Buying DVC: Offers below asking price

[OneMoreTry]

Has anyone made an offer for resale below the asking price?

Any success?

Just wondering.

 

[tjkraz]

Resales are 100% negotiable. Probably depends upon the inclination of the seller. Some may not be willing to budge at all. Others may have a desire to sell quickly, or to move a contract that has been on the market for a while.

The only other concern would be ROFR. If you're willing to go a bit higher if DVC exercises ROFR, make sure you let the seller know and you should be able to "up" your offer if necessary.

 

[Caskbill]

Originally posted by tjkraz
The only other concern would be ROFR. If you're willing to go a bit higher if DVC exercises ROFR, make sure you let the seller know and you should be able to "up" your offer if necessary.

Actually I don't think you can 'counter-offer and 'up' Disney's ROFR. If Disney exercises ROFR then it's all over, they bought the contract at the value originally negotiated between seller and buyer. The buyer is out, Disney is in.

Also keep in mind that savy sellers will be aware of the Disney price increase coming along and may not be willing to sell below their asking, assuming that when Disney's prices go up, their resale values will go up also.

 

[twotoohappy]

I offered less than the asking price for my VWL and the offer was accepted. It went through at 70- this past January.

 

[tjkraz]

Originally posted by Caskbill
Actually I don't think you can 'counter-offer and 'up' Disney's ROFR.

Caskbill:

As long as the seller and/or agent involved know that you may be willing to counter-offer, you should get the opportunity to make a new offer before the contract reverts to DVC. Here's a recent thread that also addresses the issue:

http://www.disboards.com/showthread.php?s=&threadid=507172&highlight=+increasing++bid++resale++rofr

BTW, LOVE the planner program!!!

 

[momtofour]

I am under contract and am paying $70.00 a point at BWV. This contract included a full year of banked points. The asking price was $72.00 a point. I would never start out offering the asking price. The seller can always counteroffer.

 

[OneMoreTry]

I didn't make an offer below asking. I doubt they would have taken it -- the price was so low anyway. It was at the level that the agent said Disney was exercising ROFR.

Next time I would though because if I buy more points I won't be as anxious.

My impression is that once the offers/counteroffers have been made and a price agreed upon, THAT price goes to DVC. If they exercise the ROFR then that's it. THey by it at the price the seller has already agreed upon.

 

[ClarabelleCow]

My impression is that once the offers/counteroffers have been made and a price agreed upon, THAT price goes to DVC. If they exercise the ROFR then that's it. THey by it at the price the seller has already agreed upon.

That's exactly the way it is, if you and the seller agree on an offer, once agreed upon, it goes to Disney, if they take it, there is no going back to you. It wouldn't make sense for it to go back because the seller had already agreed upon the selling price. The seller and buyer can go back and forth on the price, but once accepted and off to Disney, there is no turning back!

 

[tjkraz]

Originally posted by ClarabelleCow
That's exactly the way it is, if you and the seller agree on an offer, once agreed upon, it goes to Disney, if they take it, there is no going back to you.

Well, I can't claim to having any first-hand experience, but the post that I linked above seems to indicate differently. calypso*a*go-go says that he/she is on the second go-around with a seller trying to get the same resale contract through ROFR. As I read it, one offer was made...DVC invoked ROFR...and the potential buyer then made a second offer and is waiting to hear on ROFR.

I'm certain that I've read other posts to the effect in the past. Most seem to agree that you need to state your intentions up-front (i.e. the desire to make a second offer if ROFR invoked), otherwise the seller simply proceeds with closing on the resale with DVC.

 

[calypso*a*go-go]

tjkraz is correct, we are awaiting word on a counter-offer that was made. We had to sign a new Buyer/Seller agreement that included the new offer details. I will post an update just as soon as we hear anything in regards to ROFR. Keep your fingers crossed for me and pour on the pixie dust!!!

Calypso

Attached is another thread indicating counter-offers can and should be made:

http://www.disboards.com/showthread.php?s=&threadid=334893

 

[OneMoreTry]

That is interesting. My agent didn't tell me about that when I bought my points!

 

[todsue99]

They are correct. Friends of ours went 3 rounds before DVC did not buy it back. I do not think Disney cares so much as long as the price is high enough to keep the new resorts selling at their price. Now this was two years ago so I do not know if anything has changed since then.

By the way go-go.....Good luck!!!!

 

[calypso*a*go-go]

Just wanted to give an update on the "counter offer" discussion. We just received word a few days ago that DVC passed on our counter offer and we are now "almost" owners @ OKW!

I'm sure DVC doesn't like, or encourage a second offer but anyone that has a great resale they don't want to let slip away, they need to let the seller know immediately that they want to make another offer.

It could be that this will be nixed in the future if everyone starts doing it. But for now, try to take advantage of it if you feel it's the right thing to do. Let me warn you though, it takes time...we had been in negotiations since early January.

