DVC Right of First Refusal (ROFR): April ’17 Report

Disney's Hilton Head


In the month of April, Disney exercised their right of first refusal (ROFR) on 14 of 220 contracts sold through the DVC Resale Market, representing 6.4% of the contracts sold.  This lowers the year-to-date (YTD) buy back rate to 9.6%.  April marked the 2nd month in a row for the buy back rate to drop, pushing the YTD buy back rate back to single digits for the first time since January.   Despite two straight months of declines, the 2017 buy back rate is still more than 2x that of the 4.4% buy back rate of 2016. In April, 93.6% of contracts were waived by Disney, bringing the YTD waiver rate to 90.4%.

As mentioned in earlier ROFR reports this year (January, February and March) a likely reason for the higher buy back rates so far in 2017 is due to Disney’s $5/pt. increase on all DVC properties in January, and the opportunity to buy back resales with prices at 2 year lows.  However, as DVC resale inventory has shrunk significantly since the beginning of 2017, the resale market has seen a steady increase in prices.  This increase in prices could possibly be the main contributor in Disney’s buy back rate dropping for two consecutive months.  April’s buy back rate was roughly 57% lower than February’s rate and 15% lower than March’s rate.

What is Right of First Refusal?

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 may take up to 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.

Resorts Bought Back in 2017

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold through the DVC Resale Market.

Disney's Buy Backs in 2017 from DVC Resale Market

Details and Data

While 9 of the 14 contracts bought back in April had strong point availability, meaning the contracts had all or almost of the 2017 points and all points going forward, price remained a factor as well. The remaining 5 of the 14 contracts bought back with low point availability seemed to be targeted due to price.  For example, a 320 point Bay Lake Tower was bought back at $106/point, and a Boulder Ridge contract was bought back at $84/point.  Both contracts had no points coming until 2018. Surprisingly, 2 Hilton Head contracts were bought back in April as well.  While 2 does not sound like a lot, that was double the amount of Hilton Head contracts we saw bought back the entire year of 2016.   For a complete list of the buy backs in April, please see the table below.

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’17 Dues Paid By Use Year Point Availability
Animal Kingdom $88 160 $14,080 Buyer Buyer Dec 33 Pts. ’16 + 160 Pts. ’17 + 160 Pts. ’18
Animal Kingdom $85 160 $13,600 Buyer Buyer Dec 135 Pts. ’16 + 160 Pts. ’17 + 160 Pts. ’18
Bay Lake Tower $106 320 $33,920 Buyer Seller Dec 320 Pts. ’18
Bay Lake Tower $119 160 $19,040 Buyer Buyer Aug 2 Pts. ’16 +   320 Pts. ’17 + 160 Pts. ’18
Bay Lake Tower $109  170 $18,530 Buyer Buyer  Jun 49 Pts. ’17 + 170 Pts. ’18
Boardwalk $96 150 $14,400 Buyer Seller  Feb  150 Pts. ’18 
Boardwalk $98  220 $21,560 Buyer Buyer  Aug 252 Pts. ’17 + 220 Pts. ’18
Boardwalk $99 270 $26,730 Buyer Buyer Aug 270 Pts. ’16 + 540 Pts. ’17 + 270 Pts. ’18
Hilton Head $58  270 $15,560 Buyer Pro-Rated Dec 256 Pts. ’17 + 270 Pts. ’18
Hilton Head $52 200 $10,400 Buyer Seller Apr 200 Pts. ’18
Old Key West $71  230 $16,330 Buyer Buyer Sep 230 Pts. ’17 + 230 Pts. ’18
Saratoga Springs $83  175 $14,525 Buyer Buyer Aug 194 Pts. ’17 + 175 Pts. ’18
Vero Beach $46 250 $11,500 Buyer Buyer Feb 250 Pts. ’17 + 250 Pts. ’18
WL: Boulder Ridge  $84 170 $14,280 Buyer Seller Jun  170 Pts. ’18


Search DVC Resale Market Listings and learn more about buying and selling with DVC Resale Market.


