Wow now I see what people were talking about!

[pianomanzano]

I am considering reaching out to brokers that have multiple contracts I am interested in and saying I am willing to pay X per point. If any of your sellers are interested let me know.

And here is the data in actual sales from the past 45 days that lead me to my offer price.

This might work best on a phone call. Also, I don't think you need to provide justification initially (perhaps it might be worth adding as you negotiate). When I was in the market for VGF last year, talked to an agent at DVCRM (Scotty) and let him know what price I was looking to pay, point range, and UY, and he called me back with some contracts that met my requirements. From there, he reached out to the sellers to see who'd be interested in negotiating down (this was right when VGF2 went on sale and resale prices had not yet reflected the new prices). Had a great experience and got a great price (at the time).

 

[tom1944]

This might work best on a phone call. Also, I don't think you need to provide justification initially (perhaps it might be worth adding as you negotiate). When I was in the market for VGF last year, talked to an agent at DVCRM (Scotty) and let him know what price I was looking to pay, point range, and UY, and he called me back with some contracts that met my requirements. From there, he reached out to the sellers to see who'd be interested in negotiating down (this was right when VGF2 went on sale and resale prices had not yet reflected the new prices). Had a great experience and got a great price (at the time).

Phone call it will be.

 

[pineapplepalms]

I made a bunch of low offers in the spring when I was searching for a VGC contract and all the brokers I contacted were very professional and always presented my offers. I don’t feel like there was any harm in it and I got a contract with a price I was happy with pretty quickly. VGC prices were all over the place but several on the ROFR thread got similar prices so I gave it a try too. Glad I did. Personally I don’t know if a rude broker would bug me much… in my experience, after the contract gets going, I had very little to no contact with the broker, and much more communication with the title company.

 

[Paul Stupin]

I wouldn't say they should be snarky, but I also wouldn't make an offer on the contract to begin with. There's a reason the $163 contract has been sitting for 13 months. There's zero chance that at no point in over a year, there haven't been offers made on the contract closer to market, and obviously rejected. That's a perfect example of the outside pressure I mentioned. The seller clearly has a base they can't or won't move from. Usually it's a loan they have to pay off, but at 13 months of additional payments out of their pocket, it must be something else. That's on the broker. They're inviting their own grief.

Now, how long a broker should keep a listing on their site with a seller that isn't going to move, and having to field who knows how many offers that they know will be rejected, is another question entirely. That's definitely on them, and again no reason to be rude.

I think some of those contracts that are very high priced, sitting forever on various DVC resale websites, don’t even exist, and are made up to make the inventory of listings appear larger and more legitimate.

A few years ago I made an offer for one that wasn’t low ball, just in line with the average resale price of contracts for that particular resort with a similar number of points. The resale website had a limited number of listings. The broker called me a day or two later with the news that of course my offer was rejected, but when he told me the specifics of the conversation with the seller I got the distinct impression he was making it all up.

 

[Sandisw]

I am considering reaching out to brokers that have multiple contracts I am interested in and saying I am willing to pay X per point. If any of your sellers are interested let me know.

And here is the data in actual sales from the past 45 days that lead me to my offer price.

Honestly, I do not think you need to provide them with any real info.

Brokers who feel they need to make comments regarding prices are going to do it regardless of the info you provide.

That’s why, for me, I have always just put in my offers and if I knew they were lower than average, just stated that upfront

If I had gotten push back, it would not have bothered me and simply said “Yeah, I know but this is where is am.”

As I said, I don’t get bothered by the direct approaches..some might even call rude…some brokers take if what I wanted was listed with them.

I do agree calling is a good option

 

[Paul Stupin]

I don’t understand how someone could be insulted by an offer.

You’re not selling a house you cared for and poured your heart and soul into.

You’re selling a contract that, other than UY and points on hand, is exactly like every other contract for sale.

There’s nothing special about having unit 55B or 7A. It’s literally a commodity - every contract for a resort represents the exact same product. Like rice. Or soybean oil.

Anyone not looking to get the lowest price they can is only hurting themselves.

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller? I sure would be!
And though these contracts are not houses, people do pour their heart and soul into their time spent at WDW, creating memories they cherish forever. That’s not the kind of thing you get from a sack of grain, is it? There are emotions involved, and who knows what sacrifices were made to actually fund the seller’s initial purchase, or if the seller is reluctantly parting with the contract due to financial distress.
Whatever the offer is, I think both the buyer and seller should respect the process. If I ever sell down the line, I’d be glad to look at a spreadsheet that a potential buyer put some effort into, to show the logic behind the price he was offering. I might not agree, but whatever. What I wouldn’t respond to is an offer made by someone making 50 blind robocalls in the hope of finding a distressed sale.

