# Recent ROFR Exercise



## phil1ben (Nov 25, 2010)

Have been shopping for a 2 bedroom Platinum (7000 points) at HGVC South Beach for about 3 months. I know we could buy elsewhere and use the points but we wanted this resort and are not really interested in exchanging.  Made an offer of $8,000.00 three weeks ago which the broker claimed "was run" by HGVC and their title company. Seller accepted the offer and initial indications were that HGVC would not exercise. At the last minute they exercised. After factoring in MFs, purchase price and transactions costs this was the maximum amount that made sense to me. At any more than that I would rather have the flexibility of renting a suite at the Delano or other luxury resort whenever I wanted. Found this BBS very helpful. If anyone has a 2 bedroom at HGVC South Beach which they want to rent or sell please PM. Posted this so everyone was up to date.


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## got4boys (Nov 25, 2010)

phil1ben said:


> Have been shopping for a 2 bedroom Platinum (7000 points) at HGVC South Beach for about 3 months. I know we could buy elsewhere and use the points but we wanted this resort and are not really interested in exchanging.  Made an offer of $8,000.00 three weeks ago which the broker claimed "was run" by HGVC and their title company. Seller accepted the offer and initial indications were that HGVC would not exercise. At the last minute they exercised. After factoring in MFs, purchase price and transactions costs this was the maximum amount that made sense to me. At any more than that I would rather have the flexibility of renting a suite at the Delano or other luxury resort whenever I wanted. Found this BBS very helpful. If anyone has a 2 bedroom at HGVC South Beach which they want to rent or sell please PM. Posted this so everyone was up to date.



You should be glad that they exercised ROFR. I got rid of my South Beach because the maintenance fees were sky high. I would buy elsewear in the HGVClub system and then get into South Beach at the 9 month window. That way you will save on the Maintenace fees.

Peggy


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## yumdrey (Nov 25, 2010)

Thank you for sharing your recent ROFR experience. It made me surprised Hilton bought it back. I think there's no active sale in south beach and $8,000 could pass ROFR before. These days Hilton wants those 7000 point packages and exercised quite often (for lower than $8,500), maybe they need more platinum 2BR inventories.
Have you contacted Seth or Judi? They are reputable HGVC brokers, they may have listings for you.


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## phil1ben (Nov 25, 2010)

I spoke to both of them during my search but they did not locate a 7000 Platinum 2 bedroom. It is also surprising because if the sale went through Hilton would have made an additional $299.00 on the transfer fee and $350 on the title insurance (through HG Title) which they waived when they exercised. Now they will need to sell for at least $8,650.00 to net the same amount. Irrelevant to the Seller because he received the same $6,500 after the brokers commission was netted out.


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## Talent312 (Nov 25, 2010)

I just booked a week a South Beach for a week beginnning May 28th...
low season, admittedly, but plenty of "club" availability in both directions.


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## rjp123 (Nov 25, 2010)

Heading to South Beach in March-11.  Will be my first stay at the property since buying there in May.

Interesting on the ROFR.


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## ILOVETOTRAVEL (Nov 26, 2010)

*ROFR*

Hello, I also am going through Judi. We purchased a 3500 point HGVC Seaworld for 1000.00 silver unit and we found out the other day that they exercised that one. Also We were told that a 5000 pt unit was exercised that same day. The person we were buying from was trying to upgrade to another unit(5000 pt) and it was bought back.


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## yumdrey (Nov 26, 2010)

Is it a sign of recovery?
Starwood also exercise ROFR more often than ever these days.
Didn't know Hilton buy back 5000 packages also. Especially this time of the year.


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## Sandy VDH (Nov 27, 2010)

If the price is low enough it might be worth while to buy any week.  It certainly would be cheaper than building new, especially if points are points.


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## bosco0633 (Nov 28, 2010)

ROFR is back in full force.  Hilton is aggressively exercising on several units.  I have spoken to multiple sources that suggest that Hilton is buying 7000 points back daily and that 5000 points and lower are hit and miss.

If this is the case, count your blessings that you scored a cheap unit when you did.  My friend just lost out on his second 7000 point attempt.  Seaworld 7000 point was exercised at 8700 and I-drive exercised at 8900.

I am shocked but pleased as well to see that the market may be in somewhat of a recovery. May just be temporary but how much longer could Hilton sit back and allow such crazy sales to go by.


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## phil1ben (Nov 29, 2010)

There are still plenty of Sellers willing to sell their 7000 point packages for $8,000.00. I still believe that the 2 bedroom we are looking for in South Beach is not worth any more money given the MF and other fees associated with ownership. If there are Sellers willing to sell and Buyers willing to buy at that level than it will result in HGVC holding a lot of inventory without collecting MFs, if it continues to exercise. It is gambling that Buyers are willing to buy at a much higher price point which I do not think is the case. We shall see what the new year brings but HGVC IMO continues to lower value by raising fees.


