Thoughts on Lowball Offer

[Sophie Weaver]

Then wait find the contract you really really want. It's a marathon it's not a sprint.
PS I was responding to someone else and it went to you.I'm sorry.
But If you're not comfortable with a contract and it's not what you're looking for I would walk away. It's going to be quite sometime till things get anywhere near normal anyway.

These sellers ended up being firm on $107, so alas, it's not meant to be. I got my marathon shoes on!

We're in no rush and the brokers I've been working with have been really great. It's now become a small weekly activity to throw an offer or two.. or three at a contract that would be nice to have and see if anything sticks. I figure eventually someone will come back in agreement.

 

[mustinjourney]

I think rude is subjective, even in regular real estate. To me, any seller who would be insulted wouldn’t be a seller I’d want to deal with and when we were looking at a house, and turned down because it was too low, and rude When they came back a month later saying they’d take it, we said nope. They were forced into selling $13K less than our low offer.

I have bought and sold quite a few DVC contracts and have never been insulated with lowball offers, Just said no.

totally agree.

I also don't understand why people act like DVC contracts are like buying houses. They are completely different beasts. To me, DVC contracts are like commodities...instead of buying sugar, pork bellies, crude oil...I'm buying VGF/BWV/BCV, etc...

IMHO -- if I'm looking at VGF, there is nothing magical about one 150 point contract over another. Only difference is loaded or stripped -- but you can run a formula to normalize all of them to better compare apples to apples. It's nothing like buying a specific house in a specific neighborhood that has that beautiful oak tree in the front yard and has an amazing view of [INSERT WHAT YOU LIKE HERE] from the backyard porch/balcony.

When dealing with house hunting -- you don't always have the time to bargain hunt.

When dealing with commodities -- just go down the line and make offers until you find the most desperate/eager seller.

 

[mustinjourney]

You should not be at all embarrassed! I would have offered 125 pp to start!

no kidding. Missing 2019/2020/2021 points? At $10 per point value, that's $30 pp off the price. So if $150 is avg -- I wouldn't go higher than $120.

 

[heynowirv]

These sellers ended up being firm on $107, so alas, it's not meant to be. I got my marathon shoes on!

We're in no rush and the brokers I've been working with have been really great. It's now become a small weekly activity to throw an offer or two.. or three at a contract that would be nice to have and see if anything sticks. I figure eventually someone will come back in agreement.

Eggxatly once over easy.

 

[mustinjourney]

This is the reply I got on one of my three low ball offer... doesn’t even look like they put the offer to the seller! I didn’t get responses on the other two. They were all at figures that I am seeing other people get accepted on the ROFR thread, but were $20-30 below asking on GFV / PVB contracts.

they're required by law to forward all serious offers to the seller (unless seller specifically told them to not send them offers unless they were above a certain number).

I got VGF in 2016 at $123 per point -- and that was after the seller had declined $135 pp earlier...but after sitting for a few more weeks -- they finally got impatient and decided to sell.

 

[mustinjourney]

We don't know what the seller has instructed the agent regarding offers. The seller may have directed her not to bother presenting offers under the rejected one. If I were selling my contracts, I would instruct the broker to present only full rice offers. I know what my contracts are worth and should I receive no offers, I would revisit those instructions. Seller's choice, not the buyers choice.

is that white or brown rice? Or a combination?

 

[E2ME2]

I just put in for $97 on an October UY with no points until 2021. They countered at $109 They were asking $111.. I was hoping they'd at least come in under $105 in the counter..But noo....

That's too high. I got SSR at <$89 -passed ROFR in early March, before the COVID scare.

 

[WanderlustinFP]

I got VGF in 2016 at $123 per point -- and that was after the seller had declined $135 pp earlier...but after sitting for a few more weeks -- they finally got impatient and decided to sell.

I hope VGF gets back down to $123 again. One can only wish.

 

[E2ME2]

With the reopening announcements, prices may start increasing again. The trend is that usually prices are lowest in January, as people want to sell before they pay another years worth of dues. Then they creep back up throughout the year, exception being this year with COVID-19. We may have to wait until next January to see things go on sale again !?
ET

 

[deedubb]

I made a lowball offer and did not hear back. No counter offer made, nothing. Not a peep. How do you run a business like this? I know which company I will never use in the future.

 

[Michelle Sinnott]

Well I took the offer. I got SSR 100 point June use year with all of 2020 and 2021. I got it for 96$ a point and I pay closing and dues. I took a day to finally decide but think I made the right decision. I signed everything now just have to wait for ROFR.

