DVC Right of First Refusal Report (ROFR): July ’21
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 262 Disney Vacation Club (DVC) contracts. DVC Resale Market (DVCRM) has sold 2,857, resulting in a 9.2% buy back rate (Contracts Bought Back in 2021/Contracts Sold in 2021). The 2021 waiver rate is 90.8%.
Key ROFR Updates
- The Summer continues to be softer on buybacks than the first 5 moths of the year. June and July included a total of 36 buy backs, representing less than 6% of all sales during that time period. Conversely, the first five months of 2021, January through May, had 226 buy backs, representing over 10% of all sales during that time period.
- Buybacks in July were dominated by Saratoga Springs and Old Key West. Together, both resorts represented 21 of the 22 buy backs observed by DVCRM in July.
Highest Monthly Buy Back Numbers by DVC Resort for July
Highest Buyback Price Per Point by Resort from July ’20 to July ’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 Resale Contracts Bought Back in 2021
The graph below shows the total amount of buybacks 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 buybacks for all 9 different resorts that have had at least one contract bought back in 2021. Note, there were no buybacks of the following resorts in 2021: Aulani, Beach Club, Boulder Ridge, Grand Californian, Riviera Resort and Vero Beach.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||54||241||22.4%|
|Old Key West||70||251||27.9%|