ROFR metric / Ongoing ROFR Activity

[JIMinNC]

Marriot exercised ROFR on a gold oceanfront legacy week at oceanwatch that I was able to negotiate down to $2,000. It was a LONG drawn out process with a bad ending so I am not happy to say the least. I feel like we do all the legwork and they can scoop in with the deal.. I am not sure I have the appetite to do this again.

In my opinion, when trying to buy a Marriott legacy week on the resale market, negotiating the "best" deal becomes almost irrelevant, at least after a certain point. The most important metric is not how low you can get the Seller to go, but at what price will Marriott let the deal proceed? Obviously, given the unpredictability of ROFR, if you have a tolerance for possibly several "do-overs", maybe it would be worth it to try to slip a low-ball deal past the ROFR gauntlet. But if you want to try to get it done the first time, then ROFR threshold becomes more important than negotiating a rock-bottom deal, in my opinion.

That was my logic with our EOY-Odd Marriott Waiohai Island View deal that just recently passed ROFR. The week was listed at $4100, but given we knew of a ROFR failure at $3750 for the same week/view, that limited how much I was willing to negotiate. Without the possibility of ROFR hanging over the deal, given the $4100 ask, I might have been inclined to offer no more than $3500 or so, with a hope we could settle on something in between those two numbers. But given ROFR, I didn't want $100-$200 to force me into a do-over, so to be safe I offered $4000, it was accepted, and Marriott waived ROFR. Could I have struck a deal at $3800 or $3900? Most likely, but then maybe it wouldn't have passed. Who really knows, but I opted to put getting the deal through ROFR as my primary goal versus the best possible deal.

 

[beachgirl79]

Good point.. however, I don't know what to offer to get it past. That is the unknown.. It's all very frustrating

 

[JIMinNC]

Good point.. however, I don't know what to offer to get it past. That is the unknown.. It's all very frustrating

ROFR.net is the best/only real guide. Maybe some good brokers could offer additional input. There aren't recent data points on ROFR.net for a MOW gold OF, but there was a $3000 Gold OV that passed, so if I wanted to increase my chances to pass ROFR, I would have been inclined to not do a deal for less than that. Maybe even try $3500 or $4000 for a OF? But you are correct, without a lot of data points it is still a guessing game.

 

[gatorray]

After renting a second points based week and letting the points owner know I was interested in selling my own single Platinum annual legacy week of 12 yrs at Ocean Pointe in Palm Beach Shores in February 2019, he made me an offer of $9000 and I was happy with that. His assumption was that MVCI would pass on the ROFR since the selling price seemed high enough. Wrong. Marriott exercised its Right and cut the legs off my buyer’s offer. I suspect this scenario will repeat many times at very high demand coastal resorts like MPB. I still get my money but I would much rather rent from this gentleman going forward than pay MVCI a dime, truth be told. Just think of how easy it is for Marriott to watch all the sale offers come in, no sales team no presentations no outside attorney fees etc. Just exercise the ROFR and resell or rent it out at twice the non-MVCI price. R

 

[JIMinNC]

Just think of how easy it is for Marriott to watch all the sale offers come in, no sales team no presentations no outside attorney fees etc. Just exercise the ROFR and resell or rent it out at twice the non-MVCI price. R

Just a slight clarification...Marriott doesn't generally resell or rent the weeks they exercise ROFR on. Since they no longer sell weeks, they put those reacquired weeks into the MVC Trust as a cheap source of DC Points, and they then sell the points. ROFR becomes an alternative to building new resorts to fund the points supply. But when these reacquired weeks get deposited into the Trust, they also become available for MVC Trust owners to book with our DC Points.

 

[beachgirl79]

Marrior exercised ROFR on a gold oceanfront floating for $4,000 purchase price. Second time in a week they exercised on same unit type.

 

[MOXJO7282]

Marrior exercised ROFR on a gold oceanfront floating for $4,000 purchase price. Second time in a week they exercised on same unit type.

Gold OF what? Grande Ocean?

 

[MOXJO7282]

Not sure what you mean but it was my $29k floating week 2BR OF Napili that was ROFR'd by Marriott. Not imaginary.

Just agreed to one of these at $27k that included closing so let's see if they are consistent. I assume they will because another TUGGER told me of another ROFR at $28k I think. They are really going after these Maui new tower OF units.

 

[beachgirl79]

Gold OF what? Grande Ocean?

Sorry!! Marriot oceanwatch grande dunes.. got rofr'd last week at 2k and today ar 4k

 

[CDD]

We just learned Marriott waived ROFR on our offer for a Maui Ocean Club (original) 2 bed/3bath oceanFRONT biannual (even year) for $8,500. We're happy!

Hi - congratulations - that's a great buy! Question - did that price include closing costs and transfer fees - or was the price actually higher with the fees?

 

[TXTortoise]

From ROFR.net, just saw where a Maui Lahaina 2BR OF Float passed at $30K.

This puts an upper limit from the $29K that recently failed, at least for this point in time. Essentially passing at just over $4/point.

There is another one recently submitted at $26,500...so will be interesting to see if it squeezes by this week.

This all compares to some $2.09-$3 points deals that passed in January. A broker did tell me ever point deal they sent in during January passed...go figure.

 

[Fasttr]

A broker did tell me ever point deal they sent in during January passed...go figure.

Keep in mind, even if they pass on a points deal, they still make $3 per point.

