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

In the month of February, Disney exercised their right of first refusal (ROFR) on 37 of 250 contracts sold through the DVC Resale Market, representing 14.8% of the contracts sold.  This raises the year-to-date buy back rate to 12.2%.  Thus far, the 2017 buy back rate is more than 2.5x that of the 4.4% buy back rate of 2016.  In February, 85.2% of contracts were waived by Disney and year-to-date the waiver rate is 87.8%.

As mentioned in January’s ROFR report, a likely reason for the increase in buy backs is due to Disney’s $5/pt. increase on all DVC properties on January 18th, and the opportunity to buy back contracts through ROFR for lower prices.  This drop in the market and increase of direct prices represents an even larger profit gap for Disney on resale contracts they buy back.  In fact, prices today are at their lowest point in 2 years.  Many of the prices today either match or come very close to the prices seen in our blog regarding the best economical resorts to purchase from March 2015.   However, the price decline has recently slowed, and we are beginning to see the market turn as DVC Resale inventory is rapidly shrinking. In late December, DVC Resale Market had over 400 active listings, and by late February that number was in the low 200’s.  Similar to other markets, when inventory decreases, prices tend to rise, and this dynamic was seen significantly with DVC resales throughout 2015 and into early 2016.

Right of First Refusal 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.

With 17 buy backs, Saratoga Springs represented over half of the buy backs in February for DVC Resale Market.  Saratoga Springs was followed by 5 at Old Key West and 4 at Boardwalk.  The graph below shows the year-to-date buy back numbers. From the graph you can see a heavy concentration of buy backs at Disney World based properties with the exception of the newest two, Grand Floridian and Polynesian.

Year-to-date ROFR report for DVC Resale Market

Very similar to January there was a strong correlation with having all or at least most of the 2017 points available.  In January, 87% (20 of 23) contracts bought back had all or most of the 2017 points available and in February, 89% (33 of 37) had high point availability for 2017.

Resort$/PointPts. on ContractPriceClosing Costs Paid by’17 Dues Paid ByUse YearPoint Availability
Animal Kingdom$69 180$12,480 BuyerSellerApr180 Pts. ’18
Animal Kingdom$90125$11,250Buyer BuyerAug96 pts. ’16 + 250 pts. ’17 + 125 pts. ’18 
Animal Kingdom$80 300$24,000BuyerBuyerJun322 pts. ’17 + 300 pts. ’18
Bay Lake Tower$110 160$17,600 SellerBuyerMar174 pts. ’17 + 160 pts. ’18
Bay Lake Tower$113 160$18,080BuyerBuyerJun160 pts. ’16 + 320 pts. ’17 + 160 pts. ’18
Bay Lake Tower$110 160$17,600BuyerBuyerJun160 pts. ’17 + 160 pts. ’18
Beach Club$95350$33,250BuyerSellerOct350 pts. ’18
Beach Club$95 250$23,750 BuyerBuyerDec7 pts. ’16 + 250 pts. ’17 + 250 pts. ’18
Boardwalk$90 210$18,900Buyer Pro-RatedAug208 pts. ’17 + 210 pts. ’18
Boardwalk$98 270$26,460SellerBuyerAug478 pts. ’17 + 270 pts. ’18
Boardwalk$94160$15,040Buyer BuyerMar192 pts. ’17 + 160 pts. ’18
Boardwalk$90 300$27,000BuyerPro-RatedJun212 pts. ’17 + 300 pts. ’18
Old Key West$65 270$17,550Buyer BuyerDec 270 pts. ’17 + 270 pts. ’18
Old Key West$69 310$21,390BuyerSeller Apr321 pts. ’17 + 310 pts. ’18
Old Key West$75 100$7,500BuyerBuyerOct35 pts. ’16 + 100 pts. ’17
Old Key West$70 210$14,700BuyerBuyerJun210 pts. ’17 + 210 pts. ’18
Old Key West$70 450$31,500SplitBuyerMar900 pts. ’17 + 450 pts. ’18
Old Key West$70220$15,400BuyerBuyerOct118 pts. ’16 + 220 pts. ’17
Saratoga Springs$77225$17,325SellerSellerJun193 pts. ’17 + 48 pts. ’18
Saratoga Springs$77150$11,550BuyerSellerJun150 pts. ’18
Saratoga Springs$73160 $11,680BuyerSellerJun160 pts. ’18 + 160 pts. ’19
Saratoga Springs$84 150$12,600BuyerBuyerDec150 pts. ’16 + 150 pts. ’17
Saratoga Springs$72150$10,800BuyerSellerSep150 pts. ’18
Saratoga Springs$83 160$13,280BuyerBuyerDec180 pts. ’16 + 160 pts. ’17 
Saratoga Springs$72 200$14,400BuyerSellerJun212 pts. ’17 + 200 pts. ’18
Saratoga Springs$84 100$8,400BuyerBuyerDec32 pts. ’16 + 100 pts. ’17 + 100 pts. ’18
Saratoga Springs$82 180$14,760SellerBuyerDec180 pts. ’17 + 180 pts. ’18
Saratoga Springs$88200$17,600BuyerSellerJun200 pts. ’17 + 200 pts. ’18
Saratoga Springs$80 215$17,200 BuyerBuyerDec215 pts. ’16 + 215 pts. ’17 + 215 pts. ’18
Saratoga Springs$78 160$12,480BuyerBuyerJun160 pts. ’17 + 160 pts. ’18
Saratoga Springs$86 100$8,600BuyerBuyerAug100 pts. ’17 + 100 pts. ’18
Saratoga Springs$75 200$15,000BuyerBuyerSep264 pts. ’16 + 200 pts. ’17 + 200 pts. ’18
Saratoga Springs$84 175$14,700BuyerBuyerDec183 pts. ’16 + 175 pts. ’17 + 175 pts. ’18
Saratoga Springs$83 150$12,450BuyerBuyerAug147 pts. ’16 + 150 pts. ’17 + 150 pts. ’18
Saratoga Springs$68 150$10,200SellerBuyerMar150 pts. ’17 + 150 pts. ’18
Saratoga Springs$80 200$16,000BuyerBuyerJun400 pts. ’17 + 200 pts. ’18
Saratoga Springs$80 160$12,800BuyerBuyerJun320 pts. ’17 + 160 pts. ’18