 

[HyperspaceMountainPilot]

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller? I sure would be!
And though these contracts are not houses, people do pour their heart and soul into their time spent at WDW, creating memories they cherish forever. That’s not the kind of thing you get from a sack of grain, is it? There are emotions involved, and who knows what sacrifices were made to actually fund the seller’s initial purchase, or if the seller is reluctantly parting with the contract due to financial distress.
Whatever the offer is, I think both the buyer and seller should respect the process. If I ever sell down the line, I’d be glad to look at a spreadsheet that a potential buyer put some effort into, to show the logic behind the price he was offering. I might not agree, but whatever. What I wouldn’t respond to is an offer made by someone making 50 blind robocalls in the hope of finding a distressed sale.

You’re assuming that the list price wasn’t 150-200% of the fair market value. If someone lists stripped PVB at $150 and I offer $110 I see why they might feel offended, and want to hold out for a buyer who doesn’t know that each year of points is close to $20/pt. If they list at $200 and I offer at $110, I’m far, far closer to the market value than they are.

 

[Genie+]

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller? I sure would be!
And though these contracts are not houses, people do pour their heart and soul into their time spent at WDW, creating memories they cherish forever. That’s not the kind of thing you get from a sack of grain, is it? There are emotions involved, and who knows what sacrifices were made to actually fund the seller’s initial purchase, or if the seller is reluctantly parting with the contract due to financial distress.
Whatever the offer is, I think both the buyer and seller should respect the process. If I ever sell down the line, I’d be glad to look at a spreadsheet that a potential buyer put some effort into, to show the logic behind the price he was offering. I might not agree, but whatever. What I wouldn’t respond to is an offer made by someone making 50 blind robocalls in the hope of finding a distressed sale.

What if somebody sends an $80 offer for my BLT. No. Easy and simple. I don’t need to spend my time telling them they are nuts or looking down my nose when it literally takes 10 seconds to send a voicemail or email saying no. I can take an extra 5 seconds to let the broker know we won’t consider offers under $x. If I’m certain I know what it’s worth to me, I’ll stick to my guns with no.

DVC is a pretty straightforward transaction. You have so many points at a certain resort. It can be nearly identical to dozens of other contracts that year. There’s no kicking the tires or taking out for a test sail. Not complicated enough or personal enough to get insulted.

 

[Paul Stupin]

You’re assuming that the list price wasn’t 150-200% of the fair market value. If someone lists stripped PVB at $150 and I offer $110 I see why they might feel offended, and want to hold out for a buyer who doesn’t know that each year of points is close to $20/pt. If they list at $200 and I offer at $110, I’m far, far closer to the market value than they are.

Yes, I’m totally assuming the selling price is relatively reasonable. But if they list at $200 and you’re offering $110, considering that the sellers are somewhat delusional, it doesn’t seem logical that your offer would suddenly jolt them into sanity, so you’d just be wasting your time anyway, no?

 

[Paul Stupin]

What if somebody sends an $80 offer for my BLT. No. Easy and simple. I don’t need to spend my time telling them they are nuts or looking down my nose when it literally takes 10 seconds to send a voicemail or email saying no. I can take an extra 5 seconds to let the broker know we won’t consider offers under $x. If I’m certain I know what it’s worth to me, I’ll stick to my guns with no.

DVC is a pretty straightforward transaction. You have so many points at a certain resort. It can be nearly identical to dozens of other contracts that year. There’s no kicking the tires or taking out for a test sail. Not complicated enough or personal enough to get insulted.

Speaking only for myself, I would be annoyed with an unreasonably lowball offer to a reasonably priced contract I was selling. And even if it only took 10 seconds to respond with a no, it would still be a waste of my time and I’d still be annoyed!

Maybe I need to lighten up a bit.

 

[HyperspaceMountainPilot]

Yes, I’m totally assuming the selling price is relatively reasonable. But if they list at $200 and you’re offering $110, considering that the sellers are somewhat delusional, it doesn’t seem logical that your offer would suddenly jolt them into sanity, so you’d just be wasting your time anyway, no?

You never know unless you try. When I make offers that are 5-10% below the recent data I’ve seen on ROFR I presume that there’s a low chance they will be accepted, but maybe they will encourage sellers to come closer to market prices, which helps other potential DVC buyers.

Frankly, it helps the sellers as well because, with the exception of VGC owners, almost every single seller would have been better selling at 10% below “average prices” (per the two main brokers who put the reports out) in early 2023 than holding out and waiting for the market to trend up to where they subjectively believe it should be. Now if you are just as happy not to sell for 2-5 years, you are probably better holding (though maybe not when you consider that you can get 5% on your t-bills), but the people who actually need to sell this year were not helped by brokers indulging delusional valuations.

