Making a reasonale offer on resale contracts

[Nabas]

I'm looking to buy a small (100) point contract off of resale to dip our toe in the DVC water. I've read a ton of background material, all of the guides, most of these forums, so I feel prepared. The one question I have for those who bought resale is, how low below asking price is reasonable to offer? Any advice? We are really flexible on use year and already have a cash trip booked for next month so immediate points are not important.

Have you decided on a resort?

 

[Jetsetter42]

Nope, to be honest we are flexible. I think my best bet is to go with SSR because it seems to have a lower price point. I'm thinking small contract to start because I see us adding on points at VGF later once they bounce to resale. We are flexible with when we travel so well always have more options available to us at the 7-month mark.

I'd rather wait for a good deal and I'm willing to make offers on a bunch of contracts if I need to until we get one that works out.

 

[Nabas]

Nope, to be honest we are flexible. I think my best bet is to go with SSR because it seems to have a lower price point. I'm thinking small contract to start because I see us adding on points at VGF later once they bounce to resale. We are flexible with when we travel so well always have more options available to us at the 7-month mark.

I'd rather wait for a good deal and I'm willing to make offers on a bunch of contracts if I need to until we get one that works out.

There are some 95-100 point SSR's currently listed for $70/point. Even one for $65/point that has no 2013 points.

You'll always pay more for small contracts. Given the current market, those aren't bad asking prices.

 

[dcfromva]

Most brokers will still work with you to put in bids that are lower than ask, but if you go too low too often you will find them less responsive.

That is the broker's job-to present an offer. As a seller, I would be very upset if the broker was not presenting all offers--even the lower offers. Even if I don't accept an offer, it is valuable information to help gauge the market.

 

[Figment1983]

Looking at adding a resale of 100-160 at either blt or vwl... On the rofr thread there seems to be large price ranges, what is a fair price for each? I see 80-105 for blt and some vwl in the high60's

 

[Nabas]

Looking at adding a resale of 100-160 at either blt or vwl... On the rofr thread there seems to be large price ranges, what is a fair price for each? I see 80-105 for blt and some vwl in the high60's

The market has changed a lot in the last few months. Currently, BLT asking price is averaging $105/point while VWL is $80/point. Smaller contracts are even higher.

 

[Belle & Ariel]

With the current hot seller's market there seems to be some sellers 'testing the market' to see if they can possibly get an extremely high price.

We just closed on one contract that was reasonably priced and we offered close to asking price. We needed more points and another contract came up that was $25 more than the first one. So we put an offer in at $20 less than asking. Seller countered with his asking price. We tried again coming half way because the contract was exactly what we wanted. He denied it. Obviously, he wanted his asking price no matter how unrealistic it was. It's still sitting on that broker's list while several other similar contracts have gone to pending.

I think I know the contract you are talking about--AKL?
I asked about one that was priced at $104 and was told they needed it to pay the loan. That is what Disney was selling for about 5 years ago.

 

[tlh]

Lol. I put in an offer on that one with Shannon before she put it up on the site. Seller wouldn't budge because they have a loan, so I kept looking. Found a nice contract on timeshare store and now I'm waiting for my member ID in the mail.

 

[JustTinking]

That is the broker's job-to present an offer. As a seller, I would be very upset if the broker was not presenting all offers--even the lower offers. Even if I don't accept an offer, it is valuable information to help gauge the market.

I agree with you. But I think the broker will not feel it's worth his time/effort knowing that the seller is not going to accept the offer. One broker told me there was already a bid in higher than mine, so no dice, she wouldn't even put it on the table to the seller.

 

[disbound09]

Nope, to be honest we are flexible. I think my best bet is to go with SSR because it seems to have a lower price point. I'm thinking small contract to start because I see us adding on points at VGF later once they bounce to resale. We are flexible with when we travel so well always have more options available to us at the 7-month mark.

I'd rather wait for a good deal and I'm willing to make offers on a bunch of contracts if I need to until we get one that works out.

I think a lot of people are thinking the same thing. It will be interesting to see where the resale market is in a couple of years. We hope they drop so we can afford both the points and the $$ that are needed to stay at VGF

 

[DenLo]

Nope, to be honest we are flexible. I think my best bet is to go with SSR because it seems to have a lower price point. I'm thinking small contract to start because I see us adding on points at VGF later once they bounce to resale. We are flexible with when we travel so well always have more options available to us at the 7-month mark.

I'd rather wait for a good deal and I'm willing to make offers on a bunch of contracts if I need to until we get one that works out.

I think a lot of people are thinking the same thing. It will be interesting to see where the resale market is in a couple of years. We hope they drop so we can afford both the points and the $$ that are needed to stay at VGF

I think you might find that the price will not be much cheaper resale for VGF and the closing costs will be higher. Keep in mind BLT has been selling for the price paid for quite a while. The difference is that people got some pretty good prices for BLT at the beginning. Whereas VGF is high to start with.

People are getting more for VGC than they paid for on the resale market. If VGF turns out to be really popular it might go that way.

 

[Nabas]

I think you might find that the price will not be much cheaper resale for VGF and the closing costs will be higher. Keep in mind BLT has been selling for the price paid for quite a while. The difference is that people got some pretty good prices for BLT at the beginning. Whereas VGF is high to start with.

People are getting more for VGC than they paid for on the resale market. If VGF turns out to be really popular it might go that way.

I think the same thing.

Resales tend to be relatively scarce the first few years after a DVC opens, keeping their prices high. Meanwhile, VGF direct price currently is at $150/point. I suspect it will go higher, potentially much higher. This will only contribute to keeping resale prices up. Finally, VGF is one of DVC's smallest resorts.

Given these factors, I can't imagine VGF resale prices being lower than $130/point for at least several years.

Given the relatively small gap between today's direct price and the potential future resale price, anyone waiting to buy VGF for a much lower price ccould be waiting a long time.

 

[twinsouvenirs]

It won't hurt, though, to keep putting in low offers (that you feel comfortable with) and if someone bites you can go for it.

That's what we did--but we weren't in a hurry.