Making an offer on a resale contract?

[emilymad]

After much research I decided that I want to buy about a 100 point contract at SSR through resale. I made a couple of offers this week but nothing has been accepted. I felt that the offers were reasonable. My final offer was $50 a point with me paying dues and closing. To me this seems in line with the post 3/20 world and what has made it through ROFR. Does this seem like an ok offer?

I have no problem with waiting for the right contract and seller to come along but I want to make sure I am not being unrealistic!

From what Fidelity told me there seems to be lots of contracts where the seller still owes a ton of money and they didn't recommend me offering on those contract. That made sense to me but should I have pushed them to make offers for me anyway?

 

[vicki_c]

From what Fidelity told me there seems to be lots of contracts where the seller still owes a ton of money and they didn't recommend me offering on those contract. That made sense to me but should I have pushed them to make offers for me anyway?

Is that because they are suggesting that those sellers won't be able to bring enough $$ to the table to go through with the closing? Or are they saying your offer is too low for those owners because they won't be making back all of what they owe (which I'm guessing many financed owners wouldn't be almost no matter what currently reasonable price is offered). Obviously those questions are similar and intertwined.

I personally don't believe in real estate agents refusing to make offers on behalf of their clients - I think that's ridiculous in all but the most egregious low offer situations - and I would push them to offer whatever I am requesting.

 

[Presley]

Offer whatever you want. It sounds low for a 100 point contract, but if someone wants to get rid of their contract, they will take it.

 

[emilymad]

Is that because they are suggesting that those sellers won't be able to bring enough $$ to the table to go through with the closing? Or are they saying your offer is too low for those owners because they won't be making back all of what they owe (which I'm guessing many financed owners wouldn't be almost no matter what currently reasonable price is offered). Obviously those questions are similar and intertwined.

I personally don't believe in real estate agents refusing to make offers on behalf of their clients - I think that's ridiculous in all but the most egregious low offer situations - and I would push them to offer whatever I am requesting.

I took it to mean that my offer was too low as the sellers won't break even. They didn't actually say one way or the other but this is how I took it. They didn't refuse to take an offer to the seller but I didn't insist they do either. I think I need to revisit the information and maybe call them back.

The sellers were asking $70-$80 a point for SSR which just seemed crazy and based on the points available they obviously aren't using the contract either.

 

[jupers]

I paid $48 pp on a 142 point SSR contract with the seller paying MF's...I think you're being reasonable...and eventually someone will but..Can you jump up a few points maybe to 130???? Maybe that would help?

 

[JimMIA]

If Fidelity is reluctant to submit an offer for you, go to another broker and have them submit it. There are several other brokers who can handle sales of Fidelity listings, and vice versa.

 

[emilymad]

I paid $48 pp on a 142 point SSR contract with the seller paying MF's...I think you're being reasonable...and eventually someone will but..Can you jump up a few points maybe to 130???? Maybe that would help?

We really wanted to stick as close to 100 points as possible as we only plan to go every 2 to 3 years. I will have to double check the point charts. There seems to be lots of contracts at the 120 point amount.

 

[Pooh67_68]

I don't know if you are specifically looking for SSR but there are 3 100 point OKW contracts listed over at resales dvc
Jaki and Kin n are good people and go out of their way for their clients.

 

[Sandisw]

To me, if you feel that $50 is the price you would like to pay and are willing to wait until you find a seller who agrees with you, then I say continue to offer.

You just never know what a seller wants out of a sale and there will be someone who feels that your offer is fair. Remember, on a 100 points, paying $5 to $10 more per point is between $500 and $1000. For some, that will seem like a lot but to others, it might be worth it just to know the contract is sold.

If time goes by and you begin to want in sooner rather than later, then you always can offer more.

Good luck!

 

[emilymad]

Thanks all for the advice! I am going to keep my eye out until I see the right contract at the right price. I am in no rush!

 

[divehard]

I used Jaki and Ki nn tio buy a Fidelity listing. Everything went without a hitch. They will submit any offer that you make.

 

[DenLo]

I'd check the ROFR thread to see the average for SSR's recent sales http://www.disboards.com/showpost.php?p=40891206&postcount=732

It looks like the $48 paid by jupers was the exception versus the rule. Most SSR contracts have been selling in the $50+ range. I noticed another post that one listed as passing ROFR for 150 points for $52 per point, was cancelled when the owners realized money didn't cover their mortgage.

Smaller contracts in general of 100 points or less usually sell for $3 to $5 more per point than larger contracts. Usually even 150 point contracts fall into this category. Also if a contract is fully loaded, includes last year's and this year full allocation of points then you might expect to pay the higher rate. Whereas if a contract is stripped of all points until the next use year (sometimes even into the next used year when the owner has borrowed lots of points) then you might be able to purchase the points for less dollars.

You can submit a bid for any amount you want, but the owners have the right to refuse your bid. I've read on these boards that people have bid on three or more contracts trying to low bid. Sometimes it works and sometimes it doesn't.

 

[pkitty]

I sold two contracts last year.....one was SSR 160 points for 74.00...went through no problem.....the other was AKL 100 points 96.00.....WDW took those back. You never no when it goes to ROFR what is going to happen. I do know this much.....I knew what I needed to get out of the contracts and priced them accordingly.....I broke even on both. I sold them because I was not going to be using these points in the near future but having said that they where gone (both) in 24 hrs. I am currently looking to buy more points again but this is the one issue I am afraid of running into myself....can these folks who are selling make the deal work by accepting my lower offer and if they do will WDW snatch up my deal? I would never allow the timeshare broker to advise me on what I was going to offer despite all this......I would definitely switch brokers if I was you....all you can do is offer what you are comfortable with and roll the dice

 

[emilymad]

Thanks all for the advice! The more I think about it the more annoyed I am at the broker for not offering to take my offer to the other sellers. Partially my fault as I didn't push them to do so. I am learning a lot since deciding to buy DVC!

Looking at the data on the ROFR thread it looks like most of the activity is pre 3/20. I don't think that contracts are worth the same now as they were before. What that price difference is certainly debateable but $80 a point for SSR is way more than recent prices.

I will keep watching the listings and wait for the right contract to come along.

 

[dbs1228]

On the ROFR thread a new offer for SSR was just excepted 150 points 50.00pp coming with 300 points 2011 points, 150 coming in 2012. Those contracts are out there.