Right of First Refusal (ROFR) Returns - What Does it Mean for DVC Members?!
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- Опубліковано 3 вер 2023
- Today on The DVC Show, we're delving into the recent return of DVC's Right of First Refusal. What is ROFR, what contracts were taken, and What does it mean for DVC resale buyers? Tune in to find out!
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Panda is back!!
Without hearing a word it’s my favorite panel in a long time. Panda and Derek back in one episode? 🎉 Let’s go!
Very fun show with a great group. I wanted to thank Amy and Paul for the work they’ve done keeping the DVC show running through everything that has happened in recent weeks. You’ve adapted and found ways to make it work even without a studio in which to record. Who knew having Jeff drive you around in a surrey would be so entertaining? Thank you for all you do.
I’m sooo happy that Panda is back!!!! Thanks for bringing him back. It would be cool to see Fiasco back too.
Another great show Amy and Paul! Trying to catch up on the shows we've missed. It was so GREAT to see Panda! I hope he is on a lot. And always a pleasure to see Derek. He was our representative when we bought a Poly contract a few years back and was so nice, and so easy to work with.
So great to see the band back together!
Feels like home. WELCOME HOME
Derek gets a shout out from me because he helped me sell my 25pt Hilton Head contract for full asking price earlier this year. Not that a 25pt contract needs too much help selling, but still 👏
I thought the puppet was awesome! Fun show, even though I am not a DVC person, I really enjoy the shows! Thank you to Panda for joining in and to Derek as well.
So EXCTED to see Panda! Welcome Back! Hope to see you on the show more often! 😃
Nice to see Panda and Derek. And, of course, Amy, Paul, and Jeff - we've just seen you more recently :) ROFR is so fascinating. I'm shocked that no one has been able to detect a pattern yet -- not for lack of trying, I'm sure.
Panda! So good to see you back!🎉
Love to see Derek and Panda back on the show!!
I'm so happy that Panda is back!
I sold my OKW & BR, closed on them last month. No issue at all. I’ve owned OKW since 1997, BR since 2003. Was very happy with the offers I received. I sold only because my husband passed and I had too many points for just me.
I still have my SS & BLT contracts which I use either for solo trips or to bring friends .
Great to see Panda and Derek
Buying back VGF makes absolute sense when you know that they are raising prices for direct prices very soon. They have instantly increased the margin they can get on their own resale.
Nice to see Panda back!
Yay Panda! ROFR monster should be named the official DVCFan mascot.
Happy to see Panda back! The world needs more Panda!
So glad the crew is back together.
So happy to see Panda!
So happy that Panda is back!
yea Panda!!!! So good to see that smiling face!!!
Grand flo ROFR was probably bought back to keep the resale prices from getting too low while DVC has inventory to sell.
Love that Panda was on the show. Also, loved the vlogs that Adam Hattan previously shared with us to learn about the services this company provides.
Love Panda's ROFR monster! 🙂
Welcome home Panda!
Yay. So awesome to see Panda back after so long.🎉
Nice to see some familiar faces back!
Love every single about this…Panda, Derek, Amy, Paul and now Jeff❤️Absolutely love this group❤️
You also have to take into account that when they buy them back the lose out on HOA dues for those points for however long it takes them to turn it over
I am new
Would love to see stuff on smaller details on how the system works. Tips on 7 months, peak times, getting more days than needed and adjusting, common mistakes and misconceptions, setting calendar reminders...etc....the little thing you learned.
A “I Am The ROFR Monster” t-shirt would be a great Halloween costume at MNSSHP. 😂
Love Panda’s vibes.
So good to see everyone back !!!! Yay !!!!!
Welcome back Panda! Hope to do a panel show with you sometime :) Always good to see Derek on the show too.
What a fun, interesting and informative show! Great to see some of the best of rhe "old crew" back together. Keep up the great work! 🎉
Panda! ❤❤❤❤❤
Yay Panda is back. We're holding off to decide between Poly and the Fort. We already own 2 at OKW.
i also think they buy back resorts on their refurb schedules. If they have more points that they own, they can take more offline to refurb, and get it done quicker. Boulder Ridge had a lot of ROFR before the refurb.
Another great episode.
Fantastic episode. Great vibes and content. More episodes together please.
