# Hgvc Rofr



## winnipiseogee (Aug 26, 2012)

We are thinking about adding an HGVC property to our TSs but I think I am missing something about ROFR.  I made a seller an offer which they said they would have accepted but they didn't think it would pass ROFR.  My question is - Why do they care?  ROFR means that Hilton would have to step in and purchase their week for the price that I am offering them right?  Why would they care if they sell it to me for $1500 or to Hilton for $1500?  Thanks for the help whoever can help explain this to me!


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## Talent312 (Aug 26, 2012)

Perhaps they're just fishing for a higher offer.
Maybe they thought you'd say, "How much would it take?"


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## RX8 (Aug 27, 2012)

winnipiseogee said:


> I made a seller an offer which they said they would have accepted but they didn't think it would pass ROFR.



Was the seller a private individual or broker?



winnipiseogee said:


> Why would they care if they sell it to me for $1500 or to Hilton for $1500?



Not sure what you offered to buy but if the seller was thinking of accepting $1500 I doubt it is a deed that HGVC would ever consider exercising their ROFR.

I may be wrong but I have not heard of HGVC ever buying via ROFR any points less than 4,800.  I believe that ROFR of 4,800 up to but not including 7,000 is more likely to NOT happen than actually having HGVC purchasing.

Of course if it is an absolute low ball MAYBE they might exercise but I have even read about some silver points going for a $1.


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## Sandy VDH (Aug 27, 2012)

It really depends on the what the seller wants to accomplish. 
'
If they are just getting rid of it, because it is an emergency dump, then taking any offer will do.  Because either you will buy it or HGVC will buy it.  

 But would you want to sell a cheap timeshare for only HGVC to buy if in fact HGVC would pay more for it.  

But I suspect that is not the sellers motivation.  They want to optimize their selling price.  Then it serves no purpose for the seller to even transact the offer, as they know that HGVC will buy it at the lower price, and they could get HGVC to pay an more. 

So with ROFR programs in place, it keeps the resale prices up to about the level that HGVC will buy it at.  Because selling at lowball prices only benefits HGVC.  NOT anyone else.


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## Ron98GT (Aug 27, 2012)

winnipiseogee said:


> We are thinking about adding an HGVC property to our TSs but I think I am missing something about ROFR.  I made a seller an offer which they said they would have accepted but they didn't think it would pass ROFR.  My question is - Why do they care?  ROFR means that Hilton would have to step in and purchase their week for the price that I am offering them right?  Why would they care if they sell it to me for $1500 or to Hilton for $1500?  Thanks for the help whoever can help explain this to me!



It was a polite way of saying NO, without getting into details.


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## Seth Nock (Aug 28, 2012)

RX8 said:


> I may be wrong but I have not heard of HGVC ever buying via ROFR any points less than 4,800.  I believe that ROFR of 4,800 up to but not including 7,000 is more likely to NOT happen than actually having HGVC purchasing.
> 
> Of course if it is an absolute low ball MAYBE they might exercise but I have even read about some silver points going for a $1.



They have bought back many 2400, 3400 and 3500 point units.  It is based on price.  I am not sure why, but they recently bought back a 3,500 point unit for $1500.


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## winnipiseogee (Aug 28, 2012)

Thanks all - Its a 5000 EOY in Orlando.  I've since spoken to the sellers and we are going to try submitting it to Hilton.  Apparently the sellers got the impression (from Hilton) that ROFR meant Hilton could block the sale without having to buy the unit from them.  They didn't want to go through the process if they weren't going to end up with cash from someone.   We shall see what hilton does!


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## SmithOp (Aug 28, 2012)

Seth Nock said:


> They have bought back many 2400, 3400 and 3500 point units.  It is based on price.  I am not sure why, but they recently bought back a 3,500 point unit for $1500.



I always assumed these were marketed to people right at or below the minimum income to attend the presentation, the sales division will find a way to sell you something however small. Maybe they needed more of these in a down economy where the middle class incomes are sliding down.


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## Sandy VDH (Aug 28, 2012)

winnipiseogee said:


> Thanks all - Its a 5000 EOY in Orlando.  I've since spoken to the sellers and we are going to try submitting it to Hilton.  Apparently the sellers got the impression (from Hilton) that ROFR meant Hilton could block the sale without having to buy the unit from them.  They didn't want to go through the process if they weren't going to end up with cash from someone.   We shall see what hilton does!



No Hilton could just buy the week cheaper out from under you and then you have to start the process over again. 

It could happen repeatedly. 

So going too low on a price, only really benefits Hilton, not the seller, nor the would be buyer.


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## gnorth16 (Aug 28, 2012)

Sandy VDH said:


> No Hilton could just buy the week cheaper out from under you and then you have to start the process over again.
> 
> It could happen repeatedly.
> 
> So going too low on a price, only really benefits Hilton, not the seller, or whould be buyer.



It happened to me once after buying on eBay.  The process dragged out and took a while to get my money back.  It was frustrating, but equally frustrating to see prices on eBay end well below the ROFR and know that others will go through the same thing.  I guess this is where my education from the university of TUG came in handy for the second time around.

Any guesses on what a ROFR would be on a 5000 EOY? I'll guess $2500...


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## SmithOp (Aug 28, 2012)

gnorth16 said:


> Any guesses on what a ROFR would be on a 5000 EOY? I'll guess $2500...




$3,000 for gold, $4,000 platinum.

I use Seth's Hilton listings as a rule of thumb.

http://www.sellingtimeshares.net/category/listings/hilton

There are 2 gold EOY listed for $3k Vegas.


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## Ron98GT (Aug 29, 2012)

SmithOp said:


> $3,000 for gold, $4,000 platinum.
> 
> I use Seth's Hilton listings as a rule of thumb.
> 
> ...



So, even the Plat is below $1/point, now.


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## Seth Nock (Aug 29, 2012)

I think the gold EOY will pass for less than the $3,000.  Probably low 2s.  Platinum 7000 points would probably need to be at least $5,000 (but there has been alot of randomness recently).


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## JOBILLBORF (Aug 29, 2012)

*Purchased 3400 Biannual Pts For 1000 Total*

Hi all,I purchased a 3400 bi annual pt timeshare for $1000 total.  It passed ROFR.  This is an orlando on international drive.  We travel off season.    This works for us.  I guess it all depends who is buying for hilton.    


About 3 months after the purchase, Hilton offered my to other year for $19,000.


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## TheWizz (Sep 4, 2012)

JOBILLBORF said:


> Hi all,I purchased a 3400 bi annual pt timeshare for $1000 total.  It passed ROFR.  This is an orlando on international drive.  We travel off season.    This works for us.  I guess it all depends who is buying for hilton.
> 
> 
> About 3 months after the purchase, Hilton offered my to other year for $19,000.



I bet you jumped all over that offer... NOT!  :hysterical:


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## Kmakani (Oct 4, 2012)

How long does an ROFR take?


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## Talent312 (Oct 5, 2012)

Kmakani said:


> How long does an ROFR take?



You're 'sposed to give HGVC 30 days' notice, but they may get back to you within two weeks.

Of course, how long it takes the closing agent to get around to sending them notice and then reporting results back to you is another kettle of fish.  That could easily add another 30 days to the process. "The squeeky wheel gets the grease."


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## Kmakani (Oct 5, 2012)

I've been squeeking believe me! I think the seller will start deleting my e-mails soon 

What about Valdoro and ROFR? Is it the same?


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