023 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[HIRyeDVC]

Certain contracts with Aulani and Vero Beach were created with subsidized dues. Subsidized dues essentially means they pay less maintenance fees compared to unsubsidized contracts.

When Aulani was first selling, the executives drastically underestimated the amount of dues needed to maintain the resort. They actually stopped selling the resort briefly and fired 3 high ranking DVC executives as a result. Contracts sold prior to that pause have what we call subsidized dues. Right now a subsidized contract at Aulani pays 6.87 per point for dues. An unsubsidized contract pays 9.14. These reduced dues transfers to the person the contracts are resold to.

2.27 difference per point ends up saving 454 dollars per year in maintenance fees on a 200 pooint contract and is a great deal if you plan to keep it over the life of the contract.

Just keep in mind that if you do end up buying a subsidized Aulani contract, there will be nothing on the sales agreement that specifically states the contract is indeed subsidized. You will haveto confirm that through other means, like asking for a copy of the estoppel, past annual dues statements, and a copy of the original deed that says when the original contract was first purchased. Even with all that, you won't have that warm and fuzzy feeling until you get your first full annual dues bill yourself. This is from my own experience at least. But once you confirm everything, yes, it's glorious to know that I own the cheapest SAP in all of DVC, and at Aulani at that!

 

[becsnunn]

Congratulations… and holly crud. That past in just 15 day.. mine was sent on the 11th now I’m getting excited after seeing this

Thank you! I was hopeful it would move quickly but was still surprised to see it today. Good luck with yours. Hopefully you hear very soon!

 

[Smudge1100]

The Board's sponsor probably hates that this thread exists. It really reveals the huge gap between buyers and sellers right now.

It’s been priceless to me, to see real-time trends rather than having to wait for monthly data!

 

[naman1221]

Yeah I have had some come down to a reasonable place. One came back with $125 when I offered $90, no point even trying a counter at that point. I also mentioned to one agent that I would be happy to bid on a BLT but the problem is the prices are way too high so trying to offer at today's pricing won't work.

Yeah - I am getting zero negotiation on some of these contracts that have been listed for 3-5 months. It is interesting - I guess there is no real motivation to sell. Thankfully we arent in any real rush - if we find one that is at the price I want, I plan on snagging it quickly.

 

[Noles235]

Yeah - I am getting zero negotiation on some of these contracts that have been listed for 3-5 months. It is interesting - I guess there is no real motivation to sell. Thankfully we arent in any real rush - if we find one that is at the price I want, I plan on snagging it quickly.

Same here. Either ghosted or seller declined, no counter.

 

[intamin]

Just keep in mind that if you do end up buying a subsidized Aulani contract, there will be nothing on the sales agreement that specifically states the contract is indeed subsidized. You will haveto confirm that through other means, like asking for a copy of the estoppel, past annual dues statements, and a copy of the original deed that says when the original contract was first purchased. Even with all that, you won't have that warm and fuzzy feeling until you get your first full annual dues bill yourself. This is from my own experience at least. But once you confirm everything, yes, it's glorious to know that I own the cheapest SAP in all of DVC, and at Aulani at that!

Actually on the sales agreement under point 12 it tells you what the estimated fees are per year. If it matches the subsidized dues amount then you have one, obviously if you find out its different later on through your dues I’m pretty sure you could void it.

Pulled this from my subsidized Aulani contract

 

[cristen72]

We passed ROFR this morning! This is our first DVC contract and I am over the moon!! We only had to wait 15 days as well!

becsnunn---$100-$20791-185-AUL-Jun-0/21, 75/22, 370/23, 185/24-seller pays MF '22- sent 1/10, passed 1/25

That’s fantastic! Our first contact was sent 1/12! I hope we hear soon!

 

[Brian Noble]

I didn't get that they wouldn't even counter. Its already been sitting for 3 weeks.

"It's for sale" is not the same as "I have to sell it." They may figure that they'd let it go for the "right price" (whatever that is) but otherwise would be happy to just hold on and use/rent it. Amortizing $96 @ 4% over the 19 remaining years, plus dues, gives you a first-year value of about $16.50, slightly under what is probably the going rental rate of $17. Of course, renting is more work for both parties, but still. I can vaguely understand why. At $109 under the same 4% assumption, the valuation flips to $17.25 and change. The fact that it's loaded tips it even farther.

