# High Disney ROFR?



## IslaTurbine (Dec 4, 2013)

I've been working on buying a resale DVC property and was informed today that Disney recently exercised its Right of First Refusal on an SSR contract that was selling for $74/point. Is it just me or does that seem like an awfully high price for Disney to buy back a property?


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## presley (Dec 4, 2013)

That is unusual, but stranger things have happened.  If they have a buyer waiting to buy that exact contract, they will grab it.  Meanwhile, other contracts for same price but different use years may not get snatched up at the same time.


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## slum808 (Dec 4, 2013)

You can get some historical ROFR prices in this thread link below. 

http://www.disboards.com/showthread.php?t=3138652

$74 sounds high, but if they're selling at $130 and have a buyer waiting it sounds like a no brainer.


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## bnoble (Dec 4, 2013)

> if they're selling at $130 and have a buyer waiting it sounds like a no brainer.


The rule of thumb in the industry is that cost-of-construction is 20-25% of the sales cost.  With a sales price of $130, it's better for Disney to build a shiny new resort unless the resale market price drops below $26-$32.


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## slum808 (Dec 4, 2013)

That's true they needed to remarket the unit, but if they already have a buyer on a wait list then then they can afford a higher acquisition cost.


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## rickandcindy23 (Dec 4, 2013)

Small contracts require a higher purchase price to avoid ROFR.  A large contract, 250 points or so, should go for around $65 per point.  A 50 point contract would be more than $74 a point.  

How big was the contract? Use year, reimbursement of MF's, and who pays closing costs, those are important factors.


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## IslaTurbine (Dec 4, 2013)

rickandcindy23 said:


> Small contracts require a higher purchase price to avoid ROFR.  A large contract, 250 points or so, should go for around $65 per point.  A 50 point contract would be more than $74 a point.
> 
> How big was the contract? Use year, reimbursement of MF's, and who pays closing costs, those are important factors.



While I agree, unfortunately that's all information that I don't have.


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## IslaTurbine (Dec 6, 2013)

Well our offer was accepted on a 125 point contract at SSR. We'll see if it passes the sniff test with Disney.


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## glypnirsgirl (Dec 6, 2013)

I have been monitoring sales at the Timeshare Store for a couple of months now. Most SSR contracts are selling in the $72 - $76 per point neighborhood. 

I am surprised that Disney would exercise ROFR at that price. It bodes well for the market stabilizing. Their huge price increase last year increased resale prices significantly.

elaine


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## Mike&Edie (Dec 6, 2013)

Hi.  We went to a Disney Tour while at Disney World yesterday.  We were told the price was $15,000.00 for 100 points, or $150.00 per point, not $130.00.  

Edie
www.fulltimetimeshare.com


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## PearlCity (Dec 6, 2013)

Mike&Edie said:


> Hi.  We went to a Disney Tour while at Disney World yesterday.  We were told the price was $15,000.00 for 100 points, or $150.00 per point, not $130.00.
> 
> Edie
> www.fulltimetimeshare.com



$150 is for new resorts. $130 are for older resorts that were previously sold out.


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## IslaTurbine (Dec 6, 2013)

Our offer was for $73/point. August UY. 33-2013, 125-2014, 125-2015.


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## fluke (Dec 7, 2013)

IMO Disney ROFR is very random.  This seems also to be the prevailing sentiment on the Mouseowners.com forum.  

I had two SSR contracts submitted at the beginning of October.  Both December use years with all 2013 points.  I paid closing and 2013 MFs.  250 point contract for $60/point and 160 point contract for just over $58/point.  250 point contract passed ROFR and 160 point contract was taken.  

So you would think that the ROFR point was somewhere in between $58-60 a point.  But at the same time there were reports on Mouseowners.com of SSR contracts passing at $55/point with seller paying MFs.


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## IslaTurbine (Dec 7, 2013)

As posted by someone earlier, the lower the point contract, the higher the point cost. A $60 or $65/point may easily pass ROFR for 160 points or more. Dunno.


