Making an Offer on a Resale?- Update: offer in!

[msteddom]

Update- I have made an offer on a 50 point contract at BWV. Now I'm waiting for all the paperwork. Thanks for the advice everyone!

I am ready to make an offer on a resale contract! Of course I make the decision on a Saturday night, and will have to wait until at least tomorrow, and maybe until Monday to do anything about it. Anyway, is there anything I need to keep in mind when making an official offer? Could someone walk me through the process? Thanks!!!

Melissa

 

[jekjones1558]

I think it is better to offer higher dollars per point and have the seller cover all dues and closing costs. This may make it less attractive to Disney for ROFR. Your agent may need to explain this to the seller (at least one of our resales the seller just didn't "get" it). Good luck!

 

[bookwormde]

Price is always first on everyone’s list. Also, duration of offer, specifications of the contact to be purchased (resort, number of points, expiration date, UY, number of points and status of points for each UY, status of maintenance fees, lien status etc.), any actions required of the seller before settlement (i.e. banking points), maximum days to settlement without buyer extension, settlement costs, financing qualification if needed, down payment escrow amount and holding agent, brokers name and services being provided. Sometimes there is a separate contract between you and the broker, which covers issues that are just between you and the broker.

I am sure there are more but this is start.

bookwormde

 

[Bell30012]

jekjones1558, an excellent suggestion. Thank you.

 

[Rileygirl]

Good contracts go fast. The ones that sit on the brokers sites for weeks tend to be the 'turkeys' imho. (priced too high, high point contracts, stripped contracts, ect.)

If the contract you see if perfect for you - go for it. If there is something you are settling about (not good use year, stripped of points, not enough points, too many points) then instead of making an offer, why not contact some brokers and tell them what you want exactly, and see if they can find it for you. Or, as soon as a 'hot contract' comes in, they email you before it gets listed on the site. Be ready to offer right away though - have your budget set in your mind and stick to it!

I read on some thread here that one Dis Vet stipulates the amount of time the seller has to sign back the offer to you, three days or something like that. The reason being is a seller can sit on your offer for a week, not signing back the offer, waiting to see if they get a better offer. So, the three day stipulation makes sure they dont do that.

Brokers work on the weekends. I started my process on Labor Day monday! (my poor broker : ) Go ahead and email your questions or make an offer today, I bet they answer back very quick.

Disney has not been active in the ROFR lately it appears. However, a good broker will tell you how to stack the cards in your favour to pass ROFR. Its not just price per point according to him. I used **** from **********.com, and helped me put together the offer after he found the contract. (Its such a good deal for me, so much so I wonder if it will pass )

One thing I have learned after my offer was accepted and sent to Disney for ROFR..... dont forget exactly what price per point is....

What I mean, I was so busy trying to get the best price per point I could, I lost site of the fact what 1 buck per point meant on my contract. It meant 270 bucks on a $24000 contract. If I went through rofr with my contract being at 90/pt, I think I would not be so worried right now. If this deal gets squashed, I know I will have lost it over 270 bucks, and will be super mad at myself right now. So, try and get a good deal, but remember, what exactly does that one extra dollar per point going to cost you?

Its like, DVC points are like Vegas gambling chips. Why do Disney and Vegas both take your money, turn it into something that you does not look like money (ie a point or a chip)? Because people stop thinking about them as money, just objects, and then they are much more likely to spend them! Here I am, waiting to get a lovely 270 pt contract, and I am thinking - huh- gotta get me some more of those points. Maybe a 100 pointer in the next year. I am not thinking - I need to spend another TEN GRAND, and then commit to 500 bucks a year for the next 35 years of my life!!!

Hmm, Disney and Vegas operate a little bit the same way,,,,

Ok, I really need to pass ROFR, and then I can get on with my life.

Good luck on your purchase!

 

[BWV Dreamin]

Some brokers DO NOT work on the weekends. There are no steadfast hard rules in purchasing resale. EVERYTHING is negotiable. Every sellers situation is different, you can't assume certain offerings will/will not be accepted. Get everything in writing up front. I have had excellent luck in resales. However, I am on my 3rd offer for a small contract, so no luck yet!! Its a numbers game, eventually I will find a seller who will take my offer. If one is patient, it will pay off. If you don't want to play the game, just pay full retail and get it thru Disney. Simple as that.

