Negotiating a resale

[mommomtoJoseph]

I have read a few posts about how people negotiate with the sellers for a contract. When exactly is this done? I know the resale company will do the negotiating with the owners, but would the amount of points available in the coming years be grounds for negotiation? For example, say I wanted to purchase some resale points, but there are only 10 points left for 2009 and x points available for 2010 UY. Would that be grounds for negotiation of a lower contract price? What other situations may warrant negotiation? I am trying to understand when to negotiate (and hope the contract passes ROFR). TIA!

 

[jarestel]

Absolutely would be perfect grounds for negotiation if you did not have access to a full year's points. Make an offer based on the fact that you are losing all of the 2008 points & most of 2009's points. The seller may reject it, but they may not.

Other negotiable items are dues payments... My feeling is that whoever used the points pays the dues on them. In your case, the seller has already used all of the points in the current year and most of them in the next use year, so you should request that they pay the pro-rated portion of the dues for the points they have already used. Dues are paid on a calendar year basis so the seller has not yet paid any dues for 2009.

Of course, all of this needs to be done at the time you make your initial offer.

 

[bruceao]

I agree completely with the last post. Your initial offer has to specify everything. They should definitely pay the prorated dues for '08 & '09. Points are commonly sold for $10 a point, so start with that as far as the lost value to determine your offer. This contract sounds like a loser. Your offer will likely be very low, increasing the chance of not passing ROFR. I would keep looking unless the numbers work out.

 

[mikesmom]

HOWEVER...... negotiating with the seller is NOT what you have to worry about. This is a case where you literally have to worry that your offer is high enough... high enough to beat Disney's ROFR. You can negotiate all day long, get a really good deal and if it' s REALLY a good deal, then Disney will step in and snatch it out from under you. Because of ROFR you can be a master of negotiating and get a dozen good deals but end up with no DVC.

 

[Buckeye Fan]

You can have up to 4 costs that as a buyer via resale, you can try and negotiate:

1) Price per point - Check the ROFR thread, and you can see what others are paying for their contracts.
2) Closing costs - We have purchased 4 contracts and have never paid closing costs.
3) Maintenance Fees - We have picked up MFs on all 3 of our contracts, because the contracts all came with the prior year's points. We probably could have negotiated this as well, but felt it was only fair that we pay the fees since the sellers' hadn't used the points.
4) Fees (if the broker charges a fee) - We purchased through a broker who charged a fee ($195), and negotiated that the seller's pay the fee. I'm only familiar with 4 larger DVC brokers, and only one of them charges the fee.

There's really nothing left to negotiate beyond these 4 items, and all must be negotiated up front before the contract goes off to ROFR land! Just remember, though, what you think is a great deal may not pass ROFR. If you're a gambler, can get the seller to agree and want to give it a try, go for it! Some sneak by, others are purchased back by Dis. Worst case, you lose that contract and start over again. The average time to purchase a contract via resale is about 2 - 2 1/2 months.

Best of luck!!!

 

[BWV Dreamin]

I think this is a perfect time to negotiate everything you can get as a buyer. With the state of the economy, there are alot of things going your way. For example, there are more resales than ever, Disney is going to be releasing alot of inventory in the next few months, and seller's need their money now (for more economical reasons). Unless you are low balling Beach Club, you will have luck testing the limits on every other resort, including AKV, (yes even BWV has its low prices passing ROFR). The only reason some resorts are getting taken back when in theory it makes no sense (offers are good, buyers paying everything) is that there are waiting lists in certain UY's. If you are savy, keep offering low at this time...no risks to you, only inconvience is your time.

 

[bookswin]

It's a real estate transaction. Just like in buying a house or renting an apartment, the whole thing is negotiable.

There are many more contracts for sale than there were a year or two ago.

Use that leverage.