Marriott Right of First Refusal

[melroseman]

When discussing resale purchases, Marriott reps always insist that if the resale purchase doesn't approximate their cost they will exercise their right of first refusal. Anybody had actual experience in purchasing Marriott resales, and at what discount from Marriott purchase price?

 

[FlyerBobcat]

In the last 9 months or so, Marriott has NOT been exercising ROFR. So if the reps have been saying that recently, it's just another lie....

Check out dioxide's database at http://dioxide45.tripod.com/rofr.html

 

[UK Fan]

When discussing resale purchases, Marriott reps always insist that if the resale purchase doesn't approximate their cost they will exercise their right of first refusal. Anybody had actual experience in purchasing Marriott resales, and at what discount from Marriott purchase price?

I recently made an offer on a resale that was almost half what Marriott is selling it for. I spoke with someone at Marriott regarding ROFR and I was told that Marriott was not exercising this right unless they could get the TS for 40% of what they are selling it for. The deal has not gone through yet, but that is what I was told...

 

[timeos2]

It's moot now

When discussing resale purchases, Marriott reps always insist that if the resale purchase doesn't approximate their cost they will exercise their right of first refusal. Anybody had actual experience in purchasing Marriott resales, and at what discount from Marriott purchase price?

In the last year - and certainly since early 2009 - Marriott has ceased to exercise ROFR (although they can still scare buyers and sellers by needlessly delaying the answer that they don't want the week). While I advise against buying at any resort with ROFR, at least right now it is a non-factor for Marriott and it will lilely be years - if ever - before they start using it again. So bid low & enjoy the true market value sellers always got - now the buyers too can get the deals that had been stolen from them. Sale values are usually 40% or less (sometimes FAR less) than retail so don't make the mistake of bidding high or you will overpay. No price is too low to "pass" ROFR and its a strong buyers market. Enjoy.

 

[melroseman]

Thanks for the great info and the ROFR resource...

 

[FlyerBobcat]

Thanks for the great info and the ROFR resource...

Welcome to TUG! Glad you found us!!!

 

[dioxide45]

When discussing resale purchases, Marriott reps always insist that if the resale purchase doesn't approximate their cost they will exercise their right of first refusal. Anybody had actual experience in purchasing Marriott resales, and at what discount from Marriott purchase price?

The sales weas... errr, I mean reps like to tell you this to scare you in to buying resale or perhaps to make themselves feel better. Don't listen and go resale if you find that is the best option for you.

 

[AwayWeGo]

Hot Button Issue.

Some folks on TUG-BBS have semi-strong feelings about ROFR.

There are those who claim ROFR supports timeshare value while others insist it's not necessarily so.

Timeshare sellers are apt to say their timeshare companies reserve ROFR so that resale prices will not go "too low."

Think about it -- that's baloney anyway you slice it.

So it goes.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[pcgirl54]

I have a pending Marriott transaction myself and will post if/when it passes.

A lot did not pass in prior years if the price was deemed to low. This market is very different.

Best of luck to both of us!

 

[kjd]

A simple question

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

 

[chalee94]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

you may find this helpful:

http://en.wikipedia.org/wiki/Correlation_does_not_imply_causation

just because marriott was exercising ROFR when prices were higher does not mean that ROFR caused the higher prices. ROFR was just as likely (if not moreso) to be the result of the higher prices.

 

[AwayWeGo]

Exactly.

just because marriott was exercising ROFR when prices were higher does not mean that ROFR caused the higher prices. ROFR was just as likely (if not moreso) to be the result of the higher prices.

Right you are.

When prices were higher, the timeshare company was plenty willing to use ROFR for snapping up el cheapo resales out from under the willing bargain basement buyers.

When the bottom dropped out of the market, the timeshare company no longer wanted more inventory via ROFR or by any other means, not even the lowest of the lowballs.

Values go up & down according to the vagaries of the market irrespective of ROFR.

ROFR = ROFL.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[kjd]

Thanks, but this was not helpful.

http://en.wikipedia.org/wiki/Correla...mply_causation

Only in academia could one explain away reality with a formula.

