DVC Right of First Refusal Report (ROFR): October ’19 Report3 Comments
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 559 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 3,208, resulting in a 17.4% buy back rate (Contracts Bought Back YTD / Contracts Sold YTD). The year-to-date waiver rate is 82.6%.
Changes in Buy Backs Continue
October followed the same pattern change observed in September with Old Key West leading the way in volume of buy backs, followed by Grand Californian. Additionally, the lack of buy backs of Saratoga Springs and Animal Kingdom continued. YTD, Old Key West now has the highest rate of buy backs among all DVC resorts at over 30%.
The downward trend in buy back volume also continued. The first eight months of 2019, averaged at more than 65 buy backs per month, and the last two months have had 19 and 15, respectively.
With September buy back numbers being low it could have simply indicated Disney was reaching its budget for purchasing back, given Disney’s fiscal year ends at roughly the end of September / beginning of October. However, with October buy back numbers also low, it may indicate an overall ongoing change to Disney’s budget for buying back properties, or perhaps, an indication that their need for “sold-out” properties has subsided due to either slower demand or an excess of inventory from a heavy calendar year of buy backs already.
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.
Highest Buy Back Price Per Point by Resort for 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 October
The selling price range and volume summary for all buy backs in October:
|Resort||Selling Price Per Point Range of Buy Backs in Oct.||Number of Buy Backs in Oct.|
|Grand Californian||$177 – $186||5|
|Old Key West||$88 – $95||7|
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 October of 2019. Note, the buy back rate for Aulani, Copper Creek, Polynesian and Vero Beach in 2019 has been 0%.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||84||319||26%|
|Old Key West||79||235||34%|