DVC Right of First Refusal Report (ROFR): June 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 2,556, resulting in a 0.2% buyback rate (Contracts Bought Back in 2023/Contracts Sold in 2023). The 2023 waiver rate is 99.8%.
Key ROFR Updates
It’s been quite an unusual phase Right of First Refusal (ROFR), with the ROFR Monster continuing to snooze month after month, and Disney showing no interest in exercising its right regarding contract buybacks. This extended dormancy is great for those looking to buy a contract, but it leaves the author of a monthly ROFR report blog with little to say without being repetitive. So for this month, I’ve penned a bit of verse to capture the essence of our silent behemoth in “The ROFR Monster Sleeps”. Enjoy the read, and as always, stay tuned for any rustling from our slumbering giant.
“The ROFR Monster Sleeps”
In the shadowed year that passed, a monster stirred, Hungry for the Disney Vacation Club contracts heard. His appetite seemed unending, his cravings never ceased, Feasting on the contracts, every piece and lease.
This year, beneath the moon’s silver crest, The ROFR Monster sleeps, in the deep of his nest. Prices rise and fall in the whimsical Disney tide, But the Monster slumbers, in his den he abides.
From Polynesian Villas where tropical breezes blow, To Old Key West, where the golden sunsets glow, Deals abound, the magic’s found, in every Disney town, Yet, the ROFR Monster sleeps, in dreams he is drowned.
Historically high, the prices touch the azure sky, Yet, the creature from depths doesn’t bat an eye. Hopes soar higher than the redwoods of Californian grandeur, As the beast’s silence becomes an enchanting venture.
But beware, oh buyer, in the market’s deep, For the ROFR Monster is merely in sleep. His silence, a siren song, luring buyers near, Fear of awakening, their only sincere fear.
New and old, buyers are enticed by the lure, To claim a DVC contract, their magic ensured. For who knows when the beast might stir, The ROFR Monster sleeps, his awakening a blur.
The day or the hour, none can foresee, When the ROFR Monster awakens from the sea. And so, they act, with hearts held high, Capturing magic, under the Disney sky.
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 June 2022 to June 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|