Offer less on points or closing cost?

[PSUDinsey]

would it matter to the seller whether I offered less per point or if I offered full price but they cover closing costs/or MF?

If the money is the same does it matter where the deduction in price comes from?

 

[mustinjourney]

It shouldn't matter at all, but some people might be more focused on the price per point as opposed to final price. If that is the case, my guess is that you're better off asking for the seller to pay the current year MFs (which reduces the price per point $5-$8 depending on resort).

 

[Disney Dad ADL]

would it matter to the seller whether I offered less per point or if I offered full price but they cover closing costs/or MF?

If the money is the same does it matter where the deduction in price comes from?

In reality it doesn't matter (as long as the offers are equivalent in value of course) There has been some speculation as to whether one or the other is easier to get through ROFR, but no one really knows.

Psychologically, I think higher $/point but seller covers costs looks like a better offer, but I would imagine most sellers would realize it's the same.

MFs for 2016 should have already been paid (they are paid in January for all use years), so at this point if you are covering 2016 MFs, you would reimburse the seller I believe.

 

[CMNJ]

Since the seller pays the broker commission based on the sales price and not the MF or closing costs they'd actually make out better by agreeing to a lower price per point vs picking up closing costs or not getting reimbursed MF. Not sure if all sellers realize that but if one is willing to come down on price but not pick up closing costs/MF instead that may be why.

 

[DizBub]

With our recent contract the owner offered to put $300 toward the closing costs. We asked for $500 and he countered with $400 and we accepted. It effectively brought the $87 pp asking price down to $84.50 pp. That's the way we looked at it.

 

[BillPA]

You just need to keep ROFR on the price/point in mind. If you reduce the point price to cover closing, it may not pass Disney's ROFR.

 

[gharter]

With our contract, I offered the full price per point but with the seller paying all closing costs. We settled on the seller paying the closing cost and increasing the price per point by $1. With this arraangement, the seller paid 3/4 of closing cost. Our idea was to increase the price per point (without increasing our total cost) and increase the chance of it passing ROFR due to a higher price per point.

 

[mort1331]

You don't think Disney looks at the total cost too? We don't know why they exercise the ROFR so why would we assume they wouldn't look at the total cost?

 

[Matty B13]

We just had an offer accepted with the sellers not being reimbursed for the 2016 MF, which knocked off about $5 a point

 

[LisaS]

Since the seller pays the broker commission based on the sales price and not the MF or closing costs they'd actually make out better by agreeing to a lower price per point vs picking up closing costs or not getting reimbursed MF. Not sure if all sellers realize that but if one is willing to come down on price but not pick up closing costs/MF instead that may be why.

I agree. If the buyer offers a deal where they pay $5 more per point but has the seller pay the closing costs, at the usual 10% commission that adds 50 cents per point to the commission the seller owes to the broker. On a 150-pt contract the seller would owe an additional $75.

 

[gharter]

You don't think Disney looks at the total cost too? We don't know why they exercise the ROFR so why would we assume they wouldn't look at the total cost?

I agree that I don't think anyone knows the methodology of how Disney decides what to pass and what to take. In general, most of the contracts that are taken tend to have a lower price per point (not always, but frequently). So with the final buyers price staying the same, I would believe that you may increase your chances of having a contract pass ROFR with a higher price per point and the seller paying closing costs than a lower price per point and the buyer paying closing costs. it certainly shouldn't hurt your chance of it passing.

 

[mustinjourney]

We just had an offer accepted with the sellers not being reimbursed for the 2016 MF, which knocked off about $5 a point

Got a touch of the add-onitis?

 

[Matty B13]

Got a touch of the add-onitis?

Wife has a full blown case of add-on-fever........