I personally have VGF points I will probably eventually sell, but I’m happy to use them for a couple years while I wait to see how the market moves after VGF sells out.

 

[Genie+]

Speaking only for myself, I would be annoyed with an unreasonably lowball offer to a reasonably priced contract I was selling. And even if it only took 10 seconds to respond with a no, it would still be a waste of my time and I’d still be annoyed!

Maybe I need to lighten up a bit.

I can see annoyed. Especially after abunch of low offers rolled in. I’d just let broker know we’d not sell at under $x.

Some sellers may have sacrificed to get it or current hardship causing the sale now. I can sympathize. It’s not going to change the fact their $190 VGF will likely sit. And sit some more. Nobody expects a buyer to compensate for loan interest or buy-in cost if the market is different today. Buyers and sellers have to decide how much the time and effort is worth to get that hi or low price.

 

[Chili327]

The board sponsor (dvcresalemarket.com) puts out a monthly blog with average resale prices. Fidelity also puts out their own. The ROFR thread trends lower compared to most reported average resale prices put out by brokers, so being somewherein the middle of the two would be a good indicator of a decent price, imo.

I know some here disagree with me, but I think it's perfectly fine to put out multiple offers at the same time. Some brokers take awhile to respond and I wouldn't want to lose out on a potential deal just because I was waiting for a response, especially since sellers are often entertaining multiple offers at the same time. I've had sellers/brokers stop negotiating because they've already agreed on a price with another buyer, so it really goes both ways. You're not committed to anything until you sign papers.

We as fanatics don't care about trends or averages, we want a deal !!!

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller? I sure would be!
And though these contracts are not houses, people do pour their heart and soul into their time spent at WDW, creating memories they cherish forever. That’s not the kind of thing you get from a sack of grain, is it? There are emotions involved, and who knows what sacrifices were made to actually fund the seller’s initial purchase, or if the seller is reluctantly parting with the contract due to financial distress.
Whatever the offer is, I think both the buyer and seller should respect the process. If I ever sell down the line, I’d be glad to look at a spreadsheet that a potential buyer put some effort into, to show the logic behind the price he was offering. I might not agree, but whatever. What I wouldn’t respond to is an offer made by someone making 50 blind robocalls in the hope of finding a distressed sale.

That would depend on the asking price, i'm sure others already posted this, but that is what negotiations are all about, you start somewhere lower (or higher if the seller) than what you'd be willing to do, & you end up somewhere in the middle, now if someone is offended and laughs at a low ball offer they might as well state "not taking offers" then, because they just missed an opportunity to counter offer & lost out on a possible sale.

 

[Genie+]

Right now there’s 17 out of 41 RIV asking $150 to $180, most are 2-3 months listed.

Most surprising is the nearly all the ones over $150 are stripped, and the ones at $150 are all loaded.

It’s a free market right?

 

[CastAStone]

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller?

No, I would not be. I am emotionally dispossessed from people trying to get the best deal they can find.

I also would not accept or counter.

 

[Chili327]

No, I would not be. I am emotionally dispossessed from people trying to get the best deal they can find.

I also would not accept or counter.

Not even a counter?
I mean you can counter at $5 less than asking to show you aren't moving much. I had that happen to me & i knew to move on, but i guess with no counter i would know to move on as well.

 

[KAT4DISNEY]

So you wouldn’t be at all insulted if someone offered you 40% less than your asking price as a seller? I sure would be!

Why? It's not something you made or a unique house you built or anything like that. It's a timeshare.

Makes for an easy answer if you're the seller and not looking to go that low. Just reply back what you'd accept which might be the price you listed for and don't waste emotion on selling a timeshare.

And you might end up being a seller who is trying to hold out for an above market price who rejects an offer that is in the market range. Then when you find nobody is going for the price your asking you contact the one offer saying you'll accept but they've moved on.

 

[KAT4DISNEY]

No, I would not be. I am emotionally dispossessed from people trying to get the best deal they can find.

I also would not accept or counter.

Interesting. Then you DO seem to have emotionality about it.

 

[CastAStone]

Not even a counter?
I mean you can counter at $5 less than asking to show you aren't moving much. I had that happen to me & i knew to move on, but i guess with no counter i would know to move on as well.

I would assume the buyer was bargain hunting and that we’d have no ZOPA.

 

[CastAStone]

Interesting. Then you DO seem to have emotionality about it.

How so? I don’t think it’s emotional to make them make the next move, it’s what they teach in negotiation classes.