Thoughts on Lowball Offer

[njcoach24]

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

This is it right here is said perfectly...the bottom may have already happened, prices and sales are higher than a few weeks ago already and less inventory is driving them up. Also, a lot of dates at Disney are fully booked through the end of the year so I think the people that were feeling the crunch have already listed and/or sold.

But bottom line is, for example on 100 point contract, if you buy at $135 or $125...your looking at a $1,000 difference. On a $15,000 contact that really isn't that much of a difference. Plus other factors...stripped or loaded. Right now that discount is coming on stripped contracts but thats one less vacation on the 100 point contact so that $1,000 dollars at the minimum is more of a wash. In my opinion buy what you want if you can afford it (without a loan, I'm assuming the rates are high like the direct rates).

 

[Sandisw]

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.

I think rude is subjective, even in regular real estate. To me, any seller who would be insulted wouldn’t be a seller I’d want to deal with and when we were looking at a house, and turned down because it was too low, and rude When they came back a month later saying they’d take it, we said nope. They were forced into selling $13K less than our low offer.

I have bought and sold quite a few DVC contracts and have never been insulated with lowball offers, Just said no.

 

[4luv2cdisney]

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.

@ $135 / pt for SSR, you are better off going direct. Skip the wait (assuming sales open soon), get all the points, be able to use them at the "new" resorts and closing direct is usually cheaper. Add in the ability to earn Disney rewards and 0% on a Disney Visa.... No way. Never understand that.

 

[njcoach24]

I think rude is subjective, even in regular real estate. To me, any seller who would be insulted wouldn’t be a seller I’d want to deal with and when we were looking at a house, and turned down because it was too low, we walked when they came back a month later saying they’d take it. Nope...they ended forced into selling $13K less than our low offer.

I have bought and sold quite a few DVC contracts and have never been insulated with lowball offers, Just said no.

Agreed but this is the case when a seller (any real estate or product) over values their property. You house will sell at market value when priced right or bid up when priced low. Higher pricing will only work with good market conditions, lots of buyers, and low inventory.

I think most of the time people value their property high and unrealistically, lots of time on market is never a good thing. So "low balling" to a fair or amazing deal price is fair. "Low balling" to break someones back is another story.

 

[KayKayJS]

I think rude is subjective, even in regular real estate. To me, any seller who would be insulted wouldn’t be a seller I’d want to deal with and when we were looking at a house, and turned down because it was too low, and rude When they came back a month later saying they’d take it, we said nope. They were forced into selling $13K less than our low offer.

I have bought and sold quite a few DVC contracts and have never been insulated with lowball offers, Just said no.

I agree. I will never understand being offended by a lowball offer. You can just say no.

People who low ball are not generally those who MUST HAVE that house or DVC contract. They could take it (at the right price) or leave it. I’ve lowballed Aulani (80s) and not received an accepted contract yet but I’m in absolutely no hurry..: so if they’re offended oh freaking well lol

 

[MICKIMINI]

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.

Respectfully, DVC is a different real estate animal. We are buying a fraction of a resort that has been maintained by DVC and is a known product. Unlike a home that is totally unique, even if the house next to it is the same model and floor plan. Each home is different in that the interior and exterior have been either well maintained or neglected or somewhere in-between. Different choices in millwork, counters, flooring and even paint make a huge difference where all DVC units of the same size in the same resort, are the same layout, materials and upkeep. 100 points for OKW is worth 100 points and so on and yes, market determines value.

I understand being offended with a low offer on a home and the last one we sold, had four offers and went from listing to closing in 6 weeks. We declined three and negotiated with the serious buyer and got our price. We had built the house in a desirable neighborhood, kept it in pristine condition and held our ground. There weren't 50 homes (a DVC resort for example) exactly like it there was only one. Fielding crazy offers is part of the game - we just laughed, honestly at one which described in detail how the buyers were going to raise their family on our beautiful 5 acre land - it was hysterical. They were declined, but it was entertaining. DVC is not a home sale as the only difference is UY and points or lack thereof.

There are some newbies here but I believe the majority here are owners and have experience buying and selling DVC. We first bought in 1996 and have bought and sold many times. We buy low and sell high. I personally always put myself in the sellers shoes when I work up my offer. I know the market, understand the product and probably have more experience than many of the people selling DVC. Others here have similar stories. The title of the thread may be misleading but it is too late to change it to "thoughts on fair market value offers". I would say the majority of listings currently out there are way over priced in some cases by 20% or more.

We're for the most part realistic here on this thread in our bids from what I've seen. We have to wait out the unrealistic prices and there is nothing wrong with placing fair market offers. Prices are declining and it is helpful to share our experiences as we place our bids. JMHO.

 

[EM Lawrence]

Www.dvcsales.com

I made three offers through that site. Two sellers responded very quickly, one never responded at all. I actually really liked the way it was set up, where the buyer and seller can make offers back and forth through the online system.

