What to Know About Right of First Refusal (ROFR)
When you purchase a DVC resale contract, it has to go through right of first refusal (ROFR). This review process happens after the seller and prospective buyer agree to a sales price. With ROFR, Disney Vacation Club has the opportunity to purchase a resale contract at the price and terms that the seller and prospective buyer agree to. If DVC chooses to buy that contract, the prospective buyer has to find a new contract to purchase.
If you’re looking to buy a DVC resale contract, here are some of the basics you should know about ROFR before making your purchase.
Why Is ROFR Important?
While the whole ROFR process can be nerve wracking for potential buyers, ROFR plays an important role in keeping DVC a premium product. Unlike many other timeshares, DVC contracts tend to hold their value. This is in large part due to ROFR. Any contract that is priced too low is likely to get bought back by DVC. In essence, ROFR creates a floor for DVC resale contract prices and helps prop up their value. DVC Members should actually be glad that the ROFR process exists!
What Can I Do to Help Pass ROFR?
There is no way to 100% guarantee that your contract will pass ROFR. However, there are ways to improve your odds of passing. When you’re looking into purchasing a DVC resale contract, one of the best things that you can do is to regularly read the ROFR reports from DVC Resale Market. These monthly reports review the highest monthly buyback numbers by DVC resort, so you can get a sense of what price per point may be too low to pass ROFR and more likely to be bought back by DVC.
Which DVC Resorts Tend to Pass ROFR?
Actively selling resorts are typically the safest bets when it comes to passing ROFR. Actively selling resorts are those that DVC is currently selling direct, such as Aulani, the Villas at Disneyland Hotel, the Cabins at Disney’s Fort Wilderness, Polynesian, and Riviera. Over the last year DVC has not bought back any contracts from the Villas at Disneyland Hotel, Polynesian, or Cabins at Disney’s Fort Wilderness. Nevertheless, it’s worth noting that Aulani and Riviera have each had one buyback this past year. These are rare, but with the Aulani contract at $78/point and Riviera one at $89/point, they were prime examples of DVC buying back contracts that are priced too low.
Access all available Disney Vacation Club resale listings, or learn more about buying and selling with DVC Resale Market.
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