ROFR metric / Ongoing ROFR Activity

[bnoble]

Lots and lots and lots of people.

ROFR metric / Ongoing ROFR Activity

*** 5/1/16 - This link to the current, active ROFR database is added with the OP's permission: ROFR Experiences (www.rofr.net) *** All, I have had a few PMs asking me to compute ROFR metrics for various offers, which I am happy to do, and also asking for the history of this unofficial metric...

tugbbs.com

 

[HudsHut]

Yes, about 6 years ago, our first Marriott purchase was taken via ROFR. Just find another listing, and bid again. Don't assume you have to increase your price. Marriott may take one and not take another. Many times there is no logic that is apparent from our perspective as buyers. See the database listed above. Add your data to it. Good Luck on your next attempt.

 

[lmnanea]

P

Marriott Grand Chateau 2 BR Annual Platinum Failed ROFR at $2,021. Signed sales agreement on 10/25/22 and got the ROFR letter on 11/3/2022. Went through LT Transfers as a private transaction.

ls explain what it means to have failed ROFR and went through LT transfer

 

[jmhpsu93]

P

ls explain what it means to have failed ROFR and went through LT transfer

You purchase a resale from a private party (maybe a Tugger), they utilized LT Transfers (a closing company) to process the sale / deed recording etc. During the closing process they are required to submit the sale information to Marriott through their ROFR (right of first refusal) process. MVC chooses to exercise their right, which effectively replaces you with MVC as the buyer in the transaction and I believe they take over the closing as well.

 

[jwalk03]

[Moderator Note: Post merged into ongoing Marriott ROFR thread.] <-- SueDonJ

We submitted final paperwork and assumed we were going to be owners of a two bedroom unit at Marriotts Manor Club in Fords Colony. We already own one unit at this resort. This morning we received notification from Redweek that Marriott had ‘exercised the right of first refusal‘ and was buying the unit back. Has anyone experienced this same issue?

How much were you paying for the unit?

 

[jmhpsu93]

2BR Platinum annual Harbour Lake $15.50 passed ROFR. So basically free. Commitment included 2023 maintenace fees and usage (which was actually 2022 maintenance fees) so they paid me to take it as 2023 MFs are about $100 more in 2023.

 

[DanCali]

2BR Platinum annual Harbour Lake $15.50 passed ROFR. So basically free. Commitment included 2023 maintenace fees and usage (which was actually 2022 maintenance fees) so they paid me to take it as 2023 MFs are about $100 more in 2023.

That's the kind of stuff I don't get - why wouldn't they pick it up for free at ROFR and put in the trust and sell as points? It's probably worth 2500 election points? That'd be $40K for them on the bottom line.

 

[BJRSanDiego]

That's the kind of stuff I don't get - why wouldn't they pick it up for free at ROFR and put in the trust and sell as points? It's probably worth 2500 election points? That'd be $40K for them on the bottom line.

It is just a guess on my part but I think that (1) they have a target for how much unsold inventory they want to carry and (2) there is or may be a cost of holding that inventory - - the maintenance fees or conversely, if they pass on the ROFR someone else will be contributing to the MF.

 

[jmhpsu93]

It is just a guess on my part but I think that (1) they have a target for how much unsold inventory they want to carry and (2) there is or may be a cost of holding that inventory - - the maintenance fees or conversely, if they pass on the ROFR someone else will be contributing to the MF.

Agreed.

My guess is that they don't go after marginial value weeks during ROFR process, and maybe they have a target amount of inventory in mind and a 2500 point week isn't worth the effort. And they would have to write a check for $1600-ish to the seller to repay them for money already brought into th MVC fold so to speak.

I get it - it seems ridiculous that they would EVER let a week pass ROFR at less than like $2/point resale value, but maybe they just have so much unsold inventory they just cherry pick.

 

[dioxide45]

That's the kind of stuff I don't get - why wouldn't they pick it up for free at ROFR and put in the trust and sell as points? It's probably worth 2500 election points? That'd be $40K for them on the bottom line.

I suspect there is more to the price than meets the eye. If this was an Ebay deal, the price that was submitted for ROFR may be far different than just the ending auction price. The same could be true for a broker deal.

 

[Dean]

2BR Platinum annual Harbour Lake $15.50 passed ROFR. So basically free. Commitment included 2023 maintenace fees and usage (which was actually 2022 maintenance fees) so they paid me to take it as 2023 MFs are about $100 more in 2023.

Closing costs? Like dioxide45, I suspect there's more to this. In the past I've had good weeks that were truly free including closing and in a couple of cases, where I got the first years week either free or for a much reduced amount but I haven't seen that situation personally for a while, at least that made it through ROFR.

That's the kind of stuff I don't get - why wouldn't they pick it up for free at ROFR and put in the trust and sell as points? It's probably worth 2500 election points? That'd be $40K for them on the bottom line.

For a Platinum HL week, I'd agree. One of the weeks I referenced above was for a HL Platinum that was actually free closing, I got the next years week included and the price was about 70% of the Main fees. The reality is that frequently the first years week has lower value to the buyer as well. The lower the week value, the less likely they are to take it. Plus they likely have a monthly or quarterly budget for such acquisitions. I'm sure things have slowed down for sales like most things now and they want to limit their inventory because of Maintenance fees and sales projections.

