The Timeshare Store Negotiation

[Bamabot]

I realize that is forum is sponsored by the Timeshare Store but I have a quick question. Being the bargain hunter that I am I need to know if everyone givesthe seller an offer or do you just pay the asking cost per point?

 

[luckytso]

My experience with Timeshare Store was, as with other resale brokers,

you figure out how much you want to pay for a particular resale, and ask the broker what the situation is with the seller. They will tell you how negotiable they are. Generally, the ones that are more negotiable are the ones

- that are considered large contracts, the higher the points, the more negotiating room

- with few points left: the less points they have, especially the ones that have borrowed through even 2003, the more negotiable they are

- VB tend to be more negotiable than other resorts (for now, just because they are more resales and Disney's pricing is very competitive).

You can also negotiate on closing costs and annual due reimbursement.

As with all real estate transactions, everything is negotiable. Good luck.

 

[Dean]

It partly depends on how set you are on buying, how well a certain contract fits in with your situation, what the price and points availability is with that contract and the like. You're likely to better with modest cuts on the price per point and maint fees my past dealings would suggest.

If you're set on buying and find the perfect contract for you, it's not worth losing it trying to get the world's best deal. On my recent purchase, I would not have bought again (likely ever) had I not got the deal I did. That meant I could play hardball and walkaway.

 

[crisi]

You can certainly offer, but as Dean pointed out, the ability to walk away goes both ways. I think most resellers will let you know if you are making an offer that will be so insulting the seller won't have anything more to do with you.

If price is your main consideration (and remember that on 150 points the difference between paying $63 and $65 is $300 - worth worrying about? On a 450 point contract - $900?), talk to the resellers. They will probably have a pretty good idea about which contracts are going to be more negotiable and which are pretty firm.

I offered the asking price on the first contract I was interested in, and the seller decided not to sell after all - they were hoping for a bidding war!

 

[baileybrad]

Remember that this is a simple business deal. If you have a broker handling the sell there is little chance that you will have a problem with making an offer that if agreed to by both parties that Disney then could come in and use the right of first refusal to void the sale.

The point about insulting a seller with a low offer and having them not wanting to have anymore to do with you is a not really a consideration. No reason to get emotional over it so if a seller were to act in this manner you are better off not dealing with them in the first place.

I would never make a bid starting at the asking price. It is just not in me. Heck, I have gotten salespeople at the mall to come down on the price of a pair Florsheim shoes. And I would not get caught in a bidding war. A few years ago after BWV sold out, folks were getting caught up in those....there are just too many options to react in this manner.

If you are willing to not get in too big of a hurry and are paying cash...the resale market is a much better way to go instead of through Disney.

 

[DisneyKidds]

Everything is negotiable. Figure out what you are willing to spend and make an offer - even if the broker doesn't think it will be accepted. The brokers are acting on the behalf of the seller as much as on your behalf. The offer we made on our BW resale was accepted even though the broker thought it was low.

However, don't let a good deal slip away over a dollar or two a point. Some resales go very quickly, especially now as there don't seem to be as many good deals out there as there were a year ago.

 

[marymrg]

I made an offer that wasn't accepted. When the broker called me back, he told me about another seller with a very similar contract who was going to relist for a lower price and that our terms were very close. I made the same offer (as the first) and it was accepted. Maybe I just lucked out? Maybe I was the type of buyer they wanted? (no financing) Maybe the planets were in alignment? Who knows........I'm just glad it worked out. The difference in the two contracts was a matter of a few hundred dollars, but a threshold I wasn't willing to agree to (and neither was the first seller) My advice is to offer something lower but if you really want it, decide beforehand how much higher you will go. Good luck!
MaryG

 

[robinb]

You can also start with a lower offer and tell the agent that you will go up to another price. They cannot, by law, tell the seller that you will offer more until the first offer is rejected.

 

[DanG]

Robin, the laws differ by jurisdiction and I do not know what the laws of agency and disclosure are in Florida or Wisconsin. I do know that in Illinois and numerous other states, a broker representing a seller has a duty to disclose information to his or her client. It stands to reason that your loyalty should lie with the person who has retained you.

DanG

 

[johde]

I am in the middle of closing on a Resale with Jaki from A Timeshare Broker and she sent me the following regarding her agency relationship with the buyer and seller

Florida law requires that real estate licensees operating as transactional brokers disclose to buyers and sellers their role and duties in providing a limited form of representation, as a transaction broker. A Timeshare Broker provides to you a limited form of representation that includes the following duties:
6)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 listing 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 agrees to financing terms other than those offered, or of any other information requested by a party to remain confidential, and

Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty. This aspect of limited representation allows a licensee to facilitate a real transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

I don't know if The timeshare store is similar or not.

Jeremy

 

[WDWalways]

I'm also in the middle of a resale -- I offered a lower price than asking price and the broker told me the lowest the seller would go which was only $1.00 higher per point than the offer I made so I bought. Just ask, you never know! Good Luck!!

 

[robinb]

Originally posted by DanG
Robin, the laws differ by jurisdiction and I do not know what the laws of agency and disclosure are in Florida or Wisconsin.

Dan ... good point on the laws being different depending on the state. I should have made it clear that I was talking about Florida law. I didn't know that until after we made our offer and we received paperwork which explained that the agent could not disclose that the buyer would be willing to increase their offer. I wish I had kept the letter so I could quote the exact language . I had expected it to be the same as in Illiniois.

Ooops ... I just read Jeremy's post. The language from The Timeshare Store was very similar if not exactly the same .

 

[Dean]

No matter what the disclosure says, remember that the broker is mostly working for the seller. The higher the offer, the more money they tend to make and the more likely they are to make a easy sale and generate commisions. I'm not knocking that, just reminding you what the deal is. As for insulting the seller, hogwash. I've bought timeshares at 10¢ on the dollar and for 10% of the asking price. This will not likely happen with DVC as long as they excercise the ROFR but eventually it will happen there as well.

 

[Bamabot]

Thank you everyone, seems to me I went to the right place to ask a question!

Thanks again,
Dana