Just went into ROFR with a 150 point SSR contract through DVC Resale Market. Hoping I have better luck because it’s SSR.
Great episode :)....Kinko's is owned by Fedex now :)....great to hear the seller's side of ROFR, first time I've heard first-hand experience of that :)
Buying back VGF makes sense since the price increase is coming so there is probably a big run on direct purchase before the increase. Not to mention the lack of resale restrictions on a direct purchase from there.
Some thoughts..
ROFR definitely keeps the value of DVC consistent. It is more or less a check and balance tool.
Likely, they use algorithms set to different values based on various needs at any given time.
Maybe properties like GF are considered higher end than others, and as such, they keep the values generally high.
Crazy to think we bought in 2005/2006 resale Saratoga at $85 per point..and now that goes for north of $105 per point. ROFR at work.
It is great to see Panda!
Love the content and when Panda is on! 😊
FedEx bought Kinko’s and rebranded it as FedEx Office.
Panda and Derek !!
Great show. Thank you.
20:33 is there a chance that they're buying back contracts from resorts where they have potential buyers on the waitlist??
Nice R2 and Boba Fett Derek👍
Ok, new idea for a show: when will the first Anaheim Villas resale show up?
just FYI, Fedex bought out Kinko's in 2003, 20 years ago...
PANDAAA!!!
How far is it to buy into old Key West and then expect to stay at let’s say the grand Floridian or Polynesian
What’s the above average salary for selling dvc timeshare sales
Big fuzzy panda
I wonder how many original owners will own their contract to expiration? And as a semi-related question, will there be a minimum # of years required to be on a contract for resale? Looking at those 2042 exp. dates, will contracts with less than five years remaining be available for resale? Oh the questions I have and I am not an owner!! Just a wishful thinker...
1) Not many but I have been an owner since 2006 or so.
2) No - as an owner, you have the right to sell what you own...whatever that means. Maybe the economy is in the tank and the best offer for the last 4 years of use is $5-10 per point, then that is the value you get as an owner (whether that money comes from an individual or Disney via ROFR) but you always have the right to resell for whatever you can get for it.
No wonder! You can purchase an Anaheim, WorldMark Timeshare within a 7 minute Uber drive. To the main entrance to Disneyland, California. On the secondary market for pennies on the Dollar. You can stay at a high end resort for Cheap. Why? No ROFR!
Nah, cash prices for hotels offsite are much much lower than onsite Disney hotels.
That difference in rental margins is what drives the difference in value between onsite Disney timeshares and offsite timeshares. Not ROFR.
But lots of folks confuse correlation with causation.
panda rules.
I don't agree with Derek that when DVC sells live inventory that they make 100% of the profit. There are construction and other costs related to the sale of live inventory. In many cases they may be able to buy back inventory through ROFR for the same or less than the construction costs of new builds.
Well, Brian Noble estimates the rule of thumb in the timeshare world is that cost of construction is about 1/4 to 1/3 of cost of direct sale prices.
So ROFR at 3/4 or so of direct prices isn't close to that profit margin.
When resale prices tanked a bit in the Great Recession, DVC also dropped out of the ROFR business to avoid buying inventory they couldn't resell any time soon, so I'd bet that they have never used ROFR for anything like the margin for direct sales.
If I close my eyes, panda sounds just like Newman from Seinfeld
DVC isn't exercising ROFR to protect the price of the product. They are doing it for two main reasons, they think they can take advantage of it and make money and also to protect nightly rental prices of their regular Disney resort hotels. If prices of DVC were to fall too low, it could inhibit the pricing model of their cash based hotel rates. In order to protect those rates, they utilize ROFR. But it is foolhardy to think they are somehow doing it to protect the membership.
Derek is a salesperson, not a business executive or an economist...
Things just get ugly when Disney is struggling and drops out of the ROFR game and the folks who listened to Derek start asking, "I thought you said Disney would keep using ROFR to protect my resale pricing...?"
But I don't think ROFR forces resale prices higher, higher demand does that. ROFR just lets owners know if they can price their resales higher (i.e. that Disney's models are showing high demand that indicate a quick turnover for their new inventory where an individual reseller wouldn't have a larger macroeconomic sense for aggressive pricing).