Disney Vacation Club's ROFR Resurgence: What It Means for Buyers and Sellers

Here’s the latest buzz around Disney Vacation Club's Right of First Refusal (ROFR). After a quiet spell of nearly 7 months, it appears that Disney has decided to start buying back DVC contracts on the resale market. 

What is ROFR?

Decoding DVC's Right of First Refusal (ROFR) Let's unravel the mystery behind DVC's Right of First Refusal (ROFR). This is a clause that allows Disney the first dibs on purchasing any DVC contract before it heads to the open market. When a DVC member wants to sell their membership, Disney gets the initial shot. If they like the deal, they buy it back; if not, it's up for grabs in the market. This tactic allows Disney to retain control over DVC resale prices, keeping the membership's value intact.

ROFR's Comeback and Its Impact The ROFR's return isn't just a headline; it carries weight. It suggests that Disney is back in the business of buying back DVC contracts, which will likely stir things up in the market.

For sellers, this might mean smoother contract sales if Disney kicks its buyback efforts up a notch. This, in turn, could push prices higher. On the flip side, buyers might face a tougher battle for contracts, especially the popular resorts or with lots of point availability. This increased competition will likely increase prices and complicate contract hunting. We're still in wait-and-watch mode as Disney's buyback intentions unfold, with the market dynamics hanging in the balance.

ROFR's Return: Implications and Speculations

This comeback aligns with news of reduced direct DVC sales, as revealed during the Q3 2023 Walt Disney Company earnings call. Is Disney pushing to amp up sales? Could this move be part of a strategy to stabilize the market and safeguard DVC contract values?

The ROFR's revival marks a significant moment in the DVC resale saga of 2023. Only time will tell how will shape the resale market's future. So, to buyers and sellers alike- Disney is back in the business of buying resale contracts and looking for deals!