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

Disney's Boardwalk at Sunrise

Year-to-date (YTD), Disney exercised their right of first refusal (ROFR) on 62 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 2,206, resulting in a 2.8% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate was 97.2%.

No Buybacks in Sight

For a fourth straight month, DVCRM had no buy backs from Disney.  The pandemic is currently having a trickle down effect on Disney buying back DVC contracts as DVC Resale Market, the largest reseller of DVC, has not observed any contracts bought back since March. This includes a sample size of over 1,200 contracts sold since April 1st.

The sentiment we have been sharing with buyers this summer continues in that those looking to purchase good to great deals with little fear of a Disney buy back, now is the time to purchase. Keep in mind, due to a very healthy resale market for DVC, many sellers may be less than willing to negotiate a substantial amount, but at least buyers can have some peace of mind whatever price they get right now has a good chance of being waived by Disney.

Highest Monthly Buy Back Numbers by DVC Resort

The DVC Resorts that have experienced buy backs YTD are as follows: Old Key West, Animal Kingdom, Beach Club, Grand Californian, Bay Lake Tower, Boardwalk, Saratoga Springs, Vero Beach and Boulder Ridge.

Highest Buy Back Price Per Point by Resort from July ’19 to July ’20

Highest Buy Back Price Per Point by Resort from July '19 to July '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:

Number of Contracts Disney Exercised ROFR on 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 9 different resorts that have had at least one contract bought back YTD. Note, there were no buy backs of the following resorts in January through June: Aulani, Grand Floridian, Hilton Head, Polynesian, Riviera Resort, and Copper Creek.

ResortBuy BacksNumber SoldPercentage Bought Back
Animal Kingdom21306  6.9%
Bay Lake Tower4208  1.9%
Beach Club276  3.2%
Boardwalk3114  2.6%
Boulder Ridge247  4.3%
Grand Californian349  6.1%
Old Key West24175  13.7%
Saratoga Springs1417 <1%
Vero Beach275  2.7%

 

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

Comments

  • Adam Abdelmawla Adam
    August 26, 2020

    Good

Post a Reply