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

DVC Exercises Right of First Refusal (ROFR)

Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 36 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 2,114, resulting in a 1.7% buyback rate (Contracts Bought Back in 2024/Contracts Sold in 2024). The 2024 waiver rate is 98.3%.

Key ROFR Updates

Is Disney Back in the Buyback Business?

After almost eighteen months of little to no Right of First Refusal (ROFR) activity, we finally have something to talk about! I actually had to remember how I worked my spreadsheets and reporting for this article. May marked the highest number of buybacks by Disney since October 2022, with twenty-eight contracts taken across three properties. Let’s dive into why Disney chose these resorts and what it means for you.

Breaking Down the Numbers – Old Key West, Polynesian, and Grand Floridian

So, why did Disney focus on these three resorts? Here’s the scoop:

1. Grand Floridian: Only one contract was taken here. This likely aligns with the reasons we’ve previously discussed surrounding Grand Floridian. As Disney continues to clean up the total point allocation following the Big Pine Key sellout late last year, they might bundle some attractive points via ROFR with existing inventory to sell a few more contracts.

2. Polynesian: The leader of the pack due to the upcoming new Island Tower joining the existing condo association. Disney appears to be both stocking up on points and intentionally driving the resale market price higher. This month they bought back a contract at record high of $162 per point which has helped drive most Polynesian contracts on the market upwards of $200 per point! This strategy aims to narrow the gap between direct and resale prices when new point sales resume at the Polynesian, likely in late summer or early fall.

3. Old Key West: This one caught some by surprise. Disney has recently run enticing direct incentives for Old Key West, causing them to run out of points being sold at this resort. Many are still on waitlists to purchase direct points here. However, any points Disney tries to buy back to boost sales likely won’t close in time before the current round of direct incentives expire at the end of June.

Is Right of First Refusal Making a Comeback?

To anyone looking for a great deal on a DVC Resale contract purchase, I would advise not to pay much attention to this activity. Shop and buy freely without worrying too much. Right now, Disney’s ROFR selections seem to be few and far between, and the odds they will take your specific contract are still slim to none.

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 May 2023 to May 2024:

*n/a: no buybacks for that resort for that month. Also, no buybacks of Aulani, Bay Lake Tower, BoardWalk, Beach Club, Boulder Ridge, Copper Creek, Grand Californian, Hilton Head, Riviera Resort, Saratoga Springs, and Vero Beach in rolling calendar year.

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 May 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, Saratoga Springs, Vero Beach, and Hilton Head.

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