DVC Right of First Refusal Report (ROFR): March ’19 Report

Filed in Animal Kingdom, Disney Vacation Club, DVC Resale, ROFR

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Animals at Disney's Animal Kingdom

Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 164 Disney Vacation Club (DVC) contracts, and DVC Resale Market has sold 1,144, resulting in a 14.3% buy back rate. (Contracts Bought Back in year-to-date / Contracts Sold year to date). The year-to-date waiver rate is 85.7%.

In 2019, the chances a DVC contract is bought back or not, continues to be highly resort dependent. YTD, 6 DVC Resorts have zero buy backs: Aulani, Grand Californian, Polynesian, Vero Beach, Copper Creek and Boulder Ridge. Meanwhile, 4 DVC Resorts have buy back rates of 20% or higher: Animal Kingdom, Bay Lake Tower, Beach Club and Hilton Head.

The chart below shows the relationship between the average selling price per point and the buy back rate from March 2018 through March 2019. Historically, we have observed resale price per point and buy back rate have an inverse relationship.

YTD Price Per Point vs. Buy Back Rate 2019 4.10.2019

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

YTD, 8 different DVC resorts experienced buy backs (in order of buy back volume): Animal Kingdom, Bay Lake Tower, Saratoga Springs, Beach Club, Boardwalk, Old Key West, Grand Floridian, and Hilton Head.

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market YTD in 2019:

Number of contracts Disney exercised ROFR on sold by DVC Resale Market year-to-date March 2019

Details on DVC Buybacks

In March, DVC Resale Market experienced buy backs for Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Grand FloridianHilton Head, Old Key West and Saratoga Springs.

Details on the contracts bought back in March are below:

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Animal Kingdom $106 120 $12,720 Buyer Pro-Rate Dec. 73 pts.’18 + 76 pts.’19
Animal Kingdom $101 200 $20,200 Buyer Pro-Rate Feb. 24 pts.’19 + 200 pts.’20
Animal Kingdom $106 100 $10,600 Buyer Seller Jun. 0 pts.’19 + 100 pts.’20
Animal Kingdom $105 100 $10,500 Buyer Seller Aug. 0 pts.’19 + 100 pts.’20
Animal Kingdom $102 220 $22,440 Buyer Seller Mar. 7 pts.’19 + 220 pts.’20
Animal Kingdom $104 200 $20,800 Buyer Buyer Feb. 238 pts.’19 + 200 pts.’20
Animal Kingdom $95 160 $15,200 Buyer Pro-Rate Feb. 8 pts.’19 + 160 pts.’20
Animal Kingdom $103 220 $22,660 Buyer Buyer Jun. 220 pts.’19 + 220 pts. ’20
Animal Kingdom $100 110 $11,000 Buyer Buyer Oct. 92 pts.’19 + 110 pts.’20

 

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Bay Lake Tower $135 150 $20,250 Buyer Seller Jun. 0 pts.’19 + 150 pts.’20
Bay Lake Tower $138 160 $22,080 Buyer Seller Feb. 1 pt.’19 + 160 pts.’20
Bay Lake Tower $125 130 $16,250 Buyer Seller Feb. 0 pts.’19 + 57 pts.’20
Bay Lake Tower $140 150 $21,000 Seller Seller Mar. 9 pts.’19 + 150 pts.’20
Bay Lake Tower $135 160 $21,600 Buyer Pro-Rate Aug. 118 pts.’19 + 160 pts.’20

 

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Beach Club $134 350 $46,900 Buyer Seller Feb. 350 pts.’19 + 350 pts.’20
Beach Club $136 175 $23,800 Buyer Pro-Rate Feb. 112 pts.’19 + 175 pts.’20
Beach Club $135 270 $36,450 Buyer Buyer Aug. 81 pts.’19 + 270 pts.’20
Beach Club $140 100 $14,000 Buyer Seller Apr. 0 pts.’19 + 100 pts.’20

 

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Boardwalk $110 250 $27,500 Buyer Buyer Oct. 158 pts.’18 + 250 pts.’19
Boardwalk $111 300 $33,300 Buyer Seller* Jun. 0 pts.’19 + 58 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Old Key West $90 117 $10,530 Buyer Buyer Mar. 146 pts.’19 + 117 pts.’20
Old Key West $88 310 $27,280 Buyer Buyer Oct. 440 pts.’18 + 220 pts.’19
Old Key West $90 210 $18,900 Buyer Buyer Dec. 210 pts.’19 + 210 pts.’20

 

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability
Saratoga Springs $89 200 $17,800 Buyer Pro-Rate Jun. 22 pts.’19 + 200 pts.’20
Saratoga Springs $96 150 $14,400 Buyer Seller Mar. 0 pts.’19 + 150 pts.’20
Saratoga Springs $100 150 $15,000 Buyer Seller Apr. 0 pts.’19 + 150 pts.’20
Saratoga Springs $92 160 $14,720 Buyer Seller Sept. 0 pts.’19 + 160 pts.’20
Saratoga Springs $93 150 $13,950 Buyer Seller Sept. 0 pts.’19 + 150 pts.’20
Saratoga Springs $92 160 $14,720 Buyer Buyer Jun. 169 pts.’19 + 160 pts.’20
Saratoga Springs $95 220 $20,900 Buyer Seller Aug. 0 pts.’19 + 220 pts.’20
Saratoga Springs $95 185 $17,575 Buyer Pro-Rate Mar. 154 pts.’19 + 185 pts.’20
Saratoga Springs $96 150 $14,400 Buyer Seller* Feb. 0 pts.’19 + 8 pts.’20
Saratoga Springs $96 240 $23,040 Buyer Seller Oct. 0 pts.’19 + 240 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Buy Back Rates for Disney Vacation Club Resorts

The table below shows the percentage of buy backs for all 8 different resorts purchased back in January through March of 2019. Note, the buy back rate for Aulani, Grand Californian, Polynesian, Vero Beach, Copper Creek and Boulder Ridge in 2019 has been 0%.

Resort Buy Backs Number Sold Percentage Bought Back
Animal Kingdom 39 197 20%
Bay Lake Tower 38 120 32%
Beach Club 18 52 35%
Boardwalk 10 79 13%
Grand Floridian 8 72 11%
Hilton Head 7 27 26%
Old Key West 10 57 18%
Saratoga Springs 36 239 15%

 

Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.

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