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

In the month of June, Disney exercised their right of first refusal (ROFR) on 36 of 267 Disney Vacation Club (DVC) contracts sold through the DVC Resale Market, representing 13.5% of the contracts sold. The waiver rate for June was 86.5%. At 36 buy backs, June 2018 represented the highest volume since February 2017, which saw 37 buy backs.

The streak of each month’s buy back rate increasing ended in June. At 13.5%, June took a very slight dip from the 13.6% seen in May. The year-to-date (YTD) buy back rate for 2018 is now 9.2%, 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 90.8%.

The chart below shows the relationship between the average selling price per point and the buy back rate from June 2017 through June 2018. When averaged out across all DVC resorts, resale prices have leveled off in 2018, on average staying between $110/pt. to $115/pt. Additionally, for the 1st time this year, the buy back rate has leveled off. It is interesting to note the buy back rate remains historically high between 13-14% while resale prices remain at historical high prices as well.

Historically, we have seen an inverse relationship with selling price per point and buy back rate, however in 2018, despite prices remaining fairly steady, the buy back rate has continued to increase or remain at high levels. This phenomenon could be signaling that Disney Vacation Club has a very strong sales forecast ahead, which would make sense based on DVC’s direct sales being strong, hotel rooms / villas at high occupancy levels and even more big Disney World projects yet to be unveiled (i.e., new attractions, Star Wars: Galaxy’s Edge, Gondola Skyway, etc.)

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 remain the focus of buy backs in 2018, representing over 90% of all buy backs in 2018.

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 June in 2018:

Details on DVC Buybacks

In June, DVC Resale Market had buy backs of Animal Kingdom, Boardwalk, Hilton Head, Grand Floridian, Old Key West and Saratoga Springs. For the 4th consecutive month, Saratoga Springs led all resorts for buy backs with 15, followed by Animal Kingdom with 9.

Details on the contracts bought back in June are below:

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’18 Dues Paid by Use Year Point Availability Animal Kingdom $110 160 $17,600 Buyer Seller Aug. 19 Pts. ’18 + 160 Pts. ’19 Animal Kingdom $115 320 $36,800 Buyer Buyer Oct. 640 Pts. ’18 + 320 Pts. ’19 Animal Kingdom $110 160 $17,600 Buyer Seller Apr. 11 Pts. ’18 + 160 Pts. ’19 Animal Kingdom $94 360 $33,840 Seller Pro-Rate Oct. 28 Pts. ’18 + 360 Pts. ’19 Animal KIngdom $104 160 $16,640 Buyer Seller Jun. 21 Pts. ’18 + 139 Pts. ’19 Animal KIngdom $99 200 $19,800 Buyer Seller Feb. 0 Pts. ’18 + 164 Pts. ’19 Animal KIngdom $102 280 $28,560 Buyer Buyer Dec. 280 Pts. ’18 + 280 Pts. ’19 Animal Kingdom $108 160 $17,280 Buyer Buyer Dec. 160 Pts. ’18 + 160 Pts.’19 Animal Kingdom $102 210 $21,420 Buyer Seller Dec. 9 Pts. ’18 + 210 Pts. ’19 Boardwalk $107 200 $21,400 Buyer Buyer Jun. 200 Pts. ’18 + 200 Pts. ’19 Hilton Head $60 300 $18,000 Buyer Seller Apr. 0 Pts. ’18 + 300 Pts. ’19 Hilton Head $60 270 $16,200 Buyer Pro-Rate Jun. 13 Pts. ’18 + 270 Pts. ’19 Grand Floridian $130 850 $110,500 Buyer Pro-Rate Apr. 54 Pts. ’18 + 850 Pts. ’19 Old Key West $81 515 $41,715 Buyer Pro-Rate Jun. 44 Pts. ’18 + 515 Pts. ’19 Old Key West $87 230 $20,010 Buyer Seller Jun. 82 Pts. ’18 + 230 Pts. ’19 Old Key West $90 220 $19,800 Split Seller Feb. 85 Pts. ’18 + 220 Pts. ’19 Old Key West $87 220 $19,140 Split Seller Mar. 0 Pts. ’18 + 220 Pts. ’19 Old Key West $90 260 $23,400 Buyer Seller Apr. 220 Pts.’18 + 260 Pts.’19 Old Key West $85 210 $17,850 Seller Buyer Aug. 210 Pts. ’18 + 210 Pts. ’19 Old Key West $89 150 $13,350 Buyer Buyer Apr. 150 Pts. ’18 + 150 Pts. ’19 Old Key West $90 230 $20,700 Buyer Pro-Rate Aug. 222 Pts. ’18 + 230 Pts.’19 Saratoga Springs $91 260 $23,660 Buyer Seller Mar. 5 Pts. ’18 + 260 Pts. ’19 Saratoga Springs $92 295 $27,140 Buyer Pro-Rate Jun. 10 Pts. ’18 + 295 Pts. ’19 Saratoga Springs $96 225 $21,600 Buyer Seller Dec. 0 Pts. ’18 + 225 Pts. ’19 Saratoga Springs $93 250 $23,250 Buyer Seller Mar. 0 Pts. ’18 + 250 Pts. ’19 Saratoga Springs $94 120 $11,280 Buyer Pro-Rate Mar. 46 Pts. ’18 + 41 Pts. ’19 Saratoga Springs $95 160 $15,200 Seller Seller Dec. 2 Pts. ’18 + 160 Pts. ’19 Saratoga Springs $97 160 $15,520 Buyer Seller Dec. 9 Pts. ’18 + 160 Pts. ’19 Saratoga Springs $87 250 $21,750 Buyer Seller Dec. 0 Pts. ’18 + 250 Pts. ’19 Saratoga Springs $95 220 $20,900 Buyer Seller Jun. 0 Pts. ’18 + 220 Pts. ’19 Saratoga Springs $86 450 $38,700 Buyer Seller Aug. 0 Pts. ’18 + 450 Pts. ’19 Saratoga Springs $84 650 $54,600 Buyer Seller Apr. 0 Pts. ’18 + 650 Pts. ’19 Saratoga Springs $90 250 $22,500 Buyer Pro-Rate Jun. 17 Pts. ’18 + 250 Pts. ’19 Saratoga Springs $86 300 $25,800 Buyer Buyer Oct. 300 Pts. ’18 + 300 Pts. ’19 Saratoga Springs $93 300 $27,900 Buyer Seller Dec. 20 Pts. ’18 + 300 Pts. ’19 Saratoga Springs $94 170 $15,980 Buyer Pro-Rate Mar. 88 Pts. ’18 + 170 Pts. ’19

Buy Back Rates for Disney Vacation Club Resorts

The table below shows the percentage of buy backs for all 6 different resorts purchased back in June:

Resort Buy Backs Number Sold Percentage Bought Back Saratoga Springs 15 62 24.2% Animal Kingdom 9 41 22.0% Old Key West 8 18 44.4% Hilton Head 2 13 15.4% Boardwalk 1 21 4.8% Grand Floridian 1 13 7.7%

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