Odd sales tactic for inflating offer?

[princesscinderella]

I also had a less than desirable experience which I posted about in a different thread with this broker where three different contracts fit my criteria and the agent that called me after I did the offer online told me that that seller wouldn’t agree to my low offer. So I said to the agent there were two other contracts that fit my needs and he said he knew the other ones wouldn’t accept my offer either. I told I thought it was ridiculous that he wouldn’t even present my offers to the sellers and that I would do business elsewhere. I quickly found a contract at a different broker for the same price I offered at www.DVCresalemarket.com that the agent there scoffed at.

 

[DVCSunDevil]

Again.. this situation is all speculation. Please don't take my comments as argumentative here, but a lot is being insinuated in this thread.

Hey, I totally agree that is speculation. In my most recent comment I added that I am just someone commenting on this thread and I do not have all the details. But, in the situation as described by the OP, Marissa said that would be illegal activity. If everything happened as the OP described, the entire situation would definitely rise to the category of questionable activity on the part of the agent.

 

[DVCSunDevil]

I also had a less than desirable experience which I posted about in a different thread with this broker where three different contracts fit my criteria and the agent that called me after I did the offer online told me that that seller wouldn’t agree to my low offer. So I said to the agent there were two other contracts that fit my needs and he said he knew the other ones wouldn’t accept my offer either. I told I thought it was ridiculous that he wouldn’t even present my offers to the sellers and that I would do business elsewhere. I quickly found a contract at a different broker for the same price I offered at www.DVCresalemarket.com that the agent there scoffed at.

This is what I find so amazing about the resale market. I posted yesterday about another resale company’s site on which I found a contract and put an offer in. That resale company has extremely high prices, so my offer appeared really low compared to the asking price. But the reality is that my offer was right in line for what comparable contracts were selling for across all the sites. The agent, who I do not believe presented it to the seller because of the timeline, called me and said my offer “offended” the seller and said I would need to increase my offer. I ended up saving $4000 on a better contract at Fidelity. The services many brokers claim to provided to justify their high prices aren’t worth the extra money, IMO, at least for the buyers. I haven’t sold a contract so there must be a benefit for the sellers to use those sites, which is probably why they seem to have more listings.

 

[bks9581]

I haven’t sold a contract so their must be a benefit for the sellers to use those sites, which is probably why they seem to have more listings.

I was thinking the same initially, but as a seller I also want to know I can trust my broker. Also if a broker starts to get a bad reputation, your pool of buyers might be smaller over time.

 

[cruisehopeful]

Just a suggestion for everyone buying in the future - people get caught up emotionally in real estate purchases. It's less emotional if you know exactly what you want to pay and stick with that. Some people like a bidding war and they feel like they've "won" something. For people like me, it's better to say, "I will pay $XXX and my offer expires in 48 hours." If they try to jack me around after that, I just tell them that I don't understand how they could blow the sale, but they just did and goodbye.

 

[DVCSunDevil]

Just a suggestion for everyone buying in the future - people get caught up emotionally in real estate purchases. It's less emotional if you know exactly what you want to pay and stick with that. Some people like a bidding war and they feel like they've "won" something. For people like me, it's better to say, "I will pay $XXX and my offer expires in 48 hours." If they try to jack me around after that, I just tell them that I don't understand how they could blow the sale, but they just did and goodbye.

I totally agree. I commented earlier in this thread that if it even teeters on a bidding war I am out. I am much more likely to engage in negotiating if there are no other buyers but the seller is not comfortable with my offer. If they respond in a timely manner with a counter offer I’m at least willing to listen, even if I don’t end up agreeing on the price. There are too many other DVC contracts out there to get caught up in a bidding war over any one contract.

 

[EM Lawrence]

That broker has always frowned on my offers, granted they are lower than average because I only want "good" deals..I just need someone to say yes and so far that's been with another broker

That’s a good way of putting it. I’ve had similar experiences. When I was buying, it was during the early lockdowns, and there were actual bidding wars going on over small Poly contracts, so I did not doubt it at the time when they told me there was a bidding war. But lots of other times, I got subtly reprimanded over the prices I offered. If they had a contract I wanted now, I would only use Andy. I had a great experience with him. I didn’t end up buying a contract through him, but he left such a good impression that I would happily use him if there is a next time.

 

[scbruno]

Yeah I agree had the same experience with that broker about a bidding war on a listing and then it was still listed as available a week later.