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## kool_kat (Nov 29, 2010)

I am currently purchasing a unit and was wondering if there was anyway to check on what the closing company files for ROFR?  I want to make sure that my closing company is really using the purchase price and didn't inflate it to get it to pass ROFR & didn't know if there was anyway to verify that they really used the correct purchase price.


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## phil1ben (Nov 29, 2010)

You should request a copy of the letter requesting waiver of the ROFR. You have a right to receive a copy of this letter and I include such an obligation in the purchase contract. In my experience the purchase price includes the broker's commission. One reason it is done this way (rather than simply added on the closing statement as a sellers expense) is to inflate the purchase price for ROFR purposes concerning HGVC units. So for example if the Buyer offers $8,000.00, I would expect about $1,500.00 to be the broker's commission and approximately $6,500.00 to go to the Seller. The amounts may vary based on the purchase price. For example, on a $1,000 there is not enough money to pay a commission so the Seller may need to come out of pocket at closing.


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## Talent312 (Nov 29, 2010)

phil1ben said:


> [Hilton] is gambling that Buyers are willing to buy at a much higher price point which I do not think is the case. We shall see what the new year brings but HGVC IMO continues to lower value by raising fees.



Hilton is likely guessing that, as the recession ends, there will be pent up demand.
I agree that this is wishful thinking and they will end up owning many TS's. 

However, I will shed no tears for the Blackstone Group (which owns Hilton).
Perhaps by being saddled with more MF's, they will get a taste of their own medicine.
Too bad they are not subject to their own fees when renting out TS's to the hotel-side.


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## phil1ben (Nov 29, 2010)

The share price of BX has done basically nothing in the past year despite the run-up in the stock market. The stock opened the year at 13.25 and is now trading slightly lower. Based on that, let them buy more and I will be buying my 2 bedroom at $5,500.00 by March. The share price may also provide some indication as to why fees are being raised. Hard to tell shareholders that your stock is flat in a market that has increased so significantly. 

Back to the point, I think the exercise of ROFR is a hit and miss game based on timing, quarterly earnings and many other factors. I intend to keep making offers until one hits. I may lower my number, however. It cost me nothing to make an offer, as long as the funds are adequately protected.


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## aussiemum (Nov 29, 2010)

*ROFR at HHV*

Hilton also exercised ROFR on the 2 bedroom penthouse week we were trying to purchase. 7000 points Gold Season. I have been dealing with Seth and he has been so helpfull, he was confident it would pass as it was Gold season not Platinum which is usually what Hilton is most interested in.(Obviously not anymore)

There was much celebration from the family when the seller accepted our offer as we were confident it would pass ROFR.Very quickly we were brought back down to earth.

I am a newbie and this is my first venture into timeshare, it was quite a disapointment as we were happy with the price as was the seller, I guess you should never count your chickens before they're hatched!

Now we start again, we are putting an offer in for a 2 bedroom Oceanfront so will hope to get passed second time around.

Should have said this is for the Lagoon Tower at HHV.


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## eugeneleemd (Dec 5, 2010)

my friend just passed rofr at HGVC in LV, karen. paid 7795 total (after 695 for title ins and fees) so the purchase price was 7100 on ebay back in august.  it was plat 7000 pts annual.


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## phil1ben (Dec 5, 2010)

I am sure it depends on the location. My offer was $8,000.00 plus I paid all closing costs (i.e. about $800.00 including title insurance and $299.00 transfer fee). Looks like the bubble is in that $7,000.00-$8,500.00 area for 7000 Platinum points depending on the facility. Still looking for a 2 bedroom in South Beach Platinum for that price.


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## asmd05 (Dec 6, 2010)

eugeneleemd said:


> my friend just passed rofr at HGVC in LV, karen. paid 7795 total (after 695 for title ins and fees) so the purchase price was 7100 on ebay back in august.  it was plat 7000 pts annual.




I have been reading this site for a while, but finally decided to take the plunge.  I won ebay auction for $7400 + fees for hgvc in LV, karen, 7000 platinum points annual.  last week, found out hilton exercised, so the search starts again.   i wish i was as lucky as your friend.


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## pianodinosaur (Dec 6, 2010)

asmd05 said:


> I have been reading this site for a while, but finally decided to take the plunge.  I won ebay auction for $7400 + fees for hgvc in LV, karen, 7000 platinum points annual.  last week, found out hilton exercised, so the search starts again.   i wish i was as lucky as your friend.



Sorry about the ROFR.  You may wish to consider HGVC at the Flamingo.  There is no ROFR at HGVC at the Flamingo as far as I know.


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## ILOVETOTRAVEL (Dec 20, 2010)

*Recent Rofr*

Hello All, just heard from Judi K. today was told that our 3500pt unit at Seaworld was approved and ROFR was waived. The price is 1500.00. I was told by Judi, that we lucked out because they are really excising now on HGVC. She says they are pretty much buying back any unit. The resale market seems pretty tough right now...


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## jestme (Dec 20, 2010)

Is that a platinum studio plus, or a 2BR silver week?


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## ILOVETOTRAVEL (Dec 20, 2010)

Its a 2 bedroom silver unit.


