Top 4 Ways to Avoid Right of First Refusal
One of the most nerve-wracking parts of purchasing a DVC resale contract is waiting to pass right of first refusal (ROFR). This is an approximately 30-day period Disney has to decide if they want to purchase any resale contract at the already agreed upon terms. With Disney buying back more contracts than ever, here are several strategic tips that will hopefully help you avoid right of first refusal!
Buy a Resort Disney is Currently Not ROFRing
If you’re looking to avoid ROFR, your best bet is to purchase a contract for a resort that Disney is not actively targeting. Right now, the resorts that are being heavily ROFR’d by Disney include Old Key West, Saratoga Springs, Animal Kingdom, and Bay Lake Tower. If you’ve struck out on one of these home resorts, turn your attention to properties that Disney seems to be ignoring. Aulani, Polynesian, and Grand Floridian are three resorts that are basically a safe bet when it comes to passing ROFR. Disney historically has not bought back actively selling properties making these some excellent opportunities for buyers. As of Spring 2022, Polynesian also ranks as the most economical resort to purchase when it comes to overall value.
Purchase a DVC Resale Contract From an International Seller
Another way to avoid ROFR is to purchase a DVC resale contract from an International seller. Disney has been known to waive its right of first refusal when the seller is not a U.S. citizen. These contracts require additional time and documentation that Disney historically has elected to steer clear of. This loophole has been getting smaller in recent years, but it’s still worth considering if you’re looking to avoid ROFR. For more information about available International DVC resale contracts, be sure to contact a DVC Resale Market agent.
Buy a Loaded DVC Contract
If you’re dead-set on purchasing one of the resorts that Disney is currently ROFRing, your best bet is to buy a loaded DVC contract at a premium price above current ROFR rates. A loaded contract includes points that have been banked from a previous Use Year, making them attractive to buyers wanting some immediate points to use. More points also equal more money, however, so you’ll need to be prepared to pay a bit more for this type of contract. Disney is typically less likely to Right of First Refusal these pricier contracts, so this is definitely a strategy worth considering. Not needing all those points? Rent the extra banked points with our friends at DVC Rental Store! You can receive up to $18 per point when renting your points which will help offset some of the cost of that contract.
Follow Current Right of First Refusal Trends
You can also try to follow the current Right of First Refusal Trends by reading our monthly Right of First Refusal Report. This report includes the percentage of contracts that were ROFR’d by Disney for each home resort within the past month. By keeping tabs on which resorts are being targeted, you can make an informed decision on which contract to purchase and what price to offer.
Purchasing a DVC resale contract can be a stressful process, but following these tips should hopefully help you avoid Right of First Refusal.
Have additional questions about avoiding ROFR? Reach out to one of our experienced agents at DVC Resale Market!