Question on making an offer

[JaySwash]

Hello. I'm trying to get my head around all the dvc resale stuff and had a question...

I see that it's common practice to make an offer below the listed price. But if you do that, can the seller make a counter offer? We just bought a house last December and I remember haggling back and forth a bit before finalizing a deal.

Also, I see some people saying the seller is covering the closing cost... Is there specific situations where that is the norm?

 

[erionm]

Everything when purchasing DVC resale is negotiable (at least if both parties are willing to negotiate).

 

[Msmithmd]

Resale DVC is a lot like a home purchase.

It's probably easiest for the buyer to cover the closing costs and maintenance for remaining current points, figure those things into your total cost per point, and make an offer at whatever you find reasonable, including those costs in your per-point offer.

But a dollar is a dollar. If it makes you feel better to offer more per point, and ask the seller to cover those costs, the dollars work out the same.

Many have reported that the brokers are more happy with offers crafted via the first scenario. While irrational, as the dollars work out the same, if it is what works and makes the broker happy, I would go with it.

Someone will also likely (and correctly) point out that maintenance fees really should be prorated as to how many months of use are left on current points. But that isn't generally what is done, as long as the points aren't anywhere near expiration.

 

[a742246]

The best thing to do is be an informed buyer. Check out the ROFR section and see what others are paying and then you can decide what is a good price.
When you see a good contract that you think is fair then you can make a good offer. Some people lowball and haggle the seller, sometimes that works but many times it doesn't. If all depends on how much time you want to spend looking.
When I was looking to buy resale I set a price that I wanted to buy and the only haggling I did was to prorate MF's. While I didn't get the lowest price on resale I did get a better then average price as a buyer.

 

[crisi]

The best thing to do is be an informed buyer. Check out the ROFR section and see what others are paying and then you can decide what is a good price.
When you see a good contract that you think is fair then you can make a good offer. Some people lowball and haggle the seller, sometimes that works but many times it doesn't. If all depends on how much time you want to spend looking.
When I was looking to buy resale I set a price that I wanted to buy and the only haggling I did was to prorate MF's. While I didn't get the lowest price on resale I did get a better then average price as a buyer.

And probably made a quicker deal.

Yes, the seller can counter. Or the seller can simply say "I don't want to deal with that clown" and refuse to consider any subsequent offer from you.

I'd say in addition to knowing what ROFR is going for - those are the rock bottom reports - also know what the demand is for the type of contract you want is. A low point contract at BCV is going to go for quite a bit of money and move quickly - at the asking price unless the asking price is ridiculous. Offering less than asking price is simply going to mean that they take one of the other offers they got on listing day that was higher than yours. But there is probably more room to negotiate on a 300 point VAKL contract that hasn't had a nibble in the two weeks since listing.

 

[Sandisw]

When we bought our BWV resale, I had a price in mind I was willing to pay and went from there. It took me 4 offers to find an owner willing to settle on a price that agreed with me.

It was based on not only average asking prices, but also on some of the ROFR passing that I saw and my total cash budget.

For me, it didn't matter if I ended up at my final number using the price per point, paying closing and MF's or if it was a combination of me and the seller.

We negotiated it all and came to a good deal. Was it the lowest? Probably not, but it was a good contract and what I wanted.

That is another thing...if you find exactly what you want...resort, UY, and the points available in it that make it "perfect", sometimes paying a little more or not haggling is worth it. DVC is for the long terms so paying extra now, over the course, doesn't add up to that much.

I know we had this mindset when we bought BLT in 2009 when we joined. We paid about $5000 more to buy direct at the time than going with SSR resale. But, we wanted that resort and figured over the course of even 10 years, that was an extra $500 each year to own what we knew we'd love.

Good luck!

 

[Minniesgal]

It depends on what you are buying. We bought VGC. I wanted 100 points August UY, when 115 came up at $110 a point I knew they would be gone the next day so I was happy to offer asking. All three contracts were sold within 11 hours of listing

 

[JaySwash]

Thanks for all the great info. we are looking to go with 200 points at SSR, which seems to be a pretty common listing, so I think if we are patient we can get it within budget.

 

[CarolMN]

Thanks for all the great info. we are looking to go with 200 points at SSR, which seems to be a pretty common listing, so I think if we are patient we can get it within budget.

I agree - Good luck,

 

[DebbieB]

Also be sure to consider the points available. One with banked points available should go for more than one with borrowed points gone. You may see a really cheap one on the ROFR thread but it probably has no current points available and possibly not all the next year.