DVC Right of First Refusal (ROFR): January ’17 Report
In the month of January, Disney exercised their right of first refusal (ROFR) on 23 contracts sold through the DVC Resale Market, representing roughly 9.5% of the contracts sold in that same month. This month’s 9.5% percentage was more than double the 2016 buy back rate of 4.4%.
While we don’t have any certainties on why the rate has increased, logically looking at the resale market would indicate lower prices could be attributing to the reason. Currently, prices on the resale market are lower than they have been at any time during the past year. This not only makes DVC resales more attractive for buyers in the open market, but Disney as well. Additionally, Disney raised the prices of not only Aulani and Polynesian by $5/pt. on January 18th, but on all of the DVC resorts. This increase, further extends the gap between direct and resale. This larger gap could be contributing to higher buy back rates.
Right of First Refusal is the option Disney Vacation Club has to purchase any resale contract after a sales price has been agreed upon and the contract has been executed. Each contract must be forwarded to DVC for review. DVC may take up to 30 days to review the contract. At their discretion, Disney may step in and purchase the property themselves at the terms agreed upon by the Seller and original Buyer. DVC then becomes the Buyer, and the purchase is complete. Once DVC is the buyer there is not an opportunity to come back with a better offer in hopes of still purchasing the contract.
Continuing with a theme from 2016 were buy backs of Bay Lake Tower, Boardwalk and Saratoga Springs. However, unlike last year, Saratoga Springs is leading the way rather than Bay Lake Tower with 9 total buy backs in January.
Among the contracts that were bought back, there was a strong correlation with having all or at least most of the 2017 points available; 20 of the 23 contracts bought back had most or all of the 2017 points available.
|Resort||$/Point||Pts. on Contract||Price||Closing Costs Paid by||’17 Dues Paid By||Use Year||Point Availability|
|Animal Kingdom||$72||300||$21,600||Buyer||Pro-rate||Feb||42 Pts. ’17 + 300 Pts. ’18|
|Animal Kingdom||$82||160||$13,120||Buyer||Buyer||Feb||200 Pts. ’17 + 160 Pts. ’18|
|Bay Lake Tower||$108||200||$21,600||Buyer||Buyer||Oct||143 Pts. ’16 + 295 Pts. ’17 + 200 Pts. ’18|
|Bay Lake Tower||$106||200||$21,200||Buyer||Buyer||Feb||290 Pts. ’17 + 200 Pts. ’18|
|Bay Lake Tower||$99||160||$15,840||Buyer||Seller||Feb||160 Pts. ’18|
|Bay Lake Tower||$109||100||$10,900||Buyer||Buyer||Apr||100 Pts. ’17 + 100 Pts. ’18|
|Beach Club||$95||200||$19,000||Buyer||Buyer||Feb||223 Pts. ’17 + 200 Pts. ’18|
|Boardwalk||$96||200||$19,200||Buyer||Buyer||Dec||200 Pts. ’16 + 200 Pts. ’17|
|Boardwalk||$89||350||$31,150||Buyer||Buyer||Apr||270 Pts. ’17 + 350 Pts. ’18|
|Boardwalk||$89||300||$26,700||Split||Buyer||Feb||300 Pts. ’17 + 300 Pts. ’18|
|Boardwalk||$87||200||$17,400||Buyer||Buyer||Dec||190 Pts. ’17 + 200 Pts. ’18|
|Boardwalk||$88||300||$26,400||Buyer||Buyer||Sep||300 Pts. ’17 + 300 Pts. ’18|
|Old Key West||$78||270||$21,060||Buyer||Buyer||Jun||526 Pts. ’16 + 270 Pts. ’17 + 270 Pts. ’18|
|Saratoga Springs||$71||214||$15,194||Seller||Buyer||Jun||428 Pts. ’17 + 214 Pts. ’18|
|Saratoga Springs||$80||150||$12,000||Buyer||Buyer||Jun||300 Pts. ’17 + 150 Pts. ’18|
|Saratoga Springs||$80||80||$6,400||Buyer||Buyer||Jun||80 Pts. ’17 + 80 Pts. ’18|
|Saratoga Springs||$81||160||$12,960||Buyer||Buyer||Jun||249 Pts. ’17 + 160 Pts. ’18|
|Saratoga Springs||$82||150||$12,300||Buyer||Buyer||Sep||139 Pts. ’16 + 150 Pts. ’17 + 150 Pts. ’18|
|Saratoga Springs||$79||120||$9,480||Buyer||Buyer||Aug||120 Pts. ’17 + 120 Pts. ’18|
|Saratoga Springs||$77||220||$16,940||Buyer||Buyer||Jun||366 Pts. ’17 + 220 Pts. ’18|
|Saratoga Springs||$80||225||$18,000||Buyer||Buyer||Aug||225 Pts. ’16 + 225 Pts. ’17|
|Saratoga Springs||$74||160||$11,840||Buyer||Seller||Mar||3 Pts. ’17 + 160 Pts. ’18|
|WL: Boulder Ridge||$82||200||$16,400||Split||Buyer||Feb||200 Pts. ’17 + 200 Pts. ’18|
Why are resales out side if DVC so much less expensive? The direct buy incentives are not worth the difference. And the seller pays a commission?
What am I missing?
Marc, with resales prices are set by an open market of buyers and sellers. DVC is a developer and they can set prices of their inventory where they want them. And yes, that gap can be large. You are correct in that the seller the commission. For more insight into direct and resale, please see the following: https://www.dvcresalemarket.com/buying/direct-vs-resale/
I just got a SSR resale with DVC Resale Market, 160 points, Feb use year, 160 2016 points banked into 2017, so fully loaded and it was $75 a point. It passed ROFR quickly and from the day of making the offer to using my points was a very quick 5 weeks. Looking at this and hearing about Disney taking SSR, I feel very lucky to have got this contract. The Comptroller”s website shows Disney are selling lots of SSR direct now at $145 per point! DVC Resale Market were great BTW.
Welcome Home and Congratulations!
I would be curios as to how many they buy with zero points in current year. I did notice that most had 2017 points.
Chris, I agree with your observation. In January, out of 23 buy backs, there was only 1 contract that had no points from 2017.
Do these include all resale contracts or only contracts that had been listed on this website?
Great question, this data only includes buy backs on contracts submitted by DVC Resale Market. However, given DVC Resale Market is the industry leader in sales volume and number of listings, I would take this as great directional information.