Thoughts on Lowball Offer

[Noah_t]

I am tempted to make some lowball offers on an Aulani contract but truth be told there's something holding me back. It's almost like embarrassment or shame. My old Realtor when we bought our townhouse was offended a couple times when I put in a really low offer and tried to convince me it was being rude and a waist of time. One of those offers did eventually turn into a deal so ......... I am just curious how you all feel about it.
I just feel Aulani really should be priced where Vero and other offsite resorts are at. The huge maintenance fees and the really high point values are just so high. Anyway the market will decide as always.

Thanks
Noah

 

[GoingSince1990]

Why not? If someone really needs the cash now, they get it, and you get a good deal. If they want to hold out for more, that's up to them. I would say go ahead.

 

[becauseimnew]

Do it, the worst they can say is no.
And the same thing happened when we bought our house, I realtor didn't think they would take the offer she didn't think our max budget would be enough, but it was.

 

[Matty B13]

Nothing wrong with low ball offers. Of course brokers & realtors think they are rude because they make a commission of the sale, the higher the price the more money they make. There is nothing rude about a low ball offer.

 

[Sandisw]

I just sold and had my contract for $122, and got an offer of $110. I didn’t accept it, but it didn’t offend me as a seller,

Everyone wants a good deal and as someone who has bought, I did the same thing,

I say offer away as you never know what the seller may take. Given that the market is going to go down in the short term, there may be more sellers willing to go lower than normal.

In the end, after I transferred out points and lowered my price, I settled on $115.5.

 

[E2ME2]

I am tempted to make some lowball offers on an Aulani contract but truth be told there's something holding me back. It's almost like embarrassment or shame. My old Realtor when we bought our townhouse was offended a couple times when I put in a really low offer and tried to convince me it was being rude and a waist of time. One of those offers did eventually turn into a deal so ......... I am just curious how you all feel about it.
I just feel Aulani really should be priced where Vero and other offsite resorts are at. The huge maintenance fees and the really high point values are just so high. Anyway the market will decide as always.

Thanks
Noah

Offended, Really!? I'm sure he/she got over it.
I say go for it - Fortune Favors the Bold !
ET

 

[Lumpy1106]

I would say you run the risk of the seller rejecting your lowball offer, then rejecting your second, decent offer if it is still below asking (I think I would - the price is the price if you are going to play games). How much do you want the contract? Are there other contracts you'd be willing to place an offer on should this come to pass? If there is something unique about this contract (# of points, banked points, UY, etc) you might just want to make the decent offer right off the bat.

 

[KAT4DISNEY]

I am tempted to make some lowball offers on an Aulani contract but truth be told there's something holding me back. It's almost like embarrassment or shame. My old Realtor when we bought our townhouse was offended a couple times when I put in a really low offer and tried to convince me it was being rude and a waist of time. One of those offers did eventually turn into a deal so ......... I am just curious how you all feel about it.
I just feel Aulani really should be priced where Vero and other offsite resorts are at. The huge maintenance fees and the really high point values are just so high. Anyway the market will decide as always.

Thanks
Noah

The first condo/home I ever bought I did a low ball offer It had been sitting on the market a long, long time and other higher offers rejected but the offers had been many months previous. My realtor told me there was no way I'd get it.

In a few days my realtor and others were telling me they wished they had done that and gotten the great deal I had!

Moral of the story? It's your offer so do what you feel comfortable with.

 

[pirate33]

I agree-go ahead. When I sold one contract, I got one offer that was so low I told the broker I would not counter. The other party then bid against himself and raised the offer. I can’t recall offhand if that is the party we did a deal with; there was a fair amount of negotiation.

On all four contracts I purchased, I made pretty low offers and ended up with what I viewed as a reasonable to very good deal. I was motivated to buy without too much delay because I had specific trips in mind (anywhere from 12 to 24 months out) and wasn’t in a position to give a low ball and stick to it. But if I were in such a position (and I may be soon), I seen nothing wrong with not responding to a counter from the seller saying my first (or second) offer was last and best. It’s business!

 

[MICKIMINI]

It sounds like you've been down this road already. As you know - everything is negotiable. I think so much of it involves how you present the offer. I prefer to do it on the phone and am prepared for the agent's objections -especially ROFR prices. I listen patiently and then politely justify my price and terms. Most of the time I believe they just tell the buyer what I say verbatim. That is why it is so important you make a strong case for the sale to the agent rather than risk them making your case for you. I have way more confidence in myself then I do in someone I don't know. I've had good luck buying and selling.

Realistically, I don't think you will get a VBR price - not now anyway. If it is a contract that suits you well with UY, points, etc are you prepared to hear no? If not, offer close to your bottom line or just wait a few months as prices continue to decline. If there are 20 contracts out there that are similar, you have more leverage. You have a buyers market (at market prices) right now so take a deep breath...and go for it!

