Thoughts on Lowball Offer

[Grumpy by Birth]

... I have had brokers tell me (in the manner this was discussed I believe the comments to be honest) that sellers are taking large losses in the market right now.

Depending on when they bought/how much they paid, that could be true. If someone bought in the past few years and paid around $200/point and is now having to sell at $100 point, you're talking a potential loss of $5K, $10K, or even $20K or more depending on the size of the contract. But many are probably still breaking even or coming out slightly ahead of the game if they bought early when prices were a lot lower than recent years.

On the topic of lowball offers... I made an offer that was $20 below asking price, but IMO what I paid was near market value (perhaps a slight bargain, but not a "fire sale" price). If the asking price is inflated, then offering a fair market price (even if that's $30 below what they're asking) shouldn't really be considered a "lowball" offer in my mind. It's a realistic offer.

I don't know if the seller accepting $20 less per point meant that they were losing money or not (they might have still made a profit on the sale), I just know that similar contracts have been selling for around the price I offered, even pre-COVID.

 

[RoseGold]

But on the other hand, I have had brokers tell me (in the manner this was discussed I believe the comments to be honest) that sellers are taking large losses in the market right now.

Recent direct buyers have always taken large losses, even with relatively minor fluctuations one way or the other in the resale market. That's what happens when you buy a product at a 40% upcharge because they gave you some Fastpasses and ice cream.

If the resale market was priced above the direct market, that would be a major issue.

 

[Grumpy by Birth]

That's what happens when you buy a product at a 40% upcharge because they gave you some Fastpasses and ice cream.

 

[Llama mama]

BW or BC , looking what was accepted last month and what is awaiting now. 150 point contracts at BC 135 pp and BW 110pp. I am watching 1 BC and 4 BW . I am going to offer $20 less on BC and 15-20 less on the BW to reach what’s sitting in FROR. Hope something accepts. Two different sites offering. Any last words of encouragement before I start the process?

 

[gisele2]

BW or BC , looking what was accepted last month and what is awaiting now. 150 point contracts at BC 135 pp and BW 110pp. I am watching 1 BC and 4 BW . I am going to offer $20 less on BC and 15-20 less on the BW to reach what’s sitting in FROR. Hope something accepts. Two different sites offering. Any last words of encouragement before I start the process?

GO for it !

 

[sethschroeder]

Its $110 for the BWV contract? I think that is "reasonable" meaning that if someone is looking to sell fairly quick I could see someone taking that.

 

[My3kids1989]

Its $110 for the BWV contract? I think that is "reasonable" meaning that if someone is looking to sell fairly quick I could see someone taking that.

I paid 130 pp BWV and I wish I would have kept looking but my points should be loaded soon and the price point will be a thing of the past. I wish I would have paid a couple bucks more on some AKL and had them all finalized. Now I’m still looking...I hope you get a good negation

 

[My3kids1989]

BW or BC , looking what was accepted last month and what is awaiting now. 150 point contracts at BC 135 pp and BW 110pp. I am watching 1 BC and 4 BW . I am going to offer $20 less on BC and 15-20 less on the BW to reach what’s sitting in FROR. Hope something accepts. Two different sites offering. Any last words of encouragement before I start the process?

I paid 130 pp for a BWV and I wish I would have kept looking. I didn’t offer a low amount and they were asking 135$. I wish I would have paid a few bucks more on AKL to have them finalized by now. I hope you get a price you feel good about if it’s a contract you really want!

 

[masupo]

BW or BC , looking what was accepted last month and what is awaiting now. 150 point contracts at BC 135 pp and BW 110pp. I am watching 1 BC and 4 BW . I am going to offer $20 less on BC and 15-20 less on the BW to reach what’s sitting in FROR. Hope something accepts. Two different sites offering. Any last words of encouragement before I start the process?

Its $110 for the BWV contract? I think that is "reasonable" meaning that if someone is looking to sell fairly quick I could see someone taking that.

