DVC Right of First Refusal Report (ROFR): February ’19 Report

Year-to-date, Disney has exercised their right of first refusal (ROFR) on 131 Disney Vacation Club (DVC) contracts, and DVC Resale Market has sold 828, resulting in a 15.8% buy back rate. (Contracts Bought Back year-to-date / Contracts Sold year-to-date). The year-to-date waiver rate is 84.2%.

February 2019 became the highest month ever observed for buy backs with 82. This high volume is due not only to higher increases in buy back rates being observed, 9.2% and 10.5% buy back rates in 2017 and 2018 respectively, compared to 15.8% in 2019, but also a very high volume of sales in 2019, 828 through in just two months. A large spike in sales for January was observed with buyers purchasing prior to resale changes that became effective on January 19th. It is important to note, that post the resale change of January 19th, the sales pace is much stronger than prior year also.

Chances of passing ROFR is highly resort-dependent. For instance, Animal Kingdom, Bay Lake Tower, Beach Club, Hilton Head and Saratoga Springs all have buy back rates of 20% or higher in 2019, while we haven’t observed a buy back of Aulani contract in several years.

The chart below shows the relationship between the average selling price per point and the buy back rate from February 2018 through February 2019. Historically, we have observed resale 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 typically takes no more than 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 2019

Year-to-date, 8 different DVC resorts experienced buy backs (in order of buy back volume): Bay Lake Tower, Animal Kingdom, Saratoga Springs, Beach Club, Boardwalk, Grand Floridian, Hilton Head and Old Key West.

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market year-to-date in 2019:

Details on DVC Buybacks

In February, DVC Resale Market experienced buy backs for Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Grand Floridian, Hilton Head, Old Key West and Saratoga Springs.

Details on the contracts bought back in February are below:

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Animal Kingdom $98 400 $39,200 Buyer Seller Aug. 66 pts.’19 + 400 pts.’20 Animal Kingdom $107 160 $17,120 Buyer Pro-Rate Mar. 102 pts.’19 + 160 pts.’20 Animal Kingdom $100 200 $20,000 Buyer Seller Dec. 0 pts.’19 + 180 pts.’20 Animal Kingdom $103 160 $16,480 Buyer Pro-Rate Feb. 96 pts.’19 + 160 pts.’20 Animal Kingdom $113 220 $24,860 Seller Seller Apr. 220 pts.’19 + 220 pts.’20 Animal Kingdom $102 270 $27,540 Buyer Pro-Rate Feb. 269 pts.’19 + 270 pts.’20 Animal Kingdom $106 160 $16,960 Buyer Seller Apr. 3 pts.’19 + 160 pts.’20 Animal Kingdom $101 270 $27,270 Buyer Pro-Rate Aug. 99 pts. ’19 + 270 pts.’20 Animal Kingdom $105 220 $23,100 Buyer Buyer Apr. 220 pts.’19 + 220 pts.’20 Animal Kingdom $105 225 $23,625 Seller Pro-Rate Dec. 202 pts.’18 + 225 pts.’19 Animal Kingdom $109 120 $13,080 Buyer Seller Oct. 0 pts.’19 + 120 pts.’20 Animal Kingdom $98 100 $9,800 Buyer Seller Dec. 0 pts.’19 + 100 pts.’20 Animal Kingdom $94 300 $28,200 Buyer Seller Dec. 0 pts.’19 + 300 pts.’20 Animal Kingdom $109 100 $10,900 Buyer Seller Aug. 0 pts.’19 + 100 pts.’20 Animal Kingdom $103 160 $16,480 Buyer Pro-Rate Feb. 24 pts.’19 + 200 pts.’20 Animal Kingdom $105 120 $12,600 Buyer Seller Dec. 0 pts.’19 + 120 Pts.’20 Animal Kingdom $108 100 $10,800 Buyer Seller Sept. 0 pts.’19 + 100 pts.’20 Animal Kingdom $105 120 $12,600 Buyer Pro-Rate Jun. 19 pts.’19 + 120 pts.’20 Animal Kingdom $90 170 $15,300 Buyer Pro-Rate Jun. 65 pts.’19 + 170 pts.’20