  • Keena
    May 16, 2017

    We have one in for review now and are very nervous as the asking price for the BWV points was so low. Just now wondering if we should have offered over their asking price…

  • Rob
    May 14, 2017

    Nick, Is there any reason as to why Disney has a 100 point minimum for Add On points at Polly? Even Copper Creek doesn’t have this restriction.

    • Nick Cotton
      May 14, 2017

      Rob, I know this has been done before. A previous example that quickly comes to mind is Bay Lake Tower, in which for a period of time while Disney was actively selling it in 2008-2009 there was a minimum add-on of 100 points. I’m not entirely sure on the reasoning. Perhaps there is a thought that Members who were looking to add-on smaller amounts will bump up to 100? I know with Bay Lake Tower the restriction was lifted in time.

  • dave
    May 13, 2017

    35 SSR seems like a lot. Do you think it was because of low cost per point ? or is it more of a reflection of adding on to Disney Springs ? (I know combo of both)

  • Shane
    May 12, 2017

    Does Disney look at the profile of the prospective buyer or is it simply the numbers? Just wondering as it seems hard to determine the logic behind which contracts get waived vs which get exercised. I have been tracking these for a while and know what I want to purchase and at a price I want to pay. However, sometimes that contract would get through and other times it would not.

    • Monte
      May 16, 2017

      Shane, I was worried about the same thing too because I have inquired a lot to through Disney. They send me all kinds of stuff in the mail and by email. I thought there was no chance of me getting a resale. But I got a great deal on a Baylake tower. I thought they would surely be profiling me. And might hold up my deal because they think they have a shot at selling me direct

    • Nick Cotton
      May 12, 2017

      Shane, we have never seen a correlation with the profile of a buyer. We have noticed correlations with price and point availability. Although, those correlations are not full proof they are good directional information. In the past, there has been the occasional contract that seemed to be bought at random as well, likely to throw the market predictions off a bit.

  • Rob
    May 5, 2017

    The buy back of Boardwalk @ $96 150pts. $14,400 Feb 150 Pts. ’18 is odd considering they waived my Boardwalk @ $94 150pts. Jun 150 Pts.’18 the month before.

    • Shawn
      May 16, 2017

      I just thought the same thing. We just passed through ROFR with 240 points at $68 for Saratoga Springs. We close next month. We don’t have any 2017 or 2018 points. Yet Disney bought back 175 points at $83? Doesn’t make any sense how they’re making this decision!

  • Mark
    May 4, 2017

    Nick: I have two contracts with DVC Resale in ROFR process. I believe that DVC is currently selling only Copper Creek and Polynesian points, so what do they do with the points they buy back at other locations?

    • Nick Cotton
      May 4, 2017

      Mark, DVC will resell those points they buy back through ROFR. However, it may be in much smaller volumes as they have much more inventory at the resorts recently developed such as Polynesian and Copper Creek. Below is a link to DVC’s current prices on all resorts: https://www.dvcresalemarket.com/buying/direct-vs-resale/

      • PJ
        May 16, 2017

        If DVC buys back, let’s say 200 points….can DVC split the 200 points into smaller contracts?
        200 into 4 50 point contracts or do they have to sell direct again as the original 200?

        • Nick Cotton
          May 16, 2017

          PJ, if DVC buys back a contract they can split it up and sell it as smaller contracts.

  • Robert
    May 3, 2017

    Can you post a link or Excel list of contracts that did pass?

    Thanks for this info. It is greatly appreciated.

    • Nick Cotton
      May 3, 2017

      Robert, We don’t have anything prepared like that already, but I do understand how that could be helpful. We will consider an efficient way we may be able to do that for future reports. In the meantime, if you are trying to do some research for an upcoming purchase and want some more insight regarding what passed, please feel free to contact me directly and I can go over some contracts that are comparable to what you are considering. A link to my direct contact information: https://www.dvcresalemarket.com/about-us/agents/nick-cotton/

  • Teresa
    May 2, 2017

    How many bwv passed in April?

    • Nick Cotton
      May 2, 2017

      Teresa, 10 Boardwalk contracts were waived in April.

  • Chad
    May 1, 2017

    how many HHI contracts passed this month?

    • Nick Cotton
      May 1, 2017

      Chad, 4 Hilton Head contracts were waived in April.

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