Asking Price Vs. Purchase Price Question

[magnusvv]

I'm in the learning phase of the process to purchase into the DVC. I've been reading here and looking at the resale listings on a few websites. I see on here where people post what their actual point purchase prices are. There certainly appears to be a gap between asking and actual purchase prices. I'm curious how much back and forth negotiating is going on here. I'm guessing it is similar to purchasing property?

I also have witnessed some claims to quite low purchase prices for some of these points. How does this happen? Low ball many listings and wait for someone to bite or are you hooked into being the first to make an offer in a distressed situation?

When something is listed on average at $90 or $75 per point and I hear about purchases at $45 or $50 per point I'm curious how this is being accomplished?

 

[DVCconvert]

It is just like buying real estate. A seller will always ask for what they want and a buyer will almost always offer what they think is fair. The point of settlement occurs when what has been offered is accepted by a given seller.
Some sellers are motivated, others are not. Some sellers are realistic, others are not.

There is and will always be a fair supply on the market, so if you see something you want, compare what the asking price is to what you're seeing on the ROFR thread and make an offer that you'd be really happy to own it at. A good broker will encourage the seller to make a counter offer if the broker senses the offer won't be accepted.

HTH

 

[Buckeye Fan]

Also, when purchasing, remember that closing costs and maintenance fees are negotiable as well. In the past, I have actually gotten a better deal by negotiating closing closts and maintenance fees than price per point.

Good luck!

 

[CarolMN]

Every contract is unique. Those that come with banked points, all current use year points and no borrowed points are worth more than those that are stripped (no banked, & no current and often, none coming in the next use year, either). Some contracts have points with some type of restriction - points in holding or reservation status, or points expiring soon.

Prices also reflect negotiations over maintenance fees and closing costs.

Bottom Line: Some contracts are just worth more than others.

 

[KPOP]

I was able to make a great deal last year through the timeshare store - i put in a lowball offer that i really didn't think the seller would accept...and he did! I was surprised - but thrilled to get my OKW points!!!

 

[nukker7]

Just remember magnusvv, You have nothing to lose by "lowballing" All they can do is send negotiations or reject. Either way you have lost nothing. I say this because I bought some points in Feb and paid the asking price, while I feel it was a good deal, there are many others out there that have gotten the same deal or better at a lower price.

Never hurts to try.

 

[ljcrochet]

we offered $15 below asking price, Buyer and seller to split closing costs and Seller to pay membership fees. They came back with that we had to pay Aug. - Dec. dues at closing.

 

[mrhistory]

We just closed on an SSR contract for 150 points, all 2011 points present and none borrowed from 2012. The seller asked for $64 and we paid $50. I had in my mind a price I wanted to pay and decide I would just continue to make offers until one was accepted.

 

[nukker7]

We just closed on an SSR contract for 150 points, all 2011 points present and none borrowed from 2012. The seller asked for $64 and we paid $50. I had in my mind a price I wanted to pay and decide I would just continue to make offers until one was accepted.

Now that is the way to do it. I guess I got caught up in the WANT NOW phase.

Good job, my friend.

 

[scubakat]

This is where we are now.. waiting for the right contract to come along... we have a couple of offers in but they told us that Fidelity is closed over the weekend so we won't get an answer till Tuesday...

We are renting and have our vacation booked for September already so we are not in a hurry... but it is sooo hard to wait! Have to keep reminding myself that we are in no hurry.. but this is me all day..

We just closed on an SSR contract for 150 points, all 2011 points present and none borrowed from 2012. The seller asked for $64 and we paid $50. I had in my mind a price I wanted to pay and decide I would just continue to make offers until one was accepted.

 

[jupers]

We just closed on an SSR contract for 150 points, all 2011 points present and none borrowed from 2012. The seller asked for $64 and we paid $50. I had in my mind a price I wanted to pay and decide I would just continue to make offers until one was accepted.

Almost the Same thing here, only 142 points. I knew what I wanted to pay and was just going to take my time. Fortunately, my 2nd offer was accepted!!! Good luck!!!!

 

[emilymad]

We just closed on an SSR contract for 150 points, all 2011 points present and none borrowed from 2012. The seller asked for $64 and we paid $50. I had in my mind a price I wanted to pay and decide I would just continue to make offers until one was accepted.

This is what we did too! We are waiting for our 100 SSR points to clear ROFR at $50 a point. We offered on a bunch of contracts before we got this one. I had decided what I thought the points were worth and I was willing to wait. I hope the rest of the process goes smoothly!

 

[magnusvv]

Thanks everyone for the informative/helpful responses.

 

[Carl'n'Ellie'sDad]

Also note that the home resort for each contract makes a great deal of difference to it's value. The contracts that you see going for less than $60 pp are likely for the nonWDW resorts (Hilton Head and Vero Beach) or the "condo" resorts (SAratoga Springs and Old Key West). Factors like location, amenities, maintenance fees and the size of the resort lead those contracts to be valued at less than half an identical size contract from Bay Lake Tower or Beach Club Villas.
Currently at 7 months before a reservation, points are points, and if there's availability, a Vero Beach contract could get you the same room at Aulani as a Bay Lake Tower contract. This is not guaranteed for the future, and the resale market reflects this reality.

 

[dbs1228]

We actually looked for a fully loaded contract and was fortunate to get SSR 130 point contract for 59.00PP (listed for 64.00) BUT it came with 2009, 2010 and 2011 points! We ended up renting 2009 points (not our intention but our plans changed) so it brought our PP price down to 49.00! Good luck, read, research and get informed it is the best thing you can do!

 

[bdtracey]

We are also looking at becoming DVC members and purchasing resale.

My question is this: if I find 3 contracts, say at TSS, can I make offers on all three of them and then go with the first one that is accepted while retracting the other two? Or do I need to make one offer at a time?

 

[chalee94]

Or do I need to make one offer at a time?

one at a time.

 

[diz4ever]

Let me understand this correctly. If my home resort is Vero Beach - at the 7 month mark I can book any DVC resort? I usually do not have any trouble getting last minutes at saratoga springs so this would usually work - right? Am I missing something? Is there a real downside to vero beach?

 

[DVCconvert]

Let me understand this correctly. If my home resort is Vero Beach - at the 7 month mark I can book any DVC resort? I usually do not have any trouble getting last minutes at saratoga springs so this would usually work - right? Am I missing something? Is there a real downside to vero beach?

For what it is you seem to want to do, the "downside" would be that you'll be paying $6.78 per point (currently) for MF's at VB...whereas the current MF's per point at (say) SSR is $ 4.52 per point. Over the time you own the points alot more $$ will be spent on MF's when compared to the possible difference in the purchase price per point. They are no doubt exclusions to this, if say you get a super sweatheart price, or only owned it for a shorter period of time.

This is one reason why the best advice is to buy where you want to stay.

HTH