Negotiating a resale price

[Msmithmd]

I'm trying to figure out how to quantify the difference in reasonable sales price for a large (250 or 300 points) contract versus a medium sized one (100 to 160 or so). Using VGC as an example if it matters, if one were looking at otherwise equivalent contracts how much less per point would the large contract be fairly valued at compared to the medium sized one? $5? $10? I also noticed the VGC contracts seem to be listed for much more than they are actually going for according to the ROFR thread. The reported recent sales are around $107 but the asking prices seem to hover in the $125 to $135 (or even higher) range.

The fair price is what the seller is willing to accept.

A prospective purchaser needs to be aware that if you offer near or at the lowest prices getting through on ROFR, you are at significant risk of losing the contract.

While we mere mortals have to buy and sell contracts as a whole, if DVC grabs it they can split it up and resell as large or small portions as they wish. Therefore a 300 point contract can sell via DVC to six different folks all wanting 50 points each.

Thus, trying to lowball a larger contract is a bigger risk of ROFR than one would expect, if one weren't aware that DVC can split it up if they decide to buy it back.

Therefore there might be a slight discount on a larger contract resale, simply because there are less purchasers wanting those. But too big a discount and you may well find yourself searching for another resale contract, 28 days after your offer.

 

[Minniesgal]

I always start $10 below asking bit expecting it to be accepted just as an opening then I negotiate from there. I once had $10 below asking accepted but it was a slow time.

The one exception was when I bought VGC where I saw the perfect contract and didn't want to risk losing it. I immediately offered asking and was happy to pay it

 

[dmaxphil]

I was told by someone I trust that Disney targets contracts they can get for little to nothing upfront. Meaning if you negotiate that the seller pays all MFs and closing costs Disney is more likely to snatch it up. On my offer, I simply subtracted the MFs from my target per point offer and then offered to pay current year MF at close.

I'm sure there is more to it... UY, resort, size of contract, etc.

 

[Msmithmd]

I was told by someone I trust that Disney targets contracts they can get for little to nothing upfront. Meaning if you negotiate that the seller pays all MFs and closing costs Disney is more likely to snatch it up. On my offer, I simply subtracted the MFs from my target per point offer and then offered to pay current year MF at close. I'm sure there is more to it... UY, resort, size of contract, etc.

Not intending to slight your friend, but that makes zero sense. When Disney elects ROFR they pay the owner the full terms of the contract and close pretty much immediately.

If what you are suggesting were true, that would mean that Disney was unable to do the simple math to figure out the total they would be paying immediately for the contract. Which obviously isn't the case.

Manipulating the offer so the per-point price is lower and covering the fees is exactly the same as the seller paying the fees at a higher price per point from Disney's perspective when electing ROFR. Just the way it is.

 

[Minniesgal]

I was told by someone I trust that Disney targets contracts they can get for little to nothing upfront. Meaning if you negotiate that the seller pays all MFs and closing costs Disney is more likely to snatch it up. On my offer, I simply subtracted the MFs from my target per point offer and then offered to pay current year MF at close. I'm sure there is more to it... UY, resort, size of contract, etc.

My understanding was that Disney work out the total price per point you are paying including closing etc and do their assessments based on that. I don't think this kind of manipulation makes the slightest difference