Can't close till 6/2018

[Mrsjnt083]

So I'm looking at a Boardwalk listing that can't close until 2018. That's not a huge deal, as we are in Alaska until 2019, and will bank any points we did get in 2018. That being said, when would I be expected to have financing lined up? Similar with a deposit? Considering most don't have such a far out closing date, I wasn't sure if someone had experience with this.
I did email the company, but with Irma, not sure when they'll get back to me.
Thanks in advance!!

 

[_auroraborealis_]

You'd probably need the deposit when offer was accepted. Holds the contract.

 

[Mrsjnt083]

You'd probably need the deposit when offer was accepted. Holds the contract.

That's what I figured. Guess that's a pretty dumb question. Haha

 

[Matty B13]

A lot can happen in that time, I would suggest looking at other contracts.

 

[Nie0214]

We did a delayed closing (signed contract the first week of March and closed the last week of June). We were paying cash so I don't know about the financing piece but they'll definitely take a deposit.

In our case, the owners had turned over many, many contracts on the Orange County Recorder site so we felt comfortable that they were legit resellers who do it often.

I think Sep-Jun is a LONG wait which carries a higher risk though. If the seller backs out in March because their family/financial situation changes, you'd be out all of that time and you'd just get your deposit back.

Be patient, there will be another contract.

 

[Dean]

So I'm looking at a Boardwalk listing that can't close until 2018. That's not a huge deal, as we are in Alaska until 2019, and will bank any points we did get in 2018. That being said, when would I be expected to have financing lined up? Similar with a deposit? Considering most don't have such a far out closing date, I wasn't sure if someone had experience with this.
I did email the company, but with Irma, not sure when they'll get back to me.
Thanks in advance!!

Realize there are 2 issues here. The underlying value of the contract and when YOU needs points to use. They really are separate things. Since fully stripped contracts are essentially always significantly more expensive than one's with more current points, it's usually not a good choice to buy one comparatively speaking. The other issue with the fact they can't close for 9 months means that a lot than can happen in the interim that may cause you to lose the contract. One can value the points difference by the rental prices and the dues you'd pay on those points. The difference in a fully loaded contract and a fully stripped one looked at in real $$$ terms can easily be $20-25 per point difference. This is not a cost that can reasonable be looked at over the lifetime of the contract, it's truly a short term difference. This thought process will help you to evaluate and compare different contracts. The same process can be used to evaluate different size contracts and even to compare the relative value between different UY. Though I personally believe that for many (if not most) the choice of UY is more important than the exact price up front (within reason), easily reaching the value of a full years worth of points if rented out and maint fees wouldn't reduce that number in that situation. I'd look elsewhere or get enough discount as if you got the points and rented them out accounting for the fees you'd pay.

 

[Greg36]

I think Disney can wait on making a ROFR decision as well so you might end up waiting a long time only to have it taken by Disney. This might also put you behind with lost time waiting...

 

[zavandor]

Buying such a contract you're basically betting that in the meantime resale prices are going to increase significantly to justify the risk of paying a deposit now and get the contract next year. Because otherwise you can just pass this contract and look for something else or just buy something next year. Delaying the purchase could be a good idea if you think you can save enough from now to close date and avoid financing. If you're going to take a loan with a high interest rate, that could eat most if not all your savings. Common advice found here is that financing isn't often a good deal.
In any case, just ensure the seller cannot back out of the deal later.

 

[Dean]

I think Disney can wait on making a ROFR decision as well so you might end up waiting a long time only to have it taken by Disney. This might also put you behind with lost time waiting...

They can but they give a decision at the time it's submitted, generally within 30 days.