ROFR Thread October to December 2023 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[DonMacGregor]

Sadly and historically that is not correct. There have been times that most contracts that they ROFR'd were stripped. The difference with DVC is that once they get it back the contract essentially goes away. Then it's dependent on the points they have available total in a unit.
I don't recall exactly the year or two timeframe - maybe 8 or so years ago but could be a little longer - there were fully loaded contracts passing and stripped contracts being ROFR'd. DVC is ultimately in it long term so there's that too.

With buyers typically making and sellers usually accepting lower PP offers on stripped contracts, it would make sense that Disney would look favorably at the increased margin on flipping those contracts. Even if there aren't any points "today", as you point out, DVC is in it for the long term.

 

[AstroBlasters]

Sadly and historically that is not correct. There have been times that most contracts that they ROFR'd were stripped. The difference with DVC is that once they get it back the contract essentially goes away. Then it's dependent on the points they have available total in a unit.
I don't recall exactly the year or two timeframe - maybe 8 or so years ago but could be a little longer - there were fully loaded contracts passing and stripped contracts being ROFR'd. DVC is ultimately in it long term so there's that too.

There is still a set number of total points, so if they buy a stripped contract then they spent money without increasing their points available to rent or sell for at least a year. We know OTUP’s go for $20pp.

I agree that if the ppp is low enough at an in-demand resort then they have a long term time horizon and can amortize.

 

[Sandisw]

There is still a set number of total points, so if they buy a stripped contract then they spent money without increasing their points available to rent or sell for at least a year. We know OTUP’s go for $20pp.

I agree that if the ppp is low enough at an in-demand resort then they have a long term time horizon and can amortize.

Not necessarily because they could buy a stripped contract at one UY and change it because they have other points in thst unit to adjust. For example, buy a stripped Dec UY contract with no points until Dec 2024.

Those point go back in the pool and can be then sold in a contract come Feb 2024…

So, it’s not always that far off.

 

[lilsonicfan]

sign&stay .... I won't opine on whether it takes advantage of buyers, but it does seem like a good way for DVCRM to get rid of contracts that they themselves bought up, it's a win-win - they strip the contract down to rent out all of the 2023/2024 points, then their non-arms-length lender gets a super high interest rate as you are forced to borrow from them, and they don't charge closing costs but don't really incur much of any either since they also use their own closing company. And still a pretty high per point price, I see SSR contracts for $115 or so!

 

[DougEMG]

DougEMG---$130-$33345-250-RIV-Aug-0/22, 247/23, 250/24, 250/25-seller pays MF 23- sent 10/19

Passed ROFR 11/15

 

[Jlo85]

"Sign&Stay" sounds similar to "Magical Beginnings." The branding is a bit misleading. I guess it's the instant gratification of owning DVC with the disclaimer that you have no points for 1-2 years.

 

[AstroBlasters]

Not necessarily because they could buy a stripped contract at one UY and change it because they have other points in thst unit to adjust. For example, buy a stripped Dec UY contract with no points until Dec 2024.

Those point go back in the pool and can be then sold in a contract come Feb 2024…

So, it’s not always that far off.

I’m definitely happy to mia culpa here, but let’s look at this example: Apr-0/22, 0/23, 0/24, 260/25

We are still in the 2023 UY and there are no points until April 2025 for a resale buyer. So Disney can massage that a little by changing the month… but fundamentally there are no point for Disney to use until 2025 (ignoring weird December UYs…. of which I own one).

 

[Sandisw]

I’m definitely happy to mia culpa here, but let’s look at this example: Apr-0/22, 0/23, 0/24, 260/25

We are still in the 2023 UY and there are no points until April 2025 for a resale buyer. So Disney can massage that a little by changing the month… but fundamentally there are no point for Disney to use until 2025 (ignoring weird December UYs…. of which I own one).

There will always be contracts that are more stripped than others…but just clarifying that some may give them access sooner than one might think.

 

[Denamac]

Denamac---$115-$37969-320-BLT-Feb-0/22, 0/23, 0/24, 320/25- sent 11/3, passed 11/15

 

[SomeImaginationHuh]

There will always be contracts that are more stripped than others…but just clarifying that some may give them access sooner than one might think.

So true! April 2025 points can be used in less than 6 months! That’s not too long for me to wait!

 

[KAT4DISNEY]

I’m definitely happy to mia culpa here, but let’s look at this example: Apr-0/22, 0/23, 0/24, 260/25

We are still in the 2023 UY and there are no points until April 2025 for a resale buyer. So Disney can massage that a little by changing the month… but fundamentally there are no point for Disney to use until 2025 (ignoring weird December UYs…. of which I own one).

In this case it isn't a debate though if they will or won't They have, sometimes frequently, in the past and apparently did recently as well. Just providing info. DVC does not look at contracts the same way the average owner does. They aren't held to the same rules and restrictions when they ROFR which likely plays a part in it.

