DVC Right of First Refusal (ROFR): December ’16 Report
In the month of December, Disney exercised their right of first refusal (ROFR) on 8 contracts sold through the DVC Resale Market, representing roughly 5.6% of the contracts sold in that same month. This month’s 5.6% percentage was above the 2016 percentage of 4.4%.
Right of First Refusal is the option Disney Vacation Club has to purchase any resale package after a sales price has been agreed upon and a 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.
The month of December was dominated with buy backs of Bay Lake Tower. 6 of the 8 contracts bought back were Bay Lake Tower. For 2016, this brings the buy back volume for Bay Lake Tower head and shoulders above the other resorts as seen in the graph below.
As previously mentioned, the heavy buy back rate for Bay Lake Tower continued with one contract being bought back as high as $114/pt. as seen in the table below.
|Resort||Price Per Point||Points on Contract||Price||Closing Costs Paid by||2016 Annual Dues Paid by||Use Year||Point Availability|
|Bay Lake Tower||$98||150||$14,700||Seller||Seller||Oct.||150 Pts. ’16 + 150 Pts. ’17|
|Bay Lake Tower||$102||100||$10,200||Seller||Seller||Oct.||100 Pts. ’16 + 100 Pts. ’17|
|Bay Lake Tower||$89||160||$14,240||Buyer||*Seller||Apr.||160 Pts. ’18|
|Bay Lake Tower||$110||200||$22,000||Buyer||Seller||Feb.||1 Pts. ’16 + 200 Pts. ’17 + 200 Pts. ’18|
|Bay Lake Tower||$102||160||$16,320||Seller||*Seller||Feb.||160 Pts. ’18|
|Bay Lake Tower||$114||160||$18,240||Buyer||Seller||Feb.||320 Pts. ’17 + 160 Pts. ’18|
|Saratoga Springs||$79||210||$16,590||Buyer||Seller||Aug.||167 Pts. ’16 + 210 Pts. ’17 + 210 Pts. ’18|
|Old Key West||$74||220||$16,280||Buyer||Seller||Apr.||191 Pts. ’17 + 220 Pts. Coming ’18|
* Seller provided credit to buyer at closing for 2017 annual dues