Resale Bid Question

[elle-jay]

Hello All.

Been lurking and researching DVC resale. Is there a general etiquette to bidding on resales? Are prices pretty firm, or is it like a house purchase where you go back and forth and settle on something in between?

Thanks!

 

[MikeRx]

We offered less than the asking price by $14 per point they countered at $7 less than their original asking and we accepted. It put the final price at the figure I thought was fair. I think the "temperature" of the market for a particular resort or loaded contract may temper the sellers willingness to bargain with the buyer.
Mike

 

[aokeefe]

Smaller point contracts tend to go very quickly so seems there is less room for negotiation.

 

[SherylLC]

I'd say it just depends. One gentleman recently posted he bid $88 on a $120/point asking price and the final price they settled on was $90/point. It sounds like it doesn't hurt to try!

 

[lalariner]

I agree that it depends. For our contract, the asking price was right at the price that was passing ROFR. Lower prices were being snatched up. We did counter that the seller paid MF on the remaining 2017 points. That saved us a little bit!

 

[CraigInPA]

It depends upon the asking price and how long its on the market. If the asking price is already close to "market price", you won't have a lot of negotiation room. If the asking price is high, feel free to offer what you consider the contract to be worth, even if it's $20 per point less. The worst thing that can happen is the seller says "no".

 

[Smilelea]

Check out the ROFR thread to see what the going rate for most resorts is and make your offer based on that, whether that means right at asking price or $25 below it.

 

[jvattes]

I agree that it depends. For our contract, the asking price was right at the price that was passing ROFR. Lower prices were being snatched up. We did counter that the seller paid MF on the remaining 2017 points. That saved us a little bit!

How do you know what price is passing ROFR? No sense in going so low that Disney scoffs anyway and you lose the contract as a result

 

[jvattes]

Check out the ROFR thread to see what the going rate for most resorts is and make your offer based on that, whether that means right at asking price or $25 below it.

Oh. I guess I will go find that

 

[lalariner]

How do you know what price is passing ROFR? No sense in going so low that Disney scoffs anyway and you lose the contract as a result

Follow the ROFR thread here! Super helpful.

 

[DVCcurious]

I sold a 250 BLT recently. It was listed at $115 and my first offer was $98.

I told the agent to politely refuse. He asked if I wanted to counter and I said no that the people were wasting my time.

I sold it for $113 a month later.

So it doesn't hurt to ask, but don't expect every seller to be stupid enough to counter a low ball offer and you'll settle in the middle. I wasn't dumb enough ro get pulled into that and end up agreeing to the midpoint ($107)

 

[jvattes]

Some strong language here, but I appreciate the insight just the same. I'm not sure people who bid lower than asking are dumb Maybe the person who paid you $113 was dumb for not doing their homework to see the going rate!

I sold a 250 BLT recently. It was listed at $115 and my first offer was $98.

I told the agent to politely refuse. He asked if I wanted to counter and I said no that the people were wasting my time.

I sold it for $113 a month later.

So it doesn't hurt to ask, but don't expect every seller to be stupid enough to counter a low ball offer and you'll settle in the middle. I wasn't dumb enough ro get pulled into that and end up agreeing to the midpoint ($107)

 

[SherylLC]

I don't think there's anything wrong with deciding what you are willing to pay, then offering less than that on the assumption that a counter offer is coming. I would also assume that sellers list higher than they'll accept as part of the understanding that all prices are negotiable. They can say "Full price offers only" if they wanted. I haven't done dramatic low-balls since I do think that if parties are too far apart then negotiation is pointless. Having said that, seller can say no and buyer can always come back with a more reasonable offer. These are business transactions and no one should feel offended or offensive. But that's just me.

 

[Smilelea]

Agreed. Do your homework first. Make sure you know where the market is, and what you are willing to pay. (Make sure you include any closing costs and maintenance fees in that amount). Once you see a contract you like, make the offer you're comfortable with. If the seller declines, so be it. Move on, or offer more. If they counter, accept, counter their counter, or hold firm. If they accept your offer, great. It's just business, no reason for anyone's feelings getting hurt.
Also realize that per point cost is not the only thing you can negotiate on. MFs and who pays closing costs may be negotiable as well.

 

[Nurse4kids]

Doesn't hurt to try. They were asking 85 per point, I offered 80. The agent said she doubted they would accept it because it was a lower pt contract. I figured what the heck and made the offer. They excepted... it wasnt an unreasonable offer, there are no points available for use until 2019. Seller paying 2018 fees. Hope it makes it through ROFR.

 

[RichVIII]

The market has certainly tightened a bit later with prices rising further than I would have expected. That being said, it doesn't hurt to ask and who cares, you won't ever see these people. You never know what people will take and how long you want to wait or wheel and deal.

 

[MikeRx]

I agree with everyone above and encourage you to be reasonable with an offer and watch the trends. We watched the trends and wanted to be in at or below $150...to be more specific...Asking price was $157, we offered $143 (as many VGC contracts were selling at $146-150) they countered with $150 (met in the middle) and we accepted. Be reasonable and be prepared for a simple "no" answer without a counter. Don't take it personally, it's a business transaction done potentially thousands of miles apart. There will be other contracts available, there always is and always will be...(same thing applies with ROFR..Disney doesn't have it out for you)

Mike

 

[SherylLC]

There will be other contracts available, there always is and always will be...
Mike

THIS. There will always be another one coming up the pipes.

I'm waiting to see if things begin to trend down in the coming months as others have speculated. I'm actually leaving for Orlando in a couple of days. It'll be good to be on the DVC notices/boards a little less than I have been...at least for a while!

 

[DVCcurious]

I agree with everyone above and encourage you to be reasonable with an offer and watch the trends. We watched the trends and wanted to be in at or below $150...to be more specific...Asking price was $157, we offered $143 (as many VGC contracts were selling at $146-150) they countered with $150 (met in the middle) and we accepted.

Which is the exact reason I didn't counter the $98 offer.

 

[DVCcurious]

Some strong language here, but I appreciate the insight just the same. I'm not sure people who bid lower than asking are dumb Maybe the person who paid you $113 was dumb for not doing their homework to see the going rate!

I didn't say the offerer was dumb. I said I wasn't dumb.

But I will say anyone who offers 15% below market is selfish. They are wasting the seller's time and the agent's time.

You may as well offer $20 right? I mean if you're gonna meet in the middle that will get you a BLT for $70! (120 ask, 20 offer, midpoint is 70)

So as a seller who went through the process I didn't appreciate my time being wasted with a ridiculous offer from an unserious person who clearly has no respect for other people.

Now that is an example of strong language, but what I said is true.