 

[MrWonderful]

Unfortunately I must agree with this threads issue of concern with this particular broker. During my buying spree over the "no ROFR active" summer, I experienced only pushback in various forms to my "lowball" offers and could not get any negotiation started.... just declines without counter offers, or silly counters at $1 less... I quickly gave up on that broker and ended up purchasing 2 BLT contracts from two different brokers... both went flawlessly and as I expected the negotiation process to work. I've got nothing against www.dvcresalemarket.com, just did not like their practices. So I went elsewhere. my .02

 

[jswap]

A related issue that I have not seen mentioned in this thread is, to whom does the agent owe a fiduciary duty? A lawyer's website states:
"When someone has a fiduciary duty to someone else, the person with the duty must act in a way that will benefit someone else, usually financially."

I found an article online about Florida real estate agents titled:
'"I Want to Work with the Listing Agent" - Types of Relationships in Florida'

Now I will assume the following:
1 - The above article is correct
2 - DVC selling follows the same agent rules as regular real estate selling

The article states that dual agency is not allowed in Florida, so DVC listing agents must be working as either seller's agents or as transaction agents. I assume they are working as seller's agents, partially based on this quote from Marissa's original post:

"This way we can accomplish our legal obligation to the seller but also keep things as fair as possible for all buyers involved."

Assuming that I am correct that DVC agents are seller's agents, they have a lot of leeway when dealing with buyers, short of lying/fraud, to get buyers to pay more.

 

[princesscinderella]

A related issue that I have not seen mentioned in this thread is, to whom does the agent owe a fiduciary duty? A lawyer's website states:
"When someone has a fiduciary duty to someone else, the person with the duty must act in a way that will benefit someone else, usually financially."

I found an article online about Florida real estate agents titled:
'"I Want to Work with the Listing Agent" - Types of Relationships in Florida'

Now I will assume the following:
1 - The above article is correct
2 - DVC selling follows the same agent rules as regular real estate selling

The article states that dual agency is not allowed in Florida, so DVC listing agents must be working as either seller's agents or as transaction agents. I assume they are working as seller's agents, partially based on this quote from Marissa's original post:

"This way we can accomplish our legal obligation to the seller but also keep things as fair as possible for all buyers involved."

Assuming that I am correct that DVC agents are seller's agents, they have a lot of leeway when dealing with buyers, short of lying/fraud, to get buyers to pay more.

In Florida all real estate agents are considered transaction brokers, unless you sign a disclosure with your client otherwise saying you are a buyers or sellers agent only. Therefore, as transaction brokers they are working to the benefit of both parties to achieve a desired outcome.

 

[DVCSunDevil]

Assuming that I am correct that DVC agents are seller's agents, they have a lot of leeway when dealing with buyers, short of lying/fraud, to get buyers to pay more.

Even if everything in your comment is correct (including the part I quoted), buyers will make a decision on which broker to work with depending on how they view the broker. Yes, brokers may “have a lot of leeway when dealing with buyers, short of lying/fraud, to get buyers to pay more.” But the brokers who exercise that “leeway” and are more dishonest with the sellers will get a reputation for doing so. Thus all the comments in this thread.

 

[TinkB278]

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.

I experienced something like this with them as well. I quit looking at their listings after that.

 

[BlackTea]

same here, I only made offer once on their site, got that response, 'there is a bidding war'! The agent called me to increase price, I said No, after about 8 hours, he called me again, saying another buyer backed out, but oddly I was given time to think if I still want to proceed. So I started to think, finally called back, was told the contract was sold to a higher bidder...looking back, not bad i didn't get that contract (different UY), but the entire process always feels a little strange.

 

[lolcatparty]

I also got the “bidding war” response on my first offer on the site that is being referred to. The agent then proceeded to ask me to send my best and final offer by x time and gave me no counter or response to my initial offer.

 

[gisele2]

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.

Had a great experience also as a buyer with my two contracts.

 

[BlackTea]

My understanding, the site OP refers to gathers all possible offers from buyers within a certain time range, and only presents the highest one to seller (could be more). For fidelity, buyer with the first acceptable offer will have a lock on the seller, before that negotiation falls apart, they won’t engage a second potential buyer, even you are willing to offer higher.

This explains why so many people end in bidding war, basically they don’t present your offer immediately to the seller, they hold, hoping for more and do get more fairly often. This also explains why some contracts still available post the bidding war, because there’s no guarantee negotiation between seller and the highest bidder will go through.

With this said, looks you should prefer Fidelity if you buy, but DVC resale market if you sell.