 

[intamin]

And to add to this... for Vero Beach the subsidy was provided because the resort was promised to be a lot larger than what it is today. Owners would have shared fixed costs with other owners, so as a result the subsidy was provided.

Do you know if sub dues transfers to resale owners for VB?

Edit: jk! Just saw they do transfer just like with Aulani.

 

[gskywalker]

Not sure why I do this to myself, I get to look forward to a lecture on how my offer is too low and everyone on the disboards lies about prices they get. Putting an offer on that site, ugh.

 

[tom1944]

Not sure why I do this to myself, I get to look forward to a lecture on how my offer is too low and everyone on the disboards lies about prices they get. Putting an offer on that site, ugh.

But within a short period of time the price can be verified by checking public records

I would just tell the broker the trend is down so I can wait to verify the sale prices. However I am willing to buy one of your contracts now if we can reach an agreement

 

[HIRyeDVC]

View attachment 734839
Actually on the sales agreement under point 12 it tells you what the estimated fees are per year. If it matches the subsidized dues amount then you have one, obviously if you find out its different later on through your dues I’m pretty sure you could void it.

Pulled this from my subsidized Aulani contract

This would have been great. Who was your broker? Mine was through Fidelity and nowhere on the agreement listed these terms when I purchased. I had to go through some hoops just to prove that the contract was indeed subsidized.

 

[HIRyeDVC]

It’s been priceless to me, to see real-time trends rather than having to wait for monthly data!

I'm not sure if prices on these boards are actual real time trends or outliers. I still appreciate the resale market's monthly reports that probably better depicts overall trends, at least from their own listings. The people on this thread are definitely more informed and savvy than the typical buyer.

 

[AstroBlasters]

IMO, The brokers want volume (i.e. commission) and I don’t think they care as much about the underlying sales price. With that said, they have to deal with sellers who are sometimes less rational.

If anything this thread probably helped prop up prices when Disney was more active in ROFR on certain properties.

If people don’t want to sell, then most of the brokers will just recommend the sellers rent out their points through their firm and they make commissions (albeit less) that way as well. A lot of them will even let your “swap” the points for cruises and other things.

Either way, it’s money in motion.

 

[ajiuo]

I’m kind of curious. Does Disney just get back to all the broker once a day with all of the ROFR decisions… or do they get back to them multiple times throughout the day? I was just wonder how that all worked.

 

[sleepymouse]

We passed ROFR this morning! This is our first DVC contract and I am over the moon!! We only had to wait 15 days as well!

becsnunn---$100-$20791-185-AUL-Jun-0/21, 75/22, 370/23, 185/24-seller pays MF '22- sent 1/10, passed 1/25

Congratulations!!! I seriously considered AUL for my first but went with AKL a few days ago. If prices continue to drop, I will definitely consider a small AUL contract. (first contract just went to ROFR and already considering another. Ha!)

 

[intamin]

This would have been great. Who was your broker? Mine was through Fidelity and nowhere on the agreement listed these terms when I purchased. I had to go through some hoops just to prove that the contract was indeed subsidized.

We bought ours through the sponsor site who have been great so far

 

[becsnunn]

Congratulations!!! I seriously considered AUL for my first but went with AKL a few days ago. If prices continue to drop, I will definitely consider a small AUL contract. (first contract just went to ROFR and already considering another. Ha!)

I wish I could get my husband in the same Addonitis boat I’m in! lol Some of those BLT prices look great! Good luck to you passing ROFR!

 

[Figment1213]

Passed today! First contract

Figment1213---$140-$23893-150-BCV-Dec-0/21, 300/22, 150/23, 150/24- sent 1/9/23, passed 1/25/23

 

[ajiuo]

Passed today! First contract

Figment1213---$140-$23893-150-BCV-Dec-0/21, 300/22, 150/23, 150/24- sent 1/9/23, passed 1/25/23

Congratulations! And wow. Another quick pass. Second of the day… I’m not complaining but I wonder why Disney is passing them so quick. When I got my AKV contract I think it got taken after about 6 weeks. Then my second attempt passed after a month or so.