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Bay Lake Tower $130 308 $40,040 Buyer Pro-Rate Feb. 161 pts.’19 + 308 pts.’20 Bay Lake Tower $134 170 $22,780 Buyer Seller Aug. 0 pts.’19 + 170 pts.’20 Bay Lake Tower $140 100 $14,000 Buyer Seller Jun. 0 pts.’19 + 100 pts.’20 Bay Lake Tower $134 160 $21,440 Buyer Seller Mar. 0 pts.’19 + 160 pts.’20 Bay Lake Tower $143 90 $12,870 Buyer Seller Mar. 0 pts.’19 + 6 pts.’20 Bay Lake Tower $132 140 $18,480 Buyer Seller Mar. 0 pts.’19 + 140 pts.’20 Bay Lake Tower $139 160 $22,240 Buyer Pro-Rate Feb. 19 pts.’18 + 160 pts.’19 Bay Lake Tower $128 200 $25,600 Buyer Seller Feb. 0 pts.’19 + 200 pts.’20 Bay Lake Tower $137 170 $23,290 Buyer Pro-Rate Aug. 28 pts.’19 + 170 pts.’20 Bay Lake Tower $133 240 $31,920 Buyer Buyer Aug. 240 pts.’19 + 240 pts.’20 Bay Lake Tower $138 160 $22,080 Buyer Seller* Feb. 0 pts.’19 + 138 pts.’20 Bay Lake Tower $140 160 $22,400 Buyer Seller Feb. 0 pts.’19 + 160 pts.’20 Bay Lake Tower $132 160 $21,120 Buyer Seller Feb. 0 pts.’19 + 160 pts.’20 Bay Lake Tower $130 500 $65,000 Buyer Buyer Feb. 500 pts.’19 + 500 pts.’20 Bay Lake Tower $138 160 $22,080 Buyer Buyer Apr. 160 pts.’19 + 160 pts.’20 Bay Lake Tower $131 160 $20,960 Buyer Seller Dec. 0 pts.’19 + 160 pts.’20 Bay Lake Tower $133 308 $40,964 Buyer Buyer Feb. 367 pts.’19 + 308 pts.’20 Bay Lake Tower $138 170 $23,460 Buyer Seller Aug. 0 pts.’19 + 170 pts.’20 Bay Lake Tower $142 125 $17,750 Buyer Seller Jun. 0 pts.’19 + 125 pts.’20 Bay Lake Tower $141 100 $14,100 Buyer Seller Feb. 0 pts.’19 + 80 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Beach Club $137 120 $16,440 Buyer Buyer Apr. 15 pts.’18 + 120 pts.’19 Beach Club $133 150 $19,950 Buyer Seller Aug. 0 pts.’19 + 0 pts.’20 Beach Club $125 210 $26,250 Buyer Buyer Feb. 17 pts.’18 + 210 pts.’19 Beach Club $132 150 $19,800 Buyer Buyer Dec. 7 pts.’18 + 150 pts.’19 Beach Club $132 210 $27,720 Buyer Buyer Dec. 210 pts.’19 + 210 pts.’20 Beach Club $120 150 $18,000 Buyer Seller Mar. 185 pts.’19 + 12 pts.’20 Beach Club $135 200 $27,000 Buyer Buyer Aug. 31 pts.’18 + 400 pts.’19 Beach Club $137 150 $20,550 Buyer Buyer Feb. 150 pts.’19 + 150 pts.’20 Beach Club $122 150 $18,300 Buyer Seller Jun. 0 pts.’19 + 150 pts.’20 Beach Club $140 121 $16,940 Buyer Buyer Apr. 148 pts.’19 + 121 pts.’20 Beach Club $129 165 $21,285 Buyer Pro-Rate Mar. 103 pts.’19 + 165 pts.’20

