When Disney exercises their Right of First Refusal on your DVC resale transaction, Disney purchases the contract at your agreed price instead of letting the sale proceed to your intended buyer. We've guided hundreds of families through this situation over the past 25 years, and while it can feel disappointing initially, understanding what happens next makes the process much clearer.
Understanding Disney Right of First Refusal
Disney's Right of First Refusal is written into every DVC ownership contract. When you sell your membership, Disney reviews the transaction and can choose to purchase it themselves at the exact same price and terms your buyer offered. This right applies to every DVC resale transaction, whether you work with a broker or sell independently.
The ROFR review takes about 30 days from submission. Disney evaluates each transaction based on price, resort, contract size, and their current inventory needs. They don't publish their decision criteria, so predicting outcomes with certainty isn't possible.
Why Disney Exercises ROFR
Disney exercises ROFR strategically based on their business needs. They're building inventory to resell through their direct sales channel, maintaining price floors in the resale market, and acquiring contracts at specific resorts where they need more inventory. Disney typically exercises ROFR more often on lower-priced contracts that offer significant profit opportunity when they resell them directly.
ROFR activity varies by resort and changes over time. Some resorts consistently see higher ROFR rates based on Disney's sales priorities. Market conditions, new resort openings, and promotional campaigns all influence how actively Disney exercises their rights during different periods.
What Happens to the Seller
If Disney exercises ROFR on your sale, you still complete the transaction and receive the full agreed purchase price. Disney simply becomes the buyer instead of the individual who submitted the offer. The closing proceeds normally through the title company, and you receive your proceeds minus standard closing costs.
Your financial outcome is identical whether the buyer is an individual or Disney. You sell your contract at the agreed price either way. The only difference is who owns the membership after closing.
Seller's Experience with ROFR
While the financial result stays the same, sellers often have mixed feelings when Disney exercises ROFR. Some feel validated that Disney valued their contract enough to purchase it. Others feel disappointed if they had developed a connection with the intended buyer or hoped the membership would go to a family who'd enjoy it.
The important point is that your transaction still concludes successfully. You've achieved your goal of selling at your desired price.
What Happens to the Buyer
When ROFR is exercised, you don't purchase the contract you offered on. Your earnest money deposit gets refunded in full, and you can pursue other available contracts. While losing a desired contract feels frustrating, you haven't lost any money.
You have two main options at this point: search for another contract and submit a new offer, or consider whether offering slightly more on similar contracts might help future offers pass ROFR. Understanding recent ROFR patterns at your target resort helps inform your pricing strategy on the next attempt.
Post-ROFR Strategy for Buyers
- Review recent sales data: Look at completed transactions to understand current pricing trends at your target resort
- Adjust your pricing approach: Consider increasing your offer modestly to make it more competitive and less attractive to Disney
- Work with experienced guidance: Partner with a knowledgeable resale broker who understands ROFR patterns and can advise on strategy
ROFR Patterns and Pricing Strategy
The DVC community tracks ROFR outcomes to identify pricing patterns at each resort. Disney doesn't publish their decision criteria, but collected data shows general price ranges where contracts typically pass versus get taken. Pricing your offer within ranges that historically pass ROFR improves your chances of completing a transaction successfully.
At DVC Sales, we monitor ROFR trends continuously and advise both buyers and sellers on current market conditions. We help buyers structure offers that balance value with ROFR probability, and we help sellers price their listings to attract serious offers while minimizing ROFR risk.
Moving Forward After ROFR
Buyers whose offers were taken by ROFR often succeed on their next attempt. Consider whether a modest price increase might help your future offer pass. Review recently completed transactions at your target resort to understand where the market currently clears. Patience and persistence frequently lead to successful contract acquisition.
Sellers whose contracts Disney purchased have completed successful sales. If you were satisfied with the price, the outcome is positive regardless of who purchased your membership. If you had hoped for more, you now have valuable information about what Disney was willing to pay for contracts at your resort.
Some buyers find success by expanding their search to include additional resorts or different contract sizes. Flexibility in your search criteria often opens up opportunities that pass ROFR more easily than highly sought-after contracts at premium resorts.
Working with DVC Sales
We guide clients through every aspect of DVC resale transactions, including ROFR outcomes. Before submitting offers, we set appropriate expectations based on current market conditions. During the ROFR period, we keep you informed of the process timeline. If Disney exercises their rights, we help you understand your options and develop a strategy for moving forward.
Our experience with thousands of transactions provides perspective on ROFR patterns and successful strategies. We've seen market cycles change, watched Disney's exercise patterns shift, and helped families adapt their approach when initial attempts don't succeed.
Whether you're purchasing your first DVC membership or selling after years of ownership, we're here to help you navigate the ROFR process and achieve your goals. Contact us to discuss your specific situation and learn how our experience can help you succeed in the DVC resale market.