 

[laurac260]

interesting...

whenever someone posts a thread like this, my left eye starts to twitch.....


...there it goes again....

 

[timeos2]

No, it does nothing to raise a price to the seller

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

The simple answer is a NO. The price PAID under ROFR is the low offer just like it is now. The only difference now is the legitimate buyer - which the seller has to try to find & strike a deal with - gets the week rather than Marriott - who did nothing but try to queer the sale - stealing it out from under the buyer but still paying the LOW price to the seller. The price DOES NOT go up because of that theft only the mistaken impression that it could is left behind. Only those buyers silly enough to make a DIFFERENT seller a higher offer would ever pay more and why would they do that? (After all THAT week is now gone, at the low original price so that seller had to give it up at the low price and now has nothing to offer. There is no back & forth bidding or actual "floor" price that could result in a higher sale price under ROFR) ROFR is a scam from start to finish and does nothing to raise resale prices. And if it did now when it's actually needed its gone. A total sham.

Your case is dismissed as urban legend (and there is a posting from a major University study back about a year ago that proved ROFR actually hurt sellers. So the case is dismissed with prejudice.)

 

[Pit]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

... and the stock market and home values were much higher too. All this government intervention to avoid a depression, and all we really needed was Marriott's rofr.

 

[LisaRex]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

If it were only so simple.

IMO, the credit freeze has more to do with Marriott not exercising their ROFR than anything. Banks aren't too keen on lending money for risky real estate ventures any longer because they were burned on the subprime mortgage debacle. TS payments and MFs are undoubtedly very low on folks' priority lists and the banks know this. Without money, Marriott couldn't buy up TSs even if they wanted to.

Aside from that, Marriott's primary business is hotels. Their focus right now has to be keeping that sector afloat, and any extra cash they have will be diverted to putting out that fire.

Once the economy improves, Marriott will undoubtedly start exercising their ROFR again. Whether or not resale prices will rise along with that remains to be seen.

 

[tombo]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

Remember what Marriott tells everyone about ROFR and remember that it has to be true because timeshare salesmen never lie:
1. Everything good that happened when Marriott was ROFR'ing was thanks to ROFR.
2. Everything bad that has happened since Marriott quit ROFR'ing is because they quit exercising ROFR.

My house was worth more back when Marriott was using ROFR. I guess my home value plummetted because Marriott stopped ROFR'ing. My 401K was worth a lot more when Marriott was exercising ROFR. What a difference Marriott's lack of ROFR has made on my retirement plans. My business had more revenue when Marriott was ROFR'ing. Lack of ROFR has reduced my personal income.The unemployment rate was lower when Marriott was ROFR'ing. There are a lot of unemployed people who wish Marriott would start Rofr'ing again so they could find a job. Since Marriott stopped ROFR'ing, they have cause a worldwide recession. The world is looking to Marriott to return to ROFR so that a worldwide depression can be averted.

Because of these current situations it is obvious that the lack of ROFR by Marriott has caused the worldwide recession, housing market collapse,increased foreclosures on homes (and timeshares),precipitated the drop in value of both the financial and stock markets, restricted access to capital, raised unemployment rates, increased the federal deficit, and of course most tragically reduced the resale prices of Marriott timeshares. All of those things were better back when Marriott was exercisng ROFR, thus lack of ROFR has destroyed the world's economy.

I rest my case.

 

[Bill4728]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

Right you are.

When prices were higher, the timeshare company was plenty willing to use ROFR for snapping up el cheapo resales out from under the willing bargain basement buyers.

When the bottom dropped out of the market, the timeshare company no longer wanted more inventory via ROFR or by any other means, not even the lowest of the lowballs.

Values go up & down according to the vagaries of the market irrespective of ROFR.

