Thoughts on Lowball Offer

[gtfpjames]

Thanks to everyone for their explanation of this calculator. We are brand new to this and looking for a 300 to 350 point poly contract. The more I read sounds like we need to wait a few more months. This forum has been a huge resource for us, really appreciate it.

 

[bashuck]

I once put in a pretty low offer on a PSL (personal seat license) for a football team. It was accepted outright without negotiation. As I'm at the first game the guy next to me is talking to me about the prior owner, how he had some medical issue and had his leg amputated. I felt kind of bad. I obviously didn't know any of these but they seemed to sell under duress. I ended up selling it that very season for about 40% more than I paid.

 

[ABE4DISNEY]

We're getting there!! You may need to put your checkbook away until fall.
We're brainstorming that October/November/December may reveal the best deals.

Patience is key—gotta put away that checkbook!
Sage advice ...now if I can only do it.

 

[DisMomKY]

Do you all have any opinion on Jeffrey Sweet as the title company? We have only used Magic Vacation Title and Mason in the past

 

[MICKIMINI]

Thanks to everyone for their explanation of this calculator. We are brand new to this and looking for a 300 to 350 point poly contract. The more I read sounds like we need to wait a few more months. This forum has been a huge resource for us, really appreciate it.

Have you considered buying two contracts, same resort same UY? It really works like one big contract and you can use whichever contract you want on the website. If it were me, I might even go for three contracts. It just gives you an offramp if you ever want to sell - you just sell part of your "home". You can also get a premium for smaller contracts like 50 pts or so, but 100 are very attractive. I know you think you will never sell, but the market will go up again in a few years - options are good. You should get a great deal with 300-350 points or pay a bit more for a couple smaller ones, but since you are a newbie, just thought it would give you something else to discuss!

Last year, I bought a smallish contract and then flipped it. I got $60+ PP over what I paid.

 

[MICKIMINI]

Do you all have any opinion on Jeffrey Sweet as the title company? We have only used Magic Vacation Title and Mason in the past

Absolutely THE BEST. I always use them as they are friendly and informative and will ALWAYS answer your call.

 

[ABE4DISNEY]

I totally understand that everyone wants to save money but we still need to keep the perspective. Is it worth it to potentially not getting a contract because of 32 cents pp?

Mathematically, you are correct.

Honestly, it's psychological for me--no, it's pathological.
I always want a deal. Can't help myself. It's why I shop at TJ Maxx instead of Lord & Taylor (unless, of course, they have a clearance sale.)

This contract is a dollop of whip cream on top of my three other scoops (BWV & 2 SSR). I'm open for quite a few contracts. If I miss out on one, meh, another will come around. BUT there has to be that feeling that I got a good deal. Yep, it's sad; I admit it. But it is what it is. And who knows, if the prices do tumble, I might even go after another contract for that on top!

 

[KAT4DISNEY]

Do you all have any opinion on Jeffrey Sweet as the title company? We have only used Magic Vacation Title and Mason in the past

They are fine and handle the closing for us on a purchase with no issues.

 

[gtfpjames]

Have you considered buying two contracts, same resort same UY? It really works like one big contract and you can use whichever contract you want on the website. If it were me, I might even go for three contracts. It just gives you an offramp if you ever want to sell - you just sell part of your "home". You can also get a premium for smaller contracts like 50 pts or so, but 100 are very attractive. I know you think you will never sell, but the market will go up again in a few years - options are good. You should get a great deal with 300-350 points or pay a bit more for a couple smaller ones, but since you are a newbie, just thought it would give you something else to discuss!

Last year, I bought a smallish contract and then flipped it. I got $60+ PP over what I paid.

 

[gtfpjames]

That is a great idea and one we had not thought of. We will look at listings that way too! Thanks so much for that suggestion!

 

[BeachNut]

There were even some passing in the 30's.

Wow!

 

[BeachNut]

Can someone explain how the “Instant Sales” normally get through ROFR? Thanks.

 

[Cyberc1978]

Can someone explain how the “Instant Sales” normally get through ROFR? Thanks.

Just like a regular sale it have to be sent to Disney for ROFR.

just because the contract is priced to sell quickly does not mean that it will pass ROFR. A low priced contract have a higher chance of being taken by disney during ROfR.

Only thing the instant sale tool sort of guarantees is that the contract will sell quickly nothing else.

 

[JETSDAD]

My guess is that they price the instant offer low enough that under normal circumstances the contracts would in fact get taken in ROFR much of the time. That way they make their commission and don't have to put out the cash to close on the deal. If it does pass then it's also low enough that they can easily resell it but they likely prefer to just make the commission.

 

[KAT4DISNEY]

Can someone explain how the “Instant Sales” normally get through ROFR? Thanks.

I suspect that it's very rare that people take that route. And there would be no guarantee that it passes ROFR but that probably doesn't matter to the broker.

 

[Cyberc1978]

I suspect that it's very rare that people take that route. And there would be no guarantee that it passes ROFR but that probably doesn't matter to the broker.

Agree. Brokers are interested in a sale not if a sale passes ROFR or not.

 

[ABE4DISNEY]

I suspect that it's very rare that people take that route. And there would be no guarantee that it passes ROFR but that probably doesn't matter to the broker.

How does the "instant sale" work on their website?
1. So the seller uses that option...does the broker list it at that price?
2. Do they list it higher?
3. Is there a special place where those 'instant sales' are listed for buyers to scoop up?

When looking through their website, I don't see an super low contracts and I don't see a link for 'instant sales' for a buyer? What am I missing?

 

[Cyberc1978]

How does the "instant sale" work on their website?
1. So the seller uses that option...does the broker list it at that price?
2. Do they list it higher?
3. Is there a special place where those 'instant sales' are listed for buyers to scoop up?

When looking through their website, I don't see an super low contracts and I don't see a link for 'instant sales' for a buyer? What am I missing?

I see it as a "tool" for potential owners looking to sell a contract very fast. Instead of just giving it away the contract still holds value even if its priced aggressively.

If anyone listed a 100 points VGF contract at $110 pp then the owner most likely had used the tool to price the contract. Thing is most likely that contract would never make it to the website as the brokers themselves would buy the contract. I'm not saying that the case always but I could see it happen sometimes.

 

[ABE4DISNEY]

I see it as a "tool" for potential owners looking to sell a contract very fast. Instead of just giving it away the contract still holds value even if its priced aggressively.

If anyone listed a 100 points VGF contract at $110 pp then the owner most likely had used the tool to price the contract. Thing is most likely that contract would never make it to the website as the brokers themselves would buy the contract. I'm not saying that the case always but I could see it happen sometimes.

Ah, makes sense! So you are saying that brokers are also probably "flipping" contracts; I know I would! Thanks for the clarification!

 

[Cyberc1978]

Ah, makes sense! So you are saying that brokers are also probably "flipping" contracts; I know I would! Thanks for the clarification!

Yes I know they are - heck I would too. You sort of get first dips on new contracts and if they are priced to be sold very fast why not buy it yourself. Then you get commission and cheap points. Then you strip the contract and sell it again. This times you dont pay commission as you are selling it yourselves.

Whats not to like....as a broker.