DVC Right of First Refusal Report (ROFR): August ’19 Report

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
It is important to note that Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian, and Vero Beach continue to go untouched for buy backs in 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 |
Grand Floridian | $155 | 1 |
Hilton Head | $70 | 1 |
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 |
Animal Kingdom | 130 | 428 | 30% |
Bay Lake Tower | 83 | 258 | 32% |
Beach Club | 45 | 134 | 34% |
Boardwalk | 26 | 176 | 15% |
Grand Floridian | 21 | 151 | 14% |
Hilton Head | 17 | 54 | 31% |
Old Key West | 51 | 193 | 26% |
Saratoga Springs | 145 | 599 | 24% |
Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.
Comments
What is the lowest and highest point cost for BRV@WL that passed ROFR in August?
Have you had any fail ROFR so far in September?
Michelle, we had no BRV buy backs in August. In August, the lowest that got waived was $100/pt., and the highest that got waived was $119/pt. Also, we have not had any BRV buy backs in September.
Thanks! I have a pending resale for $93/point at 168 points and saw the two comments below about buyback at BRV in September, and was hoping for reassurance I’ll be in the clear. 🙂
Where are you getting your data? Our Boulder Ridge was bought back in August…. will that not show until Sept?
Lauren, our data is from the buy backs DVC Resale Market experienced in August.
Ughhhh super depressed now…….bought 100 at BayLake @ $135……..no chance it makes it thru huh?
Brian, there is no guarantee they buy it back, but just looking at the Bay Lake Tower buy backs for this year, there is certainly a very strong chance.
Nick do you have access to the lowest per point price on a contract that actually went thru for BayLake?
Brian, in August, the lowest priced Bay Lake Tower we sold that got waived was sold at $136/pt.
This is just a mechanism Disney uses to hold up the resale prices for the resorts listed above. It’s in their interest for them not to see the resale prices fall too much. Maybe they repackage them into smaller parcels that they resell direct?
Lesley, Disney can break the contracts into smaller point amounts and even change Use Years when reselling them.
Disney just exercised their ROFR on a Boulder Ridge contract that we were purchasing ( 170 points at $95 a point)
Greg….how long did it take to hear back?
What price per point would you think looks safe for a 200-300 point Beach Club contract over the next couple months?
Allen, based on the highest buy back numbers we’ve seen in 2019, I would recommend $146/pt. or higher.
What would be a reasonable price for 150 points at grand floridian?
David, the average price for a Grand Floridian contract has been running in the 170’s to 180’s per point the last few months. The price can also fluctuate some based on current point availability as well (i.e., points banked, current and borrowed). Please see this blog as a reference: https://www.dvcresalemarket.com/blog/dvc-resale-average-sales-prices-for-july-2019/
Hello, If you were going to make an offer on Bay Lake (just in general, regardless of stripped/loaded, etc), what price per point would seem safe?
Ryan, based on what we are seeing in 2019, $146/pt. or higher would likely be safe for avoiding ROFR for a Bay Lake Tower contract.