Bartering on Resale Prices-Acceptable/Expected?

[trampslady]

Hi! We are fiddling with the idea of purchasing a small to moderate resale at Hilton Head this year. I've read some about how the closing costs can bump the price right back up the ones Disney offers currently. What kind of closing costs can we expect on a 50-150 point purchase?

Also, are the prices per point pretty much set in stone or is there room for negotiating? Oh, before I go, what is the average resale price on HH these days?

 

[kdonnel]

I am using The Timeshare Store and buying a 250 point resale. The closing costs are $500. That only adds 2 dollars per point for my contract. Hardly making it as expensive as buying from Disney.

I also agreed to paying the Annual Dues for 2003 since I will be getting 100% of the 2003 points and should close right as the use year starts.

That of couse adds another 3.49 per point since I am buying at OKW.

That means that my actual cost is 5.49 higher per point then I offered. I took that into consideration and offered less per point then they were asking.

All told I still saved right at 14 dollars per point compared to Disney at 84 dollars with no closing or dues.

I was orginally looking at a 230 point resale. The closing on that one was going to be $470. I don't know the formula they use but it apperas to be some percentage of the total cost of closing. I don't know if they have a minimum charge for smaller point contracts.

 

[kem330]

kdonnell- if you bought from disney you wouldn't pay for 2002 points , but you would pay dues for 2003. You would probably get a fall use year, and no dues for those points, and pay prorated dues for 2003 from date of purchase

 

[trampslady]

Thanks Kdonnel!

How did you handle the dues for 2003.....pay Disney or the current owner?

Also-was there much negotiating between your offer and their acceptance?

 

[kdonnel]

At closing I will make one check out. The closing company will distribute the money to whom ever it belongs to.

By the time we close the current owner will have already paid the 2003 dues. I am guessing that Disney will not refund their money but instead the closing company will give the owners a check for the dues I have agreed to pay. Pat Spell said that next January I would then have the option to pay the dues monthly or pay all at once. That would be for 2004 use year right? Or have I agreed to pay the 2002 dues and didn't relize it?

I made the offer on the 7th and received a call back on the 8th that the offer had been accepted. I probably should have offered less but I paid what I though was fair for me and the current owner.

Now if you also have to pay closing associated with a loan used to pay for the DVC then those costs would bite into the per point savings.

With the credit card companies competing against each other right now though you could probably get a great balance transfer rate and pay with a convience check.

AMEX is giving me a 3.9% transfer check to use. The 3.9% applies for the life of the balance. If I wanted to pay it over time I could not beat that rate. I wanted to get the Delta Skymiles though. The total cost is close to a free ticket from ATL to MCO.

 

[Ralph&Pam]

Dues are paid on a calendar year basis, not a use year basis. I assume you are paying or reimbursing the seller for 2003 dues, since these are due tomorrow (January 15, 2003). Dues and not tied to the use year, so these are 2003, not 2004, dues. On a resale, Disney collects the entire year's dues up front, even if the seller had been paying them monthly in the past.

Ralph

 

[pnotar]

You definitely can negotiate the price. We bought a 230 pt. OKW resale and got the price down from $12,800 to $12,000. In essence, it covered our closing costs and then some. One added benefit was we were able to get 2 years of free passes to use

Don't be afraid to negotiate; they can only say 'no'. Nothing ventured, nothing gained.

 

[lacool]

We are in the process of closing on a resale at BWV. The 250 pt property came with 219 banked points from 2001, and all of 2002 points unused. For that reason I offered the asking price (and apparently beat another offer on the table by only $200). If you are willing to buy a resale that has used up all the current points and borrowed into next year, then you can certainly get away with offering less.

I wanted to be able to use it THIS year! Patience is a virtue ... and would have saved me $!

