Prices for resales

[connorlevismom]

I have been looking over resales from 3 different sellers and I am confused on the price difference between them all. There is one seller that seems much lower than the other two, but still not as low as what I have seen on here people are getting their contracts for.

How is everyone getting such good prices and how long did it take you to find someone to accept that price?

[DizBub]

Originally Posted by connorlevismom

How is everyone getting such good prices and how long did it take you to find someone to accept that price?

Offer a lower price. It may take a while to find a seller to accept what you're willing to pay, along with other terms like paying MFs and closing costs. I think most sellers price their contracts so they have room to negotiate. Some sellers with loans probably need what they are asking.

Good luck!!

[rusafee1183]

I was also wondering the same thing.

From what I understand, a lot of it has to do with whether the contract is "stripped" or not. If they don't have any points available until 2014 vs having banked points available right now. Sellers will ask for a lot more if they have a loaded contract.

A lot of it also has to do with the size contract you buy. I noticed that the smaller contracts don't really have much wiggle room, they sell fast and they sell for asking price. If you look at the ROFR thread the smaller contracts all sell for $5 - $10 more pp than larger contracts because they are so popular.

But, I would still also love to know how people are getting contracts for $50 or less. It seems like everytime I inquire about a property (as soon as it is listed) it's already in the process of being sold. So, how are people getting contracts for so cheap when sellers are pretty much lining up and making offers immediately??

[Husurdady]

....Go figure , I just saw on here [other resale company] where one 50 pt contract at OKW sold for 68 per pt and one 50 pt contract just sold for 74.00 per pt.

[ELMC]

Buying a resale contract is a lot like buying something at a tag sale. There is no communication between one seller and another, and a seller's personal situation plays a big role in what they sell the item for. We recently moved and sold off pieces of furniture that I knew were worth $300-400 for $50 just so it was off our minds and we wouldn't have to move them. We were motivated and someone got a great deal. But the people down the street may have been asking $250 for a similar piece of furniture. Maybe they were emotionally attached to it or they still had it on a credit card. My point is, a seller's situation plays as much a part in the price of a contract as anything else. Making offers is really the only way to find out how flexible a seller is. Read some of the threads on how to value contracts (dougEMG has posted a few) and I'm sure they will answer a lot of your questions. Good luck!

[Missyrose]

Originally Posted by rusafee1183

I was also wondering the same thing.

From what I understand, a lot of it has to do with whether the contract is "stripped" or not. If they don't have any points available until 2014 vs having banked points available right now. Sellers will ask for a lot more if they have a loaded contract.

A lot of it also has to do with the size contract you buy. I noticed that the smaller contracts don't really have much wiggle room, they sell fast and they sell for asking price. If you look at the ROFR thread the smaller contracts all sell for $5 - $10 more pp than larger contracts because they are so popular.

But, I would still also love to know how people are getting contracts for $50 or less. It seems like everytime I inquire about a property (as soon as it is listed) it's already in the process of being sold. So, how are people getting contracts for so cheap when sellers are pretty much lining up and making offers immediately??

I worked with Sharon from Fidelity and told her what I was looking for. When a contract would come in, she would give me a heads-up and I would make an offer. I think they may have changed their rules a bit and they can't present offers until the contracts officially go up on the Web site, but even with those rules my BLT deal came together in a matter of minutes.

I was one of those ridiculously lucky people who got a BWV contract last winter for $50 per point. I was rejected on a handful of contracts before the last set of sellers agreed. The wanted to sell quickly, so they countered my $46 offer with $50 (I think the asking price was $63) and I took it.

If you want a lower price, be prepared to receive a lot of rejection. And some of the brokers are much more receptive to presenting low-ball offers than others, so be aware of that. Good luck hunting for your contract!

[connorlevismom]

Originally Posted by Missyrose

I worked with Sharon from Fidelity and told her what I was looking for. When a contract would come in, she would give me a heads-up and I would make an offer. I think they may have changed their rules a bit and they can't present offers until the contracts officially go up on the Web site, but even with those rules my BLT deal came together in a matter of minutes.

I was one of those ridiculously lucky people who got a BWV contract last winter for $50 per point. I was rejected on a handful of contracts before the last set of sellers agreed. The wanted to sell quickly, so they countered my $46 offer with $50 (I think the asking price was $63) and I took it.

If you want a lower price, be prepared to receive a lot of rejection. And some of the brokers are much more receptive to presenting low-ball offers than others, so be aware of that. Good luck hunting for your contract!

Did you call her, or how did you get in touch with her (her specifically because I hear so many good things about her)?

Also - can you tell me who is more receptive to presenting lower offers? You can PM me if you need to.

Thanks!

[DannysMom]

From reading these boards it appears that Fidelity is more willing to present lowball offers. It also looks like they may advise listing prices to have room for negotiation, but I have never listed a contract, so cannot confirm or deny that, it is speculation on my part. I worked with Rachel at Fidelity on my resale purchase this past summer & she was very easy to work with IMO. Both Sharon & Rachel at Fidelity get good reports on this board.

It looks like TTS sellers tend to be more firm in their pricing, but often have a more reasonable listing price. Some sellers, no matter the listing agent think that their "need" to get X dollars for their contract, because they have a loan, makes their contract worth an unreasonable listing price. It doesn't. These seller's might become more negotiable as time wears on & they get no offers anywhere close to the listing price. So if you are looking for a DVC deal, don't be afraid to present offers for what you want to pay, and expect lots of rejections before you find a seller that is willing to accept your price.