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  • TIM
    March 27, 2017

    To better understand, anyway to get the ratio of property at resort offered and property taken by DVC? Is it 28/28 or 3/3 or is it 28/100 and 3/30?

    • Nick Cotton
      March 27, 2017

      Tim, thank you for the question. As mentioned early in the blog, Disney exercised ROFR on 37 of 250 contracts, so the ratio expressed as a fraction would be 37/250.

  • stephanieb
    March 27, 2017

    Great report! Are these figures based on resale contracts through your brokerage only or all resale contracts regardless of who brokered them?

    • Nick Cotton
      March 27, 2017

      Stephanie, thank you for your question. The monthly ROFR reports we provide at DVC Resale Market are based on sales from DVC Resale Market. Moreover, since DVC Resale Market is the leader in the DVC Resale industry, I would take this information as great directional data.

  • Dave
    March 14, 2017

    Hey Nick!
    We just bought 100points at Polynesian Resort. What it take to add 50 more PR points?

  • Dan
    March 10, 2017

    Nick, do you track/have data on how long it took Disney to exercise ROFR within the 30-day window? Do most of the Disney buy-backs come relatively quickly? Do most come after almost the 30-day window has expired? Thank you.

    • Nick Cotton
      March 10, 2017

      Dan, great question. Typically, we see buy backs happening in a 2 to 3 week window, so typically not the full 30 days. That is not to say we don’t see some go the full 30 days, but thankfully it is not the norm.

      • Sandy
        April 19, 2017

        Haven’t some contracts been refused beyond the 30 day cut off date? Disney exercised some right of extension?

        • Nick Cotton
          April 19, 2017

          Sandy, we have not had any contracts bought back beyond the 30 day period.

  • David Feldman
    March 2, 2017

    what is SSR worth per point if I own 200. basic what is Disney not buying back

  • softballmom
    March 2, 2017

    Just curious….how many SSR contracts actually made it through in February?

    • Nick Cotton
      March 2, 2017

      48 SSR contracts were waived in February, so 17 of 65 (roughly 26%) SSR contracts were bought back.

      • Softballmom
        March 2, 2017

        Thank you! There’s still hope then!

  • cpnkirk
    March 2, 2017

    I need to quit reading these reports until my contract passes ROFR!

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