how much to offer for resale purchase

[kocar]

I've noticed in looking at the various resale sites that some prices say "offer" next to them. When making an offer on a listing, is there a rule of thumb for how much to offer or do you have to offer the asking price in order for DVC to accept it?

 

[ryoung]

Right now it looks like the important number is not what the seller is offering or what he/she will accept, but what is the clearing point at which Disney will not exercise its ROFR. Looks like it is around $71 or $72 a point.

Randy

 

[kocar]

Thanks for the clarification. In reading some of the back posts I've missed over the past week. I see now that is a big issue for some purchases. It seems they look at whether or not you are willing to pay the maintenance fees that have been incurred as well, if I'm understanding things correctly.

 

[SlyHubby]

Originally posted by kocar
It seems they look at whether or not you are willing to pay the maintenance fees that have been incurred as well, if I'm understanding things correctly.

I doubt maintenance fees have anything to do with it. Regardless of who pays maintenance (you the buyer or the seller), DVC is not paying the maintenance fees. If the contract sits waiting to be sold, the current owner pays maintenance. I'd believe it is a nonissue.

I think the only thing the DVC ROFR is based on is whether they think they can make money by taking it, and the fact that they are trying to support a certain level of price/point. If they don't provide a level of support, how in the world will they be able to justify or convince people to buy the next resort at an even higher price/point?

 

[Disney1fan2002]

I doubt maintenance fees have anything to do with it. Regardless of who pays maintenance (you the buyer or the seller), DVC is not paying the maintenance fees. If the contract sits waiting to be sold, the current owner pays maintenance. I'd believe it is a nonissue.

No, I think the maintenance fee has alot to do with Disney deciding to execute ROFR. I was talking to my realtor at TTSS concerned that my offer may not be in the "safe" zone. He saw what I offered per point $72..."ok" saw that it came with 150 banked points..."still ok" then he asked what I as the buyer was going to pay for maintenance...I told him 1/2 of 2003. "ugh, could be a problem" So, it seems from his perspective anyway, the contracts that Disney takes back or declines has much to do with the year's maintenance fees. Maybe if the contract states that the buyer has to reimburse the seller 100% of any fees paid for 2003, then Disney won't bother. Because that means they have to send the seller a check. If the contract states that the buyer pays half the fees, Disney just has to send a check for 1/2 the amount, then turns around and resells the conract and gets the whole years maintenance from the new buyer. So, they already had the previous owner pay half, and the new owner has to pay all. That is .5 over what Disney usually gets.

I am not saying that the maintenance fee is the only thing Disney looks at when deciding. I am saying, at least from TTSS point of view, it plays a role in the decision.

 

[kocar]

In light of these last two posts, if I have a BCV listing and offer $74/pt as requested in listing, June use year, I should obviously offer to pay the maintenance fees for this year. Would it be feasible to then ask the seller to cover the closing costs or would Disney look at that as well?

Starting to see the light (I think).



Thanks for all the help with this!

 

[JOC]

Would it be feasible to then ask the seller to cover the closing costs or would Disney look at that as well?

You can always ask the seller to pay closing costs but Disney would look at that also; they break everything down to see exactly who is paying what on the contract.

 

[JimC]

When you buy from Disney you pay maintenance fees prorated from the date of the sale (not closing) to the end of the year. But I don't see how the maintenance fees matter to Disney in ROFR. Maintenance fees are part of the operating budget of the resort. Wouldn't that affect the members and not Disney?

I suspect Disney buys or waives to have inventory for the Guides to sell at other resorts (but only where they have demand -- possibly influenced by their wait list); to create a market floor that potential buyers must exceed to get a contract; and, to profit from the turnover in membership.

From what I can tell Disney appears to put the floor at 80% to 85% of the rack point rate depending on the resort being sold. So at $84 that would put the ROFR between $67 and $72. A contract at Vero Beach might possibly close at a much lower price than the equivalent contract at VWL.

When we bought our resale a year ago, we offered at what we thought the ROFR price was and asked the seller to pay all closing costs and the current year maintenance fees. We closed with no problems.

 

[Boardwalk III]

I recently (within past month) closed on a 150 point BWV resale @$72 per point. I did pay closing costs but did NOT pay maintainence as there were only 20 points remaining from current use year

 

[mickeyc]

The issue of maintenance fees is subject to the negociation process between the buyer and seller. Disney will not send anyone a check. Once the fees are paid any reimbursement would have to come directly from the seller.

However, if you are getting a resale at $72 per point and the contract is coming with 150 points it sounds like you recieved a good deal. As part of the deal if it were my contract I would expect to be reimbursed because you would be using the points.
It was noted above that a contract with 20pts remaining is less of any issue since there are so few points remaining.

Sometimes the closing cost is split between the parties. Good luck!