ROFR metric / Ongoing ROFR Activity

[MOXJO7282]

Nah, I think it’s more that you buy so many weeks Joe, they are running out of $


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The funny thing is I never thought it would go through so now i have to fund these 2 units which I really wasn't expecting to do.

 

[Shaun]

The funny thing is I never thought it would go through so now i have to fund these 2 units which I really wasn't expecting to do.

I think that we both have the disease. I have 4 different MOC that I’m trying to purchase that I’m waiting on ROFR. What if they all pass?? Geezz....

 

[JoJo12]

The funny thing is I never thought it would go through so now i have to fund these 2 units which I really wasn't expecting to do.

We are fixed week 32 Lahina tower. What is your week for 2019?

 

[MOXJO7282]

We are fixed week 32 Lahina tower. What is your week for 2019?

Aug 9th check-in. We're there Aug 11th-24th so if family uses they will be there before us. I'm in an Original OF for the first week and then Lahaina OV second week.

 

[Vacation fun]

We went to a presentation this week. Marriott is buying these up to do bundles with buyers so the buyer buys them then from Marriott and they make you buy points to go with it. Example Plantium Grand Vista 2 bedroom selling at $10,900. With the purchase of 2500 points

 

[JIMinNC]

We went to a presentation this week. Marriott is buying these up to do bundles with buyers so the buyer buys them then from Marriott and they make you buy points to go with it. Example Plantium Grand Vista 2 bedroom selling at $10,900. With the purchase of 2500 points

Most of the information we've heard here on TUG from more trustworthy sources (i.e. - not coming from a sales person's mouth) is that the weeks Marriott acquires through ROFR go directly into the MVC Trust to provide cheaply-acquired points to sell (cheaper than building new resorts), and are not resold (possible exceptions are Aruba, St Kitts, and Europe weeks, since those can't be put in the Trust, and thus must be resold). Every bundle I've been offered or heard of others being offered are true resale weeks where Marriott is operating as the broker between buyer and seller. The one bundle we bought was such a transaction, and the transaction was between us and a Seller from Ohio, with Marriott as the broker.

If you think about it from a business standpoint, if Marriott can acquire a week via ROFR for a price that equates to $1-$3 per point for the point value of that week, and then can sell those points for $11-$14 per point, they can make a heck of a lot more money than selling that as a week. Using your $10,900 Platinum 2BR Grande Vista as an example, that week is worth 2775 points. If they can exercise ROFR at, let's say, $1000 to $3000 (prices that have failed ROFR on rofr.net), their cost for those 2775 points would be around $1 per point or less. But they can resell them for a discounted price of around $11-$12 per point, or $30,000 to $33,000. So, they can earn three times the revenue they would earn by reselling the reacquired week for $10,900.

 

[Vacation fun]

Most of the information we've heard here on TUG from more trustworthy sources (i.e. - not coming from a sales person's mouth) is that the weeks Marriott acquires through ROFR go directly into the MVC Trust to provide cheaply-acquired points to sell (cheaper than building new resorts), and are not resold (possible exceptions are Aruba, St Kitts, and Europe weeks, since those can't be put in the Trust, and thus must be resold). Every bundle I've been offered or heard of others being offered are true resale weeks where Marriott is operating as the broker between buyer and seller. The one bundle we bought was such a transaction, and the transaction was between us and a Seller from Ohio, with Marriott as the broker.

If you think about it from a business standpoint, if Marriott can acquire a week via ROFR for a price that equates to $1-$3 per point for the point value of that week, and then can sell those points for $11-$14 per point, they can make a heck of a lot more money than selling that as a week. Using your $10,900 Platinum 2BR Grande Vista as an example, that week is worth 2775 points. If they can exercise ROFR at, let's say, $1000 to $3000 (prices that have failed ROFR on rofr.net), their cost for those 2775 points would be around $1 per point or less. But they can resell them for a discounted price of around $11-$12 per point, or $30,000 to $33,000. So, they can earn three times the revenue they would earn by reselling the reacquired week for $10,900.

Good point !!

 

[Shaun]

Most of the information we've heard here on TUG from more trustworthy sources (i.e. - not coming from a sales person's mouth) is that the weeks Marriott acquires through ROFR go directly into the MVC Trust to provide cheaply-acquired points to sell (cheaper than building new resorts), and are not resold (possible exceptions are Aruba, St Kitts, and Europe weeks, since those can't be put in the Trust, and thus must be resold). Every bundle I've been offered or heard of others being offered are true resale weeks where Marriott is operating as the broker between buyer and seller. The one bundle we bought was such a transaction, and the transaction was between us and a Seller from Ohio, with Marriott as the broker.

