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

Filed in Disney Vacation Club, Old Key West, ROFR, Vero Beach

Disney's Old Key West


In the month of June, Disney exercised their right of first refusal (ROFR) on 4 of 163 contracts sold through the DVC Resale Market, representing 2.5% of the contracts sold.  This lowers the year-to-date (YTD) buy back rate to 8.4%.  June represented a 4th straight month in the buy back rate declining, but 2017 still has a ways to go to approach the 2016 buy back rate of 4.4%. In June, 97.5% of contracts were waived by Disney, bringing the YTD waiver rate to 91.6%.

The biggest change seen in June was a steep drop in the buy back rate.  The buy back rate in June was over 70% lower than the YTD buy back rate prior to June.  The graph below shows a high correlation with buy back rate and price in 2017.  Whenever price has dropped, the buy back rate increased (i.e., February and May), and whenever the price increased the buy back rate dropped (i.e., March, April and June).  Moreover, the long term trend shows as prices have gradually increased in 2017 the buy back rate has gradually dropped.    Generally, the correlation of price and buy back rate would be expected and so far this year, the month to month correlation of price and buy back rate has been 100%.  Following this correlation, it shouldn’t be a surprise to see a steeper drop in the buy back rate for June with the sharper increase in prices experienced in June.  While seeing higher prices may not be the news buyers want to see, they can take some relief in much lower buy back rates as a result.

Price Per Point and Buy Back Rate DVC Resale Market 2017

What is Right of First Refusal?

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 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.

Resorts Bought Back in 2017

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold through the DVC Resale Market.



Details and Data

In June, the only two resorts bought back were Old Key West and Vero Beach.  Old Key West was 3 out of 4 of the buy backs, and consistently remains one of the most commonly bought back resorts.  No Hilton Head contracts were bought back in June, ending the heavy buy back of Hilton Head seen in May.  Details on the specific contracts bought back are below.

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’17 Dues Paid by Use Year Point Availability
Old Key West $70 300 $21,000 Buyer Seller Oct. 0 pts.’17 + 5 pts. ’18
Old Key West $77 240 $18,480 Buyer Buyer Dec 262 pts.’17 + 240 pts.’18
Old Key West $86 150 $12,900 Buyer Buyer Sep 253 pts.’17 + 150 pts.’18
Vero Beach $66 100 $6,600 Buyer Pro-Rate Sep 27 pts.’17 + 100 pts.’18


Resort Buy Back Rates

There were 2 different DVC resorts bought back in June for contracts sold by DVC Resale Market.  The table below shows the percentage of buy backs for those 2 resorts.

Resort Buy Backs Number Sold Percentage Bought Back
Old Key West 3 20 15%
Vero Beach 1 10 10%


Browse DVC Resale Market Listings


  • Jim Bellemare
    July 22, 2017

    Considering buying resale. Interested in OKW but with extended contract, have you seen any of those coming in? Same thing with Boulder Ridge, is there anything there that extends beyond 2042?

    • Nick Cotton
      July 22, 2017

      Jim, thank you for reaching out. We do get Extended Old Key West contracts in, however, they don’t typically last long. What I would most recommend is downloading our App as you can set it to notify you within a few minutes of whenever an Extended Old Key West contract gets listed. To download, please see: https://www.dvcresalemarket.com/buying/dvc-resale-market-app/

      Regarding, Boulder Ridge, they all expire in 2042 as there has been no extension to that resort.

  • Connie
    July 21, 2017

    What is the buy back status of Polynesian I never see any thing on it and have only seen it for sale at the resort itself

    • Nick Cotton
      July 21, 2017

      Connie, thank you for your question. Despite many Polynesian sales we have yet to have a Polynesian contract bought back.

  • Greg
    July 19, 2017

    Hi Nick,
    Thanks for your work on all of this. I enjoy reading it and it is all very helpful. Just curious if you think the price increases will continue. I see from your table above that prices seemed to get bumped about $4 a point in June compared to previous months. I have only recently started watching the resale market–does there tend to be a price bump in the summer months, or do you think this is just simply where the prices are headed? Thanks again, Greg

    • Nick Cotton
      July 19, 2017

      Greg, great question. I think prices will begin to level out as demand isn’t as strong in the Fall as it is in the Spring. That being said we thought prices would begin to flatten going into June as they typically do, but inventory stayed low and as a result prices bumped up again. So, while my thoughts are in no way guarantees, if this late Summer / early Fall performs like previous years prices should level out at least somewhat.

  • Darrell F. J. White
    July 19, 2017

    There are rumblings that the Grand Floridian is being eyed for major refurbishing by the VP of Parks and Resorts. An alternative possibility might be the construction of a new flagship resort. To my understanding, the VP is favouring the GF refurbishing option. If the GF refurbishment option is the one taken, (its been 28 years so it has to happen sooner or later) do you see the Villas values increasing in response to this refurbishment? Thanks

    • Nick Cotton
      July 19, 2017

      It’s certainly possible it could help increase value, it certainly wouldn’t hurt. However, I don’t think any increase would be huge as GF already sells at one of the highest price per points in the network as it is, and the audience that tends to buy GF are already loyal to that location. Regardless, any refurbishment is a plus.

  • Drew
    July 3, 2017

    Do you anticipate dvc contracts to become more expensive in next 5 years? Or cheaper since there will be less tears remaining?

    • Nick Cotton
      July 3, 2017

      Drew, I don’t think we will see an impact to price because of remaining years until we enter the late 2020’s or possibly even the early 2030’s. The reason I say this is because of the inflation of room rates at Disney. The inflation on Disney room rates since ’71 has ran around 6% on average annually and this has offset the lack of remaining years so far. For example, in 10 years, if it costs 10k for a week at the Beach Club, and you are looking to buy a Beach Club contract for 15k that provides a week, you would probably still purchase as the break-even would be less than 2 years and you would still have 15 years left to use it. At some point, when the break-even is getting close to the end date the price will certainly come down.

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