DVC Right of First Refusal Report (ROFR): August ’21
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 286 Disney Vacation Club (DVC) contracts. DVC Resale Market (DVCRM) has sold 3,189, resulting in a 9.0% buy back rate (Contracts Bought Back in 2021/Contracts Sold in 2021). The 2021 waiver rate is 91.0%.
Key ROFR Updates
- The buyback rate has continued to slightly climb over the Summer, but is still trending at a modest level with only 24 buybacks on 332 sales in August.
- The buyback rate for September may be impacted by a proactive Disney buyback campaign. Disney is currently emailing some DVC Members, which observationally has been mostly Old Key West owners with an option to sell their contracts directly back to Disney. This has been the first proactive marketing buyback approach we have ever observed. One of our current sellers at DVCRM reached out to DVC in regards to what their offer may be and according to the seller the offer was $80-$88/pt. depending on the contract’s point availability. However, DVCRM was able to secure a price of $109/pt. for this same contract. The Disney email message can be seen below:
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 August ’20 to August ’21:
Disney Vacation Club Resort Resale Contracts Bought Back in 2021
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2021:
Buy Back Rates for Disney Vacation Club Resorts in 2021
The table below shows the percentage of buybacks for all 9 different resorts that have had at least one contract bought back in 2021. Note, there were no buybacks of the following resorts in 2021: Aulani, Beach Club, Boulder Ridge, Grand Californian, Riviera Resort and Vero Beach.
|Resort||Buybacks||Number Sold||Percentage Bought Back|
|Bay Lake Tower||54||273||19.8%|
|Old Key West||77||284||27.1%|