Playing sellers off one another?

[WinterSolider]

Has anyone had success doing this as a negotiating tactic when purchasing DVC resale? Example:

I offer $130 for a contract.

The seller comes back with a counter-offer of $150.

I respond "such-and-such other website has a contract that's very similar listed for $132, so I'm staying firm at $130."

It feels like it could be an effective negotiating tactic but I don't want to annoy the brokers I'm working with if this is frowned upon for whatever reason.

 

[VGCgroupie]

Haven't done that specifically but I cant imagine why that would be offensive unless the contract is vastly different, but I can say do not mention that know or have seen people who have had offers accepted for XX per point, there is at least one broker in particular who absolutely hates these boards.

 

[davidhr]

I’m not a fan of doing that. The main reason is because if I were the seller, I’d say “what are they waiting for? They should buy that one right now!”.

I might not be a great seller.

 

[byurick]

Honestly if I was the seller I'd just tell you to buy the other one then if it's such a better deal.

 

[softballmom3]

Haven't done that specifically but I cant imagine why that would be offensive unless the contract is vastly different, but I can say do not mention that know or have seen people who have had offers accepted for XX per point, there is at least one broker in particular who absolutely hates these boards.

I can guess which one that one is and I don't deal with them whatsoever!

 

[WinterSolider]

Honestly if I was the seller I'd just tell you to buy the other one then if it's such a better deal.

I mean that's literally the point of negotiating. Not to get the "better" deal but to get the "best" deal.

 

[disneylandtour]

Haven't done that specifically but I cant imagine why that would be offensive unless the contract is vastly different, but I can say do not mention that know or have seen people who have had offers accepted for XX per point, there is at least one broker in particular who absolutely hates these boards.

I think the big question then is: why aren't you making the offer to the listing with the listing that has the lower price? I've had better luck quoting numbers from our ROFR thread.

 

[WinterSolider]

Haven't done that specifically but I cant imagine why that would be offensive unless the contract is vastly different, but I can say do not mention that know or have seen people who have had offers accepted for XX per point, there is at least one broker in particular who absolutely hates these boards.

The relationship between the broker and the seller is why I feel like this tactic could be effective. I can envision:

• A problem seller with unreasonable price expectations that a broker is forced to go along with. An offer pointing out what else is out there in the marketplace is ammo that the broker can use to talk some sense into their seller, or;
• A problem broker who has given the seller bad advice and set unrealistic expectations, where an offer pointing out what else is out there in the marketplace is a direct wake-up call to the seller.

 

[Brian Noble]

I mean that's literally the point of negotiating. Not to get the "better" deal but to get the "best" deal.

Hmm.

I don't view negotiation the same way. I view it as getting to a resolution that we both like. Maybe that means I'm a "bad" negotiator, I'm not sure?

Edited to add: Either way, I am not sure it is my job to educate the seller or the broker. If we can't reach a meaningful resolution, that's fine. And I too would probably respond with "Wow, that's a good deal. You should buy it."

 

[WinterSolider]

I think the big question then is: why aren't you making the offer to the listing with the listing that has the lower price? I've had better luck quoting numbers from our ROFR thread.

I did.

I talked Seller 1 down to their floor, and now I want to see if Seller 2 has a floor that's even lower.

 

[VGCgroupie]

I mean that's literally the point of negotiating. Not to get the "better" deal but to get the "best" deal.

This is how I have always boughten cars and it works every time. It may just work out. Keeping in mind some brokers are much nicer than others with offers.

 

[TinkAgainU]

In DVC, the difference between two contracts is mathematical, not subjective. So clearly, if the other deal is better you'd take it. I've done well being polite and explaining my offer is based on my budget. Plus, there is a fine line between sounding motivated and too motivated lol. I remember one broker casually saying, once I know they need the Use Year, I'm done negotiating...

 

[VGCgroupie]

I think the big question then is: why aren't you making the offer to the listing with the listing that has the lower price? I've had better luck quoting numbers from our ROFR thread.

