DVC Right of First Refusal Report (ROFR): May ’20 Report
Year-to-date (YTD), Disney exercised their right of first refusal (ROFR) on 62 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 1,595, resulting in a 3.9% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate was 96.1%.
No Buy Backs Despite Huge Sales Volume
For a second straight month DVCRM had zero buy backs from Disney. This comes as little surprise given Disney Parks at Walt Disney World are still closed and will not be opening until July. We are anticipating June will likely be the same for buy backs, with little to no exercising of right of first refusal by Disney.
Despite the lack of buy backs, prices are beginning to creep back up as demand greatly outpaced supply in May. In May, DVCRM sold 348 contracts, making it the 4th biggest sales month in company history. This sales number greatly outpaced new listings, which were at 236. With Walt Disney World opening in July, this trend may continue and if so prices could rise and rise quickly. For those looking to still get a slightly reduced price and avoid ROFR, now is the time to buy.
Highest Monthly Buy Back Numbers by DVC Resort
The DVC Resorts that have experienced buy backs YTD are as follows: Old Key West, Animal Kingdom, Beach Club, Grand Californian, Bay Lake Tower, Boardwalk, Saratoga Springs, Vero Beach and Boulder Ridge.
Highest Buy Back Price Per Point by Resort from May ’19 to May ’20
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.
Disney Vacation Club Resort Contracts Bought Back in 2020
Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market in 2020:
Buy Back Rates for Disney Vacation Club Resorts in 2020
The table below shows the percentage of buy backs for all 9 different resorts that have had at least one contract bought back YTD. Note, there were no buy backs of the following resorts in January through May: Aulani, Grand Floridian, Hilton Head, Polynesian, Riviera Resort, and Copper Creek.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||4||149||2.7%|
|Old Key West||24||134||17.9%|