resale question

[dneuby]

I have been reading these boards for a few weeks as we have been deciding about whether or not to purchase DVC resale or not and it has been very helpful!

I have a question. We have put in two offers in the past three days with two different brokers. One was flat out rejected and the other one was countered almost back at their list price. Is this common? We have a third offer out right now waiting to hear back (should hear back on Monday). We offered $60/pt for SSR with 144 coming Sept. 13 and all coming in 14. Does this seem resonable?We would pay MF and admin fee (through fidelity) and seller pays closing.

I am just wondering if anyone else has had the same thing happen to them? I figured there would be negotiating involved, but I never thought sellers would be so firm in their asking prices (especially based on what SSR has been selling for lately).

Any insight would be greatly apprecited!

 

[elfbo]

Some people are relatively firm on asking price due to outstanding loans or other reasons. With the latest rush on resales, the older posted sales are often the ones less willing to negotiate.

 

[chalee94]

supply and demand.

right now, there's not as much supply and prices are firmer than usual.

do you want to wait, or are you in a hurry to get rolling...

 

[rock_doctor]

Some times it is an easy sale sometimes not. Keep going and you will get the one you want. We have done three resale contacts. One bought at asking price because we wanted to close fast and the other two they came down a little so that we would move quickly. If interested the first was at $100/p, second at $95/p and third at $86/p all BLT. The last was a large points contract hence why it was so cheap. The more points the cheaper the price.

To answer your question. With the last resale purchase we made offers on three different contracts with three different brokers. One did not counter which ended that right there and then, the second countered with the asking price which also ended that right there and then. The third countered and that started the process. We did end up buying that third contract. If they don't counter then walk way. They either have too much invested or are not motivated to sell. There are way too many resale contracts available to lose sleep over. You will find what you want. Be willing to walk away or you will over pay.

 

[bisney]

$60 PP is a reasonable price and from what I understand, in line with recent sales/ROFR activity. We tried to get the sellers to pay the MFs and closing costs but they thought that the buyers should pay for it. So we lowered our PP accordingly and paid the MFs and closing costs and it worked. Personally I didn't care as it all comes out of one bucket (our bank account!) so however they wanted it allocated made no difference to me.

I agree with chalee94 that it's supply and demand and with elfbo that some sellers are very firm with their price. There was one contract that was perfect for us but the seller refused to budge from their $65 PP asking price as 1) there was little inventory available so they felt that someone would come up to their price and 2) they had a loan on their listing and they didn't want to take a loss (why someone would have a loan on a small DVC contract is beyond me but I digress). Sidenote - that seller did sell within a week so obviously the market is reacting to the recent price increases and the lack of inventory.

Like rock_doctor said... set your budget and be willing to walk away. Unlike a house where there are so many different factors to evaluate, points are points and if you get the UY and location you want, there is no difference between them other than a reasonable and unreasonable seller.

 

[Meggysmum]

I posted a similar query a few weeks back as we had an offer rejected with no counter although it seemed reasonable to me. A little later we found a much better priced contract which fitted our needs perfectly and the seller was happy with our offer so sometimes it works and other times it doesn't, just hang on in there and something will turn up.

 

[csharpwv]

We ran into a situation with a broker when we tried to buy our HHI points - the broker was advertising contracts that they actually did not have for sale, then lied about the terms, then lied about the seller's situation (when they put me off for a few days until they found a seller). I felt horrible for the seller - we had cash in hand.... literally, and the seller was left without a buyer - because of the broker's antics.

Anyway... we have purchased two resales contracts - both of them involved negotiation. We was about $6 less than asking price, the other ended up being more than $15 less than the asking price.

You have to make the offer you are willing to pay - if the seller isn't motivated, they won't budge - if they are motivated they will negotiate a price that you can both agree on.

Don't be discouraged, be patient - it takes a while to find exactly what you're looking for - and a seller who is willing to sell for what you're willing to pay.

$60 is reasonable for SSR or OKW in most circumstances. BUT you have to be patient and willing to wait until the right contract comes along.

You should be prepared to pay up to $65-$75 though - just because other contracts HAVE sold for lower, doesn't mean that they will continue to sell for prices that low.

If you are looking for a low price per point look at Vero Beach or Hilton Head - BUT be sure you factor in the higher yearly costs associated with both of those. BUT the benefit is that your purchase price is much lower - and if you are buying a smaller contract, the maintenance fees are going to be manageable as well. There are a lot of factors at play - so you have to decide what your top priorities are as to location and price - so make the decision that is best for you!

 

[lions1995]

Last year I was searching for WL and made many offers that were rejected. I knew what I wanted and what I wanted to pay (which was reasonable). I eventually got a call back on one of the orginal offers and they accepted my offer.

If you have the time, be patient.

 

[dneuby]

We got an accepted offer today (at least it should be). The broker messed up her math when she sent the offer to the sellers (wrong sale price) so providing that all works out ok and they aren't surprised by the correct numbers,which the broker assured us would be no problem, we should be all set to sign contracts and to ROFR (wish us luck). The sellers accepted our original terms.

$60/pt for 150 pts at SSR Sept. UY 144 pts coming Sept. 13 full batch in 14. seller pays closing, we pay MF and admin fee.

I must say, if anyone is having trouble with Fidelity, use e-mail. We started calling and emailing, and got email repsonses within 30-40 minutes, where it could take 8-9 hours for a phone call.

 

[annmarieda]

We got an accepted offer today (at least it should be). The broker messed up her math when she sent the offer to the sellers (wrong sale price) so providing that all works out ok and they aren't surprised by the correct numbers,which the broker assured us would be no problem, we should be all set to sign contracts and to ROFR (wish us luck). The sellers accepted our original terms.

$60/pt for 150 pts at SSR Sept. UY 144 pts coming Sept. 13 full batch in 14. seller pays closing, we pay MF and admin fee.

I must say, if anyone is having trouble with Fidelity, use e-mail. We started calling and emailing, and got email repsonses within 30-40 minutes, where it could take 8-9 hours for a phone call.

You give me hope!

I was going to say that I too have had two offers flat out rejected only to have someone come in and offer full price before I could even offer any better. (not that either seller countered)

I have both times asked that seller pay closing... so this too is encouraging since I was thinking maybe I was way off base. Granted... if the over all price were right I wouldn't necessarily have a problem paying closing. It was just that I have a specific amount of cash and in both cases closing took it over (yes, I know... I should just look for a less expensive contract - but when the contract over all was near exactly what we needed... seemed like it couldn't hurt to ask seller to pay closing)

ALSO... I have been emailing fidelity and have had bad luck. (only had one response...and wasn't even given enough info to make an offer... just a "yep, it is still available" and then nothing. Maybe it is just the days... and maybe I will have better luck in the coming days....

Congrats on your offer being accepted and that it passes ROFR!