ROFR question

[Peanutt]

So after finally researching and taking the plunge to join DVC via resale yesterday we got the information that Disney were taking the contract we had offered on using ROFR - just wondering if this happens quite a lot? Any advice/suggestions or is it just 'pot luck' and you eventually you have one accepted?

Kind of struggle to understand the logic on why contracts are not all sent to Disney for ROFR first before they become available to buy as if they get to decide on them all anyway it would make it easier for buyers to know whats actually for sale - my logic sais whilst im sat on ROFR there would have been others suitable that may go through but Ive now missed those as they are pending for others (If Im missing the point or there is a reason Im really curious to know?)

[YorkshireT]

Originally Posted by Peanutt

So after finally researching and taking the plunge to join DVC via resale yesterday we got the information that Disney were taking the contract we had offered on using ROFR - just wondering if this happens quite a lot? Any advice/suggestions or is it just 'pot luck' and you eventually you have one accepted?

Kind of struggle to understand the logic on why contracts are not all sent to Disney for ROFR first before they become available to buy as if they get to decide on them all anyway it would make it easier for buyers to know whats actually for sale - my logic sais whilst im sat on ROFR there would have been others suitable that may go through but Ive now missed those as they are pending for others (If Im missing the point or there is a reason Im really curious to know?)

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Bad news Peanutt, but don’t get disheartened, the only thing it cost you is time. Lots of contracts around so just get another bid in.
As to how often it happens, it varies. They seem to have got more active in the last year for sure, check out the DVC Resale Market blog for some pretty good info on what percentage are being taken.
They seem to wax and wane depending on time of year. Use Year I was convinced was a big driver and despite what was said on forums price is also a big driver. If you are a good negotiator you are more likely to be hit with a ROFR.
They also seem to concentrate on particular resorts they consider need lifting in price. A while back it was always BLT, then AKL, SSR had a high percentage taken for a while, then OKW. I take it you are checking the ROFR thread on the other board also?
Now they can convert any contract to any use year, I don’t think use year will be a big driver now (for example, before if they had a lot of people wanting Feb contracts, they were more likely to take Feb I speculate).
Like I’ve said before, my last one was taken twice and it was third time lucky. I slightly overpaid the third time (I always try to drive a hard bargain so that was tough) but I knew it was likely to go through, I don’t regret paying a few dollars more per pont as I still saved 45+ a point compared to Disney.
There is excellent logic why they are not sent to DVC first- who would decide the price? DVC (DVD) get the benefit of an army of free negotiators. DVD always win.
As to why ROFR takes so long ? Maybe a resource issue, but suspect they want to deliberately drag it out as long as possible so you lose interest when it’s taken and go direct. Win win then for them- maybe they’ll even sell you back the points you’d secured an agreement to buy for given they’ve just ROFRd them. I bet it has happened. Imagine the irony.

[Peanutt]

Originally Posted by YorkshireT

Bad news Peanutt, but don’t get disheartened, the only thing it cost you is time. Lots of contracts around so just get another bid in.
As to how often it happens, it varies. They seem to have got more active in the last year for sure, check out the DVC Resale Market blog for some pretty good info on what percentage are being taken.
They seem to wax and wane depending on time of year. Use Year I was convinced was a big driver and despite what was said on forums price is also a big driver. If you are a good negotiator you are more likely to be hit with a ROFR.
They also seem to concentrate on particular resorts they consider need lifting in price. A while back it was always BLT, then AKL, SSR had a high percentage taken for a while, then OKW. I take it you are checking the ROFR thread on the other board also?
Now they can convert any contract to any use year, I don’t think use year will be a big driver now (for example, before if they had a lot of people wanting Feb contracts, they were more likely to take Feb I speculate).
Like I’ve said before, my last one was taken twice and it was third time lucky. I slightly overpaid the third time (I always try to drive a hard bargain so that was tough) but I knew it was likely to go through, I don’t regret paying a few dollars more per pont as I still saved 45+ a point compared to Disney.
There is excellent logic why they are not sent to DVC first- who would decide the price? DVC (DVD) get the benefit of an army of free negotiators. DVD always win.
As to why ROFR takes so long ? Maybe a resource issue, but suspect they want to deliberately drag it out as long as possible so you lose interest when it’s taken and go direct. Win win then for them- maybe they’ll even sell you back the points you’d secured an agreement to buy for given they’ve just ROFRd them. I bet it has happened. Imagine the irony.

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Thanks for your response - fair point on why they do it that way but I have time on my side so not an issue in the sense of forcing me to go direct (but I can see why people would) I may buy a top up direct when I go out there but every intention of buying resale at present - looking for OKW as home resort and yes I think I am keeping an eye on that other board too

[Hendriks]

Sorry to hear this
Just waiting to hear outcome of ROFR

Out of interest which Resort was it ?

[Peanutt]

Originally Posted by Hendriks

Sorry to hear this
Just waiting to hear outcome of ROFR

Out of interest which Resort was it ?

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It was OKW (but was also very low at under $80 per point so in reality I guess we are not surprised)

[skstorm]

Our first contract was taken ROFR - It was a good deal! however I kept looking and the second one passed, I did increase the price a little to try and get it through as it had banked points on it. I'm sure you'll get one sooner or later, Good Luck.

[Shooby doo]

Peanutt I really think that you are being overly optimistic I would hazard that anything under $90 is going to get taken every day of the week & twice on Sunday! Looking a ROFR data for Jan-Mar $100 seems to be the cutoff & TTS cheapest OKW contract is $98. I'd think perhaps a mid $90's on a stripped contract might sneak through but, especially now that DVD can change UY, it's their ball to play with
SD

[YorkshireT]

The Disney ROFR process worked wonderfully here (I had the same) in that Peanutt negotiated a great deal, and DVD make more profit on the resale from Peanutt's free negotiation service.
DVD always wins with DVC, as an owner you just have to accept it.
But we shouldn't complain, the process keeps up the price of our own contracts. Just put it down to experience and bid again.

[Shooby doo]

YT I know that you "advocate" starting again & that it only costs time but in this case Peanutt is going to spend a lot of his/her time getting DVD contracts at $80/point & none for themselves I'm all for a bargain, more than a bit surprised that the Seller accepted $80 tbh, it's nearly $20 under the current average! Personally I'm going to look, get the mean, & then offer at a price I think will get passed ROFR.
SD

[YorkshireT]

Originally Posted by Shooby doo

YT I know that you "advocate" starting again & that it only costs time but in this case Peanutt is going to spend a lot of his/her time getting DVD contracts at $80/point & none for themselves I'm all for a bargain, more than a bit surprised that the Seller accepted $80 tbh, it's nearly $20 under the current average! Personally I'm going to look, get the mean, & then offer at a price I think will get passed ROFR.
SD

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Yes Shooby I think you have a good point. Assuming price is a main driving factor of ROFR (which I think it is, but others disagree) then there is logic on saying offer what you think will get through, because you are still saving big sums compared to direct. This logic increases if you have a trip planned where you need the points.
It was exactly this logic which led me to offer $114 on my last SSR contract (which wasn't as bad as it sounded as it did have some banked points with dues paid) which was probably about $5 a point more than I could have negotiated with some other seller had I been prepared to hang on and risk ROFR again (I'd had two taken, never had one ROFRd previously).
Some people though have cheap contracts sneak through. So if you are prepared to just go again as many times as necessary you may still bag a bargain.
Best strategy for buying resale is buy when you have no trips on the horizon!
Peanutt did a great deal here, I agree at that level it was very likely to be taken, but hats off to Peanutt. May have been stripped though, we don't know?