DVC Right of First Refusal Report (ROFR): April 2023
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 4 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 1,902, resulting in a 0.2% buyback rate (Contracts Bought Back in 2023/Contracts Sold in 2023). The 2023 waiver rate is 99.8%.
Key ROFR Updates
Disney Vacation Club (DVC) was a bit preoccupied with other priorities this month, pushing Right of First Refusal (ROFR) to the sidelines for the third consecutive month. The company’s attention was primarily devoted to the highly anticipated Villas at Disneyland Hotel and the enchanting new Cabins at Disney’s Fort Wilderness.
This shift in focus provided prospective buyers with a golden opportunity to snatch up contracts and bypass the historically anxiety-inducing ROFR process. With DVC’s concentration on expanding its resort offerings, this temporary reprieve continues to be a welcome relief for those in the market for a DVC resale contract at this time.
As a quick follow-up to last month’s discussion on ROFR and active listings, this month’s trend demonstrates a continued decrease in active inventory. At the time of this article, the number of listings has reached 474, down from over 800 earlier this year. Most notably, the average purchase price of DVC resale contracts experienced a slight increase this month without the influence of any buybacks. This decrease in inventory will most likely continue to drive prices higher in the coming months.
What is Right of First Refusal (ROFR)?
For those new to the concept, Right of First Refusal is the option Disney Vacation Club has to purchase any resale contract after a sales price has been agreed upon, and the contract has been executed. Each contract must be forwarded to DVC for review.
DVC typically takes no more than 30 days to review the contract. At their discretion, Disney may step in and purchase the property themselves at the terms agreed upon by the seller and original buyer. DVC then becomes the buyer, and the purchase is complete. Once DVC is the buyer there is not an opportunity to come back with a better offer in hopes of still purchasing the contract.
Highest Monthly Buy Back Numbers by DVC Resort
Highest Buyback Price Per Point by Resort from April 2022 to April 2023:
Disney Vacation Club Resort Resale Contracts Bought Back in 2023
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2023:
Buy Back Rates for Disney Vacation Club Resorts in 2023
The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2023. Note, there have been no buybacks of the following resorts in 2023: Aulani, Grand Californian, Riviera Resort, Grand Floridian, Polynesian, Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.
|Resort||Buybacks||Number Sold||% Bought Back|