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## Blues (Dec 21, 2010)

I don't think I've ever heard of them exercising for a silver week.  Anybody else ever heard of that?

-Bob


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## Sandy VDH (Dec 21, 2010)

I am with you Blue, I have only seen mostly Platinums and Golds being ROFRed.

I would hazard to guess that any Lagoon purchase would be snapped up, as they could use those to second sell anyone who says no to the higher point GW that is still in full sales mode.  

South Beach with the property so small, is also a likely target.  

FL and LV would be better point purchase locations, due to the volume of units, the MFs, and the inventory levels.  Although PC in FL would be the higher target for ROFR.  ID or SW would have reduced chance of being ROFR over the other FL Orlando Properties.

I did focus on HGVC specific build properties.


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## ILOVETOTRAVEL (Dec 21, 2010)

Hello, well I lost a silver unit 3500 points before this unit. So I guess I can say that I know first hand that they are taking silver units. This was a 3500 siler unit Seaworld. I also spoke to another person that lost the same unit 3500 for Seaworld. So they are ROFR on those. Judi K says that right now they are not caring whether its Silver or not. It depends on what inventory they need at this time.


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## ILOVETOTRAVEL (Dec 21, 2010)

Oh Yes, I lost my first unit in November 2010 before Thanksgiving. So ROFR is very active...


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## slow_down (Dec 22, 2010)

*New ROFR Update*

Hello all,

Just thought I would drop a note to let everyone know that I sold one of my 1 bdrm 4800 pt (platinum) units for $5,000.  I was just called this week by Hilton.  They are exercising ROFR.  I was quite surprised, given the time of year.  Hopefully it will raise the value of my other units and yours too!  

Happy Holidays!!!   :whoopie:


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## GregT (Dec 22, 2010)

slow_down said:


> Hello all,
> 
> Just thought I would drop a note to let everyone know that I sold one of my 1 bdrm 4800 pt (platinum) units for $5,000.  I was just called this week by Hilton.  They are exercising ROFR.  I was quite surprised, given the time of year.  Hopefully it will raise the value of my other units and yours too!
> 
> Happy Holidays!!!   :whoopie:



Wow, that's interesting.   I just purchased a 4,800 Platinum at Sea World for $2,900 in August, that passed ROFR in September.   Maybe my "equity" in my HGVC will offset my "deficit" from two Maui Ocean Club weeks (one bought developer).     

Where was your property located?

Thx for the update.


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## slow_down (Dec 22, 2010)

GregT said:


> Wow, that's interesting.   I just purchased a 4,800 Platinum at Sea World for $2,900 in August, that passed ROFR in September.   Maybe my "equity" in my HGVC will offset my "deficit" from two Maui Ocean Club weeks (one bought developer).
> 
> Where was your property located?
> 
> Thx for the update.



Hey GregT,

It is located at Sea World.


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## Blues (Dec 22, 2010)

I must say, I find it fascinating that they're now exercising ROFR for silver units, and that they're exercising platinum/gold at much higher prices than just a few months ago.  Thanks for all the reports.  Keep them coming!  

-Bob


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## VerlP (Dec 22, 2010)

We purchased a 1BR platinum 4800 points, including all 2010 points, at International Drive for $3000 through Judi K (who was fantastic by the way) and passed ROFR in late November.


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## yumdrey (Dec 22, 2010)

Seems like good time for buyers is gone?
Starwood is exercising ROFR and Hilton is very agressive too.
I am so glad that I bought a third HGVC week last September.


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## chriskre (Dec 22, 2010)

I wonder if they are just exercising ROFR on every year and not EOY.

I was thinking of adding an EOY.  Maybe buyers would have better luck with an EOY bigger contract.


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## AlnKel (Jan 14, 2011)

Congratulations ILOVETOTRAVEL!

We've been sitting on pins and needles waiting to hear whether we passed ROFR too. And hurray! We did. We bought 3400 points EOY at the Tuscany/International Drive property. We got it at a real bargain. It took slightly under 3 weeks to hear back from Hilton. We passed ROFR the first week of Jan. No broker used; private sale. I feel fortunate, even though it's a small package.

Thank you to all of you wonderful TUG members. What a great education I received on resales, ROFR, etc., before purchasing my first TS.


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## linsj (Jan 14, 2011)

Another data point: I sold a 3400 EOY unit for $500, and it passed. Hilton made a decision in about two weeks.


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## kool_kat (Jan 14, 2011)

linsj said:


> Another data point: I sold a 3400 EOY unit for $500, and it passed. Hilton made a decision in about two weeks.



Now that's cheap.  I thought I did pretty good to get my 5,000 pt EOY for 1,400.  It passed ROFR in late November/ early December.


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## ILOVETOTRAVEL (Jan 14, 2011)

AlnKel, Thanks For The Congrats And Congrats To U As Well. U Got A Great Deal Im Sure.  Aren't U Looking Forward To Upcoming Travel.. U Are On Pins And Needles To See If It Will Pass. This Was Our Second Try. Judi K Was Great...


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