Made an offer, mulling the counter offer.

[luckyman_apd]

So I made an offer, and I'll admit it was a low offer. I fully expected a counter offer. The counter offer only came down $3 from the listing. I was hoping they would come down around $8. So here I sit with what I'm told is the lowest they will go. What I was hoping would be the highest for me to go is $5 less than what they say is their lowest. For 125 points, we are only talking a difference of $675. They do have most of the 2011 points available to be banked, but they must do it this month for us to use them.

I'm considering just going with their amount. My mother wants to join us on our next trip, and the bank points would cover the added points to upgrade to a 2 bedroom for her to stay with us (and my stepfather of course). IF we didn't have those banked points, we'd be renting points to get her a studio. The price of renting the studio is MORE than the $675 to just get this contract. So I'm kind of thinking it might be stupid for me to pass on this, and just pay the extra $675, be done with it, and get this contract that suits us perfectly. Any suggestions? I'm trying not to give too many details as I don't know what is allowed to be posted. I thought I saw somewhere that you can't post the details.

 

[js]

So I made an offer, and I'll admit it was a low offer. I fully expected a counter offer. The counter offer only came down $3 from the listing. I was hoping they would come down around $8. So here I sit with what I'm told is the lowest they will go. What I was hoping would be the highest for me to go is $5 less than what they say is their lowest. For 1225 points, we are only talking a difference of $675. They do have most of the 2011 points available to be banked, but they must do it this month for us to use them.

I'm considering just going with their amount. My mother wants to join us on our next trip, and the bank points would cover the added points to upgrade to a 2 bedroom for her to stay with us (and my stepfather of course). IF we didn't have those banked points, we'd be renting points to get her a studio. The price of renting the studio is MORE than the $675 to just get this contract. So I'm kind of thinking it might be stupid for me to pass on this, and just pay the extra $675, be done with it, and get this contract that suits us perfectly. Any suggestions? I'm trying not to give too many details as I don't know what is allowed to be posted. I thought I saw somewhere that you can't post the details.

I just want to wish you luck. You say "only talking a difference of $675" so it really isn't that much to you, I would go for it.

If you do not want to pay the extra, you have to decide if loosing the contract over $675 would be worth it to you? If you can sit and wait for the perfect one, fine. If this has everything you want and points that can be banked and a trip coming up, then I would go for it.

I purchased both my contracts resale in 2009 and when I did, the unused points were already banked (I believe two years worth, which let us get two balcony cabins on the Disney Dream 5 night cruise this past July). Perhaps you can say you will pay their price with the stipulation that you will do so once the points are banked? I know this is something you want done so how can you know they will do it for sure?

Good luck!

 

[taaren]

I'd counter their counter offer at the price you want ... even if it means they come down another $3 to $5 that would be worth it. Its a buyer's market right now, especially if I'm reading your post right and its on a 1000+ point contract ...

 

[disneynutz]

Buying a large contract limits the amount of buyers when you go to sell and usually they are priced well below market. We own 26 contracts and the average size is 50 points each.

If we feel like selling off a resort or reducing our holdings we just sell a contract or two. In your case is all or none.

Bill

 

[luckyman_apd]

Buying a large contract limits the amount of buyers when you go to sell and usually they are priced well below market. We own 26 contracts and the average size is 50 points each.

If we feel like selling off a resort or reducing our holdings we just sell a contract or two. In your case is all or none.

Bill

Wooooaaaahhh. NO, it's not a 1225 points! That is a double 2! It's 125 points. HA! I WISH I had the money that could by 1225 points!

 

[disneynutz]

Wooooaaaahhh. NO, it's not a 1225 points! That is a double 2! It's 125 points. HA! I WISH I had the money that could by 1225 points!

Disney does sell very large contracts, usually to companies and rich people. For a minute I was going to try to become your new best friend but with only 125 points you can forget it!

Bill

 

[CMOORE185]

Another way you could go is to negotiate the closing costs. When we made an offer a few years ago the seller didn't want to move anymore on price, so I said OK you pay the closing costs, we ended up spliting those. I guess it's a mental thing that they wouldn't move any more on price per point but would pay some closing costs.

 

[blondietink]

You don't want to go too low or Disney could exercise their ROFR.

 

[AJA]

For a $675 difference, if banking the points now is part of the contract, we would go for it. IMO the banked points make up for the $675 kwim?

 

[chalee94]

You don't want to go too low or Disney could exercise their ROFR.

ROFR is not really the threat it used to be. only a bit of a risk with BCV contracts and then still only "a bit."