There could be a few reasons, maybe the contract isn't identical just very close, maybe one has an admin fee, maybe one is with a broker you don't love, maybe one is listed with a broker that forces you to use their title company and you don't like that.

There is one broker who would lay into you if you quoted the thread and possibly ban you from ever making offers with them again.

 

[WinterSolider]

Hmm.

I don't view negotiation the same way. I view it as getting to a resolution that we both like. Maybe that means I'm a "bad" negotiator, I'm not sure?

I think my pushback would be on the word "both." The negotiation isn't just between Buyer and Seller, it's between the universe of potential Buyers and the universe of potential Sellers.

 

[WinterSolider]

In DVC, the difference between two contracts is mathematical, not subjective. So clearly, if the other deal is better you'd take it. I've done well being polite and explaining my offer is based on my budget. Plus, there is a fine line between sounding motivated and too motivated lol. I remember one broker casually saying, once I know they need the Use Year, I'm done negotiating...

The difference is mathematical, but it's not static.

You can't just say "if X is better than Y, you do X" because neither X nor Y are fixed. Both can be improved upon.

When X is better than Y, you give Y the opportunity to beat X, and you let X know that Y is out there competing so maybe X wants to improve his offer too.

 

[Chili327]

I’m not a fan of doing that. The main reason is because if I were the seller, I’d say “what are they waiting for? They should buy that one right now!”.

Yep.

I mean that's literally the point of negotiating. Not to get the "better" deal but to get the "best" deal.

Or to just get the deal you want, may not be the best. (different UY, point amounts, etc.)

I think the big question then is: why aren't you making the offer to the listing with the listing that has the lower price? I've had better luck quoting numbers from our ROFR thread.

That would be my response. If there is one that you like elsewhere go get it, otherwise mine is here if you like it.

I had a contract for sale that I listed in multiple places, & one wasn't negotiable & the other was, so it was interesting to see what offers came in vs when it sold for asking.

 

[Willow Ufgood]

I think that all that back and forth would make the seller view you as a problem buyer. If you're this difficult in the initial offerings, who's to say that you wouldn't pull the plug on the deal when it comes time to close? Or try to renegotiate the terms of the sale further once you've agreed on a per-point price such as who pays the dues or closing costs. When I'm wearing my seller's hat, I'm more than willing to walk away from a buyer if I perceive them to be too much trouble to be worth it.

 

[WinterSolider]

If you're this difficult in the initial offerings, who's to say that you wouldn't pull the plug on the deal when it comes time to close?

My $5,000 deposit held in escrow.

 

[Brian Noble]

The negotiation isn't just between Buyer and Seller, it's between the universe of potential Buyers and the universe of potential Sellers.

For me, that's what the valuation is---and valuation is a window of "fair", not an exact specific price. That's because different buyers have different priorities and needs and so might judge a particular offering for sale differently.

But once we get to negotiation, for me there are only two people at the table. A third person is irrelevant to our conversations as far as I am concerned. If the other party feels differently, they are welcome to have a separate two-way conversation with that third party, but it is none of my business.

 

[WinterSolider]

For me, that's what the valuation is---and valuation is a window of "fair", not an exact specific price. That's because different buyers have different priorities and needs and so might judge a particular offering for sale differently.

But once we get to negotiation, for me there are only two people at the table. A third person is irrelevant to our conversations as far as I am concerned. If the other party feels differently, they are welcome to have a separate two-way conversation with that third party, but it is none of my business.

Are you speaking in a general sense or about DVC resale contracts in particular?

As a buyer, you could be in vastly different postures.

• I'm going to buy exactly X
• I'm going to buy something in the category of X
• I might buy X or something like X or nothing at all, we'll see

I'm buying DVC in the last posture. I'm entirely comfortable with getting rejected fifty times, or two hundred times, and never getting a deal. But if I do get a deal I want to know it was an absolute steal.