How Low Would You Offer for Resale Contract?

[chrisw127]

We are looking to buy a resale contract at BLT. How low would you offer beneath the owners asking price? Would your offer be influenced by paying maintenance fees that year and closing costs?

If it helps, we are looking at around 250 points and are paying cash. I'm not in a hurry as I already have plans in place for a family trip in late August, but I don't really want to put in a lot of offers only to keep having them rejected.

Thank you.

 

[Indians24]

I'd offer whatever the majority of blt resales are going for, regardless of asking price. If their asking price is pretty reasonable in the first place, you can try going a little lower. I wouldn't offer anything that would be in danger of not passing ROFR though. For a good reference on pricing, check out Anyone Pass/not Pass ROFR Lately in the Purchasing DVC section.

 

[chrisw127]

I'd offer whatever the majority of blt resales are going for, regardless of asking price. If their asking price is pretty reasonable in the first place, you can try going a little lower. I wouldn't offer anything that would be in danger of not passing ROFR though. For a good reference on pricing, check out Anyone Pass/not Pass ROFR Lately in the Purchasing DVC section.

Thank you. I didn't even think to look there.

I'm not the greatest negotiator and I'm worried because I keep hearing that BLT owners who are selling usually owe more since it's a newer resort so they don't have a lot of room to negotiate.

 

[ELMC]

I'd offer whatever the majority of blt resales are going for, regardless of asking price. If their asking price is pretty reasonable in the first place, you can try going a little lower. I wouldn't offer anything that would be in danger of not passing ROFR though. For a good reference on pricing, check out Anyone Pass/not Pass ROFR Lately in the Purchasing DVC section.

This is both good advice and not so good advice. The ROFR thread is a great source of information for recent sales at any given resort. However, I think it would be a mistake to offer to pay more money so you won't be in "danger of not passing ROFR". Nobody knows for sure what criteria Disney uses when deciding to ROFR a contract. Paying more so you have a better chance of passing is, in my opinion, spending money that you don't need to spend. There have been many BLT contracts that have passed ROFR recently at $80 per point. Some have been advertised on here, others haven't. And although this isn't the norm, it can happen if you find the right seller.

You are right about BLT pricing, however. I feel that the prices are being kept high by the fact that so many contracts have balances and so sellers are forced to ask a certain price. When looking for a resale contract, I would strongly advise to read as many of these threads as you possibly can. It will give you a good idea of the marketplace. Also, the following variables should be factored into your calculations when making an offer:

• Number of contract points (larger contracts tend to go for less per point, smaller contracts tend to go for more per point).
• Number of banked points from previous years. These points have value and should factor into your calculations.
• Who is paying closing costs?
• Who is paying current maintenance fees? (It doesn't have to be the buyer).

Good luck doing your research and making your decision. Remember, just by buying resale you are already going to save a lot of money. The only question is how much.

 

[ELMC]

We are looking to buy a resale contract at BLT. How low would you offer beneath the owners asking price? Would your offer be influenced by paying maintenance fees that year and closing costs?

If it helps, we are looking at around 250 points and are paying cash. I'm not in a hurry as I already have plans in place for a family trip in late August, but I don't really want to put in a lot of offers only to keep having them rejected.

Thank you.

So my previous post was my generic advice about buying resale, but I feel like I should also address your questions directly.

Personally, I my offers are significantly below asking price. But I get rejected a lot. Like Revenge of the Nerds at a sorority party levels of rejection. Many people don't enjoy doing this, and so they offer more. It depends on the buyer. That being said, if you offer $5 or $6 below asking price and the seller rejects your offer, you can always go back and offer more. If you're not in a hurry, you have the time to find the right contract at the right price. However, if you're not excited about the process of making dozens of offers and getting dozens of rejections, find a good contract with a lot of banked points and offer asking price or close to it. It's hard to imagine someone saying no to a full price offer. Good luck.

 

[Missyrose]

Also, Disney is still actively selling BLT, so there's little reason for them to ROFR a BLT contract (as evidenced by the ROFR thread). Don't make a offer based on fear of ROFR.

 

[chrisw127]

This is both good advice and not so good advice. The ROFR thread is a great source of information for recent sales at any given resort. However, I think it would be a mistake to offer to pay more money so you won't be in "danger of not passing ROFR". Nobody knows for sure what criteria Disney uses when deciding to ROFR a contract. Paying more so you have a better chance of passing is, in my opinion, spending money that you don't need to spend. There have been many BLT contracts that have passed ROFR recently at $80 per point. Some have been advertised on here, others haven't. And although this isn't the norm, it can happen if you find the right seller.

You are right about BLT pricing, however. I feel that the prices are being kept high by the fact that so many contracts have balances and so sellers are forced to ask a certain price. When looking for a resale contract, I would strongly advise to read as many of these threads as you possibly can. It will give you a good idea of the marketplace. Also, the following variables should be factored into your calculations when making an offer:

Number of contract points (larger contracts tend to go for less per point, smaller contracts tend to go for more per point).
Number of banked points from previous years. These points have value and should factor into your calculations.
Who is paying closing costs?
Who is paying current maintenance fees? (It doesn't have to be the buyer).

Good luck doing your research and making your decision. Remember, just by buying resale you are already going to save a lot of money. The only question is how much.

Thanks, I've been reading here a lot.

I appreciate your input.

 

[chrisw127]

So my previous post was my generic advice about buying resale, but I feel like I should also address your questions directly.