 

[jmhpsu93]

Closing costs? Like dioxide45, I suspect there's more to this. In the past I've had good weeks that were truly free including closing and in a couple of cases, where I got the first years week either free or for a much reduced amount but I haven't seen that situation personally for a while, at least that made it through ROFR.

For a Platinum HL week, I'd agree. One of the weeks I referenced above was for a HL Platinum that was actually free closing, I got the next years week included and the price was about 70% of the Main fees. The reality is that frequently the first years week has lower value to the buyer as well. The lower the week value, the less likely they are to take it. Plus they likely have a monthly or quarterly budget for such acquisitions. I'm sure things have slowed down for sales like most things now and they want to limit their inventory because of Maintenance fees and sales projections.

Closing costs paid by seller.

@Dean I think I was pretty transparent about what the transaction was. $15.50 plus 2022 maintenance fees for 2023 usage (which I asked about before bidding on Ebay). I've bought from the seller before so I knew it was legit.

I really believe for marignal value weeks MVC doesn't want to write checks.

 

[dioxide45]

Closing costs paid by seller.

@Dean I think I was pretty transparent about what the transaction was. $15.50 plus 2022 maintenance fees for 2023 usage (which I asked about before bidding on Ebay). I've bought from the seller before so I knew it was legit.

I really believe for marignal value weeks MVC doesn't want to write checks.

No one is doubting what the offer and transaction was, but did you personally see the ROFR paperwork or waiver that came back? Unless you did, there is no telling what they actually submitted. They have a tendency to lump in certain other "costs".

 

[Dean]

Closing costs paid by seller.

@Dean I think I was pretty transparent about what the transaction was. $15.50 plus 2022 maintenance fees for 2023 usage (which I asked about before bidding on Ebay). I've bought from the seller before so I knew it was legit.

I really believe for marignal value weeks MVC doesn't want to write checks.

Thanks for clarifying. No doubt they don't want to stock up on marginal weeks and HL Platinum is likely on the edge for them. I'm sure they look at it similarly to we do in terms of finances. But I think they have more variables to look at including their budget for such purchases and that also impacts their ROFR decisions.

 

[jmhpsu93]

No one is doubting what the offer and transaction was, but did you personally see the ROFR paperwork or waiver that came back? Unless you did, there is no telling what they actually submitted. They have a tendency to lump in certain other "costs".

Thanks for clarifying. No doubt they don't want to stock up on marginal weeks and HL Platinum is likely on the edge for them. I'm sure they look at it similarly to we do in terms of finances. But I think they have more variables to look at including their budget for such purchases and that also impacts their ROFR decisions.

Here is the purchase agreement section that the closing agent said Marriott required to review the sale...I don't think they submitted anything else AFAIK.

 

[dioxide45]

deleted

 

[Dean]

Here is the purchase agreement section that the closing agent said Marriott required to review the sale...I don't think they submitted anything else AFAIK.

View attachment 70020

Thanks for sharing the data point.

 

[dioxide45]

So the all in price was about $1600 with 2023 first use. It is just as likely that first use played a role in their waiver. $15.50 with first use of 2024 may have been more attractive to them.

 

[jmhpsu93]

@dioxide45 are you an admin on ROFR.net? I chubby-finger-errored an entry (and entered it twice). The one that should be deleted is the most recent one. Thanks!

 

[dioxide45]

@dioxide45 are you an admin on ROFR.net? I chubby-finger-errored an entry (and entered it twice). The one that should be deleted is the most recent one. Thanks!

Can you send me an email through the email address on the contact page? I am away from the computer where I can fix it and will probably forget about this message by the time I am able to do the update.

 

[lotus921v]

2br Grand Chateau lockout just passed ROFR for me at 2K with 2023 MF paid. First use year 2024

 

[lotus921v]

2BR Platinum annual Harbour Lake $15.50 passed ROFR. So basically free. Commitment included 2023 maintenace fees and usage (which was actually 2022 maintenance fees) so they paid me to take it as 2023 MFs are about $100 more in 2023.

I saw you posted that on ROFR! How did you manage to pick one up at that price? I’m impressed!

 

[jmhpsu93]

I saw you posted that on ROFR! How did you manage to pick one up at that price? I’m impressed!

Ebay. Harbour Lake resales are pretty common there and I picked up one with no reserve. I think the key to the low price was the agreement for me to reimburse the seller for 2023 MFs. Timing, I guess. I picked up another HL earlier this year that was $799 all-in, and missed out on a week 52 (better if we later enroll) that I think wen't for like $1300 that was gobbled up by MVC.

 

[DRH90277]

Be careful - While there are some bargains out there, the more relevant points to me are the cost of the ongoing maintenance fees coupled with the rental prospects for these bargains.

 

[Dean]

I saw you posted that on ROFR! How did you manage to pick one up at that price? I’m impressed!

I picked up one in 2017 for $811 including sale, closing and the next year's week with no reimbursement for the week's maint. fees. I had a Platinum Plus week ROFR'd in 2018 but it was CHEAP. HL dues are relative high for a trader but should even out with GV. It appears that MVC is not exercising ROFR for Platinum weeks there.