DVC Right of First Refusal Report (ROFR): January ’21 Report
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 59 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 500, resulting in an 11.8% buy back rate (Contracts Bought Back in 2021/Contracts Sold in 2021). The 2021 waiver rate is 88.2%.
2021 Starts with High Buy Back Volume
In January, DVCRM had 59 contracts bought back by Disney. This included a mix of 7 different resorts. More than 90% of the buy backs were from 4 resorts: Bay Lake Tower, Boardwalk, Saratoga Springs and Old Key West. None of these resorts are a surprise to see on the list. Bay Lake Tower (BLT) did lead the way with 24 buy backs. We are very early into 2021, but if BLT did finish with the most buy backs, it would be a first since 2016.
For direct sales, at $245 per point, BLT certainly doesn’t offer a lower price alternative like Saratoga Springs or Old Key West, but it certainly provides a strong value and an exceptional location. The deed for BLT doesn’t expire until 2060, and its annual dues remain one of the lowest in the network at $6.90 per point. Combine that value with being a short walk into Magic Kingdom (or as short as it can be), and BLT will always attract some attention.
Highest Monthly Buy Back Numbers by DVC Resort
Highest Buy Back Price Per Point by Resort from January ’20 to January ’21
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 2021
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 2021:
Buy Back Rates for Disney Vacation Club Resorts in 2021
The table below shows the percentage of buy backs for all 7 different resorts that have had at least one contract bought back in 2021. Note, there were no buy backs of the following resorts in 2021: Aulani, Beach Club, Boulder Ridge, Copper Creek, Grand Californian, Hilton Head, Riviera Resort and Vero Beach.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||24||51||47%|
|Old Key West||10||40||25%|