What is a Good Offer Price?

[Gillyrose779]

So I am looking at a small contract on Animal Kingdom- 50 pnts. It is a stripped contract with points not available until 2016. What is a good offer? I've researched the average resale price but can't find much on stripped contracts?

Thanks!

 

[Disney LOVE Travel]

Smaller contracts demand a higher premium so depending on the contracts you're comparing them to, it might be priced right for a quick sale, even with stripped points. In my time stalking these boards, it seems the best offer is the one you're comfortable with. If you are patient and can wait it out, make a low offer. Worst they can say is no and then you can move on to others. You might get someone who just wants to be done with their contract and accept the first offer to come through. But if it is the perfect contract for you, and since smaller contracts are a little harder to come by, then I would make your best offer (or slightly less than for negotiations, if it comes to that). You can also ask your broker if they have received multiple offers on this listing, which will tell you whether to bid higher or if you have some negotiating power. Over time, a few dollars on the purchase price really doesn't make much of a difference, especially on smaller contracts. Good luck and happy hunting!

 

[CMOORE185]

You do not want to go too low or you risk losing it at ROFR. There is a thread somewhere l believe that lists what people actually pay and what is passing ROFR.

 

[LSchrow]

the best resource for resale offers:
http://www.disboards.com/threads/ro...lease-read-1st-post-for-instructions.3364441/
you can lowball, but DVD can & does exercise their ROFR. we went for a reasonable offer on BWV, and it just passed - I would not want to have spent all that time researching, finally finding a contract that suited us, put in an offer & send check, only to find out a month later that it was ROFR'd....and having to start all over again
good luck, and make sure to add your offer to the ROFR thread

 

[beer dave]

I don't think ROFR has anything to do with price-- It has to do with if Disney has a purchaser on their waiting list for the exact contract being sold. Some pass with low sales price, and some are taken with high sales price. Right now it seems to be 10% or less taken, depending on the resort. (some 0%)

 

[CMOORE185]

I don't think ROFR has anything to do with price-- It has to do with if Disney has a purchaser on their waiting list for the exact contract being sold. Some pass with low sales price, and some are taken with high sales price. Right now it seems to be 10% or less taken, depending on the resort. (some 0%)

I am not sure they buy back strictly according to a wait list or you would not be on a wait list long as there are plenty of contracts for them to take back, yet some are on the wait list for a long time. But let's say they did, if they had two contracts to choose from which one would they buy back, my guess would be the one with the lower price.

 

[supersnoop]

I am not sure they buy back strictly according to a wait list or you would not be on a wait list long as there are plenty of contracts for them to take back, yet some are on the wait list for a long time. But let's say they did, if they had two contracts to choose from which one would they buy back, my guess would be the one with the lower price.

We've seen practically identical contracts where one gets ROFR'd and one passes on the same day, with the higher-cost getting taken. There is a lot more to it than just price. Price really only matters if it's way too low.

 

[beer dave]

We've seen practically identical contracts where one gets ROFR'd and one passes on the same day, with the higher-cost getting taken. There is a lot more to it than just price. Price really only matters if it's way too low.

Agreed-- except they don't want to "speculate" with any contracts... If they can't immediately sell, they don't buy.

As far as the waitlist, people wait long to get a low point contract in their use year--- and because of peoples schedules, and the times where DVC is more crowded, certain use years become more valuable to certain people...

 

[bellablue2]

$80/point, seller pays closing.

 

[CMOORE185]

Price really only matters if it's way too low.

Well that was my original point, if the offer is too low you risk losing it in ROFR. The question is what is way too low to Disney.

 

[CMOORE185]

Agreed-- except they don't want to "speculate" with any contracts... If they can't immediately sell, they don't buy.

As far as the waitlist, people wait long to get a low point contract in their use year--- and because of peoples schedules, and the times where DVC is more crowded, certain use years become more valuable to certain people...

I could be wrong but I thought I read on another thread that once a Disney buys the points back that they can do anything they want with them. That includes splitting them up into any point amount they want and changing use years.

 

[supersnoop]

I could be wrong but I thought I read on another thread that once a Disney buys the points back that they can do anything they want with them. That includes splitting them up into any point amount they want and changing use years.

No, they can't do anything they want. They can split them up into smaller portions. They cannot change the use year because that is tied directly to the deeded unit. They cannot combine points unless they are from the same deeded unit.

This means that it's in Disney's interest to purchase larger contracts, rather than the small ones that seem to command a premium.

 

[ldo]

A 50 point contract will get a premium. If your seller accepts $80 and pays closing, that is a great deal. If it is a listed resale, chances are it will go for about the listing price, assuming it is $85 or less. If I were selling 50 AKV, I would hold out for at least $83 with buyer paying closing. good luck. Elaine

 

[supersnoop]

Looks like it's listed at $91/point and has been available for three weeks. If I was in the market, I'd probably offer $85, but seller pay all closing costs. I'd be happy to come to terms with list price as long as the seller paid closing.

 

[Gillyrose779]

Thanks for all the tips. I like to get a good deal but I never want to go in so low that my offer might offend. I'm still annoyed at a few potential buyers on our last house and that was 2 years ago! I don't want to do that to someone else.

 

[nalajms]

I like to get a good deal but I never want to go in so low that my offer might offend

But you won't know what's offensive unless you know the buyer. Perhaps they purchased direct at $100+ per point and would be offended if you didn't offer the listing price. Or maybe they bought it in 2012 and paid only $60pp and wouldn't care if they sold it at $80.

 

[Minniesgal]

I don't think any offer is insulting but if you go in too low the seller may just walk away instead of countering.

If I were selling my points, regardless of what I had paid I'd be looking to get fair market value. If the resale agent is advising to advertise in the low 90s I suspect they probably think fair market value is in the high 80s so if it were me I'd probably start at $85 and see what they say. Is I needed to negotiate up well on a small contract that's small change.

Worst that can happen is the seller says no.

 

[chalee94]

with the 50 pt contracts, if you stop to think and calculate, you have probably already missed the boat as they will be under contract very quickly if the price is at all reasonable.

if it's still available after a day or so, the price most likely will need to come down...

 

[pangyal]

So I am looking at a small contract on Animal Kingdom- 50 pnts. It is a stripped contract with points not available until 2016. What is a good offer? I've researched the average resale price but can't find much on stripped contracts?

Thanks!

I'd guess you would be safe for ROFR as Disney is not actively buying back AKL these days at all. We worked with the broker to feel out a comfortable offer based on what the seller had indicated, and our offer was $5 below asking. However, for yours, I'd likely offer $75/pt and split closing, as a rough estimate

 

[suebeelin]

Thanks for all the tips. I like to get a good deal but I never want to go in so low that my offer might offend. I'm still annoyed at a few potential buyers on our last house and that was 2 years ago! I don't want to do that to someone else.

It's business... No offer should offend. It's not personal. You are trying to get a good price...

I always offer less. My offers are always based on my circumstance. If I the property is not a must have, then I offer lower, willing to wait until both parties are ok with the terms.

Again, it's business.