DVC Right of First Refusal Report (ROFR): August 2024
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 84 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 3,326, resulting in a 2.5% buyback rate (Contracts Bought Back in 2024/Contracts Sold in 2024). The 2024 waiver rate is 97.5%.
Key ROFR Updates
August ended with a bang as Disney Vacation Club added a new resort to its buyback list, making it an exciting month for those of us tracking the DVC Resale Market. I was strolling around the opening day of the EPCOT International Food & Wine Festival when my phone started blowing up with buyback notifications for a resort we haven’t seen much of this year—Animal Kingdom Lodge!
Animal Kingdom Lodge: A Surprise Comeback
Last week alone, Disney bought back ten contracts for Animal Kingdom, a significant move considering how quiet this resort had been on the buyback front earlier in the year. Here’s a quick snapshot of the buyback activity:
- The price per point for these listings ranged from $86 to $100pp.
- Contracts varied from 75 to 250 points per year.
- And just for fun, those ten buybacks cost Disney over $162,000!
Predictable Patterns in ROFR Activity
While some may be surprised by the Animal Kingdom buybacks, I’m beginning to sense a pattern in Disney’s ROFR efforts. It’s becoming slightly more predictable. Earlier this year, we saw DVC ramp up buybacks for Old Key West after running direct sales incentives. Disney seems to be using ROFR to replenish their points supply at sold-out resorts to keep up with demand. This pattern continued in July, with another seven contracts bought back at Old Key West.
The Impact of Direct Sales Incentives
So, it shouldn’t come as a surprise that this summer, DVC has been running a direct sales incentive on Animal Kingdom Villas. Despite these buybacks, it’s worth noting that direct prices are still significantly higher than resale. For instance, a 160-point contract purchased directly, even after incentives, costs about $190 per point. Compare that to the average resale price this month, which is approximately $102 per point—quite the difference!
Given these dynamics, I’d be willing to take the ROFR risk and try to snag some Animal Kingdom points at nearly half the direct cost. With patterns becoming more evident in Disney’s ROFR strategy, savvy buyers could find great opportunities in the resale market.
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 2023 to August 2024:
| Aug. ’23 | Sept. ’23 | Oct. ’23 | Nov. ’23 | Dec. ’23 | Jan. ’24 | Feb. ’24 | Mar. ’24 | Apr. ’24 | May ’24 | June ’24 | July ’24 | Aug. ’24 | Highest | |
| Animal Kingdom | $102 | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | $100 | $102 |
| Old Key West | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | $75 | $78 | $80 | $78 | $80 |
| Grand Floridian | $141 | $152 | $146 | $124 | $147 | $137 | $148 | n/a | n/a | $144 | $148 | $145 | n/a | $152 |
| Polynesian | n/a | n/a | n/a | n/a | n/a | n/a | n/a | $135 | $144 | $162 | n/a | $154 | $154 | $162 |
*n/a: no buybacks for that resort for that month. Also, no buybacks of Aulani, Bay Lake Tower, BoardWalk, Beach Club, Boulder Ridge, Copper Creek, Grand Californian, Hilton Head, Riviera Resort, Saratoga Springs, and Vero Beach in rolling calendar year.
Disney Vacation Club Resort Resale Contracts Bought Back in 2024
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2024:
Average Right of First Refusal (ROFR) Timeframe for August 2024
In our continuous effort to provide transparent and useful insights to our clients at DVC Resale Market, we have compiled data to establish an average timeframe for contracts to pass through the Right of First Refusal (ROFR) process. It is important to understand that this duration is an average, indicating that some contracts may be processed more quickly while others might take a longer period. Keep in mind that various factors can influence these timeframes, and this average serves as a general benchmark for your expectations when navigating the ROFR process with us.
Buy Back Rates for Disney Vacation Club Resorts in 2024
The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2024. Note, there have been no buybacks of the following resorts in 2024: Aulani, Grand Californian, Riviera Resort, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Copper Creek, Disneyland Hotel, Saratoga Springs, Vero Beach, and Hilton Head.
| Resort | Buybacks | Number Sold | % Bought Back |
| Animal Kingdom | 10 | 387 | 2.6% |
| Grand Floridian | 7 | 194 | 3.6% |
| Old Key West | 39 | 311 | 12.5% |
| Polynesian | 28 | 312 | 9.0% |
Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.
Comments