 

[ski_sierra]

Marriott Grand Chateau - 2 bedroom - Platinum: Passed ROFR at $1,500. Could not complete purchase because Seller deposited 2019 into II. Seller wasn't willing to pay 2019 MFs and start usage in 2020 so I walked away.

Entered into another contract for $1,300. I confirmed 2019 is available. I hope this one works out.

I really wanted to find a Platinum Plus week for sale.

I tried $750 for EOY. Marriott exercised ROFR today. Entered it in rofr.net. Contract was submitted on Fri 4/19. Although it would have been nice to get this week, I'm happy to see that Marriott weeks are not difficult to get rid of. If trading doesn't work out I may have to get rid of this week as well.

 

[TravelTime]

I just realized that when Tuggers put in low ball offers and Marriott buys it back, you are doing Marriott a huge favor!

 

[ski_sierra]

I just realized that when Tuggers put in low ball offers and Marriott buys it back, you are doing Marriott a huge favor!

Yes, they will find someone who will pay $20k for that same week. And the new owner may try to offload it for a low amount in future again. And cycle repeats.

 

[TravelTime]

Yes, they will find someone who will pay $20k for that same week. And the new owner may try to offload it for a low amount in future again. And cycle repeats.

I think TUG is actually driving down the resale market price for timeshares without realizing it! LOL

At the same time, TUG hates the developers. Yet if you win on one end through aggressive discounting, someone loses on the other end.

I think TUG would do a better job of maintaining the resale market by making full price offers that Marriott will not buy back.

 

[JIMinNC]

Yes, they will find someone who will pay $20k for that same week. And the new owner may try to offload it for a low amount in future again. And cycle repeats.

Not really. Marriott doesn't resell the weeks they reacquire through ROFR. They keep them and deposit them into the MVC Trust as a cheap source of DC Points. Marriott only sells points today, except for the resale weeks they broker and bundle with points for hybrid offers, and the weeks they sell at international resorts that can't be put into the Trust.

 

[JIMinNC]

I think TUG would do a better job of maintaining the resale market by making full price offers that Marriott will not buy back.

This is sorta the way we have approached our three resale purchases (two Marriott, one Hilton) over the last year and a half. I wasn't concerned in the least with what was the lowest price the seller would accept. The only question I had was what price do I need to pay to get past ROFR? All else is irrelevant. If someone had a week I wanted, and if it was listed below what I thought would pass ROFR, I would even offer MORE than the asking price to make sure I get past ROFR.

 

[ski_sierra]

Not really. Marriott doesn't resell the weeks they reacquire through ROFR. They keep them and deposit them into the MVC Trust as a cheap source of DC Points. Marriott only sells points today, except for the resale weeks they broker and bundle with points for hybrid offers, and the weeks they sell at international resorts that can't be put into the Trust.

got it. does this mean that Marriott will continue to make life difficult for weeks owners since they don't like them? Make it harder to trade in II?

I considered Marriott because they have a large network and their control over II would mean that it would continue to be good value in trading. Are there any signs to suggest that owning weeks with MVC is not a good idea?

 

[JIMinNC]

got it. does this mean that Marriott will continue to make life difficult for weeks owners since they don't like them? Make it harder to trade in II?

I considered Marriott because they have a large network and their control over II would mean that it would continue to be good value in trading. Are there any signs to suggest that owning weeks with MVC is not a good idea?

I don't really trade much (have only done it twice, and may never do it again except in an emergency), so can't really address this question. I dislike the trading process, so we use our owned weeks to go to resorts we want to visit regularly and our DC Points for flexibility to go to different places. We also prefer the more straight forward booking process we get with points.

There are many others on TUG who can address the trading question.

 

[bazzap]

I see no real sign myself of MVC making life difficult for weeks owners.
I have traded multiple MVC - MVC weeks through Interval every year since the early 2000’s.
The only thing I have noticed is exchanges getting confirmed later in recent years.

got it. does this mean that Marriott will continue to make life difficult for weeks owners since they don't like them? Make it harder to trade in II?

I considered Marriott because they have a large network and their control over II would mean that it would continue to be good value in trading. Are there any signs to suggest that owning weeks with MVC is not a good idea?

 

[CDD]

Just learned that Marriott waived ROFR on a Maui Ocean Club Original towers 1BR OV EOYO at $3200. Very happy!

 

[suzannesimon]

I think Marriott is getting desperate to add weeks in the Trust. They don’t want to build anymore resorts but the demand for that type of vacation is very high and hard to get with points in some cases. I’ve even heard of owners being “allowed” to give Marriott their week for free. I guess that’s their new exit plan.

 

[Shaun]

Just learned that Marriott waived ROFR on a Maui Ocean Club Original towers 1BR OV EOYO at $3200. Very happy!

I think that may have been mine, that I just bought. I’m very excited. I just bought my first timeshare. I just got the deed but it is still going through the process with the Maui Ocean Club to get my membership ID. I bought a 1BR ocean view, every other year useage for $3,150. I’m going to enter it onto ROFR.net as soon as I get my membership info. from Marriott. Yeah, exciting!

 

[csodjd]

I think that may have been mine, that I just bought. I’m very excited. I just bought my first timeshare. I just got the deed but it is still going through the process with the Maui Ocean Club to get my membership ID. I bought a 1BR ocean view, every other year useage for $3,150. I’m going to enter it onto ROFR.net as soon as I get my membership info. from Marriott. Yeah, exciting!

Great price for a great resort.