Thoughts on Lowball Offer

[Jaguar Skills]

Just had this from the brokers, they are definitely getting irritated with our lowball offers.

We continue to see prices move upwards as inventory is being steadily depleted. We had 520 active listings for sale on March 1st compared to only 281 today as strong buying activity currently outpaces new listings coming to market shrinking supply.

 

[Sophie Weaver]

Just had this from the brokers, they are definitely getting irritated with our lowball offers.

We continue to see prices move upwards as inventory is being steadily depleted. We had 520 active listings for sale on March 1st compared to only 281 today as strong buying activity currently outpaces new listings coming to market shrinking supply.

And yet, I continue to get notices about contracts "reduced again!" I still going to firmly sit in my corner that given the current market, asking $135+ a point for SSR is outrageous.

 

[Lorana]

I think we're in that stretch where sellers are not yet desperate to sell (and thus many are not willing to reduce prices to reflect what buyers are willing to purchase at), but buyers are cautious about spending their money and are looking for a deal / unwilling to pay the higher prices. I expect this will start to change the closer we get to having to pay 2021 Dues, parks remain closed, and as the fallout to the economy continues.

 

[pinkxray]

I am having a hard time being patient. These prices are staying too high for me. I don’t want to pay over $90 for SSR or $100 for AKV. It’s hard to low ball an AKV contract when they are sold within a few hours at listing price.

 

[becauseimnew]

I am having a hard time being patient. These prices are staying too high for me. I don’t want to pay over $90 for SSR or $100 for AKV. It’s hard to low ball an AKV contract when they are sold within a few hours at listing price.

same, I think we just need to wait until the fall to see better prices.

 

[DougEMG]

I think we're in that stretch where sellers are not yet desperate to sell (and thus many are not willing to reduce prices to reflect what buyers are willing to purchase at), but buyers are cautious about spending their money and are looking for a deal / unwilling to pay the higher prices. I expect this will start to change the closer we get to having to pay 2021 Dues, parks remain closed, and as the fallout to the economy continues.

I am having a hard time being patient. These prices are staying too high for me. I don’t want to pay over $90 for SSR or $100 for AKV. It’s hard to low ball an AKV contract when they are sold within a few hours at listing price.

If contracts are selling, then perhaps it is some buyers that aren't being realistic on what the market value is.

Two things to remember, DVC prices take a long time to drop after the initial economic shock and the people on this board represent only a small fraction of DVC buyers/sellers. The fact that someone here thinks prices should be lower doesn't matter if there is someone else that is willing to buy at current prices.

Buy at the price that makes sense for your situation. Trying to time the bottom is a waste of time.

Disclaimer - I have no idea where prices are headed, but if VGF drops low enough I might buy points there.

 

[mmackeymouse]

Disclaimer - I have no idea where prices are headed, but if VGF drops low enough I might buy points there.

Yeah, I am a little torn/bummed, because VGF is definitely my dream purchase. And, I doubt VGF prices will ever be this low again. But, at the same time...they still aren't as low as I'd like/need them to be before going forward.

I'd love to do VGF as a small add-on, but the low points contracts are waaaaaaay higher than I would want to pay.

 

[pinkxray]

I offered $85pp on SSR no points until Oct 2021. Was willing to go up to $90 but seller would not come down past $100. Was listed at $102

 

[mcgils]

I offered $85pp on SSR no points until Oct 2021. Was willing to go up to $90 but seller would not come down past $100. Was listed at $102

I threw a whole lot of $80-85 offers before someone came down to $90. I didn't find much flexibility beyond $95 except for a handful of sellers.

 

[pinkxray]

I made an offer yesterday. Do people usually hear back over the weekend or do I have to wonder all weekend about it?

 

[Powerline13]

Brokers and sellers are not being realistic but it takes time. Sitting on your hands right now as a buyer is the best decision you can make. Even if things only get better from here on out, these prices are not going to start jumping up in price.

 

[badeacon]

I made an offer yesterday. Do people usually hear back over the weekend or do I have to wonder all weekend about it?

Depends on the broker and being a holiday weekend will probably play a factor. I also made an offer yesterday and have not heard back.

 

[pinkxray]

Depends on the broker and being a holiday weekend will probably play a factor. I also made an offer yesterday and have not heard back.

Oh no! I keep forgetting about the holiday weekend. Looks like I need to wait even longer.

 

[rachaelg]

Oh no! I keep forgetting about the holiday weekend. Looks like I need to wait even longer.

Which broker was it through?

 

[pinkxray]

Www.dvcsales.com

 

[rachaelg]

Www.dvcsales.com

I think that one *may* automatically just send your offer to the seller...someone else here probably knows better, but that was what the process seemed like to me when I made an offer there. So, the timing of hearing back seemed to me like it was dependent on the seller.

 

[dbtex83]

I think that one *may* automatically just send your offer to the seller...someone else here probably knows better, but that was what the process seemed like to me when I made an offer there. So, the timing of hearing back seemed to me like it was dependent on the seller.

Yeah, I purchased a contract through them in January and the offer/counter notification process was all automated. I had a very responsive seller and went from a first offer to an accepted offer (after a couple counters) and then signed documents sent to Disney in 24 hours. But I can't speak to if the broker typically responds on weekends/holidays if you do get an accepted offer. Good luck!

 

[syderial]

Nothing wrong with low ball offers. Of course brokers & realtors think they are rude because they make a commission of the sale, the higher the price the more money they make. There is nothing rude about a low ball offer.

That is not true. It is actually considered rude in the real estate market to do that and a lot of sellers get offended by it then they will not take an offer from the buyer even if they raise it. I see it often and it can blow your shot at a house you like. It's insulting and presumptuous. I still write it when people ask but I've also blocked communication with someone myself because they made a ridiculous offer on one of our houses. It happens all the time and can halt anything resembling a negotiation. That being said, not everyone's idea of a low offer is the same and some things are simply over priced to begin with. Market value is market value. I was not about to even speak to someone who offered us $180,000 on a 5 bedroom house priced at $230,000 though, and we sold it at asking price two weeks later. It was rude. $210,000 would have been low but wouldn't have offended me, I'd have negotiated.

 

[pinkxray]

I think that one *may* automatically just send your offer to the seller...someone else here probably knows better, but that was what the process seemed like to me when I made an offer there. So, the timing of hearing back seemed to me like it was dependent on the seller.

Yeah, I purchased a contract through them in January and the offer/counter notification process was all automated. I had a very responsive seller and went from a first offer to an accepted offer (after a couple counters) and then signed documents sent to Disney in 24 hours. But I can't speak to if the broker typically responds on weekends/holidays if you do get an accepted offer. Good luck!

Thanks for the info. The way the site is set up it did feel like it was automatic and online but I don’t have much experience in making offers since this is going to be the first time I buy. My guess is the sellers are waiting to see if they get more offers.

 

[My3kids1989]

I made my first offer on a weekend and heard back the same day, I think it was a Saturday.