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|
|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|
|Bay Lake Tower||71||194||37%|
|Old Key West||28||133||21%|