Questions

[Kdubya]

How bad is it to back out of a contract (as buyer)? Found a small contract I thought was a good deal based on other similar current listings with other companies, but I didn’t think my SO would really consider it so I didn’t do much research other than just looking at other similar listings. When he randomly said to go for it, I jumped in so as not to lose that window! Hah. Once the offer was accepted, of course I came to look here at the list of ROFR. And of course the only similar contract listed was $16 less per point. Now I’m second guessing that this really was a good deal . If we did back out, would we be blacklisted? We will probably keep it but I’m kicking myself for not looking here first!

 

[Dean]

How bad is it to back out of a contract (as buyer)? Found a small contract I thought was a good deal based on other similar current listings with other companies, but I didn’t think my SO would really consider it so I didn’t do much research other than just looking at other similar listings. When he randomly said to go for it, I jumped in so as not to lose that window! Hah. Once the offer was accepted, of course I came to look here at the list of ROFR. And of course the only similar contract listed was $16 less per point. Now I’m second guessing that this really was a good deal . If we did back out, would we be blacklisted? We will probably keep it but I’m kicking myself for not looking here first!

While legally you can back out for 10 days after signing, you gave your word, I'd proceed.

 

[Mumof4mice]

By law you have 10 days to rescind without any penalty. If you decide to cancel the contract you should notify the broker both by phone and in writing, and make sure you receive a written acknowledgement. No broker is going to blacklist you and lose a potential future client over one cancelled contract. Good luck with finding a nice deal!

 

[Kdubya]

We haven’t actually signed the contract or sent the deposit in yet. If we had done that I would not have considered backing out.

Are there any other sources I could look at to find recent sales info? Just looking at average sales price for the resort doesn’t help since it’s a small contract. Are list prices a good indicator? I do realize the ROFR list on here is only a small portion of the contracts.

 

[Mumof4mice]

We haven’t actually signed the contract or sent the deposit in yet. If we had done that I would not have considered backing out.

Are there any other sources I could look at to find recent sales info? Just looking at average sales price for the resort doesn’t help since it’s a small contract. Are list prices a good indicator? I do realize the ROFR list on here is only a small portion of the contracts.

My guess is the ROFR list represents sale prices at or slightly below the market average because you're selecting a group that's willing to invest time to read and learn.

There is so much competition for the very small contracts that even stripped they are more expensive per point. If your cash flow allows, and future MF won't be a problem, you could consider a slightly bigger contract. If you manage to get a loaded contract at lower cost per point, after renting out the loaded points your total spend could be the same.

 

[ray3127]

We haven’t actually signed the contract or sent the deposit in yet. If we had done that I would not have considered backing out.

Are there any other sources I could look at to find recent sales info? Just looking at average sales price for the resort doesn’t help since it’s a small contract. Are list prices a good indicator? I do realize the ROFR list on here is only a small portion of the contracts.

There's a reason Florida law is what it is. Even if you signed the contract and/or sent in the deposit, you have a 10-day cooling off period for good reason. Don't let anybody, including yourself, tell you otherwise.

However, an important caveat to that would be don't make backing out a habit. Obviously, try to act in good faith at all times.

In this specific situation, you acted in good faith. But you're new (as am I), and once you dug in a little more you found that maybe it wasn't the great deal you thought it was. Simply tell them you changed your mind and keep looking. And next time you'll have the confidence to proceed accordingly without second guessing yourself.

As for using list prices as a guide, I would say absolutely not. In my (again, very limited) experience, the ROFR thread here is much more useful in determining market/fair prices, though they may be a tad under as Mum said. But sellers can ask whatever they'd like, and in the current market it seems they don't mind pushing the upper limits to see what sticks.

With a recent ROFR post at less than $16 per point, I'd simply say I changed my mind and wouldn't feel the slightest pang of regret. That seller will sell their points and the broker will get their commission. Educate yourself a bit more and be ready to pounce on the right deal when you find it.

 

[jaggies]

When you say the only listed contract that was similar was $16 less per point, do you mean that it was also a small contract like yours? Because small contracts always have a premium attached.

If it was just similar because it was at the same resort or something, and it was a larger contract, then no, you’re probably not going to be able to match that price per point on a smaller one.

 

[Kdubya]

When you say the only listed contract that was similar was $16 less per point, do you mean that it was also a small contract like yours? Because small contracts always have a premium attached.

If it was just similar because it was at the same resort or something, and it was a larger contract, then no, you’re probably not going to be able to match that price per point on a smaller one.