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## fluke (Dec 7, 2013)

Here is a link to a MO thread on Oct 2014 Closings.  It showed only 2 ROFR for SSR at $47.5/point. Nov 2014 data is not out yet.  You can really see the spread of prices.

http://www.mouseowners.com/forums/showthread.php?t=84668


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## IslaTurbine (Dec 7, 2013)

Great info there. Thanks for the link.


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## fluke (Dec 8, 2013)

When using that data just remember it is *closings * in October.  The price negotiations were made mainly in August or September.  I think those were the months that the market was the most heated.  The inventory of even SSR was sparse on the brokers website's during those months.  I think inventory is returning now-if you go to Timeshare Store or resalesDVC.com there is a lot more inventory than a couple of months ago.  

Also December and January are the traditional high volume sell offs as people try to unload before MFs are due at the end of January.


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## fluke (Dec 27, 2013)

fluke said:


> IMO Disney ROFR is very random.  This seems also to be the prevailing sentiment on the Mouseowners.com forum.
> 
> I had two SSR contracts submitted at the beginning of October.  Both December use years with all 2013 points.  I paid closing and 2013 MFs.  250 point contract for $60/point and 160 point contract for just over $58/point.  250 point contract passed ROFR and 160 point contract was taken.
> 
> So you would think that the ROFR point was somewhere in between $58-60 a point.  But at the same time there were reports on Mouseowners.com of SSR contracts passing at $55/point with seller paying MFs.



Just to illustrate how random Disney's ROFR is I just passed ROFR with a 150 point contract (SSR) December use year  with all 2013 and 45 2012 banked points.  Price was $58/point ($8700) with *no* MF reimbursement.  I covered closing.

Turned out better my first contract was taken.


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## JPrisco (Dec 28, 2013)

fluke said:


> Just to illustrate how random Disney's ROFR is I just passed ROFR with a 150 point contract (SSR) December use year  with all 2013 and 45 2012 banked points.  Price was $58/point ($8700) with *no* MF reimbursement.  I covered closing.
> 
> Turned out better my first contract was taken.



Where did you find that gem?
joanne


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## fluke (Dec 28, 2013)

JPrisco said:


> Where did you find that gem?
> 
> joanne




Fidelity.  I have worked with Sharon Reper, I think she is great.  The trick with Fidelity is you have to have a broker contact.  If you tell Sharon you price range and desired resort, use year , etc, she will contact you by email or phone if it comes available.  Their web page is only updated once a week and most contracts never make it to the web site.



Sent from my iPhone using Tapatalk


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## ptlohmysoul (Dec 28, 2013)

IslaTurbine said:


> Great info there. Thanks for the link.



I got 200 SSR pts. for $50/point, but it was stripped and I paid higher than normal closing costs, so overall the per point cost doesn't show everything.  I also heard of a fully loaded contract at $60/point around the same time this year that was a better deal than mine.


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## darius (Dec 29, 2013)

ptlohmysoul said:


> I got 200 SSR pts. for $50/point, but it was stripped and I paid higher than normal closing costs, so overall the per point cost doesn't show everything.  I also heard of a fully loaded contract at $60/point around the same time this year that was a better deal than mine.



Wow, great price.  When did you complete that transaction?


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## dundey (Dec 31, 2013)

Sharon is great to work with and you are right, most good contracts never make the website.

We just passed ROFR for a 100 point BLT contract.  It was $95 / point with ALL 2012 and 2013 points!!



fluke said:


> Fidelity.  I have worked with Sharon Reper, I think she is great.  The trick with Fidelity is you have to have a broker contact.  If you tell Sharon you price range and desired resort, use year , etc, she will contact you by email or phone if it comes available.  Their web page is only updated once a week and most contracts never make it to the web site.
> 
> 
> 
> Sent from my iPhone using Tapatalk


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## ptlohmysoul (Jan 1, 2014)

darius said:


> Wow, great price.  When did you complete that transaction?



October 2013


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