DVC Right of First Refusal Report (ROFR): July 2023
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 4 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 2,981, resulting in a 0.1% buyback rate (Contracts Bought Back in 2023/Contracts Sold in 2023). The 2023 waiver rate is 99.9%.
Key ROFR Updates
Year-to-date, Disney has only exercised their right of first refusal (ROFR) on four DVC contracts. If you’ve been reading these reports for the past six months, this should not be surprising. I even stooped as low as writing a poem last month due to the lack of things to discuss. But this month, I thought I’d focus on what this means for the future. Could it indicate a shift in Disney’s strategy or perhaps be their response to current market conditions?
There’s been a lot of chatter in the community about when and if Disney will resume the practice of exercising buybacks. It’s a hot topic because it directly impacts both buyers and sellers in the resale market. Buyers have been able to snag contracts at more competitive prices, while sellers have faced fluctuating contract values without Disney’s checks and balances in place.
Now, let’s zoom out and look at the bigger picture. The first half of 2023 has been an interesting period for the DVC Resale Market. Despite Disney’s seemingly passive stance on ROFR, the market has remained robust for both buyers and sellers. This resilience is a testament to the enduring appeal of Disney and the value of DVC membership.
Looking ahead, it’s hard to say exactly what will happen. Much depends on Disney’s actions and broader market trends. However, based on the data we’ve seen so far, it’s safe to say that the desire to own a piece of the magic and commit to years of Disney vacations is as high as ever.
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.
Highest Monthly Buy Back Numbers by DVC Resort
Highest Buyback Price Per Point by Resort from July 2022 to July 2023:
Disney Vacation Club Resort Resale Contracts Bought Back in 2023
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2023:
Buy Back Rates for Disney Vacation Club Resorts in 2023
The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2023. Note, there have been no buybacks of the following resorts in 2023: Aulani, Grand Californian, Riviera Resort, Grand Floridian, Polynesian, Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.
|Resort||Buybacks||Number Sold||% Bought Back|