Odd sales tactic for inflating offer?

[DVCSunDevil]

I had a similar experience with the same broker referenced by OP a couple of weeks ago. I put on an offer on a contract that had been listed for well over a week that I had been mulling over. My offer went in during the evening PT, and I heard back the next morning that multiple offers had come in overnight and to put my best and final offer in by 4pm. I stuck with my original offer, and was informed later that day that there was a higher bid and that was the one under consideration by the seller. The contract was still listed two days later. Then it was gone for a week or so, and then just ‘relisted’ yesterday (same contract number).

I have had good experiences with this broker in the past (and have bought more than one contract through them), so maybe certain sellers are just more demanding, but I have found it more difficult of late.

Luckily I found a different (and better, for me) contract through another broker. Reasonably priced to begin with, and the seller accepted my offer ($6 under asking) within a few hours without countering. Now I just need to make it through ROFR!!

That’s definitely sketchy and not very honest. I have not heard stories like these before for DVC contracts. This is crazy! Like you, I went through a different broker last year and my offer was accepted without any counter offer. I was sure they would counter because my offer was on the lower side.

 

[Chrisdriscoll]

My experience with all of this is limited since I'm in ROFR on my first contract. But my experience was I offered what the seller was asking with same broker as OP (just perfect contract for me in terms of UY, loaded points ect.). That broker called me up to confirm my bid was for asking price which it was and then said the contract was mine. He said it was their policy if someone bids asking that is the end of it. Dissimilar because I wasn't trying to get below asking, but there was no talk about bidding wars or other bids. So take that for what its worth.

 

[Jmazzuca243]

That’s interesting. Not sure I would like that if I was the seller, though. I thought the broker’s main responsibility was to the seller? I do like that the first one to put an offer in gets first shot to come to terms on a deal.

This is great for the buyer that follows the site and instantly offers. But its bad for the buyers willing to pay more. This is also bad for the seller since they dont get the highest price.

I had made an offer on a VGF with a broker that allow each buyer/seller to negotiate ( Im guessing its the same agent as fordchevyguy since I have dealt with many sites but only one of them does this). The contract was the exact UY I wanted, fully loaded with banked points, and was fairly priced. I was willing to go to their asking price, but I was never given an option to give my offer. The seller ultimately accepted over $15 dollars per point lower than what I was willing to pay. If I ever sell, I would never list with this agent. Its a larger agent and I am surprised more people dont realize how they sell contracts because if they did, I doubt they would list with this agent.

 

[Carlnne]

My experience with all of this is limited since I'm in ROFR on my first contract. But my experience was I offered what the seller was asking with same broker as OP (just perfect contract for me in terms of UY, loaded points ect.). That broker called me up to confirm my bid was for asking price which it was and then said the contract was mine. He said it was their policy if someone bids asking that is the end of it. Dissimilar because I wasn't trying to get below asking, but there was no talk about bidding wars or other bids. So take that for what its worth.

I think in my case (same broker) it was my understanding that there were a few offers for what the seller was asking which was what caused the "bidding" war. I know that happens in the real estate market so I didnt think anything of it.

 

[Chrisdriscoll]

I think in my case (same broker) it was my understanding that there were a few offers for what the seller was asking which was what caused the "bidding" war. I know that happens in the real estate market so I didnt think anything of it.

Hmm, basically I was told that since I offered asking, the offer was accepted immediately. This precluded anyone else making an offer. And that's the way it should work as a matter of basic contract law. I'd have a real issue if I made an offer at asking and they kept the process open so other people could make offers.