You do have to take into account that there are other buyers out there - thought less at this time obviously. If you have a common UY and there are 20 other similar contracts out there you have more leverage.

 

[Noah_t]

Ink hi ko

I would say you run the risk of the seller rejecting your lowball offer, then rejecting your second, decent offer if it is still below asking (I think I would - the price is the price if you are going to play games). How much do you want the contract? Are there other contracts you'd be willing to place an offer on should this come to pass? If there is something unique about this contract (# of points, banked points, UY, etc) you might just want to make the decent offer right off the bat.

No not at all. Lots of Aulani contracts out there that would fit our needs.

 

[DisMomKY]

I was selling and was offered 100 per point, asking was 118. I wasn’t offended, i countered at 112 and they declined. I get having a budget, I hope they found a good contract that worked for them and I found a buyer who offered full asking on mine. Now I’m the low baller

 

[SL6827]

I am tempted to make some lowball offers on an Aulani contract but truth be told there's something holding me back. It's almost like embarrassment or shame. My old Realtor when we bought our townhouse was offended a couple times when I put in a really low offer and tried to convince me it was being rude and a waist of time. One of those offers did eventually turn into a deal so ......... I am just curious how you all feel about it.
I just feel Aulani really should be priced where Vero and other offsite resorts are at. The huge maintenance fees and the really high point values are just so high. Anyway the market will decide as always.

Thanks
Noah

Your going to have to get over the shame, lol. I understand though. But ya, this is all about you and your money. Go for it.

 

[0FF TO NEVERLAND]

Right there with you.

I was looking to buy a 100 point contract.

Saw some prices that I wanted to offer lower, and just haven't pulled the trigger on it.

That has more to do with the economy right now though and job security cause of all this, and not being sure now is the time to spend that amount of money. Also not knowing when Disney will be normal again

If you can swing, go for it, Good luck to you though

 

[Vkothari916]

I just purchased a DVC contract where the listing was $149/point. I offered $130/point and the agent thought seller would not accept. The seller accepted without a counter.

it’s a buyer’s market and DVC is a luxury product - that is the first thing to go if seller’s are cash strapped or nervous about the economy. Furthermore it is a travel product and many will be scared to travel in the next year or two (perhaps longer).

So offer low and if the seller does not accept you can either counter or move on to the next listing.

 

[ofcabbagesandkings]

I was wondering about this especially with stripped contracts. I'm not planning to travel to WDW any earlier than late 2021 anyway, so as long as a contract still has full 2021 points and I can borrow from 2022, it could be a value for me. But I feel like contracts that are stripped should sell for less PP, and they frequently are listed at the same price as ones that have all of their points for 2020 and 2021.

 

[Sandisw]

I was wondering about this especially with stripped contracts. I'm not planning to travel to WDW any earlier than late 2021 anyway, so as long as a contract still has full 2021 points and I can borrow from 2022, it could be a value for me. But I feel like contracts that are stripped should sell for less PP, and they frequently are listed at the same price as ones that have all of their points for 2020 and 2021.

Be aware that they just changed temporarily the borrowing rule. One can only borrow 50% of points. It is to help with the closure,

No one knows how long it will be in place, but keep that in mind when you are buying, if you are buying in the near future.

 

[corgi_monster]

I’m thinking about a small Aulani contract as well, but I’m worried about the dues skyrocketing.

DVC experts, what is your opinion on this:

Hawaii’s tourism market will be slow for at least a year or two. If the hotel side of Aulani isn’t generating the income needed to maintain the property, is it legal for DVC to raise dues to makeup for the shortfall? Most, if not all, amenities are shared between the hotel and DVC so how do they divide the maintenance costs?

 

[Deb & Bill]

I’m thinking about a small Aulani contract as well, but I’m worried about the dues skyrocketing.

DVC experts, what is your opinion on this:

Hawaii’s tourism market will be slow for at least a year or two. If the hotel side of Aulani isn’t generating the income needed to maintain the property, is it legal for DVC to raise dues to makeup for the shortfall? Most, if not all, amenities are shared between the hotel and DVC so how do they divide the maintenance costs?

They should be shared based on the percentage each side occupies. So maintenance fees should be somewhere in the neighborhood that they currently are, unless wages are still going up. If Hawaii decides to raise property taxes, that could also make them go up a bit. The only way for the hotel side to pay less than they are is to convert hotel rooms to villas.

 

[cm8]

They should be shared based on the percentage each side occupies. So maintenance fees should be somewhere in the neighborhood that they currently are, unless wages are still going up. If Hawaii decides to raise property taxes, that could also make them go up a bit. The only way for the hotel side to pay less than they are is to convert hotel rooms to villas.

Are members allowed to refuse to “buy” or is that something we also agreed to give DVCM the power to do?