Did I offer too much?

[WDW99]

Put in an offer for BLT.... Aug. UY at $95 (asking was 102)

It has all 2010 points banked, all 2011 & 2012.

After reading boards......wondering if that was too much. I see high $80 to low $90 being accepted.

 

[disneynutz]

You need to put a value on the total points available.

Everyone is quick to notice all of the direct buy and resales that are processed as if it is a good thing and that the DVC is the way to go. The reality is that more members are selling, renting, and being foreclosed on than anytime that I can remember.

That means that some people are disparate to sell and there are good bargains to be had. The problem is the Broker represents the seller and the buyer so you aren't going to get much advice from the Broker. All you can do is work the numbers and offer a lower price to see what happens.

You can also expect that your purchase will continue to decrease in value as ours has.

Bill

 

[dbs1228]

I truly believe the loaded contract adds value at least for me personally. I think you got a fair price. We bought a SSR contract for 59.00 pp loaded, ended up renting 2010 bank points for 10.00 a point which brought our purchase price down to 49.00 PP. We thought we were going to use the points and ended up doing a non-disney vacation instead. With that being said we bought DVC to "use our points at a DVC resort" Enjoy!

 

[Dean]

Put in an offer for BLT.... Aug. UY at $95 (asking was 102)

It has all 2010 points banked, all 2011 & 2012.

After reading boards......wondering if that was too much. I see high $80 to low $90 being accepted.

If that's what you want and the contract fits you, the price per point isn't bad, esp if it's not a large contract. IMO, the make or break for this situation is how the maint fees are passed on to you. If you're getting all 2011 points plus all 2010 points banked to 2011 and are paying the 2011 maint fees AT THE MOST, you did fine. If you're paying additional fees for the 2010 points, I think you should reconsider. Remember you can legally cancel for 10 days after you sign and in some cases, up to a year after you sign.

 

[Brian Noble]

You can also expect that your purchase will continue to decrease in value as ours has.

The "value" of a timeshare is in its *use*, not its resale value.

 

[alice99]

The "value" of a timeshare is in its *use*, not its resale value.

I think that sounds like a great deal, especially with all those points available. Those will come in handy, especially if it is a small contract.

 

[Dean]

The "value" of a timeshare is in its *use*, not its resale value.

Brian, I would agree in one sense. However, I would point out that from a $$$ standpoint, the best $$$ value is determined on the price and specifics going in to the contract because all of the other parameters (usage, maint fees, etc) are the same going forward for the same situation. I would disagree that an extra $1-2K paid up front is negligible even considering that maint fees are the largest long term cash commitment but I am aware there are many other factors, esp for resale. I am also aware that there comes a point where micromanaging such a situation isn't worth it.

 

[CMOORE185]

Put in an offer for BLT.... Aug. UY at $95 (asking was 102)

It has all 2010 points banked, all 2011 & 2012.

After reading boards......wondering if that was too much. I see high $80 to low $90 being accepted.

Considering Disney is now selling BLT at $150.00 per point with no discount you got a good price. Could you have gotten the contract lower?, maybe, but its good enough not to worry too much about it IMO.

 

[DVCconvert]

......wondering if that was too much....

ah, the seller just called.....no, you didn't offer too much

 

[WDW99]

If that's what you want and the contract fits you, the price per point isn't bad, esp if it's not a large contract. IMO, the make or break for this situation is how the maint fees are passed on to you. If you're getting all 2011 points plus all 2010 points banked to 2011 and are paying the 2011 maint fees AT THE MOST, you did fine. If you're paying additional fees for the 2010 points, I think you should reconsider. Remember you can legally cancel for 10 days after you sign and in some cases, up to a year after you sign.

Looks like 2010 & 2011 MF are paid. They accepted the offer!!! The reason I like this contract is 200 points to use by July 31st 2012. We have a trip planned for June 2-9. We really wanted to stay at BLT......but since it wont close until probably 60 days......I'm guessing that we cant get a 1 bed room there! O well, maybe AKL will be available. WHAT A REAL BUMMER.......NOT!

Im sure we will add on latter!

 

[Brian Noble]

However, I would point out that from a $$$ standpoint, the best $$$ value is determined on the price and specifics going in to the contract because all of the other parameters (usage, maint fees, etc) are the same going forward for the same situation.

