DVC offers - education please :)

[lovethesun12]

When you offer on DVC, do you expect a counter? Or do you plan to turn down a counter?

I'd really like (wouldn't we all) a contract at ~90-92% of asking. Not sure if that will happen. I feel like if I offer lower to start, they might get offended, but if I offer 90ish%, they'll counter and I won't get what I want. lol.

Any suggestions? How much lower than asking do you generally offer? In my case, I'm not desperate for a contract and can wait. I would really like one at 90% though

 

[Toonses]

I haven’t bought dvc as of yet, but I’ve done a lot of research and I’ve negotiated for a used car (among other things) - which seems to have some parallels given that basic negotiation principles are the same at the end of the day. The best approach for negotiation imo is to go in with a all inclusive hard number you don’t want to go above and be fine w walking away.

Check the ROFR thread and go ahead and make your offer. Anything can happen. There’s plenty of folks on here that made many lowball offers before one got accepted. It only takes one.

 

[kevtlas]

I agree. Settle on a line you won't go over. One thing I keep in mind is what the contract offers. For example, if looking today and I am considering a contract that has a later use year (ie: September, October, December, etc.) with all 2019 points banked and all 2020 and 2021 points still available, I am willing to pay a little more since I know I will have the option to rent all three UY worth of points to offset the cost, or I can use the 2019 points for "free" stays. Either way, I consider it to be of higher value than a contract with no 2019 points or already used 2020/2021 points.

 

[miTnosnhoJ]

It varies case by case. If there is a listing and you make an offer at 92% and they have had no other offers for 2 months, they will usually counter. If there is a new listing and you offer 92%, and they have multiple other higher offers, you will never even get an email.
The key is for you to understand the market pricing as well as you can. You can do this by looking at the recent transactions on the Orange County Controllers website***, and looking at the ROFR thread.

***See my post here for how to do that. https://www.disboards.com/threads/w...esale-prices-are-headed.3797236/post-61930898

 

[Eric Smith]

When you offer on DVC, do you expect a counter? Or do you plan to turn down a counter?

I'd really like (wouldn't we all) a contract at ~90-92% of asking. Not sure if that will happen. I feel like if I offer lower to start, they might get offended, but if I offer 90ish%, they'll counter and I won't get what I want. lol.

Any suggestions? How much lower than asking do you generally offer? In my case, I'm not desperate for a contract and can wait. I would really like one at 90% though

I wouldn't make any hard and fast rules. Look at the contract and figure out the most you would be willing to pay per point. Once you do that, it's just a matter of negotiating tactics. You could either offer below your maximum and hope they counter below your maximum (or accept) or just offer at what your maximum is.

For a point of reference, we bought our DVC contract via resale back in November. It was listed for $107 pp, we offered $100 pp, they countered at $103 pp and we accepted.

I wouldn't stress out too much about it. Unless you're looking for VGC, there is normally a steady stream of contracts entering the resale market. In the current situation, the number of contracts available via resale will probably go up. Just be patient and stick to what you are willing to pay.

 

[CarolMN]

I'd just offer what I am willing to pay.

You will win some and lose some. If you are consistently losing, the market is valuing the contracts higher than you are willing to pay.

You will never really know if the seller was willing to settle for less than the accepted offer, unless he tells you (not likely). If your offer was for what you are willing to pay, does it really matter?

 

[MommaBerd]

You might enjoy reading this thread, too:
https://www.disboards.com/threads/thoughts-on-lowball-offer.3800126/

 

[Michelle Sinnott]

I just made my first purchase. The one I ended up going with was 100 SSR with all 2020 and 2021. It was list 105 I offered 90 and paying closing and dues. They countered back 99$ we went back and forth a couple times and settled on 96$ which I figured was fare.

 

[lovethesun12]

Thanks all! I think my issue as a “newbie” is I know exactly what I’m willing to pay already. So is it more common for offers to be accepted or countered, so should I offer maybe a little lower. I guess using percentages was not the best way I could have described it. Sometimes I’m uncertain should I just go with my highest price - is the general rule everyone counters that? Or should I go a little under my highest leaving some room for negotiating?

 

[Michelle Sinnott]

I would start definitely below where you want so you have some wiggle room if they counter. Unless you see one you really like and think it’s a fair price that might go quick you can offer full price. I feel like SSR there is so many out there you have many to choose from if someone doesn’t want to negotiate.

 

[heynowirv]

I just made my first purchase. The one I ended up going with was 100 SSR with all 2020 and 2021. It was list 105 I offered 90 and paying closing and dues. They countered back 99$ we went back and forth a couple times and settled on 96$ which I figured was fare.

