Contingency in offer?

[ML_LovesDisney]

Hi all, I have sold plenty resale, but never bought. I am selling a contract and its in ROFR, but I also want to purchase a contract I see. Does DVC Resale ever have contingencies? ie As long as this other sale goes through, I agree to purchase. I can obviously wait too since I am not in need of points until 2025, but figured I'd ask the community!

 

[Chili327]

Hi all, I have sold plenty resale, but never bought. I am selling a contract and its in ROFR, but I also want to purchase a contract I see. Does DVC Resale ever have contingencies? ie As long as this other sale goes through, I agree to purchase. I can obviously wait too since I am not in need of points until 2025, but figured I'd ask the community!

You don’t want the 2nd one if you don’t get the first or you want the 2nd as a back up in case the first falls thru?

 

[ML_LovesDisney]

You don’t want the 2nd one if you don’t get the first or you want the 2nd as a back up in case the first falls thru?

I don't want the 2nd one if my sale falls through on selling my points because I only want to pay cash, no financing.

 

[gmi3804]

Sales price isn't the only contingency. That's known as a "home sale contingency," and can absolutely be put into an offer. If both parties agree to that, you're good. Speak to your broker about including this in the offer.

 

[ML_LovesDisney]

Sales price isn't the only contingency. That's known as a "home sale contingency," and can absolutely be put into an offer. If both parties agree to that, you're good. Speak to your broker about including this in the offer.

Awesome, thanks!

 

[gmi3804]

Awesome, thanks!

Don't get your hopes up too much, as home sale contingencies are sometimes frowned upon by sellers, unless they're having trouble selling their properties. Still, it's worth a try. Good luck!

 

[ML_LovesDisney]

Don't get your hopes up too much, as home sale contingencies are sometimes frowned upon by sellers, unless they're having trouble selling their properties. Still, it's worth a try. Good luck!

Yeah, I'm in a mental place of acceptance because there are plenty of RIV contracts listed. I appreciate the insight though! It seems like ROFR has been averaging about 19 days or so, so either way I'm not too far out from closing on my sale.

 

[Chili327]

I love the idea of “swapping”, are both contracts with the same broker?

 

[ML_LovesDisney]

I love the idea of “swapping”, are both contracts with the same broker?

They are not. I don't love the closing company of one of the brokers, so I went with another one for that reason. There are some contracts on the same site I am selling on similar to the ones I would like to buy, but not quite the point amounts I want. Let me rephrase: I want way more points and the 300+ contracts, but don't want to spend that much as I have a kid in college right now and one soon going

 

[VGCgroupie]

Look at it this way, when you were selling if someone had presented to you what you are proposing would you have agreed? Personally I would not, and I feel that most others would not. I also think adding that contingency greatly reduces any other negotiating power you would have so you may end up paying more.

 

[ML_LovesDisney]

Look at it this way, when you were selling if someone had presented to you what you are proposing would you have agreed? Personally I would not, and I feel that most others would not. I also think adding that contingency greatly reduces any other negotiating power you would have so you may end up paying more.

It would depend. If my contract was sitting for sale for 2 mths, not budging, I would chance it. If I had an in demand resort with few other contracts for sale in its category, probably not.

 

[gmi3804]

Look at it this way, when you were selling if someone had presented to you what you are proposing would you have agreed? Personally I would not, and I feel that most others would not. I also think adding that contingency greatly reduces any other negotiating power you would have so you may end up paying more.

What you "feel" is totally irrelevant. While added contingencies can limit negotiating power, each case is different and you can't make a blanket statement like that which covers every transaction.

 

[VGCgroupie]

What you "feel" is totally irrelevant. While added contingencies can limit negotiating power, each case is different and you can't make a blanket statement like that which covers every transaction.

Like it or not people buy and sell on "feelings" Yes a contingency is allowed, is it the best way to go about buying and selling, probably not.

 

[VGCgroupie]

Like it or not people buy and sell on "feelings" Yes a contingency is allowed, is it the best way to go about buying and selling, probably not.

I will also add, if OP does this Id like to know the brokers "feeling" on the offer. I am willing to bet not great.

 

[TinkAgainU]

I misread this at first - so you are the Seller of a contract in escrow. It does not matter if that clears ROFR or not (Disney would buy it on the same terms if they take it in ROFR). I would be more concerned with whether your Buyer has passed the 10 day mark, and what the terms of the purchase agreement say about whether you would get any of the deposit (sometimes it goes in part to the Brokerage) if they cancel. Obviously, a substantial deposit encourages them to complete the deal once it is non refundable.

As far as making an Offer to buy a contract, you will be a stronger Buyer, and have more room to negotiate a good deal, if you have no contingencies. So I would wait until I had the money in hand, or check out the terms of financing (to see if you could finance and pay it off without a lot of extra expense once yours closes).

 

[ML_LovesDisney]

Thanks for all the insights. I did email the broker just to see what they say.

 

[ML_LovesDisney]

Well guys, ask and you shall receive, the one I want has a delayed close until 2025 anyway! The broker said it would be fine to do contingency, but no need in this case due to delayed close 6 mths from now. Really, a delayed close is almost like a contingency because they want to get in their last trip most likely before closing which I imagine is very unattractive to most buyers who want points ASAP.

 

[VGCgroupie]

Well guys, ask and you shall receive, the one I want has a delayed close until 2025 anyway! The broker said it would be fine to do contingency, but no need in this case due to delayed close 6 mths from now. Really, a delayed close is almost like a contingency because they want to get in their last trip most likely before closing which I imagine is very unattractive to most buyers who want points ASAP.

This is great! Congrats!

 

[Genie+]

Look at it this way, when you were selling if someone had presented to you what you are proposing would you have agreed? Personally I would not, and I feel that most others would not. I also think adding that contingency greatly reduces any other negotiating power you would have so you may end up paying more.

Yeah the only way I’d accept is if the offer was large enough to be worth my time and risk losing out on other offers should the deal not close. Unless I strongly suspected the market taking a dive in the near future I would not entertain such an offer.

 

[TinkAgainU]

Well guys, ask and you shall receive, the one I want has a delayed close until 2025 anyway! The broker said it would be fine to do contingency, but no need in this case due to delayed close 6 mths from now. Really, a delayed close is almost like a contingency because they want to get in their last trip most likely before closing which I imagine is very unattractive to most buyers who want points ASAP.

If the contingency is no biggie - I would ask for it to be included. Closing later is not "exactly" the same. Once your 10 days are up, without that contingency, you WILL lose your deposit if you do not put in all your closing funds by the date shown on the contract (hint, that could still be in 30 days - you will not know until you read the fine print) even if the market changes and your first contract (the one in escrow) never closes.

A delayed closing means until you receive the points from Disney, you cannot Book anything and if a window you wanted is past for a trip, then you may only be able to waitlist dates you want. If over all those months, the resale market changes (goes up) the Seller might decide to cancel and just give you your deposit back - frankly, it's not easy to enforce a sale. But if the resale market goes down significantly, and you wanted to cancel, you already have your money in escrow for them to use to take your non refundable deposit. Lastly, note some brokers have a term in the contract which states you'll forfeit your deposit AND pay their commission if you cancel - again, if your funds are sitting there, it's not as hard for them to enforce those terms.

As long as you understand the terms fully it might still be perfect delayed closings Do work well for many people.