January 2017: DVC ROFR & Resales Data

Below you will find DVC ROFR (Right of First Refusal) and resale data from offers that were accepted and sent to ROFR during the month of January. Disney was very aggressive this month in exercising their right to purchase. We normally have a low buy-back rate around 4-6% but this month we saw 17 sales exercised, which almost triples the normal rate.

Saratoga Springs had the most buy-backs with prices ranging from as low as $72 per point and as high as $84 per point. Next was Old Key West with four buy-backs ranging from $66 per point up to $82 per point for a small point contract. All Boardwalk resale contracts that were sold in the $80s per point were exercised, while all sales in the $90s per point were waived.

Aside from Boardwalk sales, we didn’t see any pricing trends that appeared to trigger ROFR. The average sale price waived was the same as the average sale price exercised for Saratoga, Old Key West and Bay Lake Tower resales. So why was Disney so active this month with ROFR? We can’t say for certain as no one really knows the criteria, but we can look at a few things happening in the DVC market that could play a role:

1. Its a “buyer’s market” right now with a large amount of DVC listings available on the resale market. This leads to more competitive pricing by sellers and a small decrease in average sale prices. DVC resale prices are down about $5 per point on average compared to last year. That may not seem like much but it could be just enough to encourage Disney to exercise ROFR and earn a profit when they sell the property at a much higher rate to direct buyers.
2. The newest DVC resort, Polynesian Villas & Bungalows, is over 60% sold out. If sales continue as strongly as they have this past month, the Polynesian will be completely sold out within the year. That would leave Aulani and the future Copper Creek Villas as the only “new” properties available to direct buyers. Its clear that DVC is in desperate need of inventory from the older, sold-out, properties to fulfill their wait-lists of buyers who want to purchase something other than the newest resorts. Since Disney does not have their own resale division, the only way to get additional inventory is through ROFR and owner foreclosures.
3. Copper Creek Villas and Cabins at Disney’s Wilderness Lodge will open for sales this year and with the opening of a new resort, typically comes an active few months of ROFR and a price increase for direct points.

January 2017 Sales and ROFR Data

NOTE: Average sale price is based on total monthly sales for each resort, regardless of contract size. Typically, smaller point contracts sell for around $10-$15 per point higher than average due to high demand and low inventory. Sale prices below do not include closing costs or annual dues as those are separate features typically paid by the buyer. If you have any questions about Disney’s ROFR or want more details on a particular sale please email us at team@resalesdvc.com or call 866-544-2919.

Click here for more DVC ROFR data

Posted By:

Kristen Tutas