DVC Right of First Refusal Report (ROFR): March 2024

DVC Exercises Right of First Refusal (ROFR)

Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 3 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 1,255, resulting in a 0.2% buyback rate (Contracts Bought Back in 2024/Contracts Sold in 2024). The 2024 waiver rate is 99.8%.

Key ROFR Updates

Polynesian DVC Tower: Recent Buyback Wave and Market Insights

In a surprising end to the month (that at least gives us something to talk about), there was a notable wave of Polynesian buybacks, hinting further at a possible inclusion of the new Polynesian DVC Tower within the existing Polynesian condo association! While DVC Resale Market registered just one Polynesian contract taken, recent activity reported on social media late last week revealed at least three contracts being bought back by Disney, indicating a rising interest in Polynesian by the ROFR Monster.

The specific Polynesian contract taken that was sold by DVC Resale Market was a 100-point December Use Year contract priced at $135 per point. Others taken and reported online appear to have been priced even lower at $125 per point.

This sudden interest in Polynesian contracts could be linked to the declining trend in overall resale prices over the past year, aiming to prevent Polynesian from becoming excessively attractive in the resale market. Without ROFR intervention, prices may continue to fall, potentially leading to challenges in selling properties of the same association directly at premium rates if they are significantly cheaper on the resale market.  All contracts taken late last week are at a price per point significantly lower than the trending average resale price for Polynesian of around $156 per point.

Speaking of the condo association, recent records indicate additional support for the Polynesian Tower’s integration into the existing association. Notably, documents filed late this month identified work related to the new tower and its surroundings under the existing Polynesian Villas parcel ID number. This recent news has many over on DISboards saying that the debate about this crucial piece of information surrounding the Polynesian Tower is officially over, and some are looking at buying a resale contract before further ROFR activity pushes prices higher.

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 March 2023 to March 2024:

Disney Vacation Club Resort Resale Contracts Bought Back in 2024

The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2024:

Average Right of First Refusal (ROFR) Timeframe for March 2024

In our continuous effort to provide transparent and useful insights to our clients at DVC Resale Market, we have compiled data to establish an average timeframe for contracts to pass through the Right of First Refusal (ROFR) process. It is important to understand that this duration is an average, indicating that some contracts may be processed more quickly while others might take a longer period. Keep in mind that various factors can influence these timeframes, and this average serves as a general benchmark for your expectations when navigating the ROFR process with us.

Buy Back Rates for Disney Vacation Club Resorts in 2024

The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2024. Note, there have been no buybacks of the following resorts in 2024: Animal Kingdom, Aulani, Grand Californian, Riviera Resort, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Copper Creek, Disneyland Hotel, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.

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