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

In 2020, Disney exercised their right of first refusal (ROFR) on 274 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 3,690, resulting in a 7.4% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate finished at 92.6%.

A Return to Typical Buy Back Rates

After experiencing on average over 50 buy backs per month from September through November, December experienced only 17, despite sales increasing during this same period. Historically speaking the buy back rate during the Fall was some of the highest ever observed, and this could be due to playing some catch up from having 0 buy backs from April through July due to the pandemic.

Overall, the buy back rate for 2020 finished lower than the proceeding two years, and less than half of what it was in 2019.

Often, the most common resorts purchased back are resorts that can be easily resold through direct sales. Those resorts are typically lower priced resorts, sometimes referred to as “drop products.”

Drop products can be beneficial if someone is having trouble affording the newest resort being offered, such as Riviera Resort at $195 per point; presenting Saratoga Springs as a drop in price may look attractive at $165 per point. This year, two of the most common drop product resorts, Saratoga Springs and Old Key West dominated the buy backs. In fact, those two resorts made up nearly two-thirds of all buy backs observed by DVCRM.

Highest Monthly Buy Back Numbers by DVC Resort

Highest Buy Back Price Per Point by Resort from December ’19 to December ’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 11 different resorts that have had at least one contract bought back in 2020. Note, there were no buy backs of the following resorts in 2020: Aulani, Hilton Head, Riviera Resort, and Copper Creek.

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