 

[MasonDuo]

We didn’t have the bidding war comment with this same broker; however, we were told an offer we were making was “below the instant buy price” so our very reasonable offer was not presented to the seller. Took my business over to the DVC Store and purchased through them this year. And at the price that was “below an instant buy price”. Left a bad taste in our mouth - have to wonder if sellers through that broker realize they aren’t getting the offers they could.

 

[luvdisneyland]

We didn’t have the bidding war comment with this same broker; however, we were told an offer we were making was “below the instant buy price” so our very reasonable offer was not presented to the seller. Took my business over to the DVC Store and purchased through them this year. And at the price that was “below an instant buy price”. Left a bad taste in our mouth - have to wonder if sellers through that broker realize they aren’t getting the offers they could.

I will give you my perspective of both a buyer and most recently, as a seller with this company (I've used most over the years). I recently sold a 100 pt SSR contract., it was listed in the evening and when I woke up the next morning ( I am on the west coast) I already had an offer in my email. By the time I responded to the broker to counter the offer, they informed me that they already had 2 other offers come in so that they are asking all buyers for their highest offer to present to me later that afternoon. They mentioned that they do this to be fair and give all buyers a chance to respond. I ended up accepting an offer $1 less than my asking price. As a seller, that makes me very happy. If you as a buyer are not comfortable with this, then simply stay firm in your original offer, but don't blame the broker for having multiple offers come in on a contract., that is the name of the game.

I was intrigued by your comment about being under the instant buy price, so I looked up the instant (sale) option and put in the details of my contract that sold. The instant sale price is $102 with the SELLER paying closing costs, so that really brings the offer down about another $5 pp, so if your offer was under instant sale, I am sorry, but it wasn't a "very reasonable offer". I sold my contract for $116 pp with the buyers paying closing costs and 2021 dues, in this instance, your offer would have been at or around $97 (using my example), and that is not what most sellers would consider "reasonable", especially since I sold it in less than 24 hrs. You also don't know if the broker presented the offer or not, so I will agree with some of the other people commenting about making such claims. Now that I am aware of the instant sale offer, I wouldn't expect an agent to present an offer to me that is less than what they would buy it back for, who in their right mind would take less???

I am not sure why so many buyers here are so hurt by having their offer declined or having to deal with multiple offers/ buyers. I have declined plenty of offers as well as countered reasonable offers, this was MY decision, not the brokers. If you're upset that you aren't able to get a "steal" , I would say that you should stay away from the resale market and stop blaming and accusing agencies of being dishonest.

 

[Sandisw]

I will give you my perspective of both a buyer and most recently, as a seller with this company (I've used most over the years). I recently sold a 100 pt SSR contract., it was listed in the evening and when I woke up the next morning ( I am on the west coast) I already had an offer in my email. By the time I responded to the broker to counter the offer, they informed me that they already had 2 other offers come in so that they are asking all buyers for their highest offer to present to me later that afternoon. They mentioned that they do this to be fair and give all buyers a chance to respond. I ended up accepting an offer $1 less than my asking price. As a seller, that makes me very happy. If you as a buyer are not comfortable with this, then simply stay firm in your original offer, but don't blame the broker for having multiple offers come in on a contract., that is the name of the game.

I was intrigued by your comment about being under the instant buy price, so I looked up the instant (sale) option and put in the details of my contract that sold. The instant sale price is $102 with the SELLER paying closing costs, so that really brings the offer down about another $5 pp, so if your offer was under instant sale, I am sorry, but it wasn't a "very reasonable offer". I sold my contract for $116 pp with the buyers paying closing costs and 2021 dues, in this instance, your offer would have been at or around $97 (using my example), and that is not what most sellers would consider "reasonable", especially since I sold it in less than 24 hrs. You also don't know if the broker presented the offer or not, so I will agree with some of the other people commenting about making such claims. Now that I am aware of the instant sale offer, I wouldn't expect an agent to present an offer to me that is less than what they would buy it back for, who in their right mind would take less???

I am not sure why so many buyers here are so hurt by having their offer declined or having to deal with multiple offers/ buyers. I have declined plenty of offers as well as countered reasonable offers, this was MY decision, not the brokers. If you're upset that you aren't able to get a "steal" , I would say that you should stay away from the resale market and stop blaming and accusing agencies of being dishonest.

I think the concern is not that they may have to make a different offer but many have been told this multiple times.

In your case, you were sent an offer and then before you even responded had others. I’m not sure I agree that the original buyer should not have been given a chance for you to respond, even if they told you they had gotten back ups and then the process of sending best begins. But, then again, any company can do it the way they want.

Personally, won’t use them as I’m not a fan of what I have read but at least getting an example of how it can happen so fast is a good one!