Agreed. My point was that next year's resale price---or even the resale price down the road---should not factor into any buying decision. Instead, I usually advise people to figure out how long they expect to use the timeshare (hopefully many many years), and assume that when they are done with it it will be worth *nothing*. If it is still a good deal, then you should buy it. Buying with an expectation of value at the back-end is a big risk.

The developer vs. resale question is separate. IMO, DVC's current supply/demand on the secondary market, compared to the developer pricing points, are such that resale is strictly better in all cases. It also looks to me that at some resorts, buying resale is less expensive than renting. That's a relatively new phenomenon.

 

[Dean]

Looks like 2010 & 2011 MF are paid. They accepted the offer!!! The reason I like this contract is 200 points to use by July 31st 2012. We have a trip planned for June 2-9. We really wanted to stay at BLT......but since it wont close until probably 60 days......I'm guessing that we cant get a 1 bed room there! O well, maybe AKL will be available. WHAT A REAL BUMMER.......NOT!

Im sure we will add on latter!

The question is what are they asking you to reimburse. Most resale companies would ask you to pay the 2011 fees which is reasonable but not a freebie, in this situation.

 

[WDW99]

The question is what are they asking you to reimburse. Most resale companies would ask you to pay the 2011 fees which is reasonable but not a freebie, in this situation.

Not really sure what you mean? All maintenance fees are paid up until jan. At which time 2012 mf will be due. What do you mean? " asking to reimburse"?

 

[WDW99]

It's a 100 point contract....if that's what you mean?

 

[disneynutz]

Not really sure what you mean? All maintenance fees are paid up until jan. At which time 2012 mf will be due. What do you mean? " asking to reimburse"?

The current owner has paid the 2011 dues for points that they won't be able to use. They will expect you to pay them what the dues cost.

Bill

 

[Dean]

Not really sure what you mean? All maintenance fees are paid up until jan. At which time 2012 mf will be due. What do you mean? " asking to reimburse"?

Part of your closing will include an amount for dues reimbursed to the seller. While I disagree with the usual way that resale companies calculate them, they will ask you to pay some or all of them. It should be included in your contract, just read it. Normally for this situation they ask you to pay the 2011 fees for the points that just became current but not for the banked points, in this case, that is reasonable. Thus you should add roughly $1000 (200 points per year) to the purchase price and closing costs to get the amount you'll be out of pocket in 6-8 weeks.

 

[dmoore22]

It sounds like some information may been omitted in the sale. With our initial resale purchase we were informed upfront that we would be responsible for the dues. With our second purchase part of the selling point was that the seller would cover the dues. In both cases we knew up front what responsibility, as the buyer, we had for the dues.

 

[JimMIA]

The current owner has paid the 2011 dues for points that they won't be able to use. They will expect you to pay them what the dues cost.

Bill

Not necessarily, Bill. It depends on what the sales contract says. From OP's description, it sounds to me like the seller had paid the MFs and did not expect any reimbursement.

It could be either way. The last contract I sold, I didn't ask for reimbursement because I was comfortable with the overall deal.

 

[JimMIA]

Part of your closing will include an amount for dues reimbursed to the seller. While I disagree with the usual way that resale companies calculate them, they will ask you to pay some or all of them. It should be included in your contract, just read it. Normally for this situation they ask you to pay the 2011 fees for the points that just became current but not for the banked points, in this case, that is reasonable. Thus you should add roughly $1000 (200 points per year) to the purchase price and closing costs to get the amount you'll be out of pocket in 6-8 weeks.

CONGRATULATIONS on your 25,000th post!

 

[WDW99]

Part of your closing will include an amount for dues reimbursed to the seller. While I disagree with the usual way that resale companies calculate them, they will ask you to pay some or all of them. It should be included in your contract, just read it. Normally for this situation they ask you to pay the 2011 fees for the points that just became current but not for the banked points, in this case, that is reasonable. Thus you should add roughly $1000 (200 points per year) to the purchase price and closing costs to get the amount you'll be out of pocket in 6-8 weeks.

"buyer is responsible for MF beginning Jan.2012. Seller will be responsible for 2011 MF, including any late fee assessed" "seller to pay $50.00 Estoppels Fee to Disney".

So it would appear that they are paid (or will be). I made that a point when I made an offer. Which is why I made it 95 and not 90.