 

[Poorman]

I was the other person. I did get another BWV of 360 points, so it worked out great. The one I ended up getting was 360 points for 2001, 336points for 2002 and all 2003. I think we both did good! Good luck . Rich

 

[Sharper]

There are factors to consider other than the price per point. A "stripped" contract, i.e., one with no points for this year and points already borrowed from the next year, will push the limit on the lowest price at which Disney will allow a sale, but what have you saved? Spending $5 less per point on a 200 pt. package, but losing this and next year's points is not "savings" to me, as those 400 points are worth more than the price difference.

If you don't have alot of initial cash to spend, and don't plan to return for a couple of years then it might be a good route. But don't give up points you'll wish you had just based on a price per point figure. I negotiated some, didn't go too far with lowballing or playing games, because I didn't want to insult a seller and waste everyone's time, nor did I want to wait on the chance of getting some great deal because someone had to sell FAST and was willing to take a bath.

Just keep your specific needs in mind.

 

[InstImpres]

Would anyone mind sharing there purchase price. I know that is a lot to ask but my concern is getting all involved in the resale and having Disney step in with it's right of refusal and buying it themselves. I could be wrong (it,s happened once or twice) but I assume they don't let things go for more than a few dollars under current selling price.

Anyone have other experiences they would be willing to post or private e-mail.

Thanks

 

[elgerber]

InstImpres,

I just closed at the end of December on a Boardwalk Re-sale at $65 per point (not including closing costs).

Erika

 

[ClarabelleCow]

I closed on a VWl with 196 points, 138 banked and paid 64.00 pp plus closing which made it about 66.00pp, still alot cheaper than DVC, plus I didn't have to pay and maintenance on the 138 banked points.

 

[drusba]

Trampslady, you've gotten a lot of good info above, just wanted to add some minor points:

1. You mentioned buying a "50-150 point" contract and asked the closing costs . The answer gave you $500 for 250 points. It will be somewhere in the same neighborhood whether you buy 1, 50, or 2000 points as closing costs are fairly fixed. In other words, the lower number of points you buy the more impact closing costs have on the actual per point cost. For example $500 of closing costs on a 50 point contract adds $10 a point to any sale price you agree to.

2. You can negotiate (a) sale price, (b) who pays closing costs or negotiate some sharing of them, and (c) how any dues are to be split. In fact, you should assume that any seller and broker have set the published asking price based on the assumption that there will be negotiation and actual sale price will likely be lower.

 

[Dancind]

We just closed on a 150 point contract at OKW at $63 per point. The 2002 points were gone on this one, we get the 2003 points (and paid the 2003 dues). I think I could have done a little better, but I had a 5.9% until paid off offer and wanted to find something by mid December. And there were no OKW contracts offered for sale in the 100-200 point range! The one we bought had just been listed, I had been looking for several weeks. We could have bought at BWV several times (with higher asking prices), but it isn't our favorite place to stay and has the higher dues. Don't know if OKW is still harder to find, but it might be. Diana

 

[lacool]

Originally posted by Poorman
I was the other person. I did get another BWV of 360 points, so it worked out great. The one I ended up getting was 360 points for 2001, 336points for 2002 and all 2003. I think we both did good! Good luck . Rich

Sorry Rich! I did feel minor guilt, but now I'm jealous of your additional 110 points. Congratulations to you too!

As for price, I paid $70 per point at BWV. Again, I felt it was worth the extra to be able to use the banked and current points. Now, if it would hurry up and close so that I can!!!!!

 

[Poorman]

I also had an offer for 404 points at OKW accepted,only waiting for Disney to approve. I have my fingers crossed on that one. I tend to jump into these things with reckless abandon. I have 2 grandchildren and I am looking forward to many years of fun at WDW. Good luck with your purchase. Rich

 

[Shontell_Crawford]

Resales are Real Estate - anything can be negotiated. The only risk you run when making low offers is that someone else can come along an bid higher than you before the agent reaches the seller.

While Disney won't put their buyback in writing. I wouldn't bid less than $62 per point on anything.

Hope this helps!

Shontell Crawford
Lic. Real Estate Broker
DVCByResale.com