DVC Right of First Refusal Report (ROFR): July ’19 Report6 Comments
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 477 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 2,355, resulting in a 20.3% buy back rate (Contracts Bought Back YTD / Contracts Sold YTD). The year-to-date waiver rate is 79.7%.
Highest Monthly Buy Back Numbers by DVC Resort
In 2019, Disney buy backs through ROFR that were submitted by DVCRM have focused on only 8 DVC Resorts. Those resorts include: Saratoga Springs, Animal Kingdom, Bay Lake Tower, Beach Club, Old Key West, Boardwalk, Grand Floridian and Hilton Head. Observationally, the focus of buy backs have shifted less away from point availability (i.e., points banked, current and borrowed) as well. In previous years it would not be uncommon to have months where over 70% of the buy backs were contracts with high point availability, however, in 2019 that correlation has not been observed.
Given the focus seems to be on certain resorts and price per point, we put together a table below showing the highest price per point buy back for each resort for each month in 2019. What was striking was the consistency. For each resort, none of the monthly high buy back numbers had a variance greater than 10% from another month with the exception of Hilton Head.
As a buyer, you may not like how high some of the buy back numbers are, but the good news is this table provides some consistency for setting expectations of what may happen. For example, based on this table if you are purchasing an Animal Kingdom contract for $113/pt. or lower, there are obvious chances of a buy back. However, if you were to purchase an Animal Kingdom contract at $114/pt. or higher, the chances of a buy back are likely slim as Disney has not purchased back an Animal Kingdom contract at that price in 2019 from DVCRM (sample size 382). Granted, there is still no guarantee of not having a contract bought back. Even purchasing an Animal Kingdom contract at $114/pt. doesn’t mean a new threshold cannot be set, but given the consistency shown in the table below, I would take this data as strong directional information.
Highest Buy back Price Per Point by Resort for 2019
What is Right of First Refusal (ROFR)?
For those new to the concept of Right of First Refusal, it 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 2019
Please refer to the graph below for the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market YTD in 2019:
Summary on DVC Buybacks in July
The selling price range and volume summary for all buybacks in July:
|Resort||Selling Price Per Point Range of Buy Backs in June||Number of Buy Backs in July|
|Animal Kingdom||$97 – $113||15|
|Bay Lake Tower||$134 – $142||6|
|Beach Club||$140 – $145||2|
|Boardwalk||$119 – $121||2|
|Hilton Head||$68 – $69||2|
|Old Key West||$86 – $95||12|
|Saratoga Springs||$80 – $102||23|
Buyback Rates for Disney Vacation Club Resorts
The table below shows the percentage of buybacks for all 8 different resorts for January through July of 2019. Note, the buyback rate for Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian and Vero Beach in 2019 has been 0%.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||77||223||35%|
|Old Key West||40||162||25%|