DVC Right of First Refusal Report (ROFR): July ’20 Report
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
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 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.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||4||208||1.9%|
|Old Key West||24||175||13.7%|