Thoughts on Lowball Offer

[hlhlaw07]

To be fair to the brokers (to the ones that deserve it), I think the higher priced contracts might be the result of sellers who refuse to accept the market has turned. I was messing around with some of the VGF contracts listed on DVCresalemarket.com and putting those contracts in the instant sale calculator and even the broker thinks the market value of the contracts is lower than what they are actually listed for.

For example one of the VGF contracts I was looking at is listed at $157 (which is actually the cheapest one listed for that UY) and the instant sale has market value at $151 and instant sale at $109. Another one is listed at $175 and the calculator values it at $155 and instant sale at $112.

So it seems at least DVC Resale Market knows they are overpriced, but may be having a hard time getting sellers to understand they missed the gravy train on the crazy prices.

So what does this mean for lowball offers? I’m thinking with some brokers knowledge the contracts are overpriced, it won’t take long before the sellers will be forced to come along. The more lowball offers the better. Keep submitting and slapping the out of touch sellers with a little dose of reality. Sooner or later it will make a difference.

 

[Sandisw]

To be fair to the brokers (to the ones that deserve it), I think the higher priced contracts might be the result of sellers who refuse to accept the market has turned. I was messing around with some of the VGF contracts listed on DVCresalemarket.com and putting those contracts in the instant sale calculator and even the broker thinks the market value of the contracts is lower than what they are actually listed for.

For example one of the VGF contracts I was looking at is listed at $157 (which is actually the cheapest one listed for that UY) and the instant sale has market value at $151 and instant sale at $109. Another one is listed at $175 and the calculator values it at $155 and instant sale at $112.

So it seems at least DVC Resale Market knows they are overpriced, but may be having a hard time getting sellers to understand they missed the gravy train on the crazy prices.

So what does this mean for lowball offers? I’m thinking with some brokers knowledge the contracts are overpriced, it won’t take long before the sellers will be forced to come along. The more lowball offers the better. Keep submitting and slapping the out of touch sellers with a little dose of reality. Sooner or later it will make a difference.

I am not sure the instant offer is really market value either, I think it is a brokers lowball offer so they can buy it, get the commission, and know that it wont make it through ROFR and therefore, make a sale, If it gets through, they resale higher,

I look at that as something for a distressed seller or someone who bought a long time ago, I bough BWV at $53/pt. If I needed to sell quick, and was offered say $80 from a broker to be done with it, I might..,

But, I agree, selling price is based on what an owner hopes for and it all depends on how long they want to wait it out.

 

[MICKIMINI]

To be fair to the brokers (to the ones that deserve it), I think the higher priced contracts might be the result of sellers who refuse to accept the market has turned. I was messing around with some of the VGF contracts listed on DVCresalemarket.com and putting those contracts in the instant sale calculator and even the broker thinks the market value of the contracts is lower than what they are actually listed for.

For example one of the VGF contracts I was looking at is listed at $157 (which is actually the cheapest one listed for that UY) and the instant sale has market value at $151 and instant sale at $109. Another one is listed at $175 and the calculator values it at $155 and instant sale at $112.

So it seems at least DVC Resale Market knows they are overpriced, but may be having a hard time getting sellers to understand they missed the gravy train on the crazy prices.

So what does this mean for lowball offers? I’m thinking with some brokers knowledge the contracts are overpriced, it won’t take long before the sellers will be forced to come along. The more lowball offers the better. Keep submitting and slapping the out of touch sellers with a little dose of reality. Sooner or later it will make a difference.

I went to the instant price and found about a $6 difference too. Good post!

 

[hlhlaw07]

I am not sure the instant offer is really market value either, I think it is a brokers lowball offer so they can buy it, get the commission, and know that it wont make it through ROFR and therefore, make a sale, If it gets through, they resale higher,

I look at that as something for a distressed seller or someone who bought a long time ago, I bough BWV at $53/pt. If I needed to sell quick, and was offered say $80 from a broker to be done with it, I might..,

But, I agree, selling price is based on what an owner hopes for and it all depends on how long they want to wait it out.

The instant sale calculator gives two values. What they think market value is and what they will buy it off you instantly for. The contracts I put through it had both values below what the contracts were listed at.

 

[Sandisw]

The instant sale calculator gives two values. What they think market value is and what they will buy it off you instantly for. The contracts I put through it had both values below what the contracts were listed at.

Got it...missed that part.

ETA: I just plugged in the contract I am buying at i came out at $162...so while $150 isn’t really low, it does t seem bad either,,,Hahaha

 

[ljlaurajane]

I had a similar experience yesterday with a totally stripped SSR (no points until 2022) through one of the big sellers. They countered with $5 more than asking for $144 a point. I just laughed out loud when I heard that. Hard pass for me.

