Making a reasonale offer on resale contracts

[Jetsetter42]

I'm looking to buy a small (100) point contract off of resale to dip our toe in the DVC water. I've read a ton of background material, all of the guides, most of these forums, so I feel prepared. The one question I have for those who bought resale is, how low below asking price is reasonable to offer? Any advice? We are really flexible on use year and already have a cash trip booked for next month so immediate points are not important.

 

[jkersman01]

I'm looking to buy a small (100) point contract off of resale to dip our toe in the DVC water. I've read a ton of background material, all of the guides, most of these forums, so I feel prepared. The one question I have for those who bought resale is, how low below asking price is reasonable to offer? Any advice? We are really flexible on use year and already have a cash trip booked for next month so immediate points are not important.

In my opinion, I would compare asking price to the recent sales (look at ROFR thread for that one), bearing in mind that loaded contracts typically go on the higher end. Also, keep in mind it is a seller's market so some sellers may not move a whole lot from asking. You may find a few outliers but in my experience and based on my research, most are relatively fairly priced. Further, if you're trying to get a small contract (less than 100 points), be ready to pay asking price if you really want it because they move quickly.

Really, you never know what a seller's bottom line and what sort of negotiator they are- that's kind of what you're indirectly asking. Sorry I can't give you a more direct answer. Ultimately, I think the best advice is to contact a broker and get his/her input.

 

[Jetsetter42]

In my opinion, I would compare asking price to the recent sales (look at ROFR thread for that one), bearing in mind that loaded contracts typically go on the higher end. Also, keep in mind it is a seller's market so some sellers may not move a whole lot from asking. You may find a few outliers but in my experience and based on my research, most are relatively fairly priced. Further, if you're trying to get a small contract (less than 100 points), be ready to pay asking price if you really want it because they move quickly.

Really, you never know what a seller's bottom line and what sort of negotiator they are- that's kind of what you're indirectly asking. Sorry I can't give you a more direct answer. Ultimately, I think the best advice is to contact a broker and get his/her input.

I did review the ROFR thread and the sold prices (even recent ones) appear to be quite a bit lower on average than the asking prices I've seen. My thought was to start my offer at the lowest recent price I found on the ROFR thread.

I realize loaded contracts are more attractive and therefore command closer to asking price. But since I won't need 2013 points, I can probably concentrate on bare contracts and offer a lower price hoping to find a motivated seller. The flip side is probably to up the offer and bank/rent the points on a loaded contract.

 

[disneynutz]

The ROFR thread is just a small sample of resales and IMO they tend to be on the low side. Who wants to post that they paid more?

Bill

 

[Missyrose]

I did review the ROFR thread and the sold prices (even recent ones) appear to be quite a bit lower on average than the asking prices I've seen. My thought was to start my offer at the lowest recent price I found on the ROFR thread.

I realize loaded contracts are more attractive and therefore command closer to asking price. But since I won't need 2013 points, I can probably concentrate on bare contracts and offer a lower price hoping to find a motivated seller. The flip side is probably to up the offer and bank/rent the points on a loaded contract.

There hasn't been much difference in price between stripped and loaded contracts since the inventory of contracts dried up. OP, what you may have missed in all your research is that prices are at their peak from the past few years and so prices for all resorts are up and there haven't been many bargains to be had. You might be able to negotiate a little (don't forget MFs and closing costs), but you likely won't find many sellers going very low beyond their asking price.

 

[Jetsetter42]

So maybe now is not the time to buy. It might be better to wait until there are more contracts out there.

 

[Deb & Bill]

It's a seller's market right now. Especially for smaller contracts. If you don't offer something close to what the seller is asking, someone else will. And if you don't offer what they are asking, the seller might counter with the asking price.

 

[lovin'fl]

It won't hurt, though, to keep putting in low offers (that you feel comfortable with) and if someone bites you can go for it.

 

[NoleFan]

Another thing to consider in the current market is that the ROFR thread reflects contracts negotiated 30+ days ago. Prices have been trending up so what was negotiated 30+ days ago is quite possibly different than current market prices. It is a sellers market and small contracts typically sell fast as others have mentioned. Find a contract right for you at a price that you feel comfortable with.

 

[dcfromva]

It's a seller's market right now. Especially for smaller contracts. If you don't offer something close to what the seller is asking, someone else will. And if you don't offer what they are asking, the seller might counter with the asking price.

Basically, that is what happened when we sold our contract a few months ago. One of the early offers was so far from what we were asking that we thanked them for the offer and declined to make a counter offer. We figured we were so far apart that it would waste everyone's time.

 

[clutter]

Basically, that is what happened when we sold our contract a few months ago. One of the early offers was so far from what we were asking that we thanked them for the offer and declined to make a counter offer. We figured we were so far apart that it would waste everyone's time.

That happened to me as well. First offer was $25pp below asking. Just not worth discussion. Next two offers were closer to asking, so I countered to both at just below asking. Probably countered at or held on for asking, but I decided it wasn't worth it.

