Stripped Contract Discount

[Cap]

I'm looking at a "stripped" October Use Year contract, with zero points coming in October 2014 and the selling party has borrowed about 25% of the October 2015 points and used them. Further, they are apparently having a final DVC vacation at year-end, so can't close until sometime in January, so I would miss the eleven month booking advantage for summer 2015 and most of fall 2015.

What discount would you think should apply per point to this contract? I've figured minimum discount of full dues / point for the zero 2014 use year points, discount of 25% of the anticipated 2015 dues / point for the 25% used 2015 points, and perhaps an added $1.00 / point discount for the deferred closing, so I'm figuring a minimum $8.50 / point discount from recent "full contract" resale selling prices. If I were to rent the used points, they would cost me about $10.00 / point.

The seller thinks I'm way off on my discount and that the discount should be only about $4.00 per point. The broker is rather non-committal, but doesn't seem to be pushing the seller very hard.

What do these experienced forum members think would be a fair discount for the above conditions? I think the resort is not material to this discussion, but the availability of points and booking capability is important.

Cap

 

[CarolMN]

IMO, points are worth $11 each - the price that is easy for owners to get by going through one of the brokers. FWIW, I wouldn't even bother making an offer on the contract you describe. Any offer I'd deem "fair" would be unlikely to make it through ROFR. Too many other contracts out there to bother with one that is so stripped and also has a delayed closing.

 

[Splashboat]

I have been watching resales very regularly for years. I would never make an offer on a contract as described.

Sounds like you're looking at a popular resort. You don't say how many points but if it is 100 or less and the seller isn't in a rush they will probably wait it out. If the contract is larger it might very well sit for a long time.

Also, I personally wouldn't try to twist anyone's arm to lower the price. If they don't like your price you can always find another contract. You don't want them to back out later if they change their mind.

 

[Msmithmd]

Look for a different contract. For whatever reason, brokers tend to under-price loaded contracts and over-price stripped contracts, versus the $11pp that Carol correctly identifies as the objective sale value per point.

If this is absolutely the contract you want in terms of resort, points, UY, and points used, then pay whatever the seller is asking and be content at that price. If it isn't, walk away and look elsewhere.

There are hundreds of contracts out there, and turnover is rapid except for the huge ones (>300 points)...you will find what you want at a price you want to pay soon enough.

 

[LorieDisneyLover]

Buyers very rarely get a fair deal on a stripped contract.

Especially one as stripped as the one you mentioned.

I'd walk away unless for some reason you absolutely need that contract b/c of other contracts you already own.

Many contracts are listed every day and a better one is sure to pop up before you know it.

 

[disneynutz]

A transaction only happens when both parities reach an agreement. The fact that the seller thinks that his contract is worth more than you are willing to pay makes this a no deal.

Move on and good luck on the next one. There are plenty of contracts always available to choose from and more are added every day.

Bill

 

[JimMIA]

I have been watching resales very regularly for years. I would never make an offer on a contract as described.

What Splashboat said.

Nothing to see here, move along, find something better.

 

[tb1972]

I learned my lesson with extended closing dates and will never bid on those contracts again. Earlier this year we found an add on contract but the seller had "one last trip" planned. We made an offer, was accepted, deposit paid, etc. and the seller backed out after returning from her trip.

Both the extended closing and stripped status make this one unappealing. As others have said, I'd move on to a different contract.

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