ROFR = ROFL.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

The simple answer is a NO. The price PAID under ROFR is the low offer just like it is now. The only difference now is the legitimate buyer - which the seller has to try to find & strike a deal with - gets the week rather than Marriott - who did nothing but try to queer the sale - stealing it out from under the buyer but still paying the LOW price to the seller. The price DOES NOT go up because of that theft only the mistaken impression that it could is left behind. Only those buyers silly enough to make a DIFFERENT seller a higher offer would ever pay more and why would they do that? (After all THAT week is now gone, at the low original price so that seller had to give it up at the low price and now has nothing to offer. There is no back & forth bidding or actual "floor" price that could result in a higher sale price under ROFR) ROFR is a scam from start to finish and does nothing to raise resale prices. And if it did now when it's actually needed its gone. A total sham.

Your case is dismissed as urban legend (and there is a posting from a major University study back about a year ago that proved ROFR actually hurt sellers. So the case is dismissed with prejudice.)

I can only answer from my personally experiences.

I just bought a Marriott TS which has historically mean taken back via ROFR at the $12,000 level. NO ONE has gotten thru ROFR before last fall with a number smaller than $12K. NOW with Marriott not using ROFR, I had no worries when I bid and got the TS for only $7500. If I knew that Marriott was still grabbing the TS with ROFR, I would never had made such a low offer. but I likely wouldn't have bought at $12k either.

 

[timeos2]

Its a game you shouldn't play. Never bid high

I can only answer from my personally experiences.

I just bought a Marriott TS which has historically mean taken back via ROFR at the $12,000 level. NO ONE has gotten thru ROFR before last fall with a number smaller than $12K. NOW with Marriott not using ROFR, I had no worries when I bid and got the TS for only $7500. If I knew that Marriott was still grabbing the TS with ROFR, I would never had made such a low offer. but I likely wouldn't have bought at $12k either.

Your only mistake was NOT making the $7500 offer when you thought the going rate was $12,000. Why offer $12,000 if
1. You know its not the market rate and
2. the seller can't get that? The market says it too high!
Offer $7500 anyway if the seller says NO so what? He has no sale - to you OR Marriott so wait a few weeks & bid again and/ OR look for another seller. If he says YES then maybe you'd have your $7500 price OR it would get taken by Marriott - AT $7500 - thus that seller got the low ball price leaving another trail of failed "ROFR raises the value" theory gone wrong. Now the next seller will most likely also take $7500 as they want to sell - so bid again. If Marriott whiffs (they don't need many so it happens) you got your deal. If not look for the third seller. The one mistake would be to ever raise your offer as that hurts only you & plays the losers game of ROFR. When you go to sell no one is likely to play so you end up the BIG loser in that case.

 

[dioxide45]

A simple question regarding the discussion about ROFR. WERE RESALE PRICES HIGHER WHEN MARRIOTT WAS EXCERCISING ROFR?

I rest my case.

Your kidding right?

 

[STLFAN]

Hello All,

I just bought a Annual Gold Season at Canyon Villas for $7,000 plus closing costs. It has cleared RoFR. I believe I was told buy the MVC saleman that he would sell me the same for $19,000.

 

[ldanna]

Remember what Marriott tells everyone about ROFR and remember that it has to be true because timeshare salesmen never lie:
1. Everything good that happened when Marriott was ROFR'ing was thanks to ROFR.
2. Everything bad that has happened since Marriott quit ROFR'ing is because they quit exercising ROFR.

My house was worth more back when Marriott was using ROFR. I guess my home value plummetted because Marriott stopped ROFR'ing. My 401K was worth a lot more when Marriott was exercising ROFR. What a difference Marriott's lack of ROFR has made on my retirement plans. My business had more revenue when Marriott was ROFR'ing. Lack of ROFR has reduced my personal income.The unemployment rate was lower when Marriott was ROFR'ing. There are a lot of unemployed people who wish Marriott would start Rofr'ing again so they could find a job. Since Marriott stopped ROFR'ing, they have cause a worldwide recession. The world is looking to Marriott to return to ROFR so that a worldwide depression can be averted.

Brilliant tombo, brilliant. [Gratuitous political comment removed. Please review the Forum Posting Rules. -Makai Guy, BBS Administrator]