Ready to buy, push me over the edge

CaptainAmerica

CaptainAmerica

Premium Member
Original Poster
Club Cooloholic said:
I was going through old correspondence. Man it was a process. The year we did it we put our offer in at the end of August, accepted a few days later, and we had our contracts 2 days after that. Then it was a long wait, disney waived their right of first refusal almost exactly a month later, the it took another month for it to all be executed and deed done. Closing was supposed to take 2 to ,4 days and instead about 8. For us it was hard because there were points on the contract that were going to expire and the process took about 2 months.
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Disney taking a month to decide on ROFR is so weird to me. There are what, seven variables? Home resort, use year, contract size, CY points, PY points, FY points, price per point. It would take me an afternoon to build an Excel model that spits out an instant "yes or no" decision on any resale whatsoever.
 
i<3riviera

i<3riviera

Active Member
from what I've seen, resale deeds (domestic and foreign) are physically signed and notarized; foreign ones usually get apostilled (though maybe not if you get notarized by the US embassy) and if any of the supporting documents (local notarization) are not in English (Japanese and Spanish are recent ones I've come across) everything is translated as well; this can lead to some interesting deeds that are a dozen pages long including all sorts of weird paperwork like pictures of Peruvian identity cards required for local notarization

even when DVD buys back a deed (RoFR), those deeds are not electronically signed; I figure if DVD can't work out the logistics to make it happen, no one can

sounds like contracts for the purchase can be electronic; contracts don't get recorded with Orange County, they just guide the purchase / closing process

if you've bought resale and only ever saw electronically signed documents, that is not incongruent with above; as the buyer, you don't actually sign a resale deed, just everything else; only the sellers sign the deed in the case of a resale DVC purchase

direct deeds are a different beast; they are usually electronically signed by all parties; I don't totally know why but it likely is something DVD and Orange County FL have setup to make everyone's life easier; also weird, buyer's signatures appear on direct deeds

could have avoided this all if you just bought RVA ;)
CaptainAmerica said:
I hate it with a passion: Riviera
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Club Cooloholic

Club Cooloholic

Well-Known Member
CaptainAmerica said:
Disney taking a month to decide on ROFR is so weird to me. There are what, seven variables? Home resort, use year, contract size, CY points, PY points, FY points, price per point. It would take me an afternoon to build an Excel model that spits out an instant "yes or no" decision on any resale whatsoever.
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I think they just like to use their maximum amount of time, to be fair, it is in their best interest to keep resale as slow and painful a process as possible compared to direct purchase.
 
Buck Wheelie

Buck Wheelie

Well-Known Member
CaptainAmerica said:
Disney taking a month to decide on ROFR is so weird to me. There are what, seven variables? Home resort, use year, contract size, CY points, PY points, FY points, price per point. It would take me an afternoon to build an Excel model that spits out an instant "yes or no" decision on any resale whatsoever.
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We sold a contract last fall. I think Disney has 45 days for ROFR and they used every minute of it.
 
i<3riviera

i<3riviera

Active Member
yep, 30 days; technically you can proceed to closing if you've provided the 30 day notice to DVD and they haven't responded by the 31st day; I'm not aware of any broker / title company that has done this though

also, if DVD takes the deed, they are required to close no later than the initially planned closing date

here's the full text if you're interested (probably not) ...
1614733573511.png
 
CastAStone

CastAStone

5th gate? Just build a new resort Bob.
i<3riviera said:
yep, 30 days; technically you can proceed to closing if you've provided the 30 day notice to DVD and they haven't responded by the 31st day; I'm not aware of any broker / title company that has done this though

also, if DVD takes the deed, they are required to close no later than the initially planned closing date

here's the full text if you're interested (probably not) ...
View attachment 536878
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Welcome to WDWMagic!
 
nickys

nickys

Premium Member
CaptainAmerica said:
Disney taking a month to decide on ROFR is so weird to me. There are what, seven variables? Home resort, use year, contract size, CY points, PY points, FY points, price per point. It would take me an afternoon to build an Excel model that spits out an instant "yes or no" decision on any resale whatsoever.
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You forgot the main one. Demand for that resort. Sometimes DVC sales reps will talk about putting people on a waiting list for points, other times they don’t. But if there is a surge in interest, whether specifically or generally DVC will buy back more points.

Both the DIS and Mouseowners have a ROFR thread where people record the details of contracts taken in ROFR. There are patterns but it changes. Use year doesn’t matter, DVC can change the use year of points if they need to. Sometimes they take big contracts, other times small. Buyers want different sizes of contracts, so they need a mixture. Possibly the second most important factor is price per point. To some extent DVC can use ROFR to shore up prices. Say they see a huge increase in ROFR submissions for Copper Creek. That’s a new resort, they won’t want the price on that to fall far. So they could buy all contracts for CCV under a certain price, regardless of how many points, number of contracts submitted etc.