Also keep tabs on the ROFR thread to have a decent idea on fair market value of the type of contract you are looking for, as well knowledge of what is getting past ROFR (or not.)

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

[connorlevismom]

Originally Posted by DannysMom

From reading these boards it appears that Fidelity is more willing to present lowball offers. It also looks like they may advise listing prices to have room for negotiation, but I have never listed a contract, so cannot confirm or deny that, it is speculation on my part. I worked with Rachel at Fidelity on my resale purchase this past summer & she was very easy to work with IMO. Both Sharon & Rachel at Fidelity get good reports on this board.

It looks like TTS sellers tend to be more firm in their pricing, but often have a more reasonable listing price. Some sellers, no matter the listing agent think that their "need" to get X dollars for their contract, because they have a loan, makes their contract worth an unreasonable listing price. It doesn't. These seller's might become more negotiable as time wears on & they get no offers anywhere close to the listing price. So if you are looking for a DVC deal, don't be afraid to present offers for what you want to pay, and expect lots of rejections before you find a seller that is willing to accept your price.

Also keep tabs on the ROFR thread to have a decent idea on fair market value of the type of contract you are looking for, as well knowledge of what is getting past ROFR (or not.)

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

Thanks! I did contact Sharon and she got back to me immediately. Gotta love that!

I think I will just start making offers until one sticks. I am not in a hurry - so I can wait for the right one at the right price.

[dvcterry]

I have to say I had a very good experiences with Fidelity. Although the listed price for the contract was high I offered very low. Both Sharon and Rachel are very respectful and professional.

[DougEMG]

Originally Posted by connorlevismom

How is everyone getting such good prices and how long did it take you to find someone to accept that price?

If you are looking to get the best deal possible, then:

Make lots of offers and be prepared to get rejected a lot. The amount of time it takes can vary from a couple of days to lots of months since it all depends on you being the first one to place an offer in with a seller that is very motivated to sell and you won't know how motivated the seller is until you make your offer.

Check the web listing regularily, get on the broker's mailing list and let brokers know what you are looking for.

You also need to figure out how much you want to spend and how to value a contract. Then when you see a listing you can quickly come up with an offer and get it in ASAP.

The faster you want to own your points, the closer you need to offer to asking price.

Good luck.

[Jasonkat]

I started seriously looking two months ago and I have the same impression: asking prices are all over the map.

And not just with the different websites, but check out the price per point within the same resort on the same website.

For example, I've seen AKV listed for $70 and for $90 for pretty much the same thing (pts, use year, etc) right next to each other on the website listing. I'm sure what happens is that a seller calls a place to list their points and they tell the company "I want to list it at $XX per point" and the company just does what they ask them to do.

I made one offer for AKV (I discussed this in another thread) for $64 pt (listed at $70 per point) for 250 points with all 2012 pts banked, Feb use year so on Feb 13 500 points come due. The seller came back and said they "need" $70 per point because they have a loan. I just said that seemed high and I wanted to wait and see what my options were.

So I just moved on and made another offer for a VWL. The price it was listed at was $66 per point but I offered $53. I told the company that the reason my offer was so low was because I need to move the seller off their unrealistic price point. I told them that my research indicates that "fair value" for VWL is upper 50s per point and that if the seller laughs at my $53 I want the company to push for a counter offer to see if we can end up somewhere in the upper 50's. That was Monday and so far the seller hasn't gotten back to the company yet. You'd think the sellers would return phone calls in a timely fashion.

Strangely, I just got a call today about the AKV offer saying that the seller has an idea that if I need more time to get the money to pay the $70 a point they will hold the listing for me (probably because I told the listing company I wanted to "wait and see"). And this is two weeks after I made the original offer and they rejected it! So I've come to the conclusion that nobody knows what the heck they're doing so I should just do what I feel is right and not depend on the companies or sellers to know what is "right" in negotiating these deals.

I know what is "fair" because I've seen the sales prices on this website. I am willing to make offers as long as it takes in order to get a fair contract. I'm not going to pay $70 for AKV when "fair" is $65 (I'm making offers for 300 pt contracts so I believe I have more negotiating room and the price per point really matters at this level of points)

[DebbieB]

Originally Posted by Husurdady

....Go figure , I just saw on here [other resale company] where one 50 pt contract at OKW sold for 68 per pt and one 50 pt contract just sold for 74.00 per pt.

Small contracts are typically higher per point. I was shocked that a friend of mine got over $90 per point on a 50 point HH contract 2 or 3 years ago.

[connorlevismom]

Thanks so much for the advice - it really helps!

[SpectroMan71]

Ugh - I'm in the same boat here. I see the postings showing the average sales price (usually mid 50's) and then look at the available listings and they're $61-70, or higher. I realize it's normal to offer a few dollars per point less but a full 10 dollars? It seems like a major lowball.

I realize many sellers are distressed and need higher amounts to get out of their contracts but for the ones that are paid off, I'm having a really hard time connecting the sold prices I see posted on here with the current asking prices.

And the brokers can't do much to give anyone preferential treatment like a realtor can. I never get emails or calls like "I have this great VWL coming up and you need to bid on it!" and such. It's getting disconcerting.