If you think about it from a business standpoint, if Marriott can acquire a week via ROFR for a price that equates to $1-$3 per point for the point value of that week, and then can sell those points for $11-$14 per point, they can make a heck of a lot more money than selling that as a week. Using your $10,900 Platinum 2BR Grande Vista as an example, that week is worth 2775 points. If they can exercise ROFR at, let's say, $1000 to $3000 (prices that have failed ROFR on rofr.net), their cost for those 2775 points would be around $1 per point or less. But they can resell them for a discounted price of around $11-$12 per point, or $30,000 to $33,000. So, they can earn three times the revenue they would earn by reselling the reacquired week for $10,900.

That's exactly what I was told when I talked to a couple of people over the phone at Marriott this week in the resale department. Any "week(s)", acquired by Marriott through ROFR are put back into the trust but if an owner wants to have Marriott resell their week or buy their week directly from them then they resell those "week(s)" in a bundle package and they may even resell that week to someone who just wants to buy a a resale week, from my understanding of our conversations. I talked to their acquisition and resale department in the past few days and from what you are saying, it lines up with what they told me this week.

 

[Shaun]

I have an offer in on a 2BR OV annual usage at the Marriott Maui Ocean Club, what are your thoughts as to it passing ROFR at 16k (includes closing costs, transfer fees, etc.)?

 

[MOXJO7282]

I have an offer in on a 2BR OV annual usage at the Marriott Maui Ocean Club, what are your thoughts as to it passing ROFR at 16k (includes closing costs, transfer fees, etc.)?

This will be a good test because I don't think we've seen a OV test ROFR lately. Good luck.

 

[JIMinNC]

I have an offer in on a 2BR OV annual usage at the Marriott Maui Ocean Club, what are your thoughts as to it passing ROFR at 16k (includes closing costs, transfer fees, etc.)?

Are you talking about original towers or new towers? If original towers, we passed about 18 months ago on an EOY at $8,000, so you would be exactly double that. So my guess would be for original towers, your odds would be good that it would pass. For the new towers, I would guess $16K might fail.

 

[Shaun]

Are you talking about original towers or new towers? If original towers, we passed about 18 months ago on an EOY at $8,000, so you would be exactly double that. So my guess would be for original towers, your odds would be good that it would pass. For the new towers, I would guess $16K might fail.

Thanks for the info. Yes, it would be the original towers. Question - when I find out, do I enter on ROFR.net 16k (with closing costs) or 15k (without closing costs)? Was your 8k EOY purchase with you paying closing costs?

 

[JIMinNC]

Thanks for the info. Yes, it would be the original towers. Question - when I find out, do I enter on ROFR.net 16k (with closing costs) or 15k (without closing costs)? Was your 8k EOY purchase with you paying closing costs?

My $8K was not counting closing, but I paid closing, so my out of pocket was about $8600. But what was submitted to Marriott was the contract that specified the sales price of $8K. The closing costs are irrelevant to MVC because they do their own closings.

What to put on rofr.net has been a subject of considerable debate here on TUG. I'm fairly sure there is no consistency in the data, as I know some have logged in the price without closing and others have used the all-in price. That is a limitation of the data I believe.

 

[MOXJO7282]

My $8K was not counting closing, but I paid closing, so my out of pocket was about $8600. But what was submitted to Marriott was the contract that specified the sales price of $8K. The closing costs are irrelevant to MVC because they do their own closings.

What to put on rofr.net has been a subject of considerable debate here on TUG. I'm fairly sure there is no consistency in the data, as I know some have logged in the price without closing and others have used the all-in price. That is a limitation of the data I believe.

I do put the full amount because i did think that is how Marriott sees it so all my numbers include my all-in costs.

Also for us vets of TUG it is interesting to look back at our ROFR entries from years back. I see in 2008 I bought a number of Newport Coasts for about $16k. Now they sell for $8k.

 

[Shaun]

Great news, Marriott just waived their right of first refusal on my 2BR annual OV purchase at MOC so it looks like I will be buying it. I don't have the paperwork back yet but escrow just let me know that it's going to me. I'm buying a couple of 1BR units at MOC also and they are going in for ROFR today, we will see how those go.

 

[MOXJO7282]

Great news, Marriott just waived their right of first refusal on my 2BR annual OV purchase at MOC so it looks like I will be buying it. I don't have the paperwork back yet but escrow just let me know that it's going to me. I'm buying a couple of 1BR units at MOC also and they are going in for ROFR today, we will see how those go.

