Trying to figure this whole thing out - help me evaluate this contract please

[AmyAnne]

I've been reading a lot here and trying to apply what I've read to actual resale contracts, and finding that I am still pretty confused. So here is an actual resale. Experts, what is good and/or bad about it? The seller is asking $91 per point - is that reasonable? If you were looking to buy 100 points at SSR, what would you think about this?

Resort Saratoga Springs-Sale Pending
Points 100
Use Year September
Banked Points 18
Borrowed Points
Closing Costs 630
Annual Dues at Closing* 560
Price $9,100.00
Total Price $10,290.00
Notes 118 points coming on 9/1/17 (100 + 18 banked points from 2016, banked points need to be used by 9/1/18) and 100 points coming on 9/1/18. Priced at $91 per point.

 

[4luv2cdisney]

Not an expert, and I'm sure you'll get plenty of replies, but if you want to look at the link below it will provide a current list along with additional links to lists of all the resale contracts reported on this board in the last few years. You will likely find plenty of 100 point SSR contracts to compare to!

https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3615204/

 

[Dean]

I've been reading a lot here and trying to apply what I've read to actual resale contracts, and finding that I am still pretty confused. So here is an actual resale. Experts, what is good and/or bad about it? The seller is asking $91 per point - is that reasonable? If you were looking to buy 100 points at SSR, what would you think about this?

Resort Saratoga Springs-Sale Pending
Points 100
Use Year September
Banked Points 18
Borrowed Points
Closing Costs 630
Annual Dues at Closing* 560
Price $9,100.00
Total Price $10,290.00
Notes 118 points coming on 9/1/17 (100 + 18 banked points from 2016, banked points need to be used by 9/1/18) and 100 points coming on 9/1/18. Priced at $91 per point.

That looks a little high to me. It has high closing, a slightly high cost per point and you're overpaying on the dues. That adds up to around it being roughly $1000 over priced in my book. But if it's the perfect contract in terms of UY, home resort and number of points; it's not enough to run away from. And you might be able to get it for a more reasonable price on negotiation.

 

[mustinjourney]

I'd aim for $80-85. My first offer would be $80 and buyer pays MF. See where it goes from there. In looking at the ROFR, it does look like values are anywhere between $75-$90 a point, so their asking price isn't ridiculous. Especially for a smaller contract.

*ETA -- I actually meant SELLER pays maintenance fees.

 

[AmyAnne]

Thanks for the feedback. This does seem like a contract we would seriously consider placing a bid on, once we have 100% decided on resort and use year (we are pretty much decided on 100 points, so we're getting closer!). It's very helpful to know specific info like what would be a good but reasonable price, and asking for buyer to pay closing costs.

 

[mustinjourney]

Thanks for the feedback. This does seem like a contract we would seriously consider placing a bid on, once we have 100% decided on resort and use year (we are pretty much decided on 100 points, so we're getting closer!). It's very helpful to know specific info like what would be a good but reasonable price, and asking for buyer to pay closing costs.

I actually meant seller pays maintenance fees. Last year around this time, many of the contracts were starting to get the sellers to pay the MFs for the current UY. With that said, it was a buyer's market last year, so I wouldn't expect that to fly right now. But it might be a good place to start the negotiations.