It was the only contract on the list (in passed/pending/and taken) that was the same size. 50 points. So I do know they will definitely cost more than a 75 or 100 point contract but I was trying to compare apples to apples.

 

[Kdubya]

Ok, I can’t do math at night. It was only $6 difference. Doh.

There were 3 50 point contracts listed since March and they are all over the place - $169 in March, $145 later in June, and $159 in July. We had offered $165.

It’s probably close enough that we should just stick with it. We don’t have to pay MF on the 18 points which is a plus. Though it’s an international seller which I understand some don’t like. We’re not in a rush for the points so I don’t mind it taking longer. And now I learned my lesson, do allllll my research FIRST.

 

[starry_solo]

Isn't that ROFR list based upon what people report? So it's incomplete?

And was it the same resort OP?

 

[Kdubya]

Isn't that ROFR list based upon what people report? So it's incomplete?

And was it the same resort OP?

Yes the list is definitely not a complete look at what sales are going for. Is there another way to search for sale prices? Other than broker averages I don’t know how, and those average all size contracts so not very helpful for small ones.

And yes, I was trying to compare apples to apples. So the ones I listed above were all same resort, same size contract.

 

[Debbie Jean]

Do you see a lot of small contracts that would suit your needs being offered? Locating one and having an offer accepted is the hurdle.

Your call, of course, and you can certainly pull out of this one if you did a "whoops" and think you paid too much.

My question is, though, what did you learn? Seems you need to really educate yourself much more thoroughly on prices and the process before you submit any more bids. As someone who has sold contracts and had buyers pull out, it's a PITA. And yes, I did sell full price again within 24 hours... but still a pain. I act in good faith, I expect others to as well.

 

[Kdubya]

Do you see a lot of small contracts that would suit your needs being offered? Locating one and having an offer accepted is the hurdle.

Your call, of course, and you can certainly pull out of this one if you did a "whoops" I think I paid too much.

My question is, though, what did you learn? Seems you need to really educate yourself much more thoroughly on prices and the process before you submit any more bids. As someone who has sold contracts and had buyers pull out, it's a PITA. And yes, I did sell full price again within 24 hours... but still a pain. I act in good faith, I expect others to as well.

I have seen other contracts of the same size but they usually lack ‘18 points. But I wasn’t really looking for this resort - it was very much a wild card.

I learned I need to not just jump the second the hubs says go. My excitement got the best of me lol.

 

[gharter]

It seems in line with 2 of the 3. I suspect the 3rd was an outlier.
Small contracts are difficult to find. If this is at the resort you want and has a UY that works for you, I would stick with it.

 

[mustinjourney]

can you just post the full details? It would make it much easier to give you advice as to whether you actually overpaid.

Remember -- the banked points you're getting have real value. 18 points at $19 a point (Disney is now charging $19 for OTU points), gives you $342 of additional value to the contract. Divide that by the 50 points, and that essentially knocks the price per point by $5.80. So if you paid $6 more than you thought you should -- but you're getting $5.80 of value out of the extra points, then you're really not overpaying that much at all.

 

[we"reofftoneverland]

If you have doubts, I would just pass on it even if you have made an offer. Better safe than sorry. Plus, when you tell the broker, you are just worried you are overpaying, the seller might come down.

 

[Kdubya]

can you just post the full details? It would make it much easier to give you advice as to whether you actually overpaid.

Sorry, probably should have done that to begin with.

 

[Jelly563]

Thats not too bad, just remember that is only about 2 nights a yr (21 pts a night).

 

[Kdubya]

Thats not too bad, just remember that is only about 2 nights a yr (21 pts a night).

Yes, but we’d probably alternate using this contract and another we already own. Or combine for split stays.

 

[Debbie Jean]

Yes, but we’d probably alternate using this contract and another we already own. Or combine for split stays.

We have only stayed at AKL and Poly. My husband wanted to buy BLT because of proximity to MK but we love the atmosphere of Poly. Ideally we’d have tried more resorts before adding on, but the price only continues to increase and we keep running out of points on our current contract so I’d rather not wait.
(FWIW I have stayed at many other resorts but not as DVC)

While I love the Poly, too, I don't own there. The higher point requirements mean it's a once in a blue moon treat and usually part of a split stay when there is availability.

BLT would give you the 11 month booking window for the standard views which would allow you to stretch your points further... not sure how happy you would be with the size of the studio but that's another matter.