DVC Right of First Refusal Report (ROFR): August ’20 Report

Year-to-date (YTD), Disney exercised their right of first refusal (ROFR) on 84 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 2,603, resulting in a 3.2% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate was 96.8%.

Return of the Buy Back

August saw the return of Disney exercising their right of first refusal again. After 4 straight months of no buy backs, Disney bought back 22 contracts sold through DVCRM in August. Those resorts bought back included Saratoga Springs (10), Grand Floridian (6), Old Key West (5) and Vero Beach (1). Although buyers in the market may not want to see buy backs returning, it is at least a positive sign of things returning back to normal.

During the 4 months of no buy backs, DVC resale prices already rebounded back to their all-time highs. It will be interesting to see with buy backs returning, if resale prices will increase even more. Historically, Disney has always been the biggest purchaser of DVC resale contracts via ROFR. In 2019, for example, Disney bought back 16.3% of the contracts sold through DVCRM. What has been astonishing is that without Disney buying back contracts for 4 months, prices climbed on heavy buyer demand.

Highest Monthly Buy Back Numbers by DVC Resort

Highest Buy Back Price Per Point by Resort from August ’19 to August ’20

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.

Disney Vacation Club Resort Contracts Bought Back in 2020

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market in 2020:

Buy Back Rates for Disney Vacation Club Resorts in 2020

The table below shows the percentage of buy backs for all 9 different resorts that have had at least one contract bought back YTD. Note, there were no buy backs of the following resorts in January through August: Aulani, Hilton Head, Polynesian, Riviera Resort, and Copper Creek.

Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.