Original Message:
Re: Resale Woes.... Orlando Sentinel Article Dec.17,2007 (by Ilona R.):
ericf55 wrote:------------------ilonar2 wrote:jayjay wrote:Marriott has been exercising ROFR (right of first refusal) for many years ... this is nothing new. Some owners like it, others don't ... depends on one's perspective.---------------------------------------- I'm not sure, but I don't think this article is referring to ROFR. That is where--if a contract for a resale has already been initiated, Marriott can step in and "buy it back" for the amount agreed upon. Either way the seller gets the money, this just means that the buyer doesn't get to buy. (tell me if I am wrong...This is my basic understanding...)
However, the article reads: "Orlando-based Marriott Vacation Club now offers to buy back some, though not all, units from those who want out."
This indicating that Marriott will buy it back, in some instances, without someone having to make an offer on the timeshare.
Am I totally off in my understanding of ROFR?? Or in the article? Please correct if incorrect :)
I'll try to clarify. Marriott does have Right of First Refusal at some of the properties. That helps protect the Marriott resale values. Just like I don't want my neighbor underselling his home, because it affects my equity and resale value.
Marriott also will broker a resale week if the seller purchased originally from Marriott and the Marriott owned inventory is completely sold out. Depending on the initial purchase price and the current retal price, many owners receive enough money to cover their initial investment. Marriott has properties like Heritage Club in Hilton Head, SC with purchasers waitlisted for many months waiting for an owner to resell back through Marriott. The owners like the arrangement and Marriott likes the brokerage commission.
The key is that your resort needs to be sold out and you should use it for about 10 years before selling back through Marriott.
This is the difference between ROFR, reacquired, and Marriott resale inventory.
Regards, Eric
OK--Thank you for the explanation, but it doesn't really answer my question--I was responding to jayjays response to the article. Was the article referring to to ROFR or just to Marriott buying them back in some instances?