Is this a really bad idea?

[CarolMN]

Add me to those who think it is wrong to make an offer in the circumstances you describe.

If this contract is important to you and the uncertainty is making you crazy, consider contacting the broker and asking to increase your offer by $1 or $2 per point. As long as you get it done and submitted before the deadline, you will be fine. Maybe another $200 or $400 dollars would be worth your peace of mind, and that way no one else would suffer for your desire to hedge your bet

 

[lizanne]

Personally I don't think I would do it, but I'll bet people do it all the time without thinking twice. Since you are thinking about it, I'm guessing it's not something you would normally do (not consider the other party) so you should probably go with your gut.

if we don't get a resale contract before 3/20 we are not buying direct, and probably won't buy resale; so this is all or nothing for us.

It's none of my business, but I wonder what part of the new resale contract restrictions bothers you. If you're just worried that additional restrictions will be placed on resales, wouldn't that require another "declaration" and a new date?

Or am I missing something?

I hope things work out the way you want.

 

[mjc2003]

It's none of my business, but I wonder what part of the new resale contract restrictions bothers you. If you're just worried that additional restrictions will be placed on resales, wouldn't that require another "declaration" and a new date?

Why would it require a new declaration and a new date? What if any further restrictions are announced on 3/21, and apply to any resales henceforth? I don't see them having restricted contracts for 6 months and then another date where they further restrict contracts. I think they will say anything bought direct or resale before 3/20 are essentially the same, anything bought resale after 3/20 will be limited in whatever tiered system they apply, assuming that's the way they go.

As far as what's currently known about the new contract restrictions, nothing bothers us per se; but, I worry about what will happen after 3/20. Also, even though it's not a practical cost usage of points, we may want to use the points for a cruise, who knows. But most of our concern is the unknown.

In any event, we would have to take a step back and reconsider our options, and see how this plays out with resale b/c we are not spending the money it would cost to buy direct under any circumstance. We are planning a big trip in the fall and currently have cash reservations totaling $8500. We would cancel those and use the points for our vacation sometime in the fall. If we take a step back, we are going to use the cash reservation. If we spend $8500 now on our trip, I don't see us coming home and committing $17,000 towards future trips.

Lot's to consider. Bottom line is this: We really want a BCV contract with no restrictions. Hopefully this will all work out.

 

[lizanne]

I hope you weren't offended.

We bought into DVC in '92 when it was much less expensive. I'm not sure I'd even consider it at today's prices. It's a lot of money.

Actually we did pretty much the same thing you're talking about. We had a cash reservation and a friend told us about DVC. We were able to cancel the cash ressie, buy into DVC and use the points for that trip.

I'm fairly naive and I just thought that if someone bought a resale contract after 3/21 it would state what they could and couldn't do with the points. I didn't think that could be changed.

I wish you the best.

 

[arthur06]

I hope you weren't offended.

We bought into DVC in '92 when it was much less expensive. I'm not sure I'd even consider it at today's prices. It's a lot of money.

Actually we did pretty much the same thing you're talking about. We had a cash reservation and a friend told us about DVC. We were able to cancel the cash ressie, buy into DVC and use the points for that trip.

I'm fairly naive and I just thought that if someone bought a resale contract after 3/21 it would state what they could and couldn't do with the points. I didn't think that could be changed.

I wish you the best.

The contract just has to be submitted to Disney for ROFR by 3/20.

 

[mjc2003]

I hope you weren't offended.

We bought into DVC in '92 when it was much less expensive. I'm not sure I'd even consider it at today's prices. It's a lot of money.

Actually we did pretty much the same thing you're talking about. We had a cash reservation and a friend told us about DVC. We were able to cancel the cash ressie, buy into DVC and use the points for that trip.

I'm fairly naive and I just thought that if someone bought a resale contract after 3/21 it would state what they could and couldn't do with the points. I didn't think that could be changed.

I wish you the best.

Lizanne, I was not offended. I appreciate the feedback. The purchase price buying direct is simply too much for how many points we want, so we feel like resale is our only option. You are right about the 3/21 date....my fear is that, on 3/21, they are going to announce further restrictions on resale contracts to force people to buy direct.

 

[Pirate Jack]

I would not put an offer on another contract and then cancel if the first comes through. I know that it is tempting to cover all bases but....... I am a firm believer in what goes around, comes around. If it is not something that you would like done to you, then don't do it. I understand that others may back out for whatever reason but... that doesn't make it right. Just my opinion.