So I don’t think a spreadsheet would ever be used anyway, because it cannot deal with all factors.

Plus, what incentive is there for DVC to hurry ROFR anyway, makes no odds to them.
 
CastAStone

CastAStone

5th gate? Just build a new resort Bob.
One more variable is unit. If Disney has 24 points in a random unit laying around from some old sale, they can’t do anything with them. If a 130 point contract comes around for that same unit, now Disney can bundle those 130 points with the 130 points and now can use that to fill their next 150 point contract request, and only have 4 useless points.

This may seem unimportant - after all, Disney needs to hold a whole bunch of points at each resort and the unit is irrelevant, but if Disney took no care to manage by unit, eventually they would have a ton of leftover points spread across 80 units and nothing would be saleable. They have a lot more flexibility if they manage units to some extent. So a unit they have points for is probably more likely to get ROFRd than a similar contract for a unit they don’t have points for.
 
i<3riviera

i<3riviera

Active Member
another view of the RoFR process, DVD keeps 2% of the resort and they appear to initially spread that out so DVD has 2% of each unit; however I don't believe DVD is required to keep their 2% equally distributed amongst units

over time, some units will have more than 2% and some will have less, possibly even 0% owned by DVD; as long as the resort level is 2%, they are fine; if after every buyback they reorder the list of units with greatest to fewest points and always sell points from the unit with the largest surplus, they don't need to care which unit they are buying to replenish points

I also don't know that they care about point status, at least not to buyback a loaded contract at a premium; same as with units they will always have their 2% ownership interest to sell; if they buyback a stripped ownership interest they can't sell for two years, it would just go to the back of the sales pool; bonus: they don't have to pay dues on stripped contracts for two years (sellers already did)

my guess is DVD only cares about resort and price; price is three flavors
  1. high, pass ASAP, too expensive we're not going to need this
  2. low, take ASAP, we have a sell side request for more than this number of points and this is the lowest price we've seen
  3. low+, hold decision for up to 30 days, this isn't the lowest we've seen but if we see more sell side requests this will become #2 so don't release it until the last minute
congrats on the purchase and good luck with RoFR! the buyback ceiling for SSR was 104 USD / point in Jan and 100 USD / point in Feb so if you're above those, you're probably fine
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
CaptainAmerica said:
Side note, what's the deal with Saratoga Springs 1BR? The refurb pictures pretty clearly shows a king, a queen pull-down, and a child fold-down, but the points chart says it sleeps 4. Shouldn't it be 5?

EDIT: This would also push the 2 bedroom to 9 I believe.
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They have been attempting to build/add 5 capability for the studios and one bedrooms

Why wouldn’t they? 5 People in 1 room is more profitable than 5 in 2.

Pretty simple math
 
nickys

nickys

Premium Member
i<3riviera said:
another view of the RoFR process, DVD keeps 2% of the resort and they appear to initially spread that out so DVD has 2% of each unit; however I don't believe DVD is required to keep their 2% equally distributed amongst units

over time, some units will have more than 2% and some will have less, possibly even 0% owned by DVD; as long as the resort level is 2%, they are fine; if after every buyback they reorder the list of units with greatest to fewest points and always sell points from the unit with the largest surplus, they don't need to care which unit they are buying to replenish points

I also don't know that they care about point status, at least not to buyback a loaded contract at a premium; same as with units they will always have their 2% ownership interest to sell; if they buyback a stripped ownership interest they can't sell for two years, it would just go to the back of the sales pool; bonus: they don't have to pay dues on stripped contracts for two years (sellers already did)

my guess is DVD only cares about resort and price; price is three flavors
  1. high, pass ASAP, too expensive we're not going to need this
  2. low, take ASAP, we have a sell side request for more than this number of points and this is the lowest price we've seen
  3. low+, hold decision for up to 30 days, this isn't the lowest we've seen but if we see more sell side requests this will become #2 so don't release it until the last minute
congrats on the purchase and good luck with RoFR! the buyback ceiling for SSR was 104 USD / point in Jan and 100 USD / point in Feb so if you're above those, you're probably fine
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Some units are literally one grand Villa. Others are a single building at SSR or OKW. And most are a mixture of different rooms in proximity to each other. When you buy you do get told you own a fraction of a particular unit.

How do you know which units Disney own points at? The only way I can think of is to literally search for the DVCM (or whatever the name is) as an owner on the county register. Has some site documented this? 😲
 
CaptainAmerica

CaptainAmerica

Premium Member
Original Poster
Sirwalterraleigh said:
They have been attempting to build/add 5 capability for the studios and one bedrooms

Why wouldn’t they? 5 People in 1 room is more profitable than 5 in 2.

Pretty simple math
Click to expand...
Yeah it's smart and a big win for my family, I was just puzzled why the points charts don't reflect those changes. But someone explained previously that the refurb has to be 100% complete before they change the chart.
 

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