What is a fair offer?

[Donald Duck888]

I have been thinking about buying around 100-150 points at either BCV or BWV for a while now. I have been watching the points that come up for sale at the timeshare store and have a couple of questions I was hoping someone on here might be able to answer for me.

First is as a Marriott owner I am aware of the "buy where you want to go" mantra and was wondering if this is as important with DVC as it is for Marriott.

Second I was curious what is a fair offer for something on the resale market? Are things at say the timeshare store listed pretty close to what they are looking for or if not how much can you reasonably hope to shave off? $10 per point? 5? 15? While I know there is no one answer to this I am just hoping to get some kind of ballpark idea.


I would greatly appreciate any input, Thanks

 

[Buckeye Fan]

First is as a Marriott owner I am aware of the "buy where you want to go" mantra and was wondering if this is as important with DVC as it is for Marriott.

As a resort owner, you get to book at your home resort 8 - 11 months out. For certain times of the year (Christmas, spring break, etc.), this home resort advantage becomes important. Most people will urge you to buy where you want to stay. However, some things may be more important to you than where you stay (price, length of contract, etc.).

Second I was curious what is a fair offer for something on the resale market? Are things at say the timeshare store listed pretty close to what they are looking for or if not how much can you reasonably hope to shave off? $10 per point? 5? 15? While I know there is no one answer to this I am just hoping to get some kind of ballpark idea.

Today's market is so much different from a few years ago. Disney is almost letting everything pass right of first refusal, so if you're in no hurry and willing to test the waters, a fair offer is whatever someone will accept. There is a ROFR thread that is showing what people on the boards are paying. The only thing we're aware of that has been snatched up by Disney (and even that is hit or miss) is BCV. If you're looking at BWV or BCV and it's honestly a toss up, you'll get a much better price at BWV. BCVs is smaller, and resale prices have trended a bit higher over time. Right now, "fair" market price for BWV seems to be in the $50 - $55 per point, while BCV is hanging somewhere around high $70s to low $80s. If I were you, I would decide on a resort and what you're hoping to pay (price per point). Remember, too, that closing costs and maintenance fees are negotiable as well.

Best of luck!

P.S., to the Disboards!

 

[Sandisw]

If staying at BWV or BCV is important, then I would buy there as mentioned, you get an advantage in terms of booking. Right now, that advantage is 4 months, but you are only guaranteed a 1 month advantage.

We bought BLT because we wanted to be there unless it was our choice to trade out. We have since realized that we like to split our summer trip between either BWV or BCV and BLT so that we can walk to 3 of the 4 parks. We get the best of both worlds.

But, resort location was our #1 priority. If it is not for you, then you could consider less expensive options--but I have to say, with what has been happening with BWV, you can get that resort for around the same price as SSR or OKW, typically the WDW resorts that go for less price per point.

Good luck!

 

[JimMIA]

First is as a Marriott owner I am aware of the "buy where you want to go" mantra and was wondering if this is as important with DVC as it is for Marriott.

I don't know how critical that is with Marriott, but with DVC, I'd say three things.

One is that it depends on where you want to go, and when. For example, we were able to get BCV for a May visit at 4 1/2 months out, but if we'd been looking for BCV during F&W, we probably wouldn't have had any luck. A similar situation is if you want a particular type of accommodation (GV, for example) or a particular view (MK view at BLT, for example). In that situation, the home resort advantage would also be important.

Second, as DVC continues to expand you will have more and more non-home owners trying to book at seven months. In the case of the larger resorts, that may not be a big deal, but at places like BCV or VWL, 7 month bookings may get more difficult over time.

And third, the importance of "buy where you want to stay" is really kinda difficult to assess, because DVC ownership is a long-term thing and your preferences are likely to change, especially at your kids get olderl

Second I was curious what is a fair offer for something on the resale market? Are things at say the timeshare store listed pretty close to what they are looking for or if not how much can you reasonably hope to shave off? $10 per point? 5? 15? While I know there is no one answer to this I am just hoping to get some kind of ballpark idea.

That's tough to say, and probably the only way you'll know for sure is to try. I would say a few years ago, most listings were only $3-$4 above the seller's minimum acceptable price. But that may have changed in this market.

The TTS agents can give you some guidance, based on what other contracts are actually selling for. Another resource is the DIS ROFR thread which will show actual prices paid. There, you'll see some contracts where the buyer paid too much and you'll see others where a desperate seller took a low-ball offer. I'd ignore those and try to get a sense of what most contracts are selling for at the resort you want.

I'd also keep in mind that the biggest cost in any timeshare is the annual dues, not the purchase price. So, $200 one way or the other really doesn't mean much in the grand scheme of things.

 

[Donald Duck888]

Thank you to all that have responded to my questions. You all make very good points and I appreciate your taking the time to share your insight.

I think I willl stick to looking at BCV and BWV (most likely focusing on BWV as for some reason it is selling much lower than BCV) as that is where I would like to be at with their great location.

I guess I will at some point throw out a couple offers for a contract of around 100-150 pts as my plan is to try to keep maint fees low ( I assime this will be between $500 - $800 yearly) and use the points like every other year as I have an Ocean point Marriott to use in the off years. I agree with the comment about fees being the biggest long term cost as the Marriott OP has fees that started out pretty high and keep increasing yearly, ouch.

One last question if I may however, Would you say offering say 59 per point on something asking 69 per point is reasonable, too much or will be seen as an insult?

Thanks again for the info.