 

[jestDIS]

I've experience this a few times through the broker mentioned. The contracts I was after were pretty good deals or hot properties. As mentioned, there were a few times where i upped my offer but was still outbid. If I remember correctly, this is how it was explained to me, which made sense:

• If others offers come in before a seller responds to an offer that was presented to them, the subsequent offers are presented to the seller and the highest bid wins
• If you had a top bid that exactly matched other offers, then a re-bid scenario occurs and the highest bid wins. This happened to me when I bid the asking price, which others did as well. I bid an extra $2 but the other person bid $5, so I lost.
• If another case with a low-point (50) hot contract (VGC), there were over 10 bids within a few hours, so I was told I had a chance to put in a final offer. I lost this one as the highest bid was $20 over asking.

Hope this helps

 

[MICKIMINI]

Yes, same scenario happened to me last summer. Not going there... I didn't buy from that broker again or even make an offer.

 

[mamaofsix]

I'm from Ontario, so not sure about Real Estate laws in Florida. However, it is my understanding that they can't legally tell you there are other offers on the table - unless there actually are. The broker can't lie about multiple offers in order to get a higher bid out of you. They would risk losing their real estate license if that were the case.

My guess is that there were multiple offers. If the contract went back up for sale right after, it likely means the deal they accepted fell through or the buyer backed out.

 

[Carlnne]

I agree - based on current resale activity - I truly believe there are multiple offers being made on listings. I am comfortable with my experience and am very happy with the broker. I would 100 percent use them again. In fact I am glad to see resale properties selling so well and holding their value. DVC remains a good investment in my eyes.

 

[LaneOT]

We purchased resale back in 2015 and addonitis has finally struck. We aren't in a rush at all and are on the hunt for a good/perfect deal for us. We are more thinking ahead a few years to when we will have to travel at higher point times than we do now. So we decided to add on economically by purchasing at SSR.
Anyway, to my question...has anyone ever encountered a broker or brokerage firm where when you make an offer, you are informed that there is a "bidding war" or the sellers are talking to another interested party? I put in two different offers on https://www.dvcresalemarket.com, and the first, I was told there was a bidding war and to submit my best offer for the seller to evaluate by the next morning. I found it a bit odd and wasn't interested at all in getting in a bidding war so I said our offer was our offer. Today, I made a different offer and was told by the same broker that the seller had another interested buyer at X price point. I find it a bit odd and surprising because these are not newly posted contracts, are not at a low inventory resort and not small point contracts. It's left a bit of a bad taste in my mouth for working with this company so I was curious if anyone else has experienced this type of sales tactic or if I'm reading too much into it. Both of these contracts are still listed as available on the site.
I should also mention that the offers I submitted were in line with what similar contracts have been going for. Perhaps on the lower/average side, but with the assumption the seller would counter.

This was exactly what happened to me about three weeks ago. I saw a loaded contract, and bid what I thought was a decent offer for SSR. The broker, same broker you speak of, came back and told me there was a bidding war, and that I would need to present my best offer by 3pm. I said my offer was my best, but thanked him for informing me. Three days later, the contract was still on the site, and I emailed the broker to ask if they were still entertaining offers, and he responded yes. I'm not sure if it was tactic to get me to go higher on my offer, but like you, it did rub me the wrong way.

 

[DVCSunDevil]

This is great for the buyer that follows the site and instantly offers. But its bad for the buyers willing to pay more. This is also bad for the seller since they dont get the highest price.

I had made an offer on a VGF with a broker that allow each buyer/seller to negotiate ( Im guessing its the same agent as fordchevyguy since I have dealt with many sites but only one of them does this). The contract was the exact UY I wanted, fully loaded with banked points, and was fairly priced. I was willing to go to their asking price, but I was never given an option to give my offer. The seller ultimately accepted over $15 dollars per point lower than what I was willing to pay. If I ever sell, I would never list with this agent. Its a larger agent and I am surprised more people dont realize how they sell contracts because if they did, I doubt they would list with this agent.

That is good to know if I ever need to sell my contract, which I don't plan on ever doing. I will specifically ask the broker if there are any other offers. And can you confirm which broker that was? If you copy and paste the website the system will allow you to share the name. Thanks!