 

[AstroBlasters]

In this case it isn't a debate though if they will or won't They have, sometimes frequently, in the past and apparently did recently as well. Just providing info. DVC does not look at contracts the same way the average owner does. They aren't held to the same rules and restrictions when they ROFR which likely plays a part in it.

I get your point, but they can’t magically make used (stripped points) available to rent/sell.

My guess is if you were to go back to 2019 and 2022 and look at the contracts taken that the chance of getting taken is higher on a loaded or full contract vs a stripped contract. But, perhaps I am wrong.

Perhaps this would be an interesting write up for a DVC Fan article.

 

[Abbie485]

EDIT: Offer rescinded

 

[eMoneyBug]

Abbie485 - $115 - $25,665 - 200 - BWV Sep - 0/22, 18/23, 200/24, 200/25 - Seller pays 2023 dues - sent 11/15

Offer accepted today, now onto ROFR! But… is there anyone with more DVC insight that can tell me if this is actually a decent price? Brand new to DVC and didn’t think to look for a thread until after, which I’m now seeing some sold in the $105-$110 range. (Hindsight is 20/20, but someone reassure me please!)

You have up to 10 days to cancel / change mind. Plenty of folks have cancelled after signing / deposit made

 

[aceshigh73]

Abbie485 - $115 - $25,665 - 200 - BWV Sep - 0/22, 18/23, 200/24, 200/25 - Seller pays 2023 dues - sent 11/15

Offer accepted today, now onto ROFR! But… is there anyone with more DVC insight that can tell me if this is actually a decent price? Brand new to DVC and didn’t think to look for a thread until after, which I’m now seeing some sold in the $105-$110 range. (Hindsight is 20/20, but someone reassure me please!)

I'd say its a tad high (but not outrageous) for a 200-pt with 18 2023 pts. Average is like $113. The "seller pays 2023" is kinda moot with only 18pts. If it works for you, and is the right UY you want/need Id move forward. If it was just a "wing it", not sure how much better you are going to get waiting...

 

[Abbie485]

I'd say its a tad high (but not outrageous) for a 200-pt with 18 2023 pts. Average is like $113. The "seller pays 2023" is kinda moot with only 18pts. If it works for you, and is the right UY you want/need Id move forward. If it was just a "wing it", not sure how much better you are going to get waiting...

Was specifically looking for Sep or Oct, tend travel fall/early winter for RunDisney. (From my research, Sep or Oct seemed to be the most recommended for Oct/Nov and Jan travel?) I didn’t offer full price, but I didn’t want my offer to be insulting either since it showed it was already reduced.

 

[KAT4DISNEY]

I get your point, but they can’t magically make used (stripped points) available to rent/sell.

My guess is if you were to go back to 2019 and 2022 and look at the contracts taken that the chance of getting taken is higher on a loaded or full contract vs a stripped contract. But, perhaps I am wrong.

Perhaps this would be an interesting write up for a DVC Fan article.

One thing I've never noticed as a potential trend was a focus on taking fully loaded contracts. I'd expect you are correct on contracts being ROFR'd having current points but I think that's in part because the majority of contracts sold have some or all current points (I think).

Again, just info since as long as I've been watching resale and the conversations around it there's never been a real clear picture why they ROFR what they do. Now and then they have some short, obvious trends such as for awhile ROFRing a lot of OKW 2042 contracts. Then there was the one I mentioned of ROFRing stripped contracts and so on. The drunk monkey eventually tosses it's ROFR darts another direction though.

 

[aceshigh73]

Was specifically looking for Sep or Oct, tend travel fall/early winter for RunDisney. (From my research, Sep or Oct seemed to be the most recommended for Oct/Nov and Jan travel?) I didn’t offer full price, but I didn’t want my offer to be insulting either since it showed it was already reduced.

Dont worry about insulting... The seller took away/used 200 2023 pts in the process of lowering their pricing, which was already overinflated.
https://dvcsearch.com/dvc-resale-listing-details/?ID=3922
Pretty sure this is your listing history...

 

[Abbie485]

Dont worry about insulting... The seller took away/used 200 2023 pts in the process of lowering their pricing, which was already overinflated.
https://dvcsearch.com/dvc-resale-listing-details/?ID=3922
Pretty sure this is your listing history...

Yep, that’s the one. So if you were the one in my shoes, should I back out and keep looking? Just trying to figure out what is the best. Not sure if this is a conversation I should have with the agent I’m working with, obviously they are getting commission from the sale which may influence what they say.

 

[Jimmy Geppetto]

As a long term owner, both direct and resale, I didn’t see a downside at all. They make it very clear that you won’t be getting any points up front, which is the trade off for not having to pay a penny up front. It works out great for me, because the only thing I’m paying is the price per point. Planning on paying off early, so it was a win-win for me

your down payment would have been $2000.

On a $38,480 (purchase price GFV at $148 on 260 points) loan at 9.9% (Monera posted rate) your cost of borrowing in year 1 is ~$3809.

not sure how that’s great but as long as you’re happy with it, that’s all that matters.