DVC Right of First Refusal (ROFR): September ’18 Report
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 Springs, Animal 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, Boardwalk, Hilton 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% |
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