 

[Disney Realtor]

If it were me, I'd counter $1 above my original offer to show them that they need to come down a little more. I'd also tell the broker that this is my "highest and best offer".

Aren't there more contracts available?

It's a buyers market at the moment. If a seller isn't willing to negogiate, then move on to another who is!

 

[luckyman_apd]

If it were me, I'd counter $1 above my original offer to show them that they need to come down a little more. I'd also tell the broker that this is my "highest and best offer".

Aren't there more contracts available?

It's a buyers market at the moment. If a seller isn't willing to negogiate, then move on to another who is!

Unfortunately right now no, there aren't any other 125's I am seeing. There is 1 but the Use year is the worst possible one for us so there is no way. Plus, this one has banked points. I would like to be a better negotiator, but I'm also thinking that I might regret it if someone else bought it. We orginially were looking for 100 points, but after review our needs, we thought the 125 was a better fit, and with a points reallocation coming, I don't want to end up short on points next year. We plan to travel during early Nov, and that is is the same category as the food and wine festival and the rumors running around are that the food and wine time are going to get bumped up.

I'm going to try to have them cover closing costs while meeting their $95 price. That knocks it down some for me. We'll see what they say.

 

[blondietink]

Since there are banked points within the contract, I would be willing to go higher to meet the seller. Many of the resale contracts are stripped of points in the current and future use year, which is why we have not seen anything to buy via resale.

 

[CarolMN]

$675 doesn't like much if you divide it over the remaining life of the contract. Dues will end up being a lot more than the initial purchase price.

If this is the one you want -and it sound like it is, I'd recommend you accept the counter with the provision that they bank the 2011 points.

Good luck!

 

[luckyman_apd]

So we did it. I called and asked if we meet their price, would they pay closing costs. Nope. The seller told her not to call him back with another counter, that was his lowest he would go, and was willing to a wait for that price or better. We wanted the June use year, and I haven't seen that very often in the resales. At least not on the points we want. She also said the seller called this the "selling season", and she said the next few months are usually their busier time. I don't know if true or not, but we want it, want to close sooner than later to book our Nov trip. Wish us luck! And thanks for all the help and advice.

 

[Sandisw]

I agree with Carol. If this is what you want and you would be disappointed if you didn't get it, then its worth the $675.

Finding the right size contract with a UY you prefer can take time and when they do come along, sometimes you have to just take it and not worry about getting it at rock bottom.

Good luck!

 

[js]

Did you make your offer? Good luck!
Were the points already banked or do they still have to do that for you?
Maybe I misread your OP.
Keep us posted and good luck! I know it is all very exciting!

 

[BeccaG]

Wooooaaaahhh. NO, it's not a 1225 points! That is a double 2! It's 125 points. HA! I WISH I had the money that could by 1225 points!

I was going to say, " if you are buying 1225 points and are worried about $675 then maybe you are worried over small potatoes in relation to the overall cost!" But 125 makes a bit more sense!

 

[Pennyguy23]

I would say the banked points make up for it. Good luck

 

[lark]

The best way to go into a buy or sell transaction, if you have the luxury, is to decide the dollar amount at which you're willing to buy or sell first.

Too often, parties to a negotiation get overly focused on whether they are putting more money on the table than they have to to get the deal (or conversely, leaving money on the table). To me, that's a lot of wasted energy. If one is willing to pay X, getting worked up because you think maybe with more rounds of negotiation you could get it for X minus 500 is a spot that leads to more angst than the $500 might be worth.

The thing that makes it hard, though, is when you get new information. For example, it may be all well and good for me as a seller to say "I won't go under $90/point" when I get an offer at $85. But if, since I made my decision, several comparable units have sold for $86, I did a poor job of picking my number. Part of the calculation has to be assigning a value to the points that come with the contract. You might say, "I'll pay $88 for a contract with all 2012 points available," and then pick a number you'll pay for more points or deduct for fewer points. I think $8 is a reasonable number -- it's about half way between the dues on the points and the rental value of the points, roughly speaking.

So, if these were my touchstones, I'd be willing to pay:

For a 100 point contract, with all points coming in 2012: $8800.
For a 100 point contract, with 50 bankable 2011 points: $9200.
For a 100 point contract, with 50 2012 points borrowed: $8400.

Etc.

If you don't have immediate pressure to make a reservation, gather all the information you can and pick the best number you can, and if you can get to it, great, and if you can't, there's other fish in the sea. If you did your homework right, it will serve you well.