Thoughts on Lowball Offer

[GCFrost]

Thanks for that data point. I'm also looking at a small AKV contract that is listed at $110. Just out of curiosity, what use year did you get, and was the contract loaded, stripped or somewhere in between?

It was stripped with a March use year. (Perfect for our vacation pattern and habits). First points not available until March 2021. Which was fine with us as we didn’t foresee a Disney trip this year with the virus.

 

[mmackeymouse]

I offered $85 on another SSR listing. It wasn't a "no." It was a, they're going to think about it. So, I'll take it.

 

[rachaelg]

I offered $85 on another SSR listing. It wasn't a "no." It was a, they're going to think about it. So, I'll take it.

How many points?

 

[mmackeymouse]

How many points?

160. BUT, it comes with 240 holding points to be used by 1/2021, which essentially I could rent out/transfer for a decent amount. Unfortunately, next year, it has fewer than 160 points, like 100, then in 2022, it comes with full points.

But that 240 points up front is a massive perk.

 

[Sandisw]

160. BUT, it comes with 240 holding points to be used by 1/2021, which essentially I could rent out/transfer for a decent amount. Unfortunately, next year, it has fewer than 160 points, like 100, then in 2022, it comes with full points.

But that 240 points up front is a massive perk.

You might want to check about the ability to transfer holding points as well as the status of those points because only current UY points can be transferred

Also, holding points can only be used for reservations made 60 days or less from check in. So, once you have them, you will be limited in making reservations.

 

[pirate33]

160. BUT, it comes with 240 holding points to be used by 1/2021, which essentially I could rent out/transfer for a decent amount. Unfortunately, next year, it has fewer than 160 points, like 100, then in 2022, it comes with full points.

But that 240 points up front is a massive perk.

As the prior poster said, check on the “holding” points. I am thankful I have never had to deal with them but they are only good for 60 days as I understand it. Therefore, it would seem that holding points could not exist that would be good until January 2021. It would also seem almost impossible to buy a contract with holding points and still be able to use them once the transaction closed.

And assuming that all of the points are not in holding and are good until January 2021, by the time you close (2 months out at least?), there won’t be much time to use those points, especially with the availability crunch caused by the virus. If some of those points are bankable, you might ask the seller to bank them as a contractual term before the deal goes to ROFR review. I would.

 

[mmackeymouse]

You might want to check about the ability to transfer holding points as well as the status of those points because only current UY points can be transferred

Also, holding points can only be used for reservations made 60 days or less from check in. So, once you have them, you will be limited in making reservations.

So....the 240 points in holding is for Feb 2020, and I am assuming at least part of them are from 19 maybe?

All I was told was that they needed to be used by 01/2021. I was also told that they were transferrable, but I don't know anything about how many of the holding points are current UY and how many are not.

Thanks for the heads up. I will try to get a clearer picture.

 

[JETSDAD]

As the prior poster said, check on the “holding” points. I am thankful I have never had to deal with them but they are only good for 60 days as I understand it. Therefore, it would seem that holding points could not exist that would be good until January 2021. It would also seem almost impossible to buy a contract with holding points and still be able to use them once the transaction closed.

And assuming that all of the points are not in holding and are good until January 2021, by the time you close (2 months out at least?), there won’t be much time to use those points, especially with the availability crunch caused by the virus. If some of those points are bankable, you might ask the seller to bank them as a contractual term before the deal goes to ROFR review. I would.

Holding points expire at the end of the UY. They can only be used for reservations within 60 days of booking.

 

[pirate33]

Holding points expire at the end of the UY. They can only be used for reservations within 60 days of booking.

Oh, thank you for clarifying. I misunderstood that they expired 60 days after the cancelled reservation.

 

[KAT4DISNEY]

Yeah, that's part of the problem. People want contracts with points on them, but they're not willing to pay much of a premium over stripped contracts.

Funny but the usual thought is that sellers don't want to discount stripped contracts enough. It all depends on where you feel the real price is.

 

[Hopfather28]

Who are these people paying full price for Poly listings??? They are messing with my lowball game. (But I suppose bravo for the sellers are in order!)

Not sure what broker you're seeing full price offers come in to but I have been offering on Poly for a week now and have been countered on 1, was beat out by minutes on one and the other was mislisted and had a delayed closing I was unwilling to accept. In the counter case the seller came off their price by 5 bucks (it's still available), but the other two my "lowball" offer of 125pp was implied to be very much in the ballpark. The problem for me is finding the correct UY and the correct point total to make it right for us.

 

[EM Lawrence]

It was on www.dvcresalemarket.com. I’ve seen two Poly listings sell in a day, both for full price (according to the broker.) I’m only interested in smaller contracts with a Fall UY right now, and apparently lots of other people are too. I’m just not willing to pay full price at the moment. The broker even told me he would not have paid full price for the one I bid on.

 

[Hopfather28]

I'm not saying the broker lied but I'm saying that that same broker closes the contract as sale pending without adjusting the price. It's in their best interest to make you believe they sold that high. FWIW one of their people is the one who told me I was close to the offer accepted.

 

[EM Lawrence]

Very interesting! So its possible the listing did sell quickly, but not necessarily at full price.

 

[Hopfather28]

Correct. Happens all the time. A better gauge of what things are selling for is in the ROFR thread.

 

[hlhlaw07]

Oh, thank you for clarifying. I misunderstood that they expired 60 days after the cancelled reservation.

Just to clarify. Holding points don’t expire 60 days after the cancelled reservation, they expire at the end of the current UY. They can only be USED to book a new reservation 60 days out. So holding basically shrinks the booking period down to 60 days rather than 7 or 11 months.

 

[Sandisw]

It was on www.dvcresalemarket.com. I’ve seen two Poly listings sell in a day, both for full price (according to the broker.) I’m only interested in smaller contracts with a Fall UY right now, and apparently lots of other people are too. I’m just not willing to pay full price at the moment. The broker even told me he would not have paid full price for the one I bid on.

I was bidding on a few Poly through them last week, and was told that they had other offers and maybe it would become a bidding war, I responded not with me, I am out...lol.

 

[holyrita]

Just to clarify. Holding points don’t expire 60 days after the cancelled reservation, they expire at the end of the current UY. They can only be USED to book a new reservation 60 days out. So holding basically shrinks the booking period down to 60 days rather than 7 or 11 months.

Oh interesting! Thanks for clarifying!

 

[bookbunny]

Ok, quick calculations here: 210 @ $121.50 PP = $25,515, $1057+ MF's (?), $1200+/- close = $27, 772

Thinking is, an odd number will get someone's attention - I've used this strategy before. Only 151 points to reimburse seller for MF's so they feel it is a win. Close after August is a negative for them and should get you a lower price. I suggest giving them 24 hours to give you and yes or no.

I would say something like "I'd like to make an offer on a BCV contract I saw listed. It is the right UY for me, but I really am unsure about the after vacation August close...which means I won't even see the points until Halloween! (Pause) I just thought I would call and make an offer since it is the right UY. (Pause) I am willing to pay ****, cover the sellers MF's for 2020 and pay closing costs....(pause...wait...keep waiting...hold your breath). " When they tell you they will present it to the seller, then you say "Oh, and I'd like an answer in 24 hours please" in your sweetest voice! It's really important to pause, stay silent when appropriate and let them think about it!

Negotiations is what I have done pretty much my entire career...that is exactly what I would say if you sent me a check and told me to spend it LOL!

What is MF?

 

[npatellye]

What is MF?

Maintenance fees.