Several months ago, I set out to write an article about Right Of First Refusal (ROFR) and the trends we are seeing as a result of the current pandemic and closures. Fast-forward to today, and well – you get the point.
As discussed on a recent episode of The DVC Show, Disney Vacation Club has been quietly letting each resale contract pass ROFR without blinking an eye since mid-March. For those unsure what this means, DVC reserves the option to repurchase each contract sold if the seller would ever look to resell in the future. If they like the resale price, they can say the word, and the contract is there’s. For a bit of a more in-depth explanation, check out this previous episode…
Disney’s lack of action with regards to ROFR has created a trickle effect within the Disney Vacation Club industry that, in my opinion, is quickly creating a lucrative buyers market. Here are a few reasons I believe now is the time to buy:
1) Resale Prices Are On The Move
In looking at the data provided by recent contract purchasers over on DISboards, as well as from our friends at The DVC Store, it is hard to ignore the fact that the average price for most resale contracts is trending downward. To dig into this a little further, I ran a comparative analysis looking at recent sales for Disney’s Animal Kingdom Villas for contracts higher than 100 points. This data suggests that we have seen a $1 per month average decrease in per point cost for this specific property. I have to imagine this trend will continue if Disney continues to elect to wave ROFR on all resale contracts.
2) Deals Are Happening
Back in April and May, most resale contracts remained relatively consistent in terms of price. June and July, however, have been a different story! While most contracts are well within the average range of sales, some deals are happening that can’t be ignored. Looking again at Disney’s Animal Kingdom Villas, I have seen several 160+ point contracts sold for under $90 per point!
I don’t write this to suggest you give a lowball offer. In all honesty, that’s a waste of everyone’s time. But many forget that the process of buying a DVC Resale contract is a negotiation. Offering asking price for a contract is almost the same as walking on a car lot and buying a car for list price. Don’t be afraid to ask a little less and see what happens. The worst that happens is that they say no and you try a little higher offer. The best that happens is you find a motivated seller and snag a fantastic deal!
3) Seller’s Are Motivated
We have recently been seeing an increase in contracts coming on the market, giving buyers plenty of options to choose from. While it’s an unknown as to why many are selling, one looks at the current economic landscape and can make a reasonable assumption. DVC, for many, is a luxury item and depending on how the current pandemic is affecting them, it may be something that can no longer be affordable. Although each situation is a little different, some sellers will be eager to unload their contracts as quickly as possible, which can be beneficial to a buyer.
I don’t have a crystal ball, so I can’t begin to predict how long these Disney Vacation Club resale trends will remain. What I can say, however, is that if you are in the market for a contract, now seems to be a better time than ever to buy!
I would love to hear your thoughts in the comments below! Are you shopping for a Disney Vacation Club contract currently? Do you think we may see these resale trends continue?
As always, if you are interested in buying or selling a Disney Vacation Club contract, check out our friends over at The DVC Store!