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

Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 580 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 3,448, resulting in a 16.8% buy back rate (Contracts Bought Back YTD / Contracts Sold YTD). The year-to-date waiver rate is 83.2%.

Buy Back Rate Continues to Be Much Lower than in the Spring

For the 3rd straight month the volume of buy backs represents less than 10% of the total sales volume. This is in stark contrast to most of 2019, which observed nearly half of the months with buy back rates at 20% or higher.

There could be many reasons for the strong shift. One of the leading theories is simply a gap period of live inventory in the spring with the sell-out of Copper Creek and only having pre-sales of Riviera. When a resort is in pre-sale, while it can be sold, points obtained from the purchase cannot be stayed on until the resort opens. Therefore, for many buyers wanting a Disney World Home Resort and wanting points to be able to use prior to the opening of Riviera on December 16, 2019, previously sold-out inventory may be a strong option.

Highest Monthly Buy Back Numbers by DVC Resort

The DVC Resorts that have been bought back in 2019 are as follows: Saratoga Springs, Animal Kingdom, Bay Lake Tower, Old Key West, Beach Club, Boardwalk, Grand Floridian, Grand Californian, Hilton Head, and Boulder Ridge. Additionally, their buy back price thresholds have remained fairly consistent in 2019. Keep in mind these thresholds do not provide a guarantee of avoiding a buy back, but with this much congruity, they should provide great directional information.

With the softening of the buy back rate late in 2019, we are also seeing generally lower buy back high prices, especially for Animal Kingdom and Bay Lake Tower.

Highest Buy Back Price Per Point by Resort for 2019

It is important to note that Aulani, Copper Creek, Polynesian, and Vero Beach continue to go untouched for buy backs in 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

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:

Summary on DVC Buy Backs in November

Grand Californian led all DVC Resorts for buy back volume in November with 7. Those 7 buy backs represent nearly half of the total Grand Californian buy backs from DVCRM in 2019.

The selling price range and volume summary for all buy backs in November:

Buy Back Rates for Disney Vacation Club Resorts

The table below shows the percentage of buy backs for all 10 different resorts that have had at least one contract bought back in ROFR for January through November of 2019. Note, the buy back rate for Aulani, Copper Creek, Polynesian and Vero Beach in 2019 has been 0%.

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