DVC Right of First Refusal Report (ROFR): June ’19 Report
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 415 Disney Vacation Club (DVC) contracts, and DVC Resale Market has sold 2,046, resulting in a 20.3% buyback rate (Contracts Bought Back YTD / Contracts Sold YTD). The year-to-date waiver rate is 79.7%.
High Risk for ROFR
In previous ROFR reports this year we’ve mentioned the 8 DVC Resorts being bought back (Beach Club, Bay Lake Tower, Animal Kingdom, Hilton Head, Old Key West, Saratoga Springs, Grand Floridian, and Boardwalk) and the 6 DVC Resorts that have gone untouched for buybacks (Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian, and Vero Beach).
It is important to note that out of those 8 DVC Resorts being bought back, 4 of them have buy back rates as high as the 30 percent or higher. In fact, combined, the probability of a buy back when purchasing Animal Kingdom, Beach Club, Bay Lake Tower or Hilton Head is just over one-third of the time. Potential buyers for any of these resorts should be pay close attention to where the top of the buy back prices are if they want to avoid interference from Disney’s ROFR.
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 June
The selling price range and volume summary for all buybacks in June:
| Resort | Selling Price Per Point Range of Buy Backs in June | Number of Buy Backs in June |
| Animal Kingdom | $96 – $110 | 16 |
| Bay Lake Tower | $140 – $143 | 4 |
| Beach Club | $135 | 1 |
| Boardwalk | $116 | 1 |
| Hilton Head | $69 – $71 | 3 |
| Old Key West | $84 – $98 | 9 |
| Saratoga Springs | $86 – $105 | 22 |
Buyback Rates for Disney Vacation Club Resorts
The table below shows the percentage of buybacks for all 8 different resorts for January through June 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 |
| Animal Kingdom | 102 | 338 | 30% |
| Bay Lake Tower | 71 | 194 | 37% |
| Beach Club | 43 | 109 | 39% |
| Boardwalk | 22 | 143 | 15% |
| Grand Floridian | 20 | 131 | 15% |
| Hilton Head | 14 | 38 | 37% |
| Old Key West | 28 | 133 | 21% |
| Saratoga Springs | 108 | 460 | 23% |
Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.
Comments
Is there much activity regarding sales at Key West?
Jack, buy backs for Old Key West have remained active in 2019. Year-to-date for Old Key West we have had 28 buy backs on 133 sales.
Nick is there any correlation with buy back of people that are already members buying compared to new DVC members buying?
Brad, great question. We’ve looked at this in past and have never seen a correlation so we’ve never reported on it. By far the strongest correlation we are seeing now is resort and of course price.
So if I understand this correctly, you have to have someone interested in buying your points. Or can you contact Disney and say you’d like to sell your points.
Judy, to have a contract submitted for ROFR there must be agreed upon terms in writing. You can approach Disney and sell to them directly, however, typically their offers are very low, much lower than our sellers typically get in the open market.
I just closed (June 2019) on a Saratoga Springs 225 pts. at 83/point with points in place for 2020. Disney let it go.
Sarah, that is great news, congratulations! Sometimes we get some that you would think are almost a lock for buy back and they pass, and then some that have a great chance of passing and Disney sets the bar higher on price.
I’ve been watching the VB resale market prices for a while now. Seems the price per point is starting to increase. What could be driving that ?
Sandy, there may be some individual cases of Vero prices seeming higher, however, based on the averages we are not observing much movement with Vero Beach. For example, the average selling price for a Vero Beach contract in June ’18 was $67/pt. and June ’19 was $68/pt. We are seeing stronger changes with Beach club, Boardwalk and Grand Floridian due to a lot of sales and low supply.
Nick Cotton,
(ROFR) report for June for Animal Kingdom is priced at 96 to 110 that Disney is buying back contracts. Does this mean “every” contract is being bought back by Disney in this range or only 30 percent of the contracts in that range are being bought back by Disney? And do you know the madness (crystal ball) to Disney’s guidelines for approving or using the FOFR option? Ty
Norbert
Norbert, thanks for your question. To clarify, 30% of all the Animal Kingdom contracts we have submitted in 2019 have been bought back, and in June the price per point range for the Animal Kingdom contracts bought were $96/pt. to $110/pt. In June, no Animal Kingdom contracts sold above $110/pt. were bought back.
Do you publish all of the ROFR numbers somewhere? These are a nice overview and great information, thank you for putting it out. What I would like to know is the specifics for the cost per point. Example: SSR- 23% buy back for all contracts but then the point range could offer more clues such as a 0% buyback for offers of $106 or greater but how do we stand at $95? Is the buyback rate 100%, 50%, still 23%? We are looking at stripped contracts to save a bit of money and if it is futile to attempt a purchase at listing value of 93-97 dollars per point I would rather just look to a more robust contract to save the hassle/heartache of losing multiple offers to ROFR buybacks… Once again, thank you for all of the info, you are a great resource for the community.
Collin, thank you for your comments. Historically, we have published every buy back, but with buy back numbers north of 50 per month recently we’ve taken more of a summary approach in the spirit of getting the report done in a timely manner. However, for specific scenarios such as the one you are curious about, I would encourage you contact one of our Associates and they can walk you through specific examples to help you make the most informed decision possible.
Thanks Nick, I figured that was the case. I look forward to making our first purchase soon.
Excellent! I would love for us to have the opportunity to welcome you home! 🙂