 

[OlieRow]

$105 was High, prior to COVID-19
Only SSR taken in 4+ month was at $85
I wouldn't offer more than $90

When I said $100 + closing costs I meant $100 total on the actual points plus closing costs. The OP was trying to get the per point price down another $1 for 100 points = $100.

 

[heynowirv]

Well I took the offer. I got SSR 100 point June use year with all of 2020 and 2021. I got it for 96$ a point and I pay closing and dues. I took a day to finally decide but think I made the right decision. I signed everything now just have to wait for ROFR.

If you're comfortable with it then it's the right decision.

 

[rookie1255]

Do prices really drop significantly in january with dues having to be paid? I would think that it wouldn't make that much of a difference since the sellers would recoup that cost anyways since the buyers almost always pay the dues for that use year’s points at closing.

In addition, it takes around 2 months to close, so an accepted offer in january would still have the sellers paying the dues. If anything prices should start to reach lows around October if sellers are REALLY trying to avoid coming out of pocket for dues, right?

 

[KAT4DISNEY]

Do prices really drop significantly in january with dues having to be paid? I would think that it wouldn't make that much of a difference since the sellers would recoup that cost anyways since the buyers almost always pay the dues for that use year’s points at closing.

In addition, it takes around 2 months to close, so an accepted offer in january would still have the sellers paying the dues. If anything prices should start to reach lows around October if sellers are REALLY trying to avoid coming out of pocket for dues, right?

Significantly? No. There can sometimes be greater volume which can provide a little more negotiating power. I think there was less of that this year than in some previous years and difficult to say what will happen this coming January. Those who were thinking about it may sell before then.

 

[E2ME2]

Do prices really drop significantly in january with dues having to be paid? I would think that it wouldn't make that much of a difference since the sellers would recoup that cost anyways since the buyers almost always pay the dues for that use year’s points at closing.

In addition, it takes around 2 months to close, so an accepted offer in january would still have the sellers paying the dues. If anything prices should start to reach lows around October if sellers are REALLY trying to avoid coming out of pocket for dues, right?

Actually. they do drop in January-
I tracked the ROFR table from this site's sponsor and you can see a decline in ROFR price in Augist & Sep.- then none taken through Janyuart, and ROFR in Feb was $85.
My offer was accepted in Feb. for $88.89/Pt. Then the COVID-19 hit, and ROFR went by the boards but I'm still seeing a lot of SSR listings for high 90's to low 100s.

 

[MICKIMINI]

Another week, another offer... I bid on a 150 BRV Oct listed at $98. I bid $88 and lost it to a full price offer within a couple hours of being listed. Two weeks ago there was a 150 BRV Oct with another broker listed at $105, reduced to $100 and it is UA. Prices are still going down. AKL is our #1 and BRV #2, so no big deal we'll find a deal or buy a used yacht (rowboat) LOL!

 

[heynowirv]

Another week, another offer... I bid on a 150 BRV Oct listed at $98. I bid $88 and lost it to a full price offer within a couple hours of being listed. Two weeks ago there was a 150 BRV Oct with another broker listed at $105, reduced to $100 and it is UA. Prices are still going down. AKL is our #1 and BRV #2, so no big deal we'll find a deal or buy a used yacht (rowboat) LOL!

You and me both although BRV is #1 with AKL next with an Aug UY of course. Let's go find them.......

 

[CastAStone]

totally agree.

I also don't understand why people act like DVC contracts are like buying houses. They are completely different beasts. To me, DVC contracts are like commodities...instead of buying sugar, pork bellies, crude oil...I'm buying VGF/BWV/BCV, etc...

To me -- if I'm looking at VGF, there is nothing magical about one 150 point contract over another. Only difference is loaded or stripped -- but you can run a formula to normalize all of them to better compare apples to apples. It's nothing like buying a specific house in a specific neighborhood that has that beautiful oak tree in the front yard and has an amazing view of [INSERT WHAT YOU LIKE HERE] from the backyard porch/balcony.

When dealing with house hunting -- you don't always have the time to bargain hunt.

When dealing with commodities -- just go down the line and make offers until you find the most desperate/eager seller.

this is exactly right and it’s baffling to me how some contracts just sit out there with these outrageous prices.

 

[Lorana]

this is exactly right and it’s baffling to me how some contracts just sit out there with these outrageous prices.

Well, it's probably one reason why they're still sitting out there instead of being sold... ;-)