 

[JimMIA]

My biggest holdup is fairness to the seller.

I'd hate to read the tortured logic that says it's ethical to make an offer you have no real interest in following through on, drag an innocent seller past the 3/20 deadline, and then reneg.

The only way that can be justified is, "It's all about ME."

However, like I said, people have 10 days to back out for any reason. We almost backed out from this one to make an offer on another contract, and again, I was told this happens all the time.

You can rationalize anything.

 

[GrumpysFamily]

I think you are over-thinking this one. $84 per point is a fair price for BCV and under "normal" circumstances, one likely would not think twice about it not passing ROFR. However, I completely understand you anxiety. We just sent our closing documents to the title company on a 150 pt contract at BCV purchased for $84 per point. I made a full price offer to the seller because I feared the ROFR process and did not want the fact that some of 2010's points were banked and part of the sale result in Disney purchasing the contract. I stressed for three weeks straight despite the fact that all the research I did indicated we should pass the ROFR period without incident. Honestly, I would be shocked if Disney purchased this contract back. But, I do not think it is wise or, honestly, ethical to make an offer on another contract in the interim if you plan on breaching the contract and backing out of the purchase if the BCV contract works out.

 

[mjc2003]

I would not put an offer on another contract and then cancel if the first comes through. I know that it is tempting to cover all bases but....... I am a firm believer in what goes around, comes around. If it is not something that you would like done to you, then don't do it. I understand that others may back out for whatever reason but... that doesn't make it right. Just my opinion.

Well said. Thank you.
I feel like covering all bases is not just tempting, it's my responsibility. But, maybe that's because I've been burned many times in real estate transactions.

 

[mjc2003]

I think you are over-thinking this one. $84 per point is a fair price for BCV and under "normal" circumstances, one likely would not think twice about it not passing ROFR. However, I completely understand you anxiety. We just sent our closing documents to the title company on a 150 pt contract at BCV purchased for $84 per point. I made a full price offer to the seller because I feared the ROFR process and did not want the fact that some of 2010's points were banked and part of the sale result in Disney purchasing the contract. I stressed for three weeks straight despite the fact that all the research I did indicated we should pass the ROFR period without incident. Honestly, I would be shocked if Disney purchased this contract back. But, I do not think it is wise or, honestly, ethical to make an offer on another contract in the interim if you plan on breaching the contract and backing out of the purchase if the BCV contract works out.

Sounds like you can commiserate with the waiting game. Figures they'd be only ROFR'ing BCV, that certainly adds to the stress....Thanks for the reassuring feedback. Much appreciated.

 

[mjc2003]

I'd hate to read the tortured logic that says it's ethical to make an offer you have no real interest in following through on, drag an innocent seller past the 3/20 deadline, and then reneg.

The only way that can be justified is, "It's all about ME."You can rationalize anything.

Jim, my logic isn't tortured. I came here asking "if this was a bad idea", so obviously I didn't predetermine the ethicality of my thought process. And if it was "all about ME", I doubt I'd even be here asking. I am trying to make a sound financial investment on behalf of my three biggest responsibilities in life, namely my wife and 2 daughters. I am spending $18,000, so have every right to evaluate my/our best interest. And I have read many threads on here about issues with sellers, sellers backing out, sellers upping the price after full price offers were made, sellers not responding to agreed contracts, sellers not responding to offers, and, most recently, a seller who waited 9 days before backing out of a deal b/c they didn't consider that they were losing money on the contract and didn't have the resources to cover the shortfall. So not all sellers are "innocent".
There is a reason why real estate contracts are long, detailed and have to be signed by both parties.

Good day.

 

[Starshine]

I am a firm believer in what goes around, comes around. If it is not something that you would like done to you, then don't do it.

This exactly. Karma will get you every time.

 

[KGD]

MJC2003..........
Have you heard any news on your contract yet? I see where some folks have heard back that submitted their contracts on 2/22.
Still wishing you good luck!

 

[Dean]

Question is, is it a terrible idea to make another offer the week before, say on 3/17, and get it into ROFR by the 3/20 date, and then cancel if this one goes through since I should know within 10 days? I don't want to screw the seller, but we will buy if the 1st deal falls through, and I feel like any contract still sitting that week is probably not going to move before 3/20 anyway.
I feel like this is bad form. But, we want to get a contract before 3/20. What to do???

It bothers you because it is bad form and is a dishonest approach unless you are upfront and make the second one contingent on the first failing.