 

[francie57]

We have two contracts currently going through ROFR for the BW. We put in an offer on each that was $5/pt lower than the asking price plus no dues until Jan. One contract has the points coming on Oct 1 and the other is a Mar. use year and will basically have all of the 2013 points left. We were happy that both offers were accepted since we are still $45/pt below what Disney is asking for points at BW. We didn't want to go too much lower since I was afraid that Disney would take the points back if the offer was too low. Can't wait for Oct 4 to come around since that will be the 30 day mark for ROFR.

 

[crisi]

That happened to me as well. First offer was $25pp below asking. Just not worth discussion. Next two offers were closer to asking, so I countered to both at just below asking. Probably countered at or held on for asking, but I decided it wasn't worth it.

Its a good thing the broker responds to the offer. If I got one at $25 below asking I don't think my counter offer would make it past the obscenity filter

 

[kydisneyfans]

When we started seriously looking in July, SSR could be found in the mid 60s, AKL in the 70 range. Now SSR is in the upper 70s, AKL mid 80s for asking prices. We found a contract that had been sitting awhile for AKL and offered $4.50 per point off, they pay all 2013 taxes/fees, I take over in 2014. All 2013 points remain, along with a few from 2012.

The broker stated that was a decent starting point but be ready to negotiate. Within 24 hours it was approved and Disney has the contract for approval.

Looking at July prices honestly is too low, the prices have jumped that much that fast. I would look at fresher August numbers for a comparison, the tax records show about a $2.50 per point increase in resale between July/Aug. If what I am seeing with ads hold for September, that $2.50 number will be higher.

There is a top in these contracts, but nobody knows where it's at. Prices will fall at some point too, nobody knows when either. I look at it as we paid about 45% of what Disney wants, so although I could have paid $10 a point less last winter, I'm still paying well less than half what Disney is selling it for now.

Basically if you see a contract, make a reasonable offer, you never know. With the current market, trying to get a closing price from July is going to be tough.

 

[Deb & Bill]

Its a good thing the broker responds to the offer. If I got one at $25 below asking I don't think my counter offer would make it past the obscenity filter

A few years back, we had a contract for sale and we were offered about $20 below our asking price, we countered with our asking price, they came back again a bit more than their first offer, we told the agent, no. We still have that contract.

 

[JustTinking]

Most brokers will still work with you to put in bids that are lower than ask, but if you go too low too often you will find them less responsive. Contracts are going very fast out there, and often for full price. Since you are in no hurry, it wouldn't hurt to continue to audit the market, and jump in when it cools down some. The board is hoping later this year...

 

[CarolMN]

....(snip)....... and jump in when it cools down some. The board is hoping later this year...

Maybe the potential buyers are hoping for later this year, but I suspect the potential sellers are hoping prices continue to rise (or at least stabilize), LOL.

It seems logical that prices will come down at some point - after all the product expires in 30-50 years, but no one knows when that will be.

 

[LorieDisneyLover]

A few years back, we had a contract for sale and we were offered about $20 below our asking price, we countered with our asking price, they came back again a bit more than their first offer, we told the agent, no. We still have that contract.

With the current hot seller's market there seems to be some sellers 'testing the market' to see if they can possibly get an extremely high price.

We just closed on one contract that was reasonably priced and we offered close to asking price. We needed more points and another contract came up that was $25 more than the first one. So we put an offer in at $20 less than asking. Seller countered with his asking price. We tried again coming half way because the contract was exactly what we wanted. He denied it. Obviously, he wanted his asking price no matter how unrealistic it was. It's still sitting on that broker's list while several other similar contracts have gone to pending.

 

[RapunzelsGoodMom]

I offered about $17 below asking price and my offer was accepted without counter. HOWEVER, a couple of things were in my favor:

*My offer price was realistic based upon sales data - slightly low but not obscene compared to where the market was.
*The contract was overpriced and had been sitting on the seller's list for about a month and a half. I called to talk to the listing agent and they said they had only received seriously low-ball offers. So I put mine in and hoped.

So you really never know. But look at the full sales data and see the reality of the market. Also make sure that you are willing to walk away from quite a few. The contract I got was perfect...but I had offered on probably four before that one. No dice. But I wasn't going to feel like I had "overpaid" given the market pricing increases. I wanted to feel like I was fair to both myself and seller.

Good luck!

 

[crisi]

With the current hot seller's market there seems to be some sellers 'testing the market' to see if they can possibly get an extremely high price.

We just closed on one contract that was reasonably priced and we offered close to asking price. We needed more points and another contract came up that was $25 more than the first one. So we put an offer in at $20 less than asking. Seller countered with his asking price. We tried again coming half way because the contract was exactly what we wanted. He denied it. Obviously, he wanted his asking price no matter how unrealistic it was. It's still sitting on that broker's list while several other similar contracts have gone to pending.

He probably isn't that interested in selling it. Its a trial balloon - IF he can get his price, its worth selling, if not, he'll keep it.

I've had similar thoughts. I don't need to sell, but I'm not sure I need to keep my contract. Listing it costs nothing, and if I could get a really good price on it, I could rent points for far more trips with the gain + the dues savings than I intend to take with the contract any more.