What offer would be reasonable?

[Andrew*A]

Hi,
We are about to purchase a DVC resale contract. This will be our first time. I was was wondering what would be deemed a reasonable offer. The contract is 200 points and is priced at $84 per point. What do you think my opening offer should be? I know that Disney has the ROFR but how speculative can the buyer be when making an offer?

Thanks in advance for any help.

 

[pangyal]

Hi,
We are about to purchase a DVC resale contract. This will be our first time. I was was wondering what would be deemed a reasonable offer. The contract is 200 points and is priced at $84 per point. What do you think my opening offer should be? I know that Disney has the ROFR but how speculative can the buyer be when making an offer?

Thanks in advance for any help.

Congrats on the big decision and on finding a contract that works for you! Have you checked the ROFR thread? You'll find the average selling price of each resort over the past two months, including how many points are available for each year.

 

[Andrew*A]

Thanks for the information! I'll check the ROFR thread now

 

[Judique]

It also depends on which resort you are trying to purchase.

 

[DebbieB]

Which resort, are current points available? Smaller contracts tend to go for higher prices. I wouldn't think too long, resales have been going fast.

 

[NoleFan]

check out the ROFR thread and scan asking prices on the various broker's sites. some brokers are willing to present your offers and others are less willing. just put in a bid of what you feel is reasonable. don't let a broker try to convince you otherwise.

 

[sndral]

Hi,
We are about to purchase a DVC resale contract. This will be our first time. I was was wondering what would be deemed a reasonable offer. The contract is 200 points and is priced at $84 per point. What do you think my opening offer should be? I know that Disney has the ROFR but how speculative can the buyer be when making an offer?

Thanks in advance for any help.

Are there any banked points, does the contract have all of this year's points, all of next year's points?
Stripped contracts, ie ones where the sellers have already used this year's points and maybe borrowed and used next year's points are worth less than loaded contracts where the buyer is getting all of this year's points, maybe some banked points from last year and next year's points haven't been touched. So when you look at the ROFR thread consider whether the contract was stripped or loaded.
The price per point isn't the true cost per point if you go along with the broker's suggestion that buyer pay MFs (which adds $5-6 per pt.) and closing costs (adds a couple dollars per point.) You can word your offer asking the seller to pay these items or offering to split those costs.

 

[yaknyeti]

Don't mean to hijack the thread but...
what do you guys think about Bay Lake Tower $105 per point it will have 400 points coming in February 2016 no points available now

 

[bwvBound]

Don't mean to hijack the thread but...
what do you guys think about Bay Lake Tower $105 per point it will have 400 points coming in February 2016 no points available now

Not enough information. How many points annually? (How many of those 400 points coming in Feb are 'new' 2016 points vs banked 2015 points or borrowed 2017 points?)

 

[Minniesgal]

The best place for price information is the ROFR thread.

I was in a situation once where someone was in a thread talking about offering on a contract I was selling. (I didn't comment)

You never know who is answering your questions. The ROFr is fairly factual information and can be checked on the OC website.

 

[yaknyeti]

400 point contract annually

 

[ustasmom]

Don't mean to hijack the thread but...
what do you guys think about Bay Lake Tower $105 per point it will have 400 points coming in February 2016 no points available now

$105 is pretty low for what BLT has been making it through ROFR. I think that they one that they recently took was in the low $100s.

 

[mrsjoannh13]

I'm in a similar boat as OP. I did check the ROFR thread, but the missing bit of info is what was the asking price. Right now looks like BLT asking price is $125 for the points we are in the market for, but I see most on the ROFR for BLT in the $100 - $110 range. Fairly new to this so wondering the same thing in terms of what is a reasonable offer on a contract that has most points available immediately (not stripped).

 

[yaknyeti]

Seems like not long ago Bay Lake Tower was selling for $85 per point I wonder if those days will come back I know the real estate market is very high right now

 

[Raenstoirm]

I'm in a similar boat as OP. I did check the ROFR thread, but the missing bit of info is what was the asking price. Right now looks like BLT asking price is $125 for the points we are in the market for, but I see most on the ROFR for BLT in the $100 - $110 range. Fairly new to this so wondering the same thing in terms of what is a reasonable offer on a contract that has most points available immediately (not stripped).

The reason they don't say what the asking price is, is that it is kind of irrelevant. If a seller is asking $150 a point for something you see is selling for $90, walk away and find a different contract. Just because someone thinks their contract is worth a ton, does not mean it is. I work in residential real estate and we alway joke that some sellers used "premium nails" on their house. Even though the exact same model house next door sold for $650k, invariably someone thinks their house is worth $800k.