DVC RESALES
DVC RESALES

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Old 08-21-2013, 04:56 PM   #16
Dean
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Originally Posted by wrighter View Post
Just wondering what my fellow DISers thought about this. We are currently in the market for a resale add-on, and we have decided to be fairly flexible on # of points and cost pp, but we are fixed on a specific resort and UY.

I put in an offer on a contract yesterday. If another "perfect" contract came up today, would it be unethical to put in an offer on it also? I have no idea how long the sellers have to respond to our offer - but I'd hate to watch something else go by while I wait for them to pick their noses.

Which I guess leads to a follow up question: IF the sellers accept our offer, we can still back out, right? I certainly don't intend to, but I also want to make sure we cover our own butts wherever possible.

Thoughts?
I believe there are 2 answers here. This is one of the very few situations related to timeshares where I believe the legal and ethical answers vary. Technically one can legally do so because you can back out even with a signed contract for the first 10 days. However, IMO, it's completely unethical to do so then switch around because another contract came along that was even better. If one makes an offer, simply add the caveat that one is making offers on more than one contract and the first one that is accepted will be the one that you go with. Once under contract, to back out and switch around is completely reprehensible. I'll go a step further, a broker that knowingly allows this type of behavior is also just as wrong.
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Old 08-21-2013, 05:43 PM   #17
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I don't believe it is right to justify bad behavior with bad behavior.
I am more of a Do unto others person.
Another thing to consider is that the contract that you tie up in limbo for a bit is no longer available for another potential buyer - that isn't fair to them either.
You asked for thoughts, mine is: legal/yes but ethically and morally wrong. Better to give a 24 hour time period for the seller to respond - then move on if you want.

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Old 08-21-2013, 06:20 PM   #18
MiramarQE
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I agree that buyers may back out more often, but they have skin in the game. They have a deposit to lose. Speaking strictly on the DVC resale issue, I don't see sellers losing anything if they back out. With the housing market it is a totally different animal in my opinion.
Exactly the same animal - they are both "real estate" transactions.

Sellers DO have something to lose - if they "back out" of a full price offer their broker is likely going to be looking for a commission check. Now - if they have or expect a better (over full price offer) the broker will not press the issue (after all, then the broker's cut will be bigger) - but in any real estate listing I've been involved in the broker is protected from "seller's remorse" - in the listing contract there will be a clause that states once a qualified full price offer is presented the broker has done their job and get their commission if you as a seller decide "I didn't really want to sell"

I just can't say for sure if any of the more common DVC brokers have ever had to do so. Any brokers with data????
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Old 08-21-2013, 06:28 PM   #19
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Exactly the same animal - they are both "real estate" transactions.

Sellers DO have something to lose - if they "back out" of a full price offer their broker is likely going to be looking for a commission check. Now - if they have or expect a better (over full price offer) the broker will not press the issue (after all, then the broker's cut will be bigger) - but in any real estate listing I've been involved in the broker is protected from "seller's remorse" - in the listing contract there will be a clause that states once a qualified full price offer is presented the broker has done their job and get their commission if you as a seller decide "I didn't really want to sell"

I just can't say for sure if any of the more common DVC brokers have ever had to do so. Any brokers with data????
I doubt they go after sellers who back out because collecting would be more hassle than it's worth.

The buyer doesn't really have financial risk until 10 days after a contract is signed and they've paid the deposit.
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Old 08-21-2013, 07:55 PM   #20
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If it was the boards sponsor I would just do one contract at a time. If it was F idelity I would not pass up on something on the boards sponsor if it comes up and you like it. F idelity normally takes longer and the sellers are normally upside down or other issues are going on even though you can get some deals through them. I missed quite a few contracts I liked because I was waiting on the F idelity people and finally ended up with buying with Timeshare Store.
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Old 08-21-2013, 08:20 PM   #21
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I never made more than one offer at a time, but I thought about it. During the buying process, I withdrew my offer on a few so that I could make an offer on another. I waited 5-7 days, and if I heard nothing I would formally withdraw my offer so I didn't feel bad about making another offer. I figured after that many days, they are probably looking for a higher offer, and I figured that if they were holding out then there was a higher potential that they would be looking for a higher bidder during the entire selling process. I thought that if there was some legitimate reason why they needed more than 5 days, they could contact the broker and ask if I was still interested. Looking back on it, I probably should have put a time limit on the offer - it would have saved me some time in finding the right seller.
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Old 08-21-2013, 08:29 PM   #22
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Originally Posted by SFlaDisneyfans View Post
I agree that buyers may back out more often, but they have skin in the game. They have a deposit to lose. Speaking strictly on the DVC resale issue, I don't see sellers losing anything if they back out. With the housing market it is a totally different animal in my opinion.
Sure the seller has something to lose. A buyer for their points while the lookie-loo is tying them up.
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Old 08-21-2013, 09:15 PM   #23
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Sure the seller has something to lose. A buyer for their points while the lookie-loo is tying them up.
And what about the extra money I paid after a seller backed out when they had closing docs in their hand, 60 days after contracts signed? The market went nuts for 60 days and the price I passed ROFR through has not been seen again.

Time limits are a good way to go.

I do not see how you can compare this to buying a house, In over 20 offers I have made on houses I have never, ever, waited for more than 24 hours to hear back. Not sure about other parts of the country, but in NY, you will be held legally liable for commissions if you back out of a fully executed contract.
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Old 08-21-2013, 09:26 PM   #24
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And what about the extra money I paid after a seller backed out when they had closing docs in their hand, 60 days after contracts signed? The market went nuts for 60 days and the price I passed ROFR through has not been seen again.

Time limits are a good way to go.

I do not see how you can compare this to buying a house, In over 20 offers I have made on houses I have never, ever, waited for more than 24 hours to hear back. Not sure about other parts of the country, but in NY, you will be held legally liable for commissions if you back out of a fully executed contract.
Oh, I agree with you about sellers backing out after they have tied up your money for months as well. Both are wrong.
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Old 08-22-2013, 06:53 AM   #25
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I've made offers with all the big brokers here, and I usually receive word back within hours on whether my offer was accepted or countered. Sometimes it takes an overnight if the seller is unavailable, but reasonably you should get a response within 48 hours. Setting a time limit on a offer will guarantee that and keep you out of wondering about the ethical implications of making another offer in the same timeframe.

Obviously we'd all like to do win-win negotiations and work with people (sellers, buyers, brokers) who observe some standards of fairness. I made an offer last month on a property at full price and the seller countered with a $10 increase. I walked away because it didn't feel right and I wouldn't want to do business with a party who bent the rules like that.
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Old 08-22-2013, 07:24 AM   #26
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I think it is a much better option to put a time limit on the offer.

If I was the seller and found out a buyer had done this in the past (or was currently doing a multiple offer), I would not take the offer seriously and probably reject it.

On the other hand, it harms buyers. It artificially inflates the number of buyers in the market-- if 5 buyers put in 5 offers-- that could potentially end up in a bidding war even with moderate amounts of inventory.
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