Resale-Only Full Asking Price Accepted?

[Minniesgal]

The UK Free Dining deals and great ticket pricing made a resale DVC a hard sell never mind direct. You might as well be throwing money in the MK fountain if you buy direct from UK atm.

I thought they removed the restriction??

We are looking at a 50 point contract (our second resale). The one that fits our needs has the disclaimer stating only a full price offer will be accepted. We aren’t looking for a hot deal, just don’t want to over pay and I find the asking price high. Any experience with negotiating contracts with this disclaimer?

You might well find the broker won’t present lower offers to the seller if the seller has stipulated not to go below

 

[Paul Stupin]

You might well find the broker won’t present lower offers to the seller if the seller has stipulated not to go below

I’ve always been a DVC buyer, and so far never a seller, but sooner or later I will sell, and when I do I’ll give my broker a price below which I won’t accept offers. And if my broker won’t do it, I’ll just use someone else.

 

[CarolMN]

Selected text from 2021 Florida Statues, Chapter 475:

• Authorized brokerage relationships.—A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers.
• Presumption of transaction brokerage.—It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.
• Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
• Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential

 

[Sandisw]

Hi Sandisw,
Would share what broker you used to sell? I'm selling.
Thanks

I just used the board sponsor, DVC Resale Market…it was a great experience and I’d use them again with no issue!

 

[jvball21]

I just used the board sponsor, DVC Resale Market…it was a great experience and I’d use them again with no issue!

Thanks, I appreciate the response.

 

[Lumpy1106]

Small contracts are more likely to be taken through ROFR, so even if you do get a seller to accept a lower offer you might not end up with it anyway. The higher price will scare Disney away too.

 

[RamblinWreck]

Small contracts are more likely to be taken through ROFR, so even if you do get a seller to accept a lower offer you might not end up with it anyway. The higher price will scare Disney away too.

Is this true?

I have no idea if more small contracts get taken or not but it seems illogical.

Disney will spend more on all those closing costs buying up small contracts. They’re better off buying large ones and then splitting them up.

Why would they want small contracts?

 

[Sandisw]

Small contracts are more likely to be taken through ROFR, so even if you do get a seller to accept a lower offer you might not end up with it anyway. The higher price will scare Disney away too.

I am not sure this is true as I have t noticed any major different in small vs others being taken.

 

[Ruttangel]

Small contracts are more likely to be taken through ROFR, so even if you do get a seller to accept a lower offer you might not end up with it anyway. The higher price will scare Disney away too.

The opposite is true, look at a 50 and 150 point contract. The average listing is about $10 a point more for small contracts and then take into account Closing costs of $600 each.

50pt @ $160pp+ $600= $8,600 or $172pp
150pt @ $150p+ $600= $23,100 or $154pp

DVC has only taken a handful of small contracts in past few years.

 

[CarolMN]

Price is not (and never has been) the only criteria Disney uses in the ROFR decision. For example, some of us suspect unit number plays a significant part in the decision. It is one factor that explains why one and not both of two apparently identical contracts gets taken. We really do not know why a particular contract gets taken or exactly what criteria are used to make the decision.

 

[4nation]

Price is not (and never has been) the only criteria Disney uses in the ROFR decision. For example, some of us suspect unit number plays a significant part in the decision. It is one factor that explains why one and not both of two apparently identical contracts gets taken. We really do not know why a particular contract gets taken or exactly what criteria are used to make the decision.

what do you mean by unit number?

 

[BeachClub2014]

We really do not know why a particular contract gets taken or exactly what criteria are used to make the decision.

This is what makes the ROFR process so fun, and maddening at the same time.

 

[skippytx]

what do you mean by unit number?

Each DVC ownership is represented by an ownership interest in a unit of the larger DVC resort. A unit might be 6 different rooms that they package together when they setup the points.

edit2: To provide more clarity, when DVC declares portions of the resort so they can sell points, they package up chunks of the resort into units. They don't declare the entire resort at once, I think BLT had 17 different amendments when it was being sold, releasing points grouped into units by phases. So Phase 18 of BLT has Unit 18A and 18B. Unit 18A is 2 x 2 bedroom rooms, while 18B is a single 2 bedroom room. So unit 18A will have twice as many points as unit 18B.

