Interesting resale experience

deide71 · Jul 1, 2015

I am a former owner and I am in the market for a medium sized contract. I made an offer on a 160 point SSR contract yesterday. The contract is stripped, no points until September 2016. It has been listed for over 3 weeks. I offered $3/pt under asking price, seller pays 2015 dues ( as all 2015 pts have been used) and buyer pays closing...pretty standard offer.

Today the broker emails me and says they have multiple offers on the contract and I need to present my best offer. Really? A 3 week old stripped 160 point SSR contract suddenly has multiple offers.

I am not in a hurry, nor do I have any particular attachment to this contract (160/pt SSR contracts are pretty plentiful) so I told the broker that my original offer is my best and final. We will see what happens.

So, is this a new thing? Do you think it is just this particular broker?

pinklotusflower · Jul 1, 2015

we had a similar experience, stuck out at our original offer which the broker said they wouldn't accept, we waited and in the end found a much better contract which had 2014 & 2015 points

DVC Doctor · Jul 1, 2015

That sounds like Fidelity, but I always recommend sticking with your highest and best price and not getting into a bidding war.

DaPrez713 · Jul 1, 2015

I put in an offer on a stripped AKL contract last week and offered $6 less per point than what was listed and my offer was accepted. I had gotten denied on several BLT offers before that just hold out for the right one.

disneynutz · Jul 1, 2015

We have dealt with four different DVC brokers and had issues with three.
One was completely difficult to deal with, wouldn't return emails or voice mails until they felt like it.
Another miss represented the deal and it turned out that they owned the contract while acting like someone else did.
The other broker chewed me out for asking too many questions, we never returned the paperwork and bought through another broker.

:earsboy:

Bill

Dean · Jul 1, 2015

deide71 said:
I am a former owner and I am in the market for a medium sized contract. I made an offer on a 160 point SSR contract yesterday. The contract is stripped, no points until September 2016. It has been listed for over 3 weeks. I offered $3/pt under asking price, seller pays 2015 dues ( as all 2015 pts have been used) and buyer pays closing...pretty standard offer.

Today the broker emails me and says they have multiple offers on the contract and I need to present my best offer. Really? A 3 week old stripped 160 point SSR contract suddenly has multiple offers.

I am not in a hurry, nor do I have any particular attachment to this contract (160/pt SSR contracts are pretty plentiful) so I told the broker that my original offer is my best and final. We will see what happens.

So, is this a new thing? Do you think it is just this particular broker?

Even with seller paying 2015 dues, one would be over paying on dues by 2/3 of the yearly points in that situation.

deide71 · Jul 1, 2015

Dean said:
Even with seller paying 2015 dues, one would be over paying on dues by 2/3 of the yearly points in that situation.

Agreed, and my offer reflected this.

I just thought the attempt at creating a bidding war on a fairly undesirable contract was interesting. I am wondering if this will become a trend. We seem to be in a seller's market.

deide71 · Jul 1, 2015

pinklotusflower said:
we had a similar experience, stuck out at our original offer which the broker said they wouldn't accept, we waited and in the end found a much better contract which had 2014 & 2015 points

This is my plan.
I have the luxury of time on my side, though I must say the market is red hot right now!

KAT4DISNEY · Jul 1, 2015

deide71 said:
Agreed, and my offer reflected this.

I just thought the attempt at creating a bidding war on a fairly undesirable contract was interesting. I am wondering if this will become a trend. We seem to be in a seller's market.

That sounds like the newest broker who are ex DVC sales people. That seems to have become a standard for them and reports are also that even full price offers will be turned in to a bidding competition. If it's not them but someone else them perhaps others are turning to it as well.

deide71 · Jul 1, 2015

Pretty soon there will be buyers and sellers agents.

CarolMN · Jul 1, 2015

It's certainly possible there were multiple offers. I wouldn't automatically assume it's a tactic. If it is, the brokers are skating on thin ice if they are licensed as transactional brokers - which most in Florida are.

There is no requirement for a buyer to enter into a bidding war. As the OP did, you offer what you think it is worth / what you are willing to pay. If it doesn't work out, then you just move on. There will be other contracts and I sure wouldn't feel sad about losing a stripped SRR contract. Those haven't been exactly scarce, LOL.

