ROFR metric / Ongoing ROFR Activity

[frank808]

Change your name to protect the innocent (steve) and tell us what you did to pass rofr?

Wonder if they organized it with all fees included? Add what marriott charges to enroll the points and it is above the threshold for rofr.

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[toddc2]

Failed ROFR MOC 2/3 OF EOY (Even) $10k

I was the purchaser. Broker tells me $12k is the current safe zone

 

[csodjd]

Just wondering. If you have a deal at, say, $10k and ROFR is exercised, can you simply up your offer to, say, $11k? Or is the seller stuck and they must sell to Marriott at $10k?

 

[toddc2]

Just wondering. If you have a deal at, say, $10k and ROFR is exercised, can you simply up your offer to, say, $11k? Or is the seller stuck and they must sell to Marriott at $10k?

Seller has to sell to Marriott at $10k

 

[taterhed]

Wonder if they organized it with all fees included? Add what marriott charges to enroll the points and it is above the threshold for rofr.

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You're probably right...didn't think of that.

And, let's not start the ROFR/ethics discussion please...

 

[Saintsfanfl]

Just wondering. If you have a deal at, say, $10k and ROFR is exercised, can you simply up your offer to, say, $11k? Or is the seller stuck and they must sell to Marriott at $10k?

Seller has to sell to Marriott at $10k

Technically the seller is contractually obligated to sell to Marriott but Marriott would never file a lawsuit if the seller changed their mind and did not follow through on the sale. They would likely say "no problem and thank you" if a seller changed their mind. The problem is that if the seller then went back and prepared another purchase agreement to submit to ROFR for a higher amount it would probably be an indicator of willful fraud, but again, not sure what Marriott would do.

 

[csodjd]

Technically the seller is contractually obligated to sell to Marriott but Marriott would never file a lawsuit if the seller changed their mind and did not follow through on the sale. They would likely say "no problem and thank you" if a seller changed their mind. The problem is that if the seller then went back and prepared another purchase agreement to submit to ROFR for a higher amount it would probably be an indicator of willful fraud, but again, not sure what Marriott would do.

It seems it may be in Marriott's best interest to allow the seller to entertain or make a counter-offer to the prospective buyer. Create something of a bidding war, getting the price up to the highest amount the buyer is willing to pay before Marriott considers whether to exercise its ROFR. The smart play for a seller would be to go back to Marriott and ask for permission to make a counter to the buyer before the ROFR is exercised.

 

[Fasttr]

It seems it may be in Marriott's best interest to allow the seller to entertain or make a counter-offer to the prospective buyer. Create something of a bidding war, getting the price up to the highest amount the buyer is willing to pay before Marriott considers whether to exercise its ROFR.

How would this be in Marriott's best interest?

 

[Saintsfanfl]

It seems it may be in Marriott's best interest to allow the seller to entertain or make a counter-offer to the prospective buyer. Create something of a bidding war, getting the price up to the highest amount the buyer is willing to pay before Marriott considers whether to exercise its ROFR. The smart play for a seller would be to go back to Marriott and ask for permission to make a counter to the buyer before the ROFR is exercised.

Yeah that does not make any sense at all. Marriott is in this solely to make money. Why would they want to pay more? Would it be in your best interest to pay more than the asking price for a car that you are interested in buying?

Marriott does not do ROFR out of the kindness of their heart to help out an owner wanting to sell. They do not care one bit about any of that. It is purely to buy a unit for a little as possible and convert it to DC points to resell for a massive profit.

 

[StevenTing]

Yeah that does not make any sense at all. Marriott is in this solely to make money. Why would they want to pay more? Would it be in your best interest to pay more than the asking price for a car that you are interested in buying?

Marriott does not do ROFR out of the kindness of their heart to help out an owner wanting to sell. They do not care one bit about any of that. It is purely to buy a unit for a little as possible and convert it to DC points to resell for a massive profit.

The only way I can see this benefiting Marriott is that they can point to a strong resale market where their weeks hold their value, even artificially. i.e. You can buy from Marriott at $30K but look at the resale market, it's at $25K. For $5k more, you get all of these extra benefits and when you want to exit, there's a strong market for you to sell in. Maybe I'm just being naive.

 

[StevenTing]

Passed ROFR. $2.50 per point destinations program.

Congrats. I'm jealous.

Was it actually submitted at a $2.50 pp valuation? I see a recent entry on www.rofr.net at $2.75 that failed.

The 2.75 one was mine. The way the contract was written, it was $2.75 per point but the seller was going to contribute an additional $1000 toward transfer fee. since it was only 1000 points, it's as if the net cost of the points were $1.75. I don't know if MVC considered it a $2.75 or $1.75 per point transaction. I am trying another transactions with items being presented a little differently but if it goes through, my net cost will be $2.50 plus transfer fees. The devil's in the details. If they ROFR, they should be paying the seller the equivalent of $6.00 per point. Win/Win on both sides, at least they way it works in my mind.

 

[Saintsfanfl]

The only way I can see this benefiting Marriott is that they can point to a strong resale market where their weeks hold their value, even artificially. i.e. You can buy from Marriott at $30K but look at the resale market, it's at $25K. For $5k more, you get all of these extra benefits and when you want to exit, there's a strong market for you to sell in. Maybe I'm just being naive.

