DVC Right of First Refusal (ROFR): December ’18 Report

In the month of December, Disney exercised their right of first refusal (ROFR) on 55 of 204 Disney Vacation Club (DVC) contracts sold through the DVC Resale Market, representing 27% of the contracts sold. The waiver rate for December was 73%.

At 27%, the December buy back rate reached a record high! This resulted in raising the 2018 buy back rate to 10.5%. The chart below shows the relationship between the average selling price per point and the buy back rate from December 2017 through December 2018.

This unprecedented volume of buy backs in December would certainly hint at a possible increase in prices of sold-out inventory by Disney coming soon.

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 2018

In the smorgasbord of buy backs experienced in December, 7 different DVC resorts saw buy backs. Many of them were resorts we had seen buy backs from all year, however, Bay Lake Tower entered the mix for the 1st time all year with 13 buy backs. Additionally, Old Key West continued to see a high rate of buy backs with a whopping 80% buy back rate in December!

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market in 2018:

Details on DVC Buybacks

In December, DVC Resale Market experienced buy backs for Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Hilton Head, Old Key West and Saratoga Springs.

Details on the contracts bought back in December are below:

* Seller Provided Credit to Buyer for 2019 Points Used

* Seller Provided Credit to Buyer for 2019 Points Used

* Seller Provided Credit to Buyer for 2019 Points Used

* Seller Provided Credit to Buyer for 2019 Points Used

* Seller Provided Credit to Buyer for 2019 Points Used

* 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 7 different resorts purchased back in December:

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