That is great news for you. You can't beat the LO value of the 2BDRM units. They are a great value for use and rental purposes.

 

[eyedude]

Great news, Marriott just waived their right of first refusal on my 2BR annual OV purchase at MOC so it looks like I will be buying it. I don't have the paperwork back yet but escrow just let me know that it's going to me. I'm buying a couple of 1BR units at MOC also and they are going in for ROFR today, we will see how those go.

Congrats. Seems like more Maui weeks are passing ROFR the last couple weeks. As I mentioned in a previous post, two of mine passed recently as well. Makes you wonder.

 

[Shaun]

Congrats. Seems like more Maui weeks are passing ROFR the last couple weeks. As I mentioned in a previous post, two of mine passed recently as well. Makes you wonder.

Thank you. Congrats to you too! Ya, maybe they are letting some go, mine is passing for 16k (all in, including closing, etc.). On the waiver that I just got back from Marriott the price is shows $15,000 on their document so maybe 15k would fly either way, who knows. At least we have a little info. now on 2 BR annual ocean view in the original building. I'll see how my other ROFR's go soon.

 

[JIMinNC]

I do put the full amount because i did think that is how Marriott sees it so all my numbers include my all-in costs.

Thank you. Congrats to you too! Ya, maybe they are letting some go, mine is passing for 16k (all in, including closing, etc.). On the waiver that I just got back from Marriott the price is shows $15,000 on their document so maybe 15k would fly either way, who knows. At least we have a little info. now on 2 BR annual ocean view in the original building. I'll see how my other ROFR's go soon.

What Shaun says above is how I have been told Marriott looks at ROFR - i.e. just the contract purchase price not including closing - not the all-in price with closing. The reason given was that Marriott does their own closing so external closing costs are not relevant. The waivers I received on my purchases also showed only the purchase price, not the price with closing. I paid closing on all of mine, but for the above reasons, I do not include closing in what I post on ROFR.net.

 

[Shaun]

What Shaun says above is how I have been told Marriott looks at ROFR - i.e. just the contract purchase price not including closing - not the all-in price with closing. The reason given was that Marriott does their own closing so external closing costs are not relevant. The waivers I received on my purchases also showed only the purchase price, not the price with closing. I paid closing on all of mine, but for the above reasons, I do not include closing in what I post on ROFR.net.

I would tend to agree with that because the $15,000 is what was on the waiver form from Marriott. The confusing part is that several agents that I spoke with said that 15k would never go through and that Marriott had bought back a a couple in the $15,500 (net price) range. So, who knows....

 

[CDD]

This will be a good test because I don't think we've seen a OV test ROFR lately. Good luck.

I bought a bi-annual 2bed OV there for $8750 recently that passed - so I agree that this will be a good test to see if $16K will pass. What happened to the 1 bed MOC EOY OF that was for sale for a low price - $2500 or something like that?

 

[Shaun]

I bought a bi-annual 2bed OV there for $8750 recently that passed - so I agree that this will be a good test to see if $16K will pass. What happened to the 1 bed MOC EOY OF that was for sale for a low price - $2500 or something like that?

I do have the letter that was forwarded to me from the escrow company with Marriott saying that they are waiving their right to exercise ROFR at the $15,000 (without closing costs) so I think I'm good to go. The EOY Oceanfront 1BR low price of $2,500 didn't pass, just like everyone kind of figured.

 

[CDD]

Great news, Marriott just waived their right of first refusal on my 2BR annual OV purchase at MOC so it looks like I will be buying it. I don't have the paperwork back yet but escrow just let me know that it's going to me. I'm buying a couple of 1BR units at MOC also and they are going in for ROFR today, we will see how those go.

I just realized I missed some posts - congrats on your purchase!

 

[CalGalTraveler]

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

Sure it helps MVC. I now believe low ball buyers are also doing a favor for sellers by helping them to unload quickly because life happens and ROFR can often be the fastest, most secure way to relieve them of their burden. It also helps existing owners by removing low end inventory quickly out of the market, making offers for resale more profitable for seller when it is waived and goes to a buyer.

 

[TravelTime]

Sure it helps MVC. I now believe low ball buyers are also doing a favor for sellers by helping them to unload quickly because life happens and ROFR can often be the fastest, most secure way to relieve them of their burden. It also helps existing owners by removing low end inventory quickly out of the market, making offers for resale more profitable for seller when it is waived and goes to a buyer.

It is sort of like buying a house in a short sale or in foreclosure.