 

[JakelBread]

if Disney really is acting on ROFR. Does the agent let you know or do you find out from Disney.
If you let your agent know that you will counter ROFR before it even goes to Disney then how does one know if the agent isn't just telling you that Disney is exercising ROFR just to get the buyer to raise their bid?

 

[OneMoreTry]

Originally posted by JakelBread
if Disney really is acting on ROFR. Does the agent let you know or do you find out from Disney.
If you let your agent know that you will counter ROFR before it even goes to Disney then how does one know if the agent isn't just telling you that Disney is exercising ROFR just to get the buyer to raise their bid?

Because giving a second chance after ROFR is counterintuitive, this is a very good question!!

What was your experience Calypso?

 

[Beca]

Just my 2 cents...based on "Calypso-a-go-go's" experience, I asked my resale agent about "countering". She said that it is highly unlikely that an owner would be interesting in accepting a counter offer if Disney wants to exercise RofR. She said that most sellers don't care who buys as long as they can get rid of the property. If we were to counter, Disney would have another 30 days to decide on RofR, and she said most sellers just "jump" at the chance for Disney to buy it back. Most sellers just want out, and it takes too long to renegiotiate and re-commit for a small amount of money. In fact, she said a lot of the "stripped" sales that offer really cheap "per point" costs have been stripped by sellers who KNOW that their sale will never go through RofR, so they undercut all other sellers hoping a potential buyer will "get Disney to buy them back".

I cannot say I blame these sellers...they have to do what they have to do...but, I hate to have someone think that a "counter offer" is their right as the buyer...it really is up to the seller (from what I was told).

 

[tjkraz]

Originally posted by JakelBread
if Disney really is acting on ROFR. Does the agent let you know or do you find out from Disney.
If you let your agent know that you will counter ROFR before it even goes to Disney then how does one know if the agent isn't just telling you that Disney is exercising ROFR just to get the buyer to raise their bid?

I actually discussed this with "Calypso" in another thread. He had exactly the same concern--the seller was claiming ROFR and Calypso was debating whether to raise the offer or not.

Turns out there really isn't a way to verify. Word goes from DVC to the seller. Unless the seller wishes to share a copy of the official notification, there is no way for the potential buyer to independently verify.

The more I thought about it, I guess this makes sense. When you place a bid on a house and the owner responds that someone else offered 5% more, you really have no way of verifying that. You either raise your bid or risk losing the property.

If DVC were to get involved and independently verify (to the buyer) whether ROFR was exercised or not, it would probably open up a legal can of worms for them.

 

[calypso*a*go-go]

In our case, I received an email from the seller stating DVC was going to exercise ROFR. I immediately responded and asked the seller if she would be open to a counter offer. She was actually quite pleased that I suggested it as it wasn't something she had considered. I sent a new email with the second offer. The seller agreed to the new price/conditions and forwarded a new Buyer/Seller Agreement that I printed, signed, and mailed the same day. In the meantime, the seller had contacted DVC to let them know a second offer had been placed. I will be honest with you: DVC was not happy with the new development and indicated my new offer probably wouldn't make a difference. I thought we were dead in the water...so imagine my surprise to find out they had passed on the second offer!

So, I disagree with Becca, that it is not my right to counter offer. I have every right to try and complete the purchase. It is however, also the right of the seller as to whether or not they choose to accept it. (By the way, ever think that the resale broker might want their commission a little faster?)

Anyway, submitting a second offer may not be the right move for everybody but it certainly worked for me and I just wanted to share my experience with any potential resale buyers.

 

[Beca]

Calypso - don't get me wrong...I am THRILLED that you got to counter....and, I am SURE Disney was really upset that you did...they are quite used to getting what they want...they probably were looking at their wait list to see who they were going to offer your points to!!

And, likewise...I have VERY little experience in the DVC sale or resale market. I just know what our realtor told us...that more often than not, a SELLER does not want to entertain counters from a buyer...it just delays the sale too long, and she said she had sellers even say, "Well, if they were willing to pay more...why didn't they? They knew it would go to Disney first." She said that she has RARELY had a seller agree to accept a counter when they knew a buyer was interested. Like I said, I have neither sold nor purchased a lot of Disney timeshares...I have to trust that the person representing me is 1) much more knowledgeable than me in this area, and 2) that she is telling me the truth.

I don't know...maybe she was just telling me that to "up her commission" because she thought I might offer a higher price initially (which, of course...I did!). But, since I try really hard (often unsuccessfully) to be a "glass half-full" person....I will take her at her word.

I am by no means discouraging anyone from trying what you did...IMO...Why should Disney get all the good deals? I just want to relay to others what was told to me.

Congrats, once again!!!

 

[calypso*a*go-go]

No problem Beca!

I know my circumstances were not typical and I'm just happy DVC did not put me on the "naughty" list. I was just getting tired of so many posts indicating a counter offer is not an option. Good luck to you on your resale. If anybody knows how stressful waiting is, it's me. I feel your pain!!!

Sorry OneMoreTry---didn't mean to hijack your thread and hope we gave some valuable info. (even if it wasn't exactly what you were looking for!).