DVC Right of First Refusal (ROFR): August ’18 Report
In the month of August, Disney exercised their right of first refusal (ROFR) on 25 of 300 Disney Vacation Club (DVC) contracts sold through the DVC Resale Market, representing 8.3% of the contracts sold. The waiver rate for August was 91.7%. This past month ended a 4 month streak of buy backs at 30 or more for the month.
At 8.3%, the August buy back rate represented a sizable 36% drop from July’s rate of 13.1% . The year-to-date (YTD) buy back rate for 2018 is now 9.6%, which remains more than double 2016’s rate of 4.4% and ahead of 2017’s rate of 6.9%. The YTD waiver rate is 90.4%.
The chart below shows the relationship between the average selling price per point and the buy back rate from August 2017 through August 2018. Despite the average sales price per point remaining consistent around $114/pt. from July to August for all DVC resorts, the buy back rate took a sharp drop. August’s buy back rate of 8.3% is the lowest since March, when the buy back rate was 7.5%.
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 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.
Disney Vacation Club Resort Contracts Bought Back in 2018
Saratoga Springs, Animal Kingdom and Old Key West continue to dominate the buy backs in 2018, representing over 85% of all buy backs.
Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market through the month of August in 2018:
Details on DVC Buybacks
In August, DVC Resale Market had buy backs of Animal Kingdom, Grand Floridian, Hilton Head, Old Key West and Saratoga Springs.
Details on the contracts bought back in August are below:
| Resort | $/Point | Pts. on Contract | Price | Closing Costs Paid by | ’18 Dues Paid by | Use Year | Point Availability |
| Animal Kingdom | $109 | 500 | $54,500 | Buyer | Seller | Dec | 500 Pts.’18 + 500 Pts.’19 |
| Animal Kingdom | $104 | 160 | $16,640 | Buyer | Pro-Rate | Feb | 36 Pts.’18 + 160 Pts.’19 |
| Animal Kingdom | $109 | 240 | $26,160 | Buyer | Seller | Dec | 416 Pts.’18 + 240 Pts.’19 |
| Grand Floridian | $179 | 50 | $8,950 | Buyer | Seller | Aug | 98 Pts.’18 + 2 Pts.’19 |
| Hilton Head | $67 | 350 | $23,460 | Buyer | Seller | Aug | 13 Pts.’18 + 350 Pts.’19 |
| Hilton Head | $70 | 275 | $19,250 | Buyer | Seller | Oct | 0 Pts.’18 + 275 Pts.’19 |
| Hilton Head | $68 | 200 | $13,600 | Buyer | Seller* | Dec | 0 Pts. ’18 + 0 Pts.’19 |
| Old Key West | $86 | 420 | $36,120 | Buyer | Buyer | Oct | 420 Pts. ’18 + 420 Pts.’19 |
| Old Key West | $93 | 100 | $9,300 | Buyer | Seller* | Mar | 0 Pts. ’18 + 37 Pts. ’19 |
| Old Key West | $92 | 150 | $13,800 | Buyer | Pro-Rate | Sep | 48 Pts.’18 + 150 Pts.’19 |
| Old Key West | $90 | 150 | $13,500 | Buyer | Seller | Aug | 0 Pts.’18 + 150 Pts.’19 |
| Old Key West | $96 | 230 | $22,080 | Buyer | Pro-Rate | Apr | 394 Pts.’18 + 230 Pts.’19 |
| Old Key West | $95 | 190 | $18,050 | Buyer | Seller | Jun | 109 Pts.’18 + 182 Pts.’19 |
| Old Key West | $87 | 230 | $20,010 | Buyer | Seller | Feb | 0 Pts.’18 + 230 Pts.’19 |
| Saratoga Springs | $96 | 275 | $26,400 | Buyer | Seller | Dec | 0 Pts.’18 + 275 Pts.’19 |
| Saratoga Springs | $96 | 200 | $19,200 | Buyer | Seller* | Jun | 0 Pts.’18 + 22 Pts.’19 |
| Saratoga Springs | $95 | 160 | $15,200 | Buyer | Seller* | Jun | 1 Pt.’18 + 0 Pts.’19 |
| Saratoga Springs | $92 | 230 | $21,160 | Buyer | Seller | Aug | 241 Pts.’18 + 230 Pts.’19 |
| Saratoga Springs | $95 | 130 | $12,350 | Buyer | Seller | Aug | 10 Pts.’18 + 0 Pts.’19 |
| Saratoga Springs | $86 | 150 | $12,900 | Seller | Seller | Mar | 0 Pts.’18 + 150 Pts.’19 |
| Saratoga Springs | $95 | 100 | $9,500 | Buyer | Buyer | Aug | 320 Pts.’18 + 160 Pts.’19 |
| Saratoga Springs | $97 | 160 | $15,520 | Buyer | Seller* | Aug | 0 Pts.’18 + 123 Pts.’19 |
| Saratoga Springs | $95 | 243 | $23,085 | Buyer | Seller* | Feb | 0 Pts.’18 + 104 Pts.’19 |
| Saratoga Springs | $95 | 200 | $19,000 | Buyer | Seller | Dec | 0 Pts.’18 + 200 Pts.’19 |
| Saratoga Springs | $93 | 120 | $11,160 | Buyer | Seller* | Feb | 0 Pts.’18 + 0 Pts.’19 |
* Seller Provided Credit to Buyer for 2019 Points Used
Buy Back Rates for Disney Vacation Club Resorts
The table below shows the percentage of buy backs for all 5 different resorts purchased back in August:
| Resort | Buy Backs | Number Sold | Percentage Bought Back |
| Saratoga Springs | 11 | 63 | 17.5% |
| Old Key West | 7 | 27 | 25.9% |
| Animal Kingom | 3 | 45 | 6.7% |
| Hilton Head | 3 | 10 | 30% |
| Grand Floridian | 1 | 23 | 4.3% |
Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.
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