Savagekids · Jul 1, 2015

In this case, I would move on. I think the brokers are required to present all offers. Can someone fact check that for me?

Mrs.Milo · Jul 1, 2015

Same situation here on a BWV contract. Submitted full price offer, got an email back with there being multiple offers on the contract and I could submit my best and final offer. Since I had offered full price, I did not increase my offer. So I'm still looking and not in a hurry.

mtm65 · Jul 1, 2015

Similar situation with a BLT contract. The broker told me that the seller had already turned down offers higher than mine. I asked him to present anyway. The broker presented my offer and had an answer in about five minutes. Seller counter offered saying they would not go any lower than the counter offer, period. I declined the counter offer and told the broker I was walking away. Hung up the phone and within five minutes I get a call back from the broker saying my original offer was accepted. It all happened very quickly and I got the feeling the broker was trying to increase the final selling price, not the seller.

It may have been on the up and up but it didn't feel that way. I bought the contract anyway because it was a fair deal for current BLT prices.

cindyears · Jul 1, 2015

disneynutz said:
We have dealt with four different DVC brokers and had issues with three.
One was completely difficult to deal with, wouldn't return emails or voice mails until they felt like it.
Another miss represented the deal and it turned out that they owned the contract while acting like someone else did.
The other broker chewed me out for asking too many questions, we never returned the paperwork and bought through another broker.

Bill

Which broker did you have the best service with? Can I ask?

suebeelin · Jul 2, 2015

mtm65 said:
Similar situation with a BLT contract. The broker told me that the seller had already turned down offers higher than mine. I asked him to present anyway. The broker presented my offer and had an answer in about five minutes. Seller counter offered saying they would not go any lower than the counter offer, period. I declined the counter offer and told the broker I was walking away. Hung up the phone and within five minutes I get a call back from the broker saying my original offer was accepted. It all happened very quickly and I got the feeling the broker was trying to increase the final selling price, not the seller.

It may have been on the up and up but it didn't feel that way. I bought the contract anyway because it was a fair deal for current BLT prices.

Is this the new broker with buddies at dvd?

I've had fidelity tell me they have higher offers but I offer $10 below anyway and I've never engaged in a bidding war. I just walked away. But my last purchase was 6 months ago.

Dean · Jul 2, 2015

Savagekids said:
In this case, I would move on. I think the brokers are required to present all offers. Can someone fact check that for me?

I did recently. IIRC they had to present all offers unless given specific written instructions in writing from the seller.

Dean · Jul 2, 2015

mtm65 said:
Similar situation with a BLT contract. The broker told me that the seller had already turned down offers higher than mine. I asked him to present anyway. The broker presented my offer and had an answer in about five minutes. Seller counter offered saying they would not go any lower than the counter offer, period. I declined the counter offer and told the broker I was walking away. Hung up the phone and within five minutes I get a call back from the broker saying my original offer was accepted. It all happened very quickly and I got the feeling the broker was trying to increase the final selling price, not the seller.

It may have been on the up and up but it didn't feel that way. I bought the contract anyway because it was a fair deal for current BLT prices.

Some of the usual brokers have also refused to list contracts at a lower price, thus further controlling resale prices.

MouseyMin · Jul 2, 2015

Having the broker represent both parties seems to me to be a conflict of interest, as their commission is a percentage of the price paid. But if each party were represented by separate brokers, I imagine the closing costs would be much higher.

deide71 · Jul 2, 2015

MouseyMin said:
Having the broker represent both parties seems to me to be a conflict of interest, as their commission is a percentage of the price paid. But if each party were represented by separate brokers, I imagine the closing costs would be much higher.

You are likely right about that. Like I said it is definitely a sellers market right now. It looks like the brokers are competing for listings and undercutting commission rates.

The other offer(s) must have been more than a negotiating tactic, they did not accept my offer. I am totally fine with that as I was unwilling to pay more for that contract. I had an offer accepted on a different contract with another broker yesterday. Once It has been sent to Disney I will add it to the ROFR thread.

Interesting resale experience

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