DVC Right of First Refusal Report (ROFR): February 2024

DVC Exercises Right of First Refusal (ROFR)

Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 2 Disney Vacation Club (DVC) contract, and DVC Resale Market (DVCRM) has sold 849, resulting in a 0.2% buyback rate (Contracts Bought Back in 2024/Contracts Sold in 2024). The 2024 waiver rate is 99.8%.

Key ROFR Updates

As we turn the page on another month, we’re left yet again with just a single, solitary Grand Floridian buyback to chat about. This had me wonder what it must feel like to be one of the lonely few buyers taken by ROFR these past few months.  To that, I raise my glass to those “poor, unfortunate souls” who have danced with the ROFR Monster recently.

Reflecting on the data, it appears the recently taken Grand Floridian contracts were priced in such a manner that they became irresistible for Disney to reclaim. As we find ourselves five months into Disney’s fiscal year, current trends suggest that ROFR is not a primary focus for Disney and DVC in 2024. While this shift aligns with broader strategic choices within the company, it heralds a concerning moment for the Disney Vacation Club product.

The ROFR mechanism has traditionally served as a vital pillar in maintaining the robust resale value of DVC properties compared to other timeshare options. This prolonged period of inactivity, however, is gradually impacting the resale market’s dynamics. For prospective buyers, this scenario presents a golden opportunity to secure contracts at more attractive rates than seen in recent years. On the flip side, sellers are encountering challenges, with some contracts fetching lower returns than anticipated. This shift can lead to situations where sellers find themselves with a valuation shortfall, which is a concerning trend for the long-term health and perception of the DVC marketplace.  Some sellers have even resorted to renting their points, as opposed to selling while they further observe the current market dynamics.

It’s essential to view these developments within the context of a broader landscape. The current state of affairs offers a unique window for buyers yet underscores the need for sellers to navigate the market with informed strategies and expectations.

Looking ahead, without intervention from ROFR, we may continue to witness downward adjustments in pricing trends in the coming months.  Maybe we will get a surprise next month and have more to talk about – I doubt it, but I’ll be here to inform you nonetheless!

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 February 2023 to February 2024:

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 February 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: Animal Kingdom, Aulani, Grand Californian, Riviera Resort, Polynesian, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Copper Creek, Disneyland Hotel, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.

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