This article contains our Third Quarter DVC resale report which includes Right of First Refusal (ROFR) and average sale prices from offers that were accepted and sent to ROFR during the months of July, August, and September.
Keep in mind that individual sale prices can easily vary based on the size of the contract (in points) and the current point availability of the contract – “loaded” (having current points + banked points) or “stripped” (having no current points). Smaller point contracts tend to sell for around $10-$15 per point higher due to high demand and lower inventory. Prices below do not include closing costs or annual dues – two separate features to the sale terms.
What is Disney’s Right of First Refusal?
The purpose of Disney’s Right of First Refusal (ROFR) is to control the value of their property. When there is an accepted offer and a signed contract, DVC will do an analysis of the terms of the contract and decide if they wish to “step in” as the buyer. The criteria DVC uses for ROFR is not public information but one important factor for exercising ROFR would be if they feel the selling price, including who pays closing costs and maintenance and taxes, is below the target price they have established.
DVC Resale Market Report
As we head into the end of the year, prices have stabilized and even increased at some resorts. Disney has also been more active with their Right of First Refusal (ROFR). The most noticeable changes are with Bay Lake Tower and Beach Club which were selling at or above $150 per point at the beginning of the year are now selling closer to $140 per point on average. Limited listings available at Grand Californian and Grand Floridian keep prices steady there as well as Disney’s active ROFR at resorts like Saratoga and Old Key West.
It’s still a “Buyer’s Market” overall where the supply (available listings for sale) exceeds demand (the number of buyers seeking to purchase). This can have an impact on sale prices and listing prices as well. However, buyers should always be aware of Disney’s ROFR which ultimately decides whether or not a purchase price is acceptable. If you’re looking for a contract at smaller resorts like Grand Californian & Grand Floridian where listings are limited or you’re looking to buy a small allotment under 100 points, expect to pay a little more and possibly be one of multiple buyers making offers on one listing. Its no surprise that as the demand for smaller point contracts continues to increase, we will continue to see a lot of multiple-offer scenarios.
July-September 2020 DVC ROFR & Resale Prices
||Avg. Sale Price
|Avg. Sale Price
|DVC ROFR EXERCISED
|Bay Lake Tower
||160 points @ $132
|Beach Club Villas
||150 points @$95
||120 points @ $146
|Old Key West (2042)
||210 points @92
170 points @ $95
650 points@ $76.50
|Old Key West (2057)
||175 points @ $103
240 points @ $89
160 points @ $96
160 points @ $93
160 points @ $99
610 points @ $88.50
240 points @ $95
||300 points @ $55
150 points @ $54
300 points @ $56
|Wilderness Lodge: Boulder Ridge
|Wilderness Lodge: Copper Creek
Sales By Resort
Contract sizes sold these three months ranged from 25 points up to 650 points with the most common amount of points purchased being 150 points and the average amount of points purchased at 156 points. The most points were sold at Saratoga Springs, followed by Boardwalk, Animal Kingdom, and Old Key West.
Coronavirus and its Impact on the DVC Resale Market
As a company who saw the effects of the Great Recession in 2008, we know how the market can shift. With world events like we are facing, we all have to learn together. Your real estate broker, owners and buyers have to change with the current market conditions just like any other form of real estate. We also rely on Disney’s right of first refusal to help guide the estimated resale value of the properties. Looking at the sales data above compared to the First Quarter of 2020 and even the last Quarter of 2019, most resorts have seen very little changes in price. Even with the current pandemic and Disney parks and resorts being closed for some time, we are seeing a steady flow of DVC resales. We have found that customers are eager to get back to Disney and are thinking ahead for future travel plans – buying now and preparing for 2021!
Working with a trusted brokerage with the knowledge and experience you need to make sure you get a fair price and have a successful purchase or sale is so important in times like these. If you are unsure of what you should offer or what you should accept as far as an offer goes, please contact us! We are here for you every step of the way.
Click here for previous DVC ROFR data
If you have any questions about Disney’s ROFR or want more details on a particular sale or resort, please email us at email@example.com or call 866-544-2919.