I remember how that played out.

 

[Sandisw]

Thanks all! I think my issue as a “newbie” is I know exactly what I’m willing to pay already. So is it more common for offers to be accepted or countered, so should I offer maybe a little lower. I guess using percentages was not the best way I could have described it. Sometimes I’m uncertain should I just go with my highest price - is the general rule everyone counters that? Or should I go a little under my highest leaving some room for negotiating?

I think it goes back to it all depends. I have bid low on contracts that were not my first choice, but if I got them under my threshold, great...if not, it didn’t matter,

I am I process of buying BLT and I did offer closer to what I wanted to pay to start because it was perfect.

If you see a contract close to what you want to pay, decide if a few dollars is worth letting it go.

Going in with I have to try and getting off a certain percentage may Box in your thinking,

As mentioned, if you know X is the most you will pay for any contract at the resort you want, And you feel the contract at that price is worth that, then go in with it and tell broker final and best offer...Eventually, you will find a seller who agrees,

If you don’t, then you will need to adjust and consider your price and the market price are too far apart.

 

[Lorana]

Thanks all! I think my issue as a “newbie” is I know exactly what I’m willing to pay already. So is it more common for offers to be accepted or countered, so should I offer maybe a little lower. I guess using percentages was not the best way I could have described it. Sometimes I’m uncertain should I just go with my highest price - is the general rule everyone counters that? Or should I go a little under my highest leaving some room for negotiating?

I would start below. Take a look at the current offers out there in ROFR threads and historical pricing for the resort, because I would keep the lower still within the realm of reasonable given current pricing. I suggest that because if it's unreasonable they will counter higher, but if it's still a reasonable range - they are more likely to consider just accepting. At the same time, give yourself room.

Just some examples of my own experience:
I purchased a BRV 168-point resale last year. It was listed at $98, I offered $85, we settled at $93.
In December, there was a 120-point AKL contract listed at $110. I offered $104 and it was accepted immediately. Made me wonder if I should have offered lower!
Earlier this year, I made an offered of $88 on a SSR 100-point resale listed at $105. They didn't want to lower, but we eventually settled on $95 partly because I was going to walk away for a different contract elsewhere at $96.
Just recently, I offered $129 on a 100-point CCV contract listed at $148, they countered at $134, and while I debated trying to get it lower, I decided it wasn't worth the risk of losing a small point contract over $500.

 

[OKW Lover]

There are as many negotiation strategies as there are individual buyers and sellers. Don't worry about offending the other party. Go with what you can live with.

 

[Noodlez]

I offered double the difference on what I was willing to pay expecting them to come back at the half way point. They actually countered slightly lower than that so it was very good for me.

 

[glamdring269]

The best strategy is patience.

To caveat this slightly, you also need to know what you want and be willing to consider after monitoring the market that you might be gambling a few hundred $ to not see that perfect contract come back by for a long time (if ever).

 

[lovethesun12]

The best strategy is patience.

I've been watching on and off since 2016, so I think I might be a little to good at this one .

I agree about not gambling if I see the perfect contract. The sad thing is, I think it came REALLY early for me (like one of the first few days I started looking again). I put in an offer but it wasn't enough and it was sold by the end of the day. If I had my time back I definitely would have offered full price on that one.

 

[deedubb]

I think when most people list a contract, they have a price in mind that they will accept, and usually start pricing somewhere above that. Similarly, buyers do the same but offer below the price they are willing to pay. Most of the time, there will be counter offers by both parties until they both agree on a price. Starting a bid low is a reasonable strategy.

However, if you are looking for something very specific (certain # of points at a specific resort with a specific UY), and it comes up infrequently, do not waste time haggling too much. There is a good chance others may be looking for the same thing and while you are haggling, someone will buy it out from under you. If it comes up and the price is reasonable, I would offer full price right off the bat.

There are certain companies that may ignore your offer if it is considered low balling. Their loss. Just move on.

 

[Jaguar Skills]

We lowballed all of our offers and walked away when the seller wouldn't come down.

We just got our first contract

 

[ABE4DISNEY]

We lowballed all of our offers and walked away when the seller wouldn't come down.

We just got our first contract

You did a super job on that contract! I made 7 offers over the last 2 months for a SSR 125-175 point contract, and the lowest anyone would come down to was $94.

In the meantime, my family went in another direction--pushing for BCV--they wanted that pool!

I was feeling generous that day and succumbed to their desires, throwing out an offer on the lowest BCV I could find--truly just a whim--but it was eventually accepted after some negotiating. Much more than my initial plans for addonitis, but they are so excited about Storm-along-Bay, it is worth it!