For instance my deed is for "An undivided 0.4575% interest in Unit 89B of Bay Lake Tower at Disney's Contemporary Resort" which is 160 points. ***

Now say they have someone who wants 300 BLT points and DVC owns 160 in Unit 89B already. They need another 140 points in the same unit to sell the 300 to that person, so if my contract came up for ROFR they might pay more to take it since they need points in the same unit to sell to the new 300 point direct buyer. They can't package up random points from different units and resell them as a larger contract.


I've said this before, and I'll say it again. The initial buy in cost of DVC points is a rounding error in the overall cost of DVC ownership. I wouldn't even bother trying to save 4 dollars a point on a contract. Buy the contract with the number of points and use year that works for you. If I found a good 50 point contract that met my needs I'd just offer full price. Trying to save 200 dollars on a 50 point contract, when using DVC costs as much as it does is almost pointless and not worth the hassle. I understand human nature is to try to get the best deal and feel like you've "won" a negotiation, but I just feel like with DVC it doesn't matter.


*** if anyone is interested, Unit 89B maps to either room 8534 or 8536 at BLT which is a grand villa. I'm not sure which one it is, but yeah my DVC interest is about 9 square feet of a grand villa if that puts things in perspective. You can look up document 20090412099 on the OCC website

 

[Jodi Gross at DVCRM]

Is this true?

I have no idea if more small contracts get taken or not but it seems illogical.

Disney will spend more on all those closing costs buying up small contracts. They’re better off buying large ones and then splitting them up.

Why would they want small contracts?

Hi, No, the price of small contracts generally keeps Disney from buying them up. Not always, but the vast majority of ROFR's are not small contracts

 

[davidl81]

That kind of strategy just isn’t for me. Putting in a lowball offer on 20 listings, then waiting for the contract to probably get taken, then doing it all over again until something finally goes through sounds like a lot of work, and can no doubt take months. Have no doubt it will eventually work, but it takes unlimited time and patience.

Right? I fully appreciate getting a good deal, but even $10 off of a 50 point contract is only a $500 savings. If the OP wants to make an offer sure for for it, but don’t get disappointed if you get no response from the broker.

 

[mistysue]

Each DVC ownership is represented by an ownership interest in a unit of the larger DVC resort. A unit might be 6 different rooms that they package together when they setup the points.

edit2: To provide more clarity, when DVC declares portions of the resort so they can sell points, they package up chunks of the resort into units. They don't declare the entire resort at once, I think BLT had 17 different amendments when it was being sold, releasing points grouped into units by phases. So Phase 18 of BLT has Unit 18A and 18B. Unit 18A is 2 x 2 bedroom rooms, while 18B is a single 2 bedroom room. So unit 18A will have twice as many points as unit 18B.

For instance my deed is for "An undivided 0.4575% interest in Unit 89B of Bay Lake Tower at Disney's Contemporary Resort" which is 160 points. ***

Now say they have someone who wants 300 BLT points and DVC owns 160 in Unit 89B already. They need another 140 points in the same unit to sell the 300 to that person, so if my contract came up for ROFR they might pay more to take it since they need points in the same unit to sell to the new 300 point direct buyer. They can't package up random points from different units and resell them as a larger contract.


I've said this before, and I'll say it again. The initial buy in cost of DVC points is a rounding error in the overall cost of DVC ownership. I wouldn't even bother trying to save 4 dollars a point on a contract. Buy the contract with the number of points and use year that works for you. If I found a good 50 point contract that met my needs I'd just offer full price. Trying to save 200 dollars on a 50 point contract, when using DVC costs as much as it does is almost pointless and not worth the hassle. I understand human nature is to try to get the best deal and feel like you've "won" a negotiation, but I just feel like with DVC it doesn't matter.


*** if anyone is interested, Unit 89B maps to either room 8534 or 8536 at BLT which is a grand villa. I'm not sure which one it is, but yeah my DVC interest is about 9 square feet of a grand villa if that puts things in perspective. You can look up document 20090412099 on the OCC website

@skippytx - do you know where I would find the units assigned for AKL, Poly or Boardwalk by chance?

 

[jbreen2010]

If it’s been there for a while you can still let the broker know you’re interested and at what price. I get it - you might not be trying to low ball an offer but wanted to offer something else. The worst they can do is just say no.