 

[wvujeb]

I'm currently waiting on estoppel on a contract with this broker. My offer was below listing price and was accepted without a counter offer. I've been very happy with the broker and would work with them again.

I don't think it is out of the ordinary for real estate transactions to receive multiple offers. I think it is beneficial for both sides for the potential buyers to be aware of the situation. Yes, it may result in the buyer paying more, but it also prevents them missing out on a contract that they wanted because they chose to start with a lower offer with plans to negotiate. If it's being used solely as a sales tactic, I agree, it's dirty, but I would assume there are actually other offers.

Also, just because there is a bidding war, doesn't mean the highest offer was acceptable to the seller.

 

[Jmazzuca243]

That is good to know if I ever need to sell my contract, which I don't plan on ever doing. I will specifically ask the broker if there are any other offers. And can you confirm which broker that was? If you copy and paste the website the system will allow you to share the name. Thanks!

It was https://www.fidelityrealestate.com/

 

[bks9581]

This has happened a fair number of times with this broker just with the limited number of people who responded to make me suspicious of this activity. I have made bids with other brokers and this has never happened to me. It's enough to make me not trust them to use in the future. I'm not doubting that multiple offers never happen, however in this case and the circumstances surrounding it, I would be willing to bet it was a sales tactic to drive up my offer. I'm glad to hear others have had a good experience and FWIW, he was very responsive. I just prefer working with people who I feel are being straight with me and unfortunately, I did not come away with that feeling.

But he ended up doing me a favor because I made an offer on a contract (different broker) yesterday, less than what I offered on the others and it was accepted and has bonus points. Here's hoping it will pass ROFR.

 

[vicarrieous]

This has happened a fair number of times with this broker just with the limited number of people who responded to make me suspicious of this activity. I have made bids with other brokers and this has never happened to me. It's enough to make me not trust them to use in the future. I'm not doubting that multiple offers never happen, however in this case and the circumstances surrounding it, I would be willing to bet it was a sales tactic to drive up my offer. I'm glad to hear others have had a good experience and FWIW, he was very responsive. I just prefer working with people who I feel are being straight with me and unfortunately, I did not come away with that feeling.

But he ended up doing me a favor because I made an offer on a contract (different broker) yesterday, less than what I offered on the others and it was accepted and has bonus points. Here's hoping it will pass ROFR.

Yea, this whole thread has been interesting to me. You would think the offering situation would be somewhat standardized. I have zero experience as I only have offered on one contract so far. We made an offer, the seller countered and we accepted. I wondered though what would happen if there were others offers etc.

 

[DVCSunDevil]

I've experience this a few times through the broker mentioned. The contracts I was after were pretty good deals or hot properties. As mentioned, there were a few times where i upped my offer but was still outbid. If I remember correctly, this is how it was explained to me, which made sense:

• If others offers come in before a seller responds to an offer that was presented to them, the subsequent offers are presented to the seller and the highest bid wins
• If you had a top bid that exactly matched other offers, then a re-bid scenario occurs and the highest bid wins. This happened to me when I bid the asking price, which others did as well. I bid an extra $2 but the other person bid $5, so I lost.
• If another case with a low-point (50) hot contract (VGC), there were over 10 bids within a few hours, so I was told I had a chance to put in a final offer. I lost this one as the highest bid was $20 over asking.

Hope this helps

This is exactly how it should be. If I put an offer in on a contract and the seller either accepts or counters and we settle on the price, the contract should be mine. If another offer comes in before the seller responds to mine then it is absolutely acceptable for the seller to weigh all offers and decide which one to accept (which is the one that was the highest offer). That's the way it should be. In the scenario the OP presented, the broker from www.dvcresalemarket.com isn't, IMO, being very scrupulous. If another buyer put an offer in and I came in with an offer below that, the person with the higher offer should get the contract. Especially if they were already in discussions with the seller. Pulling the "well, if you increase your offer to X then you will get the contract" is not cool. The broker is trying to create a bidding war. The only way I would possibly be ok with it is precisely how it was mentioned in your second point: if two offers come in before one of them can be presented to the buyer (they both came in overnight, for example) that are the same price then it absolutely is ok to tell both prospective buyers the situation and that they need to re-offer. It's not usually hard to see the difference between right and wrong.