 

[pinkxray]

I made three offers through that site. Two sellers responded very quickly, one never responded at all. I actually really liked the way it was set up, where the buyer and seller can make offers back and forth through the online system.

Interesting. What happens if they don’t respond? I see there is an option to cancel the offer so did you just withdrawal your bid after a certain point?

 

[MICKIMINI]

I just checked all major websites again and noticed changes from this morning. I believe prices are finally moving down again. It seems that every couple weeks the market adjusts. Goodness it is painfully slow! I saw a couple small contracts at reasonable prices already UA that weren't there this morning. Bigger contracts seem to be dropping $5-10 PP (just my observation). I saw a recycled OKW at Fidelity that must have fallen through that wasn't a bad deal for a first contract. I think there is hope out there you just have to be quick on the draw. Tomorrow is another day!

 

[EM Lawrence]

Interesting. What happens if they don’t respond? I see there is an option to cancel the offer so did you just withdrawal your bid after a certain point?

Yes, I waited about 48 hours then just withdrew the offer.

 

[striker1064]

Interesting. What happens if they don’t respond? I see there is an option to cancel the offer so did you just withdrawal your bid after a certain point?

I had this happen and got in touch with the broker. Lori was very responsive and pulled the listing when the seller didn't respond. I would work with the brokers, they are great and you are helping other potentially interested parties if you find a non-responsive seller.

 

[Matty B13]

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.

As someone who has bought a house in 2007 during the ridiculous housing market right before the crash and as someone who has bought and watched the DVC market since 2016, it is not rude to low ball inflated prices on real estate and DVC that is driven by realtors and brokers. The current prices for DVC are still inflated, especially with the new resale restrictions. DVC resale is a completely different product now with the restrictions and hasn't been really priced accordingly yet.

 

[hlhlaw07]

Anyone who is offended by a business decision probably shouldn’t be in business. No offer is ever personal, no matter how low. Even if someone offered $40/pt on a contract listed at $140/pt, it is not an assessment of anyone’s personal value and should cause no offense. If you don’t want to accept it, say so and move on. Being offended is just silly. By the theory that lowball offers can be rude, you could flip that around and say that someone overvaluing their contract is rude. Of course neither are actually rude. Market value is what someone is willing to pay. So the unrealistic seller may get a buyer and the unrealistic buyer may also find a seller. Neither would ever find each other unless they try.

 

[Michelle Sinnott]

I offered 70$ on a OKW 150 points. They want 95$ a point but there are no 2020 and only 40 for 2021. They countered with 88 and me paying closing and I would be credit for 110 2021 Maintenance dues. What would be a good counter offer or tempted to say no thanks move on.

 

[MICKIMINI]

I offered 70$ on a OKW 150 points. They want 95$ a point but there are no 2020 and only 40 for 2021. They countered with 88 and me paying closing and I would be credit for 110 2021 Maintenance dues. What would be a good counter offer or tempted to say no thanks move on.

Put it this way, I bought 150 OKW late 2018 and closed January 2019. I paid about that but it was loaded with 2017, 2018, 2019 and 2020 points (1000). I got 2017 points free, 2018 for 50% and other points my responsibility. I rented about 400+ excess points for $13.50-$14.50 PP. We had plenty of points for a couple villas last fall and lots of 2019 and 2020 left over. Full disclosure this was a bundle with another OKW contract, same owner, same fully loaded and one closing. You can do the math...

 

[Michelle Sinnott]

Yeah I think I am just going to pass. I am in no rush to close on anything. I have points I am renting for this year whenever I finally get to go. I have august pending at BLT and OKW for NOV. Just wait for the deals that hopefully come the end of this year.

 

[E2ME2]

I offered 70$ on a OKW 150 points. They want 95$ a point but there are no 2020 and only 40 for 2021. They countered with 88 and me paying closing and I would be credit for 110 2021 Maintenance dues. What would be a good counter offer or tempted to say no thanks move on.

I'd counter with $83

 

[ABE4DISNEY]

Yeah I think I am just going to pass. I am in no rush to close on anything. I have points I am renting for this year whenever I finally get to go. I have august pending at BLT and OKW for NOV. Just wait for the deals that hopefully come the end of this year.

to "The Waiting Room."

MICKIMINI and I will pull you up a chair. We are just biding our time and eating , lots and lots of cake....waiting for those prices to fall.

 

[Michelle Sinnott]

Thanks! I am ready bring on the deals lol!

 

[My3kids1989]

I’m considering making an offer on a contract with a diff UY than my other one but the 2019 points aren’t banked yet and will expire in a couple months. The broker said they will ask for an exception for them to be banked, is that even possible?

Yeah I think I am just going to pass. I am in no rush to close on anything. I have points I am renting for this year whenever I finally get to go. I have august pending at BLT and OKW for NOV. Just wait for the deals that hopefully come the end of this year.

I just don’t feel like I could rent from someone if I was waiting to buy, it feels like I would be tossing money in to the wind. Like I have already done for 10 years. Ha we’ve had so much fun though so it’s totally worth