DVC Right of First Refusal Report (ROFR): August ’19 Report14 Comments
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 525 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 2,665, resulting in a 19.7% buy back rate (Contracts Bought Back YTD / Contracts Sold YTD). The year-to-date waiver rate is 80.3%.
Highest Monthly Buy Back Numbers by DVC Resort
In July’s ROFR Report, we began a table of the highest monthly buy back price per point by DVC Resort. The reason for creating this table was that two factors have been very consistent for buy backs in 2019: 1. Resort 2. Price.
The DVC Resorts that have been consistently bought back in 2019 are as follows: Saratoga Springs, Animal Kingdom, Bay Lake Tower, Beach Club, Old Key West, Boardwalk, Grand Floridian and Hilton Head. Additionally, their buy back price thresholds have remained remarkably consistent in 2019. Keep in mind these thresholds do not provide a guarantee of avoiding a buy back, but with this much congruity, they should provide great directional information.
Highest Buy back Price Per Point by Resort for 2019
What is Right of First Refusal (ROFR)?
For those new to the concept of Right of First Refusal, it 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.
Disney Vacation Club Resort Contracts Bought Back in 2019
Please refer to the graph below for the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market YTD in 2019:
Summary on DVC Buybacks in August
The selling price range and volume summary for all buybacks in August:
|Resort||Selling Price Per Point Range of Buy Backs in August||Number of Buy Backs in August|
|Animal Kingdom||$100 – $113||13|
|Bay Lake Tower||$134 – $143||6|
|Boardwalk||$107 – $112||2|
|Old Key West||$80 – $94||11|
|Saratoga Springs||$90 – $100||14|
Buyback Rates for Disney Vacation Club Resorts
The table below shows the percentage of buybacks for all 8 different resorts for January through August of 2019. Note, the buyback rate for Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian and Vero Beach in 2019 has been 0%.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||83||258||32%|
|Old Key West||51||193||26%|