 

[JimMIA]

I guess I will at some point throw out a couple offers for a contract of around 100-150 pts as my plan is to try to keep maint fees low ( I assime this will be between $500 - $800 yearly)

If you look at the top of the DIS Operations page, you'll see a sticky called DVC Resource Center. In there, you will see a thread with the complete dues history for each resort since the beginning. That will give you a very clear idea of what the dues will be.

One last question if I may however, Would you say offering say 59 per point on something asking 69 per point is reasonable, too much or will be seen as an insult?

I was looking at BWV yesterday on the ROFR thread, and it looks to me like the prices are just all over the place. I see contracts clearing ROFR at $46 and $48, and I see people paying $70 a few months ago, and as much as $66 earlier this month.

I tend to think that there are two factors at work there -- some sellers are desperate and are taking really low offers, and other sellers and buyers are really out of touch with the market, resulting in sales prices somewhat above the norm. BWV seems difficult to get a handle on, but if I had to set a "reasonable" range, I would say between $50 and $60...and maybe lower in that zone rather than higher. I see several sales in the $52-$55 range, even before the 3/20 resale restrictions.

Considering the recent sales of $66 and $65, a listing price of $69 is not delusional, but I wouldn't pay anywhere near that. I would offer whatever you are willing to pay and see what happens.

 

[Joey7295]

I would say start low, and feel it out and work your way from there.

 

[LisaS]

I think I willl stick to looking at BCV and BWV (most likely focusing on BWV as for some reason it is selling much lower than BCV) as that is where I would like to be at with their great location.

BCV is the only resort where DVC still regularly exercises its Right of First Refusal to buy back contracts so that is keeping the prices higher there. Also, BCV has a huge pool area (SAB/Stormalong Bay). It is excluded from pool hopping so you have to be a guest of BCV, BC or YC to use it. We opted to buy BWV instead of BCV because we cared more about having a great view (Boardwalk View booking category) and saving points (Standard View booking category) than we did about the pool area.

I guess I will at some point throw out a couple offers for a contract of around 100-150 pts as my plan is to try to keep maint fees low ( I assime this will be between $500 - $800 yearly) and use the points like every other year as I have an Ocean point Marriott to use in the off years. I agree with the comment about fees being the biggest long term cost as the Marriott OP has fees that started out pretty high and keep increasing yearly, ouch.

Just an FYI, annual dues have increased an average of 3-3.5% each year. This DVC dues chart hasn't been updated for 2011 but it shows the dues increases (actual dollar amounts and percentages) over the years through 2010.

 

[ldo]

I would think of the WDW-DVCs as Marriotts at HHI. Let's say you want to go to HHI, but Surf Club is a lot cheaper than Barony and in anything but high season you can easily trade for Barony, but you are happy to stay at Surf Club if you "have to" as your main purpose is to be at a Marriott at HHI. In that case, you might very well buy at Surf Club to save the bucks.
Now, the difference with DVC is that there is no extra trade fee to stay at BCV if you bougth BWV and you can even make your BWV reservation 1st and then see if there is anything at BCV at 7 months and even get on a waitlist for BCV at 7 months, keeping your BWV reservation until the waitlist comes thru (or not).
Thus, if you do not "HAVE" to have a certain DVC, many people say if the price is right, buy the resort that you "don't mind" staying at if you can't get in where you want at 7 months.
BCV and VWL are much smaller than the other DVCS, so if you want to stay at one of those most times, you might consider buying there. Also, to get standard view at BWV, you usually need to book before 7 months, same for concierge and value rooms at AKL, and for Grand villas at all resorts. good luck. Elaine

 

[Sandisw]

Thank you to all that have responded to my questions. You all make very good points and I appreciate your taking the time to share your insight.

I think I willl stick to looking at BCV and BWV (most likely focusing on BWV as for some reason it is selling much lower than BCV) as that is where I would like to be at with their great location.

I guess I will at some point throw out a couple offers for a contract of around 100-150 pts as my plan is to try to keep maint fees low ( I assime this will be between $500 - $800 yearly) and use the points like every other year as I have an Ocean point Marriott to use in the off years. I agree with the comment about fees being the biggest long term cost as the Marriott OP has fees that started out pretty high and keep increasing yearly, ouch.

One last question if I may however, Would you say offering say 59 per point on something asking 69 per point is reasonable, too much or will be seen as an insult?

Thanks again for the info.

I think you should put in whatever offer you would like to have and go from there. My DH finally said yes to putting in an offer on a contract that just listed, but his figure was way lower than asking price. Bad news is that seller said no but the broker had no problem presenting the offer for quite a bit less than asking price.

It would have been a great deal had we gotten it so you just never know until you try!

 

[Jason@dvcstore]

I have been thinking about buying around 100-150 points at either BCV or BWV for a while now.

First is as a Marriott owner I am aware of the "buy where you want to go" mantra and was wondering if this is as important with DVC as it is for Marriott.

Second I was curious what is a fair offer for something on the resale market?

I would greatly appreciate any input, Thanks

1) If you plan on making reservations more than 7 months in advance then you really need to buy the resort where you want to stay. When you make a reservation more than 7 months in advance you can only stay at one place and that is your home resort. If you are typically going to make reservations less than 7 months in advance (typically Florida and Georgia residents) then I would suggest a resort like Saratoga Srings via resale as you can buy for typically between $61 and $65 per point and their dues are only $4.52 per point.

2) At The Timeshare Store, Inc.® 100 to 150 point contracts at the Beach Club have been typically selling for between $80 and $85 per point.

At The Timeshare Store, Inc.® 100 to 150 point contracts at the Boardwalk Villas have been typically selling for between $62 to $67 per point.

I hope that helps.

Jason

 

[Donald Duck888]

Thank you Jason that does help.

Also thank to all that have posted good advice all.