As a sidenote, I bought resale through www.fidelityrealestate.com/brand/disney-vacation-club and had a great experience. I decided to go through them because of how much lower their prices were than the other resale sites. They were VERY straightforward and didn't play any games. I ended up paying close to $20 per point less than what was being sold on the other sites, which saved me $4000. I only share this info because if a broker tries to pull "bidding war" games, know there are other place to go that are very good options.

 

[bks9581]

As a sidenote, I bought resale through www.fidelityrealestate.com/brand/disney-vacation-club and had a great experience. I decided to go through them because of how much lower their prices were than the other resale sites. They were VERY straightforward and didn't play any games. I ended up paying close to $20 per point less than what was being sold on the other sites, which saved me $4000. I only share this info because if a broker tries to pull "bidding war" games, know there are other place to go that are very good options.

I'm glad to hear this. This is who I have an accepted offer with and some of the feedback I read about them in other posts made me a bit nervous. Ultimately I decided even if they are a little slower than others, I'm ok with that since we aren't in a rush. So long as the end result is the same.

 

[DVCSunDevil]

This was exactly what happened to me about three weeks ago. I saw a loaded contract, and bid what I thought was a decent offer for SSR. The broker, same broker you speak of, came back and told me there was a bidding war, and that I would need to present my best offer by 3pm. I said my offer was my best, but thanked him for informing me. Three days later, the contract was still on the site, and I emailed the broker to ask if they were still entertaining offers, and he responded yes. I'm not sure if it was tactic to get me to go higher on my offer, but like you, it did rub me the wrong way.

I think a lot of these brokers try to pull some games. For example, the very first offer I submitted last year was through www.**********.com. Their prices were WAY higher than the comps of what was being purchased, so I made my offer according to what I thought was fair (it was a little higher than the "going rate", but lower than their asking price because their price was so high). The agent called me and asked if I was sure I wanted to make that low of an offer. I told him it wasn't a low offer compared to what contracts were selling for across all sites, so yes I am sure. He said ok and literally called me back less than a minute later and said the seller declined and was "offended at my offer", and then he said I should re-offer with a higher price. LOL...offended? Number one, there is no way the agent had time to call the seller and discuss my offer and then call me back in that timeframe. Number two, I told the agent that they may want to reconsider what they are suggesting as selling prices to their clients. I told him my offer was final and thanked him for his time.

I ended up getting the contract I wanted for $25 less per point than they were asking for that contract. I am glad I offended that seller because I ended up saving a lot of money!!

 

[DVCSunDevil]

It was https://www.fidelityrealestate.com/

LOL, that's funny. Fidelity is the one with whom I had a fantastic experience...as the buyer. If anyone is looking to purchase a resale contract I highly recommend Fidelity. They are more than fair. I submitted my offer and then spoke to their agent. I was notified within an hour that the offer was accepted. It was very smooth. Now I wonder if there were other higher offers for that contract submitted after mine, although I doubt it because of how quickly my offer was accepted.

 

[vicarrieous]

LOL, that's funny. Fidelity is the one with whom I had a fantastic experience...as the buyer. If anyone is looking to purchase a resale contract I highly recommend Fidelity. They are more than fair. I submitted my offer and then spoke to their agent. I was notified within an hour that the offer was accepted. It was very smooth. Now I wonder if there were other higher offers for that contract submitted after mine, although I doubt it because of how quickly my offer was accepted.

I have read mixed reviews too. I wonder if it has to do with the agent on the contract.

We used www.dvcsales.com for our offer/purchase that is currently in ROFR and I have been VERY pleased with the communication and process with Lori from there.