 

[Mouse511]

Hi Melissa, we recently closed on a Saratoga Springs resale contact. We went through the Timeshare Store and highly recommend them. The process was very smooth, fast and the staff was very helpful. Here's the timeline of our recent purchase:

7/30 - Owners accepted offer and we received an email with all the necessary documents to sign.
7/31 - Faxed completed Documents to TSS.
7/31 - Contract specs sent to Disney for ROFR.
8/2 - Sent Deposit.
8/4 - Deposit received by TSS.
8/7 - Received Escrow documents.
8/8 - Faxed Escrow Documents.
8/9 - Received email from TSS passing ROFR
8/15 - Final Documents were received via email from TSS.
8/22 - Completed final docs and final payment sent to TSS.
9/5 - Closed on SSR - 150 points.

We paid $74/point, the closing costs and maintenance fees. We didn't negotiate the price with the seller because we felt we got a great deal! We can't wait until our first trip home Good luck!

 

[TenThousandVolts]

I agree with Jekjones about offering more per point and have the seller pay closing and MFs. That has worked well for me so far.

Also I just wanted to reitterate something bookwormde said. "DURATION OF OFFER" When you make your offer definately put an end date on it. "If offer is not accepted or rejected by 9/18/08 the offer is withdrawn" or something like that. I made thatmistake once and sat around waiting for an answer for almost 2 weeks. They eventually declined my offer- but wasted a lot of my time and a few perfect contracts came and went in that time period.

 

[lapeter]

I was told by two agents that sell a lot of DVC that Disney does take into consideration which party pays the closing costs. I have to believe that to be true. Disney must know what to look at on the contracts.
Al

I think it is better to offer higher dollars per point and have the seller cover all dues and closing costs. This may make it less attractive to Disney for ROFR. Your agent may need to explain this to the seller (at least one of our resales the seller just didn't "get" it). Good luck!

 

[BWV Dreamin]

I was told by two agents that sell a lot of DVC that Disney does take into consideration which party pays the closing costs. I have to believe that to be true. Disney must know what to look at on the contracts.
Al

Now passing ROFR and getting the seller to accept a contract are two different things. The OP is talking about getting the seller to accept a contract. The seller won't care who gets it, Disney or you. It is the buyer who must determine at what level to offer the contract and have a chance of passing ROFR.

 

[mom of princessx2]

I think it is better to offer higher dollars per point and have the seller cover all dues and closing costs. This may make it less attractive to Disney for ROFR. Your agent may need to explain this to the seller (at least one of our resales the seller just didn't "get" it). Good luck!

We are in the process of our first purchase and were told just the opposite by our agent. He said it is more appealing to Disney at ROFR if the seller is paying all the upfront costs. We found one at SSR, 150 pts for $73 and figured we were getting and good enough deal that we are paying closing. Of course it is still waiting ROFR (submitte 9/11) so we are not sure yet if the right decision was made. I think all things need to be considered when making an offer. Seems to be a crap shoot either way!!

 

[TenThousandVolts]

We are in the process of our first purchase and were told just the opposite by our agent.

Well I passed rofr for hhi offering $67pp but the seller paying all ccs ($900CCs and lawyer fee+$195GMAC+all 08dues $506) If you calculate the same offer (final price) with me paying the fees- that would have been under $51 per point. I don't think Disney would have let that through- $51 per point with buyer paying all dues and CCs- but they let $67 with seller paying all dues and fees- I got notice in less than a week.

Of course you would think that Disney looks at the whole picture when deciding- but my experience tells me different.

 

[msteddom]

Thanks for all of your replies everyone! I have one more question: is there any etiquette to submitting offers on multiple contracts? From my point of view that would be the most efficient thing to do, but I don't want to do anything that would be viewed as unacceptable. Your advice? Thanks!

Melissa

 

[jekjones1558]

is there any etiquette to submitting offers on multiple contracts?

Your resale agent will guide you. We have never submitted an offer on more than one contract at a time. It seems that it would not be good faith if more than one seller accepted and the buyer then backed out on an offer.

 

[bookwormde]

Yes only one offer at a time, unless you are ready to own both. Just limit the offer length to 3-5 days. Often the agent can get an “informal” indication before the formal paperwork is signed.

bookwormde

 

[mom of princessx2]

Saw your update!!! Throwing much pixie dust your way that all works out!!