$144 a point for SSR, that's insanity. Wonder if its the same seller as mine

 

[AKNOTTS66]

$144 a point for SSR, that's insanity. Wonder if its the same seller as mine

How many points is this? Could be high because its a small contract but still high.

 

[DougEMG]

I find it funny how some people are insulted by high counter offers but think sellers shouldn't be insulted by low-ball offers

 

[npatellye]

How many points is this? Could be high because its a small contract but still high.

I offered on 100 points at $100. There were no points until 2022. I don’t think that’s an insulting lowball, to be honest, but maybe someone else would be happy to pay $144/point for a stripped contract. If I’m paying $144 resale, then I would just as easily pay $165 direct and have no restrictions.

 

[AKNOTTS66]

I offered on 100 points at $100. There were no points until 2022. I don’t think that’s an insulting lowball, to be honest, but maybe someone else would be happy to pay $144/point for a stripped contract. If I’m paying $144 resale, then I would just as easily pay $165 direct and have no restrictions.

Holy crap lol $144 on 100 points not happening. lol Max is 120. Now I'd say 105 is max. Awesome if you get $85. $144 is dreaming for them lol people by direct then sell a year or 2 later and think they will recoup what they paid direct are dreaming after a few years. Thats why I'm guessing they want $144.

 

[E2ME2]

I had a similar experience yesterday with a totally stripped SSR (no points until 2022) through one of the big sellers. They countered with $5 more than asking for $144 a point. I just laughed out loud when I heard that. Hard pass for me.

SSR at $139-$144/POINT?
That's insane!

 

[AKNOTTS66]

I find it funny how some people are insulted by high counter offers but think sellers shouldn't be insulted by low-ball offers

True but if a seller pisses off a buyers swing and miss offer they are likely not coming back. Some might throw out a lowball offer to gauge the sellers willingness to haggle. I might lowball your listing but it doesn't mean im not willing to make incremental offers back and forth. By coming back above the listed price it makes the seller walk instantly. Just a word of caution, but i think it does more harm as a seller doing that than a buyer.

 

[DougEMG]

True but if a seller pisses off a buyers swing and miss offer they are likely not coming back. Some might throw out a lowball offer to gauge the sellers willingness to haggle. I might lowball your listing but it doesn't mean im not willing to make incremental offers back and forth. By coming back above the listed price it makes the seller walk instantly. Just a word of caution, but i think it does more harm as a seller doing that than a buyer.

I'm pretty sure that the sellers intention was to piss off the buyer. Who knows, maybe the seller isn't in a hurry.

That same logic works in reverse, the buyer could have made a slightly better offer initially and opened up a dialog for negotiating. I know when I was buying contracts I walked away over a $1 difference in price on a couple of deals and ended up regretting that a few years later.

 

[Hopfather28]

Took a shot in the dark at 125pp for a 150 pt Poly Feb UY. They had it listed super high IMHO so I'm hoping I don't insult them. I do have some room to go up but want to stay under 20k because in the end it is a luxury purchase.

 

[ljlaurajane]

I'm pretty sure that the sellers intention was to piss off the buyer. Who knows, maybe the seller isn't in a hurry.

That same logic works in reverse, the buyer could have made a slightly better offer initially and opened up a dialog for negotiating. I know when I was buying contracts I walked away over a $1 difference in price on a couple of deals and ended up regretting that a few years later.

They actually came back with a much lower offer later in the day, not far off my "insulting" one when I didn't respond, so clearly regretted the decision to try and piss me off.

 

[DisMomKY]

Took a shot in the dark at 125pp for a 150 pt Poly Feb UY. They had it listed super high IMHO so I'm hoping I don't insult them. I do have some room to go up but want to stay under 20k because in the end it is a luxury purchase.

I think you can get that. We had an offer accepted for 130 pp for 130 points at Poly, we just decided poly as much as I love it, isn’t a good long term fit for us

 

[Minniemoo15]

Last year when we put an offer on a poly contract - it was listed at $150. We offered $145 - so not really a lowball. But the seller came back at $155. We were flabbergasted but our agent said it was because this owner had it listed on 4 different sites at 4 different prices and couldn’t keep track of what price she had where. We ended up settling at $148 but it was a shock to get that initial counter offer, lol.

 

[iflyjetzzz]

No advice on pricing, but as a buyer, there seems to be far greater availability of 100 stripped contracts on the market. Very few with points for 2020, still available. So from an availability point of view you may be better selling with the 2020 points available. (but I'm biased as that's what I'm looking for )

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.

 

[CastAStone]

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.

I am confused to why they command any premium since the buyer is expected to pay the associated MFs. I’m looking for stripped.

 

[iflyjetzzz]

I am confused to why they command any premium since the buyer is expected to pay the associated MFs. I’m looking for stripped.

The points can be rented/transferred for more than MFs. Call it (conservatively) double MFs for SSR.