Interesting resale experience

[Dean]

Some of the usual brokers have also refused to list contracts at a lower price, thus further controlling resale prices.

This is basically the setup and risk even when one uses a buyers agent for real estate if they are paid contigent on the sale and by the seller. You have to count on their ethics to a degree in all such situations including buying a home.

 

[Snurk71]

Similar situation with a BLT contract. The broker told me that the seller had already turned down offers higher than mine. I asked him to present anyway. The broker presented my offer and had an answer in about five minutes. Seller counter offered saying they would not go any lower than the counter offer, period. I declined the counter offer and told the broker I was walking away. Hung up the phone and within five minutes I get a call back from the broker saying my original offer was accepted. It all happened very quickly and I got the feeling the broker was trying to increase the final selling price, not the seller.

It may have been on the up and up but it didn't feel that way. I bought the contract anyway because it was a fair deal for current BLT prices.

Very similar experience with what others are calling the new brokers (ex dvd). My call back might not have been 5 minutes, but I told the broker my price was my price and if it didn't work out - no biggie, I'd just wait for another as I wasn't desperate fir points. Broker had previously tried convincing me why the sellers price was a good/fair number.

I had also made a couple offers on different contacts through his partner. That broker kind of talked down to me trying to me on current(list) pricing, essentially telling me my offer was too low to be accepted - but he supposedly did present I pushed him to.

 

[deide71]

I would imagine thes brokers are also recommending that the buyers not take the offer, but hold out for a better price. And to be fair, if a seller can wait it out, and demand exceeds supply this is good advice.

As a buyer, if you cast a wide enough net you will eventually find a seller that will accept a reasonable offer.

 

[jtwibih]

I'm reading all of these threads trying to get a better understanding of the DVC ownership process. Are all of these brokers (even the ones that are at pinned at the top of the board) playing these games? Is this common for those of you who put offers in?

 

[Splashboat]

I sold a 100pt BWV contract last fall. We had been watching the market for a long time and new prices were up. I was surprised when the broker tried to get me to list the contract for a few dollars less per point than I wanted. I stuck to my price despite him telling me it might not sell for a while. I sold the contract for the price I wanted within a week but I received 3 offers first. One offer was $12 per point less and he wanted me to counter. I didn't.
The broker tried really hard to get me to take the other offers. After thinking about it I realized it was only about $30 in his pocket and it seemed like he just wanted to end the process rather than keep drafting offers.

 

[luvdisneyland]

That sounds like the newest broker who are ex DVC sales people. That seems to have become a standard for them and reports are also that even full price offers will be turned in to a bidding competition. If it's not them but someone else them perhaps others are turning to it as well.

I can tell you when I listed a small contract I had six offers on the same day. To be fair to each buyer they asked each buyer to submit their best offer by the end of the day. Whoever had the best offer, got the contract. This isn't a "tactic", they are simply responding to a change in market. If the demand exceeds the supply, you will have these situations. As another person said, you are not required to get into a bidding war- figure out what you are willing to pay and stick with that. I know for me, I was very happy I didn't have to accept an offer that was $5 off my asking price. And yes, it was with the former DVC guides- they did a great job for me.

 

[mort1331]

That sounds like Fidelity, but I always recommend sticking with your highest and best price and not getting into a bidding war.

My second contract I bought from Fidelity. Listed at 80/point and bought at 61. So I cant say anything bad about Fidelity. They submitted my lowball offer and did paperwork super quick.

 

[deide71]

I can tell you when I listed a small contract I had six offers on the same day. To be fair to each buyer they asked each buyer to submit their best offer by the end of the day. Whoever had the best offer, got the contract. This isn't a "tactic", they are simply responding to a change in market. If the demand exceeds the supply, you will have these situations. As another person said, you are not required to get into a bidding war- figure out what you are willing to pay and stick with that. I know for me, I was very happy I didn't have to accept an offer that was $5 off my asking price. And yes, it was with the former DVC guides- they did a great job for me.

In your situation (small contract) I am not particularly surprised you had multiple offers. Your broker absolutely did the right thing by asking for best and final offers in a multiple offer situation.

I was surprised that a relatively stale listing (3 wks old...most are under contract within days) on a 160 pt SSR contract that was completely stripped suddenly had multiple offers. It seemed a bit fishy to me, but it must have been true, they did not accept my offer.

Ultimately it looks like this is a sellers market. This is great for owners, hopefully DVC contracts will continue to appreciate.

And I ended up with an accepted offer on a much better contract.

 

[GOOFY D]

Similar situation with a BLT contract. The broker told me that the seller had already turned down offers higher than mine. I asked him to present anyway. The broker presented my offer and had an answer in about five minutes. Seller counter offered saying they would not go any lower than the counter offer, period. I declined the counter offer and told the broker I was walking away. Hung up the phone and within five minutes I get a call back from the broker saying my original offer was accepted. It all happened very quickly and I got the feeling the broker was trying to increase the final selling price, not the seller.

It may have been on the up and up but it didn't feel that way. I bought the contract anyway because it was a fair deal for current BLT prices.

I had a similar experience with a broker. There are a couple I have dealt with that I think use what I would consider somewhat questionable tactics. I have really only found a couple of brokers (now moved to another company) that I am fully comfortable with.

 

[michelleiada]

When I was purchasing a few years ago I initially consulted with one of the popular brokers, I think the persons name was ****. When I presented an offer which was $10 less than listing price I was told that it may be insulting to the seller to offer that much below asking price. In my opinion...An offer is just that...an offer. It should be presented and up to the seller to decide. I didn't get a good feeling at all from this broker so I walked away and ended up with Fidelity. I found Sharon at fidelity to be awesome. She presented any offer I made without question and I always offered at least $10 under asking price. The contract that I bought was a loaded contract and finally purchased at $10 under asking price with seller paying closing costs and half of annual maintenance fees. obviously the market has changed a lot in the last three years because Today I could sell for a lot more than I paid for my contract.