It could be if they were still pushing weeks. Instead they have been lowering their resale list prices to get the "byproduct" inventory moving. Some salespeople talk negatively about legacy weeks and some won't even mention that buying a week through resales is an option.

 

[klpca]

It could be if they were still pushing weeks. Instead they have been lowering their resale list prices to get the "byproduct" inventory moving. Some salespeople talk negatively about legacy weeks and some won't even mention that buying a week through resales is an option.

Our last two presentations, I have had to specifically asked to buy a deeded week. At Ko Olina the answer was "no" and at NCV they were willing but we had to buy so many points in conjunction with the week that we would have more points than we could use which made it *very* cost prohibitive.

 

[hangloose]

But it also takes away one person vying for a weeks reservation. It likely decreases exchange inventory but doesn't make much difference on direct reservations.

Good point. Any week Marriott purchases via ROFR, is one less person vying for a legacy weeks reservation. BUT, the also means one less week available to other legacy weeks owners trying to reserve in that season. This could be painful long term. While the ratio may still be the same, high priority/demand weeks in floating seasons may suffer. Another reason why 'fixed' is great if it works for your needs.

 

[Saintsfanfl]

Our last two presentations, I have had to specifically asked to buy a deeded week. At Ko Olina the answer was "no" and at NCV they were willing but we had to buy so many points in conjunction with the week that we would have more points than we could use which made it *very* cost prohibitive.

You can call the resale department directly and buy a week but they do not broker all properties.

 

[TXTortoise]

Interesting how things have thinned out for resale listings on the Marriott resale site, at least for Maui. Only one listing for the old and one for the new buildings.

The rarely seen one is a 3BR 8th floor, week 16, in the Napili tower at $76K. Seller will net, what, $43K? Bet it would sell quicker, just listed on Redweek at $45-50K due to floor level.

https://www.marriottvacationclub.co...5DA13O0xPk040KmNqviPPTFXXsa8LNZBoCU8YQAvD_BwE

 

[JIMinNC]

Interesting how things have thinned out for resale listings on the Marriott resale site, at least for Maui. Only one listing for the old and one for the new buildings.

The rarely seen one is a 3BR 8th floor, week 16, in the Napili tower at $76K. Seller will net, what, $43K? Bet it would sell quicker, just listed on Redweek at $45-50K due to floor level.

https://www.marriottvacationclub.co...5DA13O0xPk040KmNqviPPTFXXsa8LNZBoCU8YQAvD_BwE

I've noticed the same thing. The drop in inventory started over the summer and has accelerated recently, particularly in Maui. All EOY weeks are gone system-wide. Just a couple months ago there were at least 8 or 10 Maui Ocean Club listings, both annuals and biennials. Now virtually nothing. I can't imagine that sales have picked up that much, that quickly. It has to be a decision by Marriott to not take certain listings any more. The only resort with a lot of listings is Ocean Watch and there is still fairly typical number of listings for Hilton Head, but even Orlando listings appear way down. I remember when we bought our hybrid bundle in 2014 the salesman said it wouldn't be long before they stopped selling resale weeks. I wonder if that may finally be coming to fruition?

 

[csodjd]

Just looking at the ROFR.NET. I see that, in addition to my 2-Bedroom EOY OV Maui Ocean Club older buildings failing at $6,500, a similar ocean front failed at $10k. So, Marriott has exercised its ROFR twice in the past month or so on EOY in the older buildings. Also noted that they exercised on an an EOY OF at $10k, but passed an identical but annual OF at $19k the same month.

 

[BJRSanDiego]

I occasionally see Marriott weeks that are being given away for free. I'm wondering if a giveaway is also subject to ROFR? Anyone with insight into this?

 

[sb2313]

I occasionally see Marriott weeks that are being given away for free. I'm wondering if a giveaway is also subject to ROFR? Anyone with insight into this?

If done as a gift, then it should not be subject to rofr or the $95 fee.

 

[catharsis]

As far as Inventory shown on the site goes, I was told by Resale operations that they have more inventory than is shown on the website. The problem I guess is finding out what they have or at what price.

I'm fairly certain that if you ask at a sales office they would be able to provide lots more options for an MOC week.

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[Marathoner]

Passed ROFR at 32K for platinum plus week at Summit Watch. Same week listed at 49.5K direct on Marriott's resales website.

 

[MOXJO7282]

I just passed ROFR for a MOC 2BDRM OV annual for $13,150 all in. I saw some of the failings so was concerned but happy it made it through.

 

[Saintsfanfl]

I occasionally see Marriott weeks that are being given away for free. I'm wondering if a giveaway is also subject to ROFR? Anyone with insight into this?

I am in the process of giving one away right now and it was not subject to ROFR. They can take one for $1 but not $0.

 

[BJRSanDiego]

I am in the process of giving one away right now and it was not subject to ROFR. They can take one for $1 but not $0.

Thanks for this info. I find this extremely interesting.
I presume that in order to pass, that the owner needs to pay for the closing costs.