Personally, I my offers are significantly below asking price. But I get rejected a lot. Like Revenge of the Nerds at a sorority party levels of rejection. Many people don't enjoy doing this, and so they offer more. It depends on the buyer. That being said, if you offer $5 or $6 below asking price and the seller rejects your offer, you can always go back and offer more. If you're not in a hurry, you have the time to find the right contract at the right price. However, if you're not excited about the process of making dozens of offers and getting dozens of rejections, find a good contract with a lot of banked points and offer asking price or close to it. It's hard to imagine someone saying no to a full price offer. Good luck.

When you go $5 or $6 lower, do you offer to pay maintenance and closing?

 

[ELMC]

When you go $5 or $6 lower, do you offer to pay maintenance and closing?

Everything is negotiable. You need to decide what your objectives are. If you're looking for a quick and painless deal, you can achieve that by paying more. The standard assumption is that asking price is the price per point plus closing and reimbursement of 2012 maintenance fees. That is what is implied in the offering. But that doesn't mean you have to offer it.

It's hard for me to give you specific advice because I don't know what your goals are. But I can tell you what I would do. I would find a number of contracts that meet my needs and offer roughly $10 less per point and no closing or maintenance fees. Then depending on what the seller countered at, a deal would either happen or not. But that takes a LOT of time.

My best estimation based on what I've read from you...if you offer $5 less per point, offer to pay closing and split 2012 fees, you should get something you want fairly easily. Good luck!

 

[Missyrose]

It's all negotiable. With MFs, take into account how loaded the contract is. Does it have banked points from last year? Or is it stripped of current year's points.

 

[bdoleary]

When you go $5 or $6 lower, do you offer to pay maintenance and closing?

There's been a lot of good advice given already - most DVC listings indicate the buyer is to pay the MF's and closing costs but this, just like the asking price is negotiable. Three things can happen to any offer you make - it can get accepted, countered or rejected. If you start from the position that you want the seller to pay the MF's and closing costs it gives you some room to negotiate and agree to pay them or split them.

I agree with the point that a lot of BLT owners may owe money on their points and could be upside down. The same is probably true for AKV owners, although those resale prices have definitely dropped recently. I think the big factor in keeping the resale price higher at BLT than other new resorts (like AKV) is location (MK, Monorail), and the basics of supply and demand. If there are buyers willing to pay in the 80's or 90's the seller has a better chance of holding out and getting an offer closer to their asking price. A seller that owes a lot of money on their points is probably not the right seller for you.

If time is on your side - pick a good broker to work with let them know what you're looking for and what you're willing to pay and if it's reasonable (i.e. within the range of recent resales) I think you'll have good success.

Good Luck!

 

[AJA]

OP, I've had some of the same questions.

Lots of good advice in this thread! Thanks to all those more experienced that are responding.

 

[chrisw127]

Thanks. I'm willing to offer about $5 less, closing, and 1/2 the maintenance fees. That seems reasonable. I don't really need it to be quick but I'd prefer it to be painless.

 

[ELMC]

Thanks. I'm willing to offer about $5 less, closing, and 1/2 the maintenance fees. That seems reasonable. I don't really need it to be quick but I'd prefer it to be painless.

Good luck and let us know how it works out for you. The more you offer the more you'll pay, but the more painless it will most likely be. It's a choice that only you can make.

 

[zavandor]

I wanted to make an offer $5 dollars below the asking price, but I ended to offer $10 less, because I wanted to have a margin to counter the offer again.
With my greatest surprise the seller accepted my first offer so I paid much less than I though.
So, it never hurts to offer low, it's a business transaction and you should not be scared to offend anyone.
However be prepared to receive a lot of "no".

 

[Indians24]

Thanks. I'm willing to offer about $5 less, closing, and 1/2 the maintenance fees. That seems reasonable. I don't really need it to be quick but I'd prefer it to be painless.

That's exactly how I feel which is why I said I'd offer the lowest price without being in danger of not passing ROFR. it took me so long to find the contract I wanted for a decent price that I didn't think it was worth the setback of not passing and having to start all over again. But, if you get the seller to agree to a great price and you don't mind starting all over again, I wouldn't worry about it being too low.

 

[a742246]

Before you bid.

I would suggest you understand "use year", and that you get the one you want. You may pay a couple of dollars more for the use year you want. But in the end it probably will be worth it.

 

[Sandisw]

I also think its important to decide for yourself what you feel is a "fair" deal and one you are comfortable agreeing to and starting there.

We did that when we bought BWV--we had a price range in mind and that is what we shot for when offering and eventually, agreeing on a deal. I wasn't concerned how I got at the final number--higher price per point, MF's covered, etc., but rather that the total cost of the contract was around the target we had set.

It did take 3 rejections before I got an owner whose idea of fair met mine. I ended up $5/below asking price but asked owner to cover MF's for 2011, even though I got all of my 2011 UY points.

Everything is negotiable so decide your comfort range and go from there. Good luck!!

 

[Disneylvr4]

I'd look at what other similar resales there are and what they are asking. 250 pts. is a bigger contract and can sometimes be a bigger draw to people and other times not so much since there always seems to be demand one way or the other (smaller/bigger contracts).

I can't imagine buying with cash would be a pro, seeing as even under a contract of credit the buyer is still getting their money from someone. I'm not sure how it works tho, but I can't imagine that would make a difference.

If you are really interested in something make an offer, won't hurt and all they can say is no right!? Good Luck!!