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

BLT Resort with Skybridge

In the month of September, Disney exercised their right of first refusal (ROFR) on 20 of 230 Disney Vacation Club (DVC) contracts sold through the DVC Resale Market, representing 8.7% of the contracts sold. The waiver rate for September was 91.3%.

At 8.7%, the September buy back stayed relatively flat when compared to the previous month, which was at 8.3%. The year-to-date (YTD) buy back rate for 2018 is now 9.5%, which remains more than double 2016’s rate of 4.4% and ahead of 2017’s rate of 6.9%. The YTD waiver rate is 90.5%.

The chart below shows the relationship between the average selling price per point and the buy back rate from September 2017 through September 2018. The average price per point for all resorts sold in September was $117, which sets a new all-time record high. Despite the small uptick in average price per point, the buy back rate actually experienced a slight uptick as well. Traditionally, it has been observed, price per point and buy back rate have an inverse relationship.

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 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 SpringsAnimal Kingdom and Old Key West continue to dominate the buy backs in 2018, representing 90% of the buy backs in September.  However, Animal Kingdom nudged out Saratoga Springs with the most buy backs at 7 for September. Animal Kingdom also had nearly double the rate of buy backs at 25% vs. 13% for Saratoga Springs.

Emerging as one of the most interesting resorts in 2018 when it comes to buy backs is Bay Lake Tower (BLT). It is interesting not because it is getting bought back, quite the opposite. In 2018, DVC Resale Market has not had any Bay Lake Tower contracts bought back out of over 230 sold. This is a sharp contrast from previous years where Bay Lake Tower was one of the more commonly DVC resorts bought back. In 2016, BLT was the ranked the number one resort bought back with 26 buy backs, and in 2017, ranked fourth with 20 buy backs. In 2018, the average monthly sales price for Bay Lake Tower has ranged between $135/pt. to $145/pt., and that has been enough to keep the buy backs away this year.

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 September in 2018:

Details on DVC Buybacks

In September, DVC Resale Market had buy backs of Animal Kingdom, BoardwalkHilton Head, Old Key West and Saratoga Springs.

Details on the contracts bought back in September are below:

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability
Animal Kingdom $110 250 $27,500 Buyer Seller Dec. 8 pts.’18 + 250 pts.’19
Animal Kingdom $106 160 $16,960 Buyer Seller* Dec. 68 pts.’18 + 132 pts.’19
Animal Kingdom $106 160 $16,960 Buyer Seller* Feb. 0 pts.’18 + 0 pts.’19
Animal Kingdom $108 160 $17,280 Buyer Seller Oct. 247 pts.’18 + 160 pts.’19
Animal Kingdom $108 200 $21,600 Buyer Seller Jun. 6 pts.’18 + 200 pts.’19
Animal Kingdom $105 210 $22,050 Buyer Seller* Jun. 0 pts.’18 + 110 pts.’19
Animal Kingdom $100 200 $20,000 Buyer Seller* Feb. 0 pts.’18 + 0 pts.’19
Boardwalk $108 688 $74,304 Buyer Seller Feb. 0 pts.’18 + 688 pts.’19
Hilton Head $70 150 $10,500 Buyer Seller Dec. 13 pts.’18 + 150 pts.’19
Old Key West $89 310 $27,590 Buyer Buyer Jun. 310 pts.’18 + 310 pts.’19
Old Key West $87 300 $26,100 Buyer Seller Feb. 0 pts.’18 + 300 pts.’19
Old Key West $85 200 $17,000 Buyer Seller* Feb. 0 pts.’18 + 65 pts.’19
Old Key West $90 350 $31,500 Buyer Pro-Rate* Oct. 117 pts.’18 + 350 pts.’19
Old Key West $85 320 $27,200 Buyer Seller* Feb. 0 pts.’18 + 302 pts.’19
Saratoga Springs $96 250 $24,000 Buyer Pro-Rate Feb. 54 pts.’18 + 250 pts.’19
Saratoga Springs $97 250 $24,250 Buyer Seller* Mar. 100 pts.’18 + 15 pts.’19
Saratoga Springs $95 350 $33,250 Buyer Seller* Jun. 0 pts.’18 + 87 pts.’19
Saratoga Springs $95 200 $19,000 Buyer Pro-Rate Dec. 32 pts.’18 + 200 pts.’19
Saratoga Springs $101 200 $20,200 Buyer Buyer Dec. 211 pts.’18 + 200 pts.’19
Saratoga Springs $95 425 $40,375 Buyer Seller Jun. 1 pt.’18 + 425 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 5 different resorts purchased back in September:

Resort Buy Backs Number Sold Percentage Bought Back
Animal Kingdom 7 28 25%
Saratoga Springs 6 48 13%
Old Key West 5 18 28%
Hilton Head 1 2 50%
Boardwalk 1 17 5.9%


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


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