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

Filed in Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Disney Vacation Club, DVC Resale, ROFR

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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.

PPP vs. Buy Back Rate 2018 FINAL

 

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:

Disney ROFR buy backs for 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:

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Animal Kingdom $100 200 $20,000 Buyer Seller Dec. 0 pts.’18 + 200 pts.’19
Animal Kingdom $100 160 $16,000 Buyer Seller* Feb. 0 pts.’18 + 116 pts.’19
Animal Kingdom $100 160 $16,000 Buyer Seller* Apr. 0 pts.’18 + 0 pts.’19
Animal Kingdom $112 270 $30,240 Buyer Seller Dec. 287 pts.’18 + 270 pts.’19
Animal Kingdom $106 150 $15,900 Buyer Seller Dec. 63 pts.’18 + 150 pts.’19
Animal Kingdom $110 125 $13,750 Buyer Seller Dec. 4 pts.’18 + 125 pts.’19
Animal Kingdom $95 200 $19,000 Buyer Seller Dec. 34 pts.’18 + 200 pts.’19
Animal Kingdom $109 125 $13,625 Buyer Seller Dec. 16 pts.’18 + 125 pts.’19
Animal Kingdom $113 160 $18,080 Buyer Seller Aug. 81 pts.’18 + 160 pts.’19

* Seller Provided Credit to Buyer for 2019 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Bay Lake Tower $136 160 $21,760 Buyer Seller Mar. 0 pts.’18 + 160 pts.’19
Bay Lake Tower $138 120 $16,560 Buyer Seller Apr. 0 pts.’18 + 120 pts.’19
Bay Lake Tower $137 210 $28,770 Buyer Seller Feb. 0 pts.’18 + 210 pts.’19
Bay Lake Tower $128 160 $20,480 Buyer Seller Feb. 0 pts.’18 + 160 pts.’19
Bay Lake Tower  $135 250 $33,750 Buyer Seller Jun. 0 pts.’18 + 250 pts.’19
Bay Lake Tower $134 180 $24,120 Buyer Seller Mar. 0 pts.’18 + 180 pts.’19
Bay Lake Tower $138 160 $22,080 Buyer Seller Apr. 0 pts.’18 + 160 pts.’19
Bay Lake Tower $140 270 $37,800 Buyer Seller Jun. 15 pts.’18 + 540 pts.’19
Bay Lake Tower $138 160 $22,080 Buyer Seller Feb. 160 pts.’18 + 160 pts.’19
Bay Lake Tower $130 160 $20,800 Buyer Seller* Apr. 0 pts.’18 + 27 pts.’19
Bay Lake Tower $137 160 $21,920 Buyer Seller Oct. 19 pts.’18 + 160 pts.’19
Bay Lake Tower $137 160 $21,920 Buyer Seller Feb. 0 pts.’18 + 160 pts.’19
Bay Lake Tower $134 220 $26,800 Buyer Seller Feb. 0 pts.’18 + 200 pts.’19

* Seller Provided Credit to Buyer for 2019 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Beach Club $143 200 $28,600 Buyer Seller Dec. 235 pts.’18 + 200 pts.’19
Beach Club  $127 170 $21,590 Buyer Seller Mar. 170 pts.’18 + 170 pts.’19
Beach Club $139 80 $11,120 Buyer Seller Mar. 0 pts.’18 + 80 pts.’19
Beach Club $131 210 $27,510 Buyer Seller Mar. 0 pts.’18 + 240 pts.’19
Beach Club $139 126 $17,514 Buyer Seller Mar. 0 pts.’18 + 195 pts.’19
Beach Club $128 360 $46,080 Buyer Seller* Feb. 0 pts.’18 + 0 pts.’19

* Seller Provided Credit to Buyer for 2019 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Boardwalk $120 150 $18,000 Buyer Seller Oct. 150 pts.’18 + 0 pts.’19
Boardwalk $109 150 $16,350 Buyer Seller* Feb. 3 pts.’18 + 1 pt.’19
Boardwalk $121 150 $18,150 Buyer Seller Jun. 0 pts.’18 + 150 pts.’19
Boardwalk $120 150 $18,000 Buyer Seller* Jun. 0 pts.’18 + 2 pts.’19
Boardwalk $99 854 $84,546 Buyer Seller* Dec. 0 pts.’18 + 6 pts.’19

* Seller Provided Credit to Buyer for 2019 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Hilton Head $70 260 $18,200 Buyer Seller Aug. 59 pts.’18 + 260 pts.’19
Hilton Head $74 350 $25,900 Buyer Seller Mar. 0 pts.’18 + 350 pts.’19

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Old Key West $91 230 $20,930 Buyer Seller Oct. 0 pts.’18 + 230 pts.’19
Old Key West $91 230 $20,930 Buyer Seller* Apr. 0 pts.’18 + 225 pts.’19
Old Key West $89 210 $18,690 Buyer Seller Aug. 54 pts.’18 + 210 pts.’19
Old Key West $93 150 $13,950 Buyer Seller Dec. 0 pts.’18 + 150 pts.’19
Old Key West $97 230 $22,310 Buyer Seller Dec. 460 pts.’18 + 230 pts.’19
Old Key West $93 240 $22,320 Buyer Seller Mar. 22 pts.’18 + 88 pts.’19
Old Key West $97 150 $14,550 Buyer Seller Jun. 28 pts.’18 + 150 pts.’19
Old Key West $94 150 $14,100 Buyer Seller Mar. 0 pts.’18 + 150 pts.’19

* Seller Provided Credit to Buyer for 2019 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Saratoga Springs $101 120 $12,120 Buyer Seller* Jun. 0 pts.’18 + 0 pts.’19
Saratoga Springs $92 200 $18,400 Buyer Seller* Feb. 0 pt.’18 + 0 pts.’19
Saratoga Springs $103 240 $24,720 Buyer Seller* Aug. 176 pts.’18 + 210 pts.’19
Saratoga Springs $90 270 $24,300 Buyer Seller* Aug. 27 pts.’18 + 31 pts.’19
Saratoga Springs $90 200 $18,000 Buyer Seller* Dec. 0 pts.’18 + 41 pts.’19
Saratoga Springs $97 350 $33,950 Buyer Seller Aug. 0 pts.’18 + 350 pts.’19
Saratoga Springs $100 160 $16,000 Buyer Seller* Jun. 0 pts.’18 + 0 pts.’19
Saratoga Springs $96 225 $21,600 Buyer Seller* Oct. 0 pts.’18 + 200 pts.’19
Saratoga Springs $100 270 $27,000 Buyer Seller Jun. 0 pts.’18 + 439 pts.’19
Saratoga Springs $98 285 $27,930 Buyer Seller Feb. 0 pts.’18 + 285 pts.’19
Saratoga Springs $98 200 $19,600 Buyer Seller* Oct. 7 pts.’18 + 191 pts.’19
Saratoga Springs $102 150 $15,300 Buyer Seller* Jun. 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 7 different resorts purchased back in December:

Resort Buy Backs Number Sold Percentage Bought Back
Animal Kingdom 9 37 24%
Bay Lake Tower 13 30 43%
Beach Club 6 9 67%
Boardwalk 5 13 38%
Hilton Head 2 7 29%
Old Key West 8 10 80%
Saratoga Springs 12 36 33%

 

Access all DVC resale listings and learn more about buying and selling with DVC Resale Market.

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