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Boardwalk $114 210 $23,940 Buyer Buyer Mar. 264 pts.’19 + 150 pts.’20 Boardwalk $110 700 $77,000 Seller Seller* Sept. 0 pts.’19 + 6 pts.’20 Boardwalk $114 200 $22,800 Buyer Buyer Dec. 200 pts.’18 + 200 pts.’19 Boardwalk $110 210 $23,100 Buyer Buyer Mar. 150 pts.’19 + 150 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Grand Floridian $150 170 $25,500 Buyer Buyer Sept. 19 pts.’19 + 170 pts.’20 Grand Floridian $155 160 $24,800 Buyer Seller Aug. 0 pts.’19 + 160 pts.’20 Grand Floridian $150 160 $24,000 Seller Seller Mar. 9 pts.’19 + 150 pts.’20 Grand Floridian $150 100 $15,000 Buyer Seller* Feb. 0 pts.’19 + 0 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Hilton Head $76 200 $15,200 Buyer Pro-Rate Oct. 51 pts.’19 + 200 pts.’20 Hilton Head $71 150 $10,650 Buyer Seller Dec. 0 pts.’19 + 150 pts.’20 Hilton Head $66 150 $9,900 Buyer Seller Jun. 30 pts.’19 + 150 pts.’20 Hilton Head $69 165 $11,385 Buyer Pro-Rate Aug. 61 pts.’19 + 165 pts.’20 Hilton Head $72 220 $15,840 Buyer Seller Feb. 0 pts.’19 + 220 pts.’20 Hilton Head $70 300 $21,000 Seller Buyer Dec. 486 pts.’18 + 300 pts.’19

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Old Key West $93 150 $13,950 Buyer Seller* Mar. 0 pts.’19 + 150 pts.’20 Old Key West $91 230 $20,930 Buyer Seller Oct. 0 pts.’19 + 230 pts.’20 Old Key West $92 230 $21,160 Buyer Buyer Aug. 230 pts.’19 + 230 pts.’20

* Seller Provided Credit to Buyer for 2020 Points Used

Resort $/Point Pts. on Contract Price Closing Costs Paid by ’19 Dues Paid by Use Year Point Availability Saratoga Springs $98 200 $19,600 Buyer Seller Aug. 0 pts.’19 + 200 pts.’20 Saratoga Springs $97 150 $14,550 Buyer Buyer Dec. 160 pts.’19 + 160 pts.’20 Saratoga Springs $97 160 $15,520 Buyer Seller Apr. 0 pts.’19 + 160 pts.’20 Saratoga Springs $94 160 $15,040 Buyer Pro-Rate Dec. 111 pts.’18 + 58 pts.’19 Saratoga Springs $99 320 $31,680 Buyer Seller Oct. 20 pts.’19 + 320 pts.’20 Saratoga Springs $96 160 $15,360 Seller Buyer Dec. 288 pts.’18 + 160 pts.’19 Saratoga Springs $96 180 $17,280 Buyer Seller Feb. 3 pts.’19 + 180 pts.’20 Saratoga Springs $94 280 $26,320 Buyer Seller Aug. 0 pts.’19 + 280 pts.’20 Saratoga Springs $85 250 $21,250 Buyer Seller Apr. 0 pts.’19 + 250 pts.’20 Saratoga Springs $85 250 $21,250 Buyer Seller Apr. 0 pts.’19 + 250 pts.’20 Saratoga Springs $97 150 $14,550 Buyer Seller Apr. 0 pts.’19 + 150 pts.’20 Saratoga Springs $101 150 $15,150 Buyer Pro-Rate Mar. 40 pts.’19 + 150 pts.’20 Saratoga Springs $98 160 $15,680 Buyer Seller Aug. 0 pts.’19 + 160 pts.’20 Saratoga Springs $99 150 $14,850 Buyer Pro-Rate Dec. 56 pts.’19 + 150 pts.’20 Saratoga Springs $84 125 $10,500 Seller Seller Mar. 0 pts.’19 + 125 pts.’20

Buy Back Rates for Disney Vacation Club Resorts

The table below shows the percentage of buy backs for all 8 different resorts purchased back in January and February of 2019:

Resort Buy Backs Number Sold Percentage Bought Back Animal Kingdom 30 149 20% Bay Lake Tower 33 93 35% Beach Club 14 37 38% Boardwalk 8 56 14% Grand Floridian 8 49 16% Hilton Head 7 21 33% Old Key West 7 40 18% Saratoga Springs 26 173 15%

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