Monthly ROFR Data - UPDATED 05/07/2013

[psac]

This is great data. Hopefully they continue this trend, and our BWV goes through...

[dizfan]

Originally Posted by wdrl

Based on deeds recorded at OCC beginning July 2010, Disney has ROFRed about 6,500 more points at BCV than it has sold. Even if allowances are made for the lag time between a sale or ROFR and its recordation at OCC, it appears Disney is taking back more BCV points than it is selling. In all likelihood, Disney knows it can recoup its buyback costs either by renting villas out for cash or by eventually selling the points. The 3,192 points ROFRed in November were bought for $244,900, exclusive of closing costs, MFs, and administrative overhead. If Disney resells them for $115/point, those 3,192 points will generate $367,080, less costs associated with selling those points. I also suspect that Disney knows these BCV won't remain in its unsold inventory for long, so its money won't be tied up for long.

wdrl thank you for all the great information on ROFRs.

Very interesting that Disney has been ROFRing more points than they are selling.

[wdrl]

The "Circle of Life" doesn't pertain just to Disney's classic movie "The Lion King." It also applies to DVC points. Back in July, a Disboard member made a bid on a BCV contract that was ROFRed by Disney. On November 22, 2010, Disney sold some of those points to a new buyer. Here is the updated timeline:


7/21/2010 - Member makes an offer for 100 BCV points from Unit #21 at $80/point.

7/28/2010 - Member is notified that Disney exercises ROFR on offer.

8/19/2010 - Seller signs warranty deed transferring 100-point BCV deed to DVD.

9/07/2010 - Warranty deed is recorded and filed at OCC. OCC indicates the "Sale/Consideration" value of deed is $8,000.00.

11/22/2010 - A new DVC member buys 175 BCV points in seven 25-point deeds. 75 of the points come from BCV Unit 21. Sale/Consideration value is $115/point.

12/09/2010 - Deeds are recorded and filed at OCC.


This timeline shows that it took Disney no more than three months (8/19 to 11/22/2010) to sell 75 of the 100 points it reacquired.

[wdrl]

Someone requested a list of the actual records that are reflected in the monthly ROFR chart. Here is the list of warranty deeds posted at OCC for October and November. It is sorted by resort and then by the most recent date.

[wdrl]

In December, DVD continued to spend most of its ROFR efforts on reacquiring BCV deeds. In addition to reacquiring 15 BVC deeds in December, DVD also reacquired an SSR deed and an AKV deed. According to the warranty deed information recorded with the Orange County Comptroller, the 15 BVC deeds represented 3,312 points and were priced in a range from $65 to $84, with a weighted average price of $76.68 a point.

The SSR deed that was reacquired in December was the first deed for that resort since I started tracking this data in June 2010. The SSR deed was reacquired at a price of $59 a point.

DVD also reacquired an AKV deed in December. However, I suspect that this deed was not part of a "normal" ROFR transaction. It was a deed for 313 points and was reacquired on 12/17/2010 at $101/point. Just a few days later the original buyer bought another AKV deed for 313 points with a different UY. I suspect DVD bought back the original deed because the buyer wanted a different UY and DVD erred when it sold the first deed.

For brevity's sake, I modified my ROFR chart to display the last three calendar months and a summary for all ROFR activity since June 2010. I have also included a listing of the deeds that comprise this month's data.

Be sure to check out Donald is #1's excellent thread on ROFR activity on the Operations board if you want more detailed information about deeds that have passed, or failed, the ROFR process. See http://www.disboards.com/showthread.php?t=1960185

[DVCGeek]

Originally Posted by wdrl

DVD also reacquired an AKV deed in December. However, I suspect that this deed was not part of a "normal" ROFR transaction. It was a deed for 313 points and was reacquired on 12/17/2010 at $101/point. Just a few days later the original buyer bought another AKV deed for 313 points with a different UY. I suspect DVD bought back the original deed because the buyer wanted a different UY and DVD erred when it sold the first deed.

Thanks for sharing the theory; when I first glanced at the chart and saw the $101 pp I thought it HAD to be a typo for AKV... Seemed a pretty high ROFR price for almost any 'currently marketed' resort!

[SanDeeKath]

Wow, I just discovered this thread. Thank so much for this excellent information! Katherine

[suebeelin]

I'm looking to submit a bid for AKV, 160 points at 63pp. Any help is much appreciated... do you think it may get ROFR'ed? I'm nervous.

I originally wanted BCV, but it seems to be a highly sought after property. Does anyone know why BWV isn't as highly sought after?

--Newbie without any points... YET...

[SanDeeKath]

Originally Posted by suebeelin

I'm looking to submit a bid for AKV, 160 points at 63pp. Any help is much appreciated... do you think it may get ROFR'ed? I'm nervous.

I originally wanted BCV, but it seems to be a highly sought after property. Does anyone know why BWV isn't as highly sought after?

--Newbie without any points... YET...

Just submitted AKV at $65 for 200 pts. Not sure it will pass though. I have about 2 more weeks till I hear...

I would suggest having the seller increase the price by a few points ($2 to $3 perhaps) and have THEM pay the closing costs and/or maintenance fees in exchange. Katherine

[suebeelin]

Katherine-- do you pay Closing and 2011 MF? Pls let me know if you pass-- I think I'm going to go through with this... but worried that there's gonna be a dramatic price drop in 2 months (due to the changes in resale "rights/perks")... any thoughts??

[suebeelin]

Oh! Katherine-- I just read your strategy-- good one!

[wdrl]

January 2011 was a relatively slow month for ROFR activity. Six BCV deeds and one BLT deed were reacquired by DVD, based on warranty deeds filed and recorded with the Orange County Comptroller during January. According to OCC, the BCV deeds were priced between $63.16 a point to $84.00 a point, for a weighted average of $72.98.

The BLT deed was reacquired at the price of $120.00 a point. Based on that price, its highly likely that DVD bought back the deed for some reason other than as part of a "normal" ROFR procedure.

Although the number of ROFRed deeds was lower than in prior months, its premature to assume that DVD is cutting back on its ROFR activity on BCV deeds. Its possible buyers and sellers are setting prices on resale deeds above DVD's target ROFR price, which is in the low $80s, resulting in few deeds that DVD wants to reacquire. As noted in Donald is #1's thread on ROFR activity (see http://www.disboards.com/showthread.php?t=1960185), several BCV deeds that passed ROFR in the last few months were priced in the mid-$80s or higher. However, the most recent BCV resale deed to clear ROFR was priced at $81. It will interesting to see if there is a shift in ROFR activity next month.

Once again, I shortened my chart to show the last four months of data, as well as a total since June 2010.

[Terri730]

Can someone explain to me what ROFR stands for. I'm new to the boards. Thanks!

[a742246]

Originally Posted by Terri730

Can someone explain to me what ROFR stands for. I'm new to the boards. Thanks!

Disney has a ROFR right of first refusal. Basically this means every resale contract that is sold has to have Disney's approval. Disney has the option of buying that contract if it wants to.

[DVCGeek]

and when Disney does exercise "Right of First Refusal" they make the purchase at the same price and other terms (who pays closing costs, etc.) as what the original buyer & seller agreed to...