DVC Right of First Refusal (ROFR): March ’18 Report
In the month of March, Disney exercised their right of first refusal (ROFR) on 22 of 295 Disney Vacation Club (DVC) contracts sold through the DVC Resale Market, representing 7.5% of the contracts sold. The waiver rate for March was 92.5%.
For a third consecutive month, March showed an increase in the buy back rate. Overall, March raised the year-to-date buy back rate to 5.6%, which is nearly equidistant between the 6.9% for 2017 and the 4.4% for 2016. The year-to-date waiver rate is now lowered to 94.4%.
The chart below shows the relationship between the average selling price per point and the buy back rate from March 2017 through March 2018. Generally, as price has risen, the buy back rate has declined and vice versa. This trend has continued in 2018, as the average resale selling price has dropped by $1/pt. each month, and in the same time period, Disney buy back rate has increased 2 percentage points each month.
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.
Disney Vacation Club Resort Contracts Bought Back in 2018
Saratoga Springs is in out in front for buy backs much like it was for most of 2017. It is noteworthy that while Saratoga Springs leads the way in volume of buy backs, Old Key West leads the way in percentage of contracts bought back at nearly 19%. Often times Disney has a strong advantage in buying back Old Key West in that when they purchase a non-extended Old Key West contract (the vast majority are non-extended), they resell them with the extension automatically included, thus increasing the value.
Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market through the month of March in 2018:
Details on DVC Buybacks
In March, DVC Resale Market had buy backs of Animal Kingdom, Grand Floridian, Old Key West and Saratoga Springs. Saratoga Springs led all resorts for buy backs in March with 10, followed closely by Animal Kingdom with 9.
Grand Floridian made the list with a buy back, which ties 2017 already with 1. Also, we saw a Grand Californian buy back in January. While 2 buy backs between both Grand resorts doesn’t signal a significant amount, it is double what we saw last year and we are only a quarter into 2018. So, the significant direct price increase on those 2 resorts from January might be triggering at least a little more aggressive action by Disney.
Details on the contracts bought back in March are below:
| Resort | $/Point | Pts. on Contract | Price | Closing Costs Paid by | ’18 Dues Paid by | Use Year | Point Availability |
| Animal Kingdom | $90 | 200 | $18,000 | Buyer | Seller* | Mar. | 0 pts.’18 + 5 pts.’19 |
| Animal Kingdom | $97 | 160 | $15,520 | Buyer | Buyer | Feb. | 160 pts.’18 + 160 pts.’19 |
| Animal Kingdom | $97 | 240 | $23,280 | Buyer | Buyer | Dec. | 240 pts.’18 + 240 pts.’19 |
| Animal Kingdom | $95 | 220 | $20,900 | Buyer | Pro-Rate | Jun. | 22 pts.’18 + 220 pts.’19 |
| Animal Kingdom | $99 | 300 | $29,700 | Buyer | Seller | Aug. | 0 pts.’18 + 300 pts.’19 |
| Animal Kingdom | $100 | 135 | $13,500 | Buyer | Seller | Jun. | 5 pts.’18 + 135 pts.’19 |
| Animal Kingdom | $100 | 160 | $16,000 | Buyer | Seller | Aug. | 5 pts.’18 + 160 pts.’19 |
| Animal Kingdom | $100 | 100 | $10,000 | Buyer | Seller | Jun. | 0 pts.’18 + 100 pts.’19 |
| Animal Kingdom | $100 | 160 | $16,000 | Buyer | Buyer | Dec. | 54 pts.’17 + 160 pts.’18 + 160 pts.’19 |
| Grand Floridian** | $133 | 350 | $46,550 | Buyer | Seller | Feb. | 0 pts.’18 + 350 pts.’19 |
| Old Key West | $85 | 230 | $19,550 | Buyer | Buyer | Feb. | 234 pts.’18 + 230 pts.’19 |
| Old Key West | $90 | 100 | $9,000 | Buyer | Buyer | Apr. | 109 pts.’18 + 100 pts.’19 |