I think Llama mama meant that the contracts that passed ROFR last month were BC 135pp and BW 110pp. And they're hoping to match that by offering similar amts. I could be wrong though!

I'm watching ROFR and current offerings too. I'm going to wait to see if other's predictions are correct that prices could come down when 2021 maintenance fees come due. But if something hits my sweet spot now, I'm going to jump!

 

[KAT4DISNEY]

Honestly I don't know what to think anymore. This statement is true based on what I have seen too. But on the other hand, I have had brokers tell me (in the manner this was discussed I believe the comments to be honest) that sellers are taking large losses in the market right now. I've also seen many of the contracts I was interested in months ago (mostly 150+) still on the market at their list prices.

It does depend on the resort you are watching as well. Either way I know from my current contract in ROFR that I need to wait for the rest. I feel unsettled.

I find it very unlikely that it's more than an occurrence here and there. If the seller purchased direct recently then probably but that's also typical all the time. Otherwise I've seen little in pricing that would create large losses with DVC. Maybe they meant the stock market back in April.

 

[gisele2]

Addonitis is a real thing
Just made a lowball offer on a BWV , not my use year, and I don’t even have my membership number yet ...

 

[Hopfather28]

Addonitis is a real thing
Just made a lowball offer on a BWV , not my use year, and I don’t even have my membership number yet ...

With your track record on lowball offers I'd have addonitis too.

 

[dvc lover 1970]

Put in the lowball offer, the worst that they can say is No. I purchased a BC resale a while ago. that was listed at 85 - I put in a lowball offer and we compromised somewhere in-between -

 

[MICKIMINI]

I made a lowball offer on a VBR 100 point contract. Listed at $65 and I offered $52. I was shut down immediately as the owner wants full price only which was not relayed to me when I spoke to the agent on the phone. I was willing to come up a bit. It seems silly to totally reject a ready, willing and able cash buyer without a legit counter. The agent told me he said "I think I can do better". He has two other VBR's (both larger contracts) to unload...

 

[Liquidice]

I made a lowball offer on a VBR 100 point contract. Listed at $65 and I offered $52. I was shut down immediately as the owner wants full price only which was not relayed to me when I spoke to the agent on the phone. I was willing to come up a bit. It seems silly to totally reject a ready, willing and able cash buyer without a legit counter. The agent told me he said "I think I can do better". He has two other VBR's (both larger contracts) to unload...

Don't be discouraged - just move on and place another offer on a different contract, or if that listing is still available a few months from now - offer again at $5 less per price than you originally offered

 

[MICKIMINI]

Don't be discouraged - just move on and place another offer on a different contract, or if that listing is still available a few months from now - offer again at $5 less per price than you originally offered

I just closed on a BRV this week and another BRV a few weeks ago. I'm not discouraged in the least, I just wanted to share my story. I LOVE your suggestion to offer less months from now which is exactly what I was thinking LOL! I did tell the agent that I MIGHT consider my offer again down the road if the seller has a change of heart IF I'm not buying another contract... It doesn't sound like this seller has done much selling, especially in this market and with Vero. $$$ talks, right?

 

[becauseimnew]

Addonitis is a real thing
Just made a lowball offer on a BWV , not my use year, and I don’t even have my membership number yet ...

Did you make an offer on that 55pt contract?

 

[gisele2]

Did you make an offer on that 55pt contract?

No , a 250 points one, the seller did lower his price by 4 $ , still to hight for me.

 

[gisele2]

Put in the lowball offer, the worst that they can say is No. I purchased a BC resale a while ago. that was listed at 85 - I put in a lowball offer and we compromised somewhere in-between -

85$ pp for BC would be really nice. I love this resort but find it way too pricey.

 

[ABE4DISNEY]

I purchased a BC resale a while ago. that was listed at 85 - I put in a lowball offer and we compromised somewhere in-between -

So where does one go to find an $85 BCV.....inquiring minds want to know.