DVC Right of First Refusal Report (ROFR): September 2023
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 8 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 3,626, resulting in a 0.2% buyback rate (Contracts Bought Back in 2023/Contracts Sold in 2023). The 2023 waiver rate is 99.8%.
Key ROFR Updates
Disney has once again kept us on our toes this month with its unpredictable approach to Right of First Refusal (ROFR). DVC made a single buyback in September 2023, and it was for the Grand Floridian at a striking $152 per point.
I emphasize the price because a buyback at $152 per point is notably high, especially considering the average resale price currently stands at $160 per point and other contracts passed ROFR as low as the $130’s. This leaves us scratching our heads and wondering about the strategy behind such a move and what made this contract so special?
The Grand Floridian recently saw a direct price increase, which might explain this unusual buyback as Big Pine Key nears its sellout. However, it’s worth noting that the profit margin Disney can make on these points is much lower compared to other Disney Vacation Club properties.
This overall raises several questions:
- Is Disney testing the waters? Are they exploring how high they can push the buyback price before it affects the resale market?
- Is this an isolated incident? Or could this be the start of a new trend where Disney begins buying back contracts at higher prices?
- What does this mean for DVC owners? Could this potentially impact the resale value of their points?
As we step into October and usher in a new fiscal year for Disney and DVC, all eyes will certainly be watching for any signs of a resurgence in DVC ROFR activity. Will Disney continue with this pattern or will we see a change in their approach? What I can tell you is that while writing this blog post, I just received my first email alert of a buyback – so at least we will have something to talk about next month. See you then!
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 September 2022 to September 2023:
Disney Vacation Club Resort Resale Contracts Bought Back in 2023
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2023:
Buy Back Rates for Disney Vacation Club Resorts in 2023
The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2023. Note, there have been no buybacks of the following resorts in 2023: Aulani, Grand Californian, Riviera Resort, Polynesian, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.
| Resort | Buybacks | Number Sold | % Bought Back |
| Copper Creek | 4 | 190 | 2.1% |
| Animal Kingdom | 2 | 406 | 0.5% |
| Grand Floridian | 2 | 177 | 1.1% |
Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.
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