What is reasonable to offer when buying resale?

[MemphisTN]

We are close (possibly) this afternoon in making an offer on a resale.

Do most people offer the same price per point as being listed and then negotiate maintanence fees and closing? Or is it easier to offer a few dollars lower than the asking price per point and agree to pay the current year fees and the closing?

Last question regarding use year and available points. If a use year was not near the beginning or the end of a calendar year, would you prorate the fees paid for calendar year 2007 or not worry about it and try to recoup some in the price per point? For example if there were 150 points with a use year of April and none for 2006. Would you offer to reimburse all of 2007 or just April through December (75%) of what the seller paid in January?

thanks

 

[mikesmom]

No way you are going to save money on a resale by offering low. If you offer low, and they accept it, Disney will swoop in and take it out from under you with ROFR.

Depends on which property and how bad you want it. Some here have offered HIGHER for something they wanted and then negotiated closing costs, points, etc.

If you want to gamble and don't really care if you get this one or not, then go lower and you might get lucky. If not, there's always the next one. Don't do it if you are going to be upset if you lose the deal.

 

[DBorges]

I have found out that the seller has to pay the dues for point used in a use year IE If I have used all my points for 2007 then I have to pay the dues when I sell . Then in the 2008 use year the new owner starts to pay them.

You will however have to pay the loan and have no points but all the Perks till you new use year upon you .

But If someone has used there 2007 points then desides to sell them too you he can request for you to pay the due . But you do not have to since the points were used by the seller .


Also when the new use year comes up you then can barrow the points and use them as you wish..

I hope this helps It is a very confusing thing sometimes..

As for a per point price or offer Disney has the over all say when it comes to selling and buy and if you offer a Low ball price they will buy it back before you get it.

They call this Written notice of first refusal to purchase

Here is what they(disney mean by this)

Once and Ower{and Co-ownerif any} and a prospective buyer sign a contract of sale and agreement to purchase, a copy of the signed contract should be provided to advd thirty(30) days prior to the proposed closing date for consideration under the right of first refusal to purchase described in the Declaration. The contract should contain the full details of the transaction and be specific regarding the party paying closing cost, recording fees,ANNUAL DUES,attorney fees, and realestste commissions ect.

So as far as what price you pay and what you are asked to pay they all have to be within the disneys set guidelines .

Hope this helps






You agent should be able to answer all these questions

 

[MemphisTN]

Thanks for the input.

When I mentioned lowering the price per point, I didn't mean to lower it enough to low ball and possibly lose the purchase through ROFR.

What I was trying to understand was say a listing is for $88 a point with 150 points. And say there were several resale listings with 150 points being offered at $85 a point. I was trying to figure out which would be better to either offer $85 and pay the MF and closing or to pay the $88 and ask for assistance in closing and fees.

Sorry if my question was confusing, trying to understand all of this before we purchase is confusing. But I would rather spend a few more days/weeks getting an understanding than to get surprised down the road.

thanks again

 

[korbbec]

Thanks for the input.

When I mentioned lowering the price per point, I didn't mean to lower it enough to low ball and possibly lose the purchase through ROFR.

What I was trying to understand was say a listing is for $88 a point with 150 points. And say there were several resale listings with 150 points being offered at $85 a point. I was trying to figure out which would be better to either offer $85 and pay the MF and closing or to pay the $88 and ask for assistance in closing and fees.

Sorry if my question was confusing, trying to understand all of this before we purchase is confusing. But I would rather spend a few more days/weeks getting an understanding than to get surprised down the road.

thanks again

If I were you, I would offer what they are asking. The DVC resale market is tricky with the ROFR, but resale agents try to price them to sell while passing ROFR, so the listed price does not have much leeway.
In you example- why not just buy the contract listed at $85 per point? I am assuming the one at $88 per point is better for some reason... banked points? not a stripped contract? For whatever reason, it is probably priced at $3 more pp for a reason. And realistically, that $450 dollar difference might be worth it if it comes with points ready to go.

As far as maintainance fees- they are paid in January, unless the person was on a monthly deduction plan. At most, you should only pay 2006 MF reimbursement on 2006 banked points, or not at all. I'm leaning towards not at all, but it would not be unreasonable for the seller to ask. For 2007 MF- you should, and will most likely be asked, to reimburse/pay for any unused 2007 points, but keep in mind MF are per calendar year, not use year, so it is a tricky situation.

 

[DBorges]

You should be safe they only exercise that right on low ball offers..

 

[Trebor]

We are close (possibly) this afternoon in making an offer on a resale.

Do most people offer the same price per point as being listed and then negotiate maintanence fees and closing? Or is it easier to offer a few dollars lower than the asking price per point and agree to pay the current year fees and the closing?

thanks

If you haven't done so yet, look for the thread entitled "Has anyone made it through ROFR lately" and go to the last page. There's a listing of all the people who bought resale lately, what they offered and whether they passed ROFR or not. Be sure to check for the property you're insterested in (e.g. Boardwalk) because the different properties go for different amounts.

Good Luck.

 

[Hillbilly]

I've personally always offered lower than what was asked, but I always knew what the market demanded for the resale. IE: I bought Beach Club back in 2004 for $73/pt. while the asking price was $78/pt. I knew the lowest price per point at that time was $73/pt. A good sales associate should know what might not get by ROFR. I since bought at OKW a year ago and used the same method. Saying that I'm strongly considering buying through Disney for AKL this time. Since I can get points for $93/pt that are good for another 15 years, I believe that's the way I'm going to go. By the way....I don't think DVC is a bad investment anyway you go!

 

[JimC]

The ROFR price varies by resort and within each resort by use year and over time. Variables include DVC's need for points to satisfy member requests for add-ons and pricing increases and incentive programs being offered by DVC, the amount of price support needed to sustain retail prices, remaining term on contract and the like.

 

[snappy]

The ROFR price varies by resort and within each resort by use year and over time. Variables include DVC's need for points to satisfy member requests for add-ons and pricing increases and incentive programs being offered by DVC, the amount of price support needed to sustain retail prices, remaining term on contract and the like.

I am curious about why the ROFR price varies by use year. Are some use years more attractive due to demand. . . like the early summer ones for families with school age kids who have to travel during the summer?
Or are there other attributes to use year that I am not thinking of?

 

[Merilyn]

I just wanted to say welcome to the boards. I lived in Memphis until last Nov. I moved to Maryville, TN in the mountains of east TN. I love it here but miss my friends there. Just wanted to say Hi.

 

[mikeandkarla]

If you find a loaded contract ( 2005, 2006 banked points) that you really want to pass ROFR, I would offer a few buck per point more. For example: lets say you have a 150 pt contract that has all '05, '06 points banked and all 2007 coming, you are basically getting 3 years of vacations. If you offer $3 ppt more, it is only a total of $450, could make a differnce in passing. The resort determines how much to offer. BCV most expensive, HH and VB least. Check out the thread "has anyone passed ROFR recently" to determine what to offer at each resort. Make sure you look at the most recent passes though, because it seems when Disney has a price increase, it also cahnges the price they will allow through ROFR.Good luck.

 

[MemphisTN]

Merilyn,

We have lived in the Memphis area off and on for years. We bought a house in Collierville last January and are really glad we bought where we did.