| Old Key West | $90 | 100 | $9,000 | Buyer | Buyer | Apr. | 100 pts.’18 + 100 pts.’19 |
| Old Key West | $80 | 150 | $12,000 | Buyer | Seller | Mar. | 0 pts.’18 + 150 pts.’19 |
| Saratoga Springs | $95 | 130 | $12,350 | Buyer | Seller | Jun. | 0 pts.’18 + 130 pts.’19 |
| Saratoga Springs | $94 | 150 | $14,100 | Buyer | Seller | Apr. | 0 pts.’18 + 150 pts.’19 |
| Saratoga Springs | $90 | 160 | $14,400 | Buyer | Seller | Apr. | 0 pts.’18 + 160 pts.’19 |
| Saratoga Springs | $93 | 175 | $16,275 | Buyer | Pro-Rate | Jun. | 96 pts.’18 + 175 pts.’19 |
| Saratoga Springs | $93 | 150 | $13,950 | Buyer | Pro-Rate | Jun. | 30 pts.’18 + 150 pts.’19 |
| Saratoga Springs | $90 | 200 | $18,000 | Buyer | Pro-Rate | Sep. | 33 pts.’17 + 175 pts.’18 + 200 pts.’19 |
| Saratoga Springs | $90 | 200 | $18,000 | Buyer | Seller | Feb. | 18 pts.’18 + 200 pts.’19 |
| Saratoga Springs | $87 | 220 | $19,140 | Buyer | Seller | Feb. | 0 pts. ’18 + 220 pts.’19 |
| Saratoga Springs | $91 | 200 | $16,000 | Buyer | Buyer | Aug. | 200 pts.’18 + 200 pts.’19 |
| Saratoga Springs | $91 | 150 | $13,650 | Buyer | Buyer | Dec. | 150 pts.’18 + 150 pts.’19 |
*Seller Provides Pro-Rated Dues Credit for 2019 **Guaranteed Week 50, 1 bedroom, lake view
Buy Back Rates for Disney Vacation Club Resorts
The table below shows the percentage of buy backs for all 4 different resorts purchased back in March:
| Resort | Buy Backs | Number Sold | Percentage Bought Back |
| Saratoga Springs | 10 | 80 | 12.5% |
| Animal Kingdom | 9 | 51 | 17.6% |
| Old Key West | 4 | 18 | 22.2% |
| Grand Floridian | 1 | 16 | 6.3% |
Comments
It has Wilderness Lodge in the bar graph but there is no data listed for it? What was the price? points?
Melanie, the bar graph is showing the number of contracts bought back year-to-date. There was a Boulder Ridge bought back in January. To see the details of that contract, please see: https://www.dvcresalemarket.com/blog/dvc-right-of-first-refusal-rofr-january-18-report/
I would be interested in the prices per point on the contracts that Disney did not exercise their ROFR.
Sarah, if there is a particular contract you are interested in, certainly we can go over comparable contracts that have sold and passed ROFR with you. Please feel free to contact us at 1-844-382-7767. Currently, we do not have a list to provide you of everything that passed ROFR.
Interesting that there are a lot of stripped contracts that were taken. I feel like last year this wasn’t the case.
Melissa, I agree. We are seeing price point dominate the decision much more than point availability this year.
Since point availability doesn’t seem to be important for these FROR buys for Disney how do you negotiation on available points (2x ) etc? We are in the market to buy and really don’t want to waste time with placing offers that will not be approved .
Meline, in trying to avoid ROFR I would encourage you to stay above prices of bought back contracts of course. In years past if you were buying a loaded contract you may need to stay $10-$12/pt. over the buy back price of a more stripped out contract, however, that may not be the case now as point availability seems to be a very secondary part of the consideration.
Do you ever provided data on sold listings such as sale vs list price? It would be interesting to see what listings actually sell for compared to listing prices to see what Disney doesn’t buy back and to try and determine why.
John, thank you for reaching out. We do not currently publish anything listing sales prices on contracts (other than those bought back). However, we are currently working on providing something to this affect in a summarized format.