How much negotiating did you do when you purchased a DVC resale?

[mickerbaby]

I posted this question on a different thread but I think it has become buried so I will try posting here!
When you purchased your DVC resale through the Timeshare store or other reseller (are there any other popular ones?) did you negotiate the point price, paying the maintence fee and/or the closing fee's?
When I saw an offer of 65 points at VWL all 2006 points intact (as well as 5 banked from 2005), for $94 per point, buyer pays 2006 maintence fee's and closing costs I figured this was the norm. But now I'm thinking I jumped too quickly....should I have negotiated the maintence fee or closing costs with the seller? I know the price per point should stay as is for ROFR reasons, but what about the maintence fee's? After reading other posts and seeing that many of the sellers are paying the current years maintence fee's (even for small contracts like this one that have all of the current years points available) I'm starting to wonder that maybe I didn't do my homework before I made my offer!

 

[JimC]

Everything between buyer and seller is negotiable.

Keep in mind that the cost to buy in is not nearly as significant as cost of dues over the life of the contract. A few dollars per point in price, closing costs, dues are just not that significant over 35 or more years.

Evaluate the price of the contract over the total number of remaining points. A fully loaded contract is more valuable than a stripped contract. So adjust accordingly.

 

[Steamboat Bill]

With a contract like that...you probably have very little room to lower the price. DVC has been ROFR small contracts lately. If the price is too low....you will lose it to DVC.

 

[disneydenisel]

We didn't negotiate. We paid the asking price and it was intense waiting to pass ROFR. We paid the dues on all the points that were coming to us, and we paid closing costs. I think Disney takes all of this into consideration when deciding whether to buy the contract back, so you have a great chance of passing ROFR. They still might take it, you never know. Low point contracts have been taken at high prices lately. Good luck, you did fine!

 

[Tiffer]

A fully loaded contract is more valuable than a stripped contract. So adjust accordingly.

I am a neewbie to this and considering buying. Can you explain what this means?

 

[ACDSNY]

We purchased our resale contract last year around this time. I believe we offered a couple of dollars less then the asking price, we paid closing and seller paid maintenance fees. We almost lost it to another buyer, but their financing fell through. If I remember right we paid $80 per point plus closing costs on 100 points. This was our first contract. It didn't take us long before we were adding on through Disney with their F & F promo last Dec.

As Jim C said it's all negotiable so I guess it boils down to how bad do you want that specific contract and what are you willing to pay for it.

 

[DizneyNutz]

I am a neewbie to this and considering buying. Can you explain what this means?

Stripped - You will see some contracts for sale that say No points coming till 07 or 08. That means the owner has borrowed the points on those contracts and if you buy it, you won't be able to use it immediately.

Loaded - All the points are intact and available for use by the new owner just as they would be buying a new contract from Disney.

 

[dvc at last !]

We bought ours as offered this year.

 

[Micmaniac]

We bought our 70 point as offered also. You have to decide how bad you want that smaller contract because there are a lot of others who also want it. If you want it bad, don't quibble over a couple hundred dollars.

 

[keishashadow]

We paid "rack" .

The way DVC has been rofr'ing small resales I'd consider offering per point & if anything ask that closing costs be a negotiable item w/the seller.

 

[1000th happy haunt]

We bought an OKW resale (300 points). The seller wanted $75 per point but Jason at TTS through they would probably accept $73 per point, and he thought that would pass ROFR. He was right on both counts.

We didn't even think about negotiating with the seller on closing costs or maintenace fees.

 

[JimMIA]

We bought an OKW resale (300 points). The seller wanted $75 per point but Jason at TTS through they would probably accept $73 per point, and he thought that would pass ROFR. He was right on both counts.

We didn't even think about negotiating with the seller on closing costs or maintenace fees.

I think this is one of the most important reasons to use an experienced and ethical DVC broker for resales. They know the system, and they know more about ROFR than any of us do.

I had a similar situation on a resale through TTS, but just the opposite. I asked whether a certain price would be acceptable to the seller. The answer I got was that it might, but it would probably get ROFR'd. I raised my offer $1, it was accepted, and it passed ROFR. Within a couple of weeks, several other contracts got ROFR'd at exactly the price I wanted to offer.

It's been said a million times - the most important number in a resale is the price necessary to clear ROFR. If you don't get by ROFR -- and that's especially difficult with a small contract -- nothing else about that contract matters, because it will not be YOURS.

 

[debloco]

We did the same thing as JimMIA, we offered more ($2 per point) than the seller's were asking in an effort to not get ROFRed by Disney.

It worked and we got our contract.

Luckily, I had read lots of great advice here on the DISboards before we found our contract and made our offer because our broker did not have much experience working with Disney.

 

[LisaS]

I am a neewbie to this and considering buying. Can you explain what this means?

Resale contract listings will indicate how many banked, current use year and next use year points are available. A stripped contract has no banked points, no current use year points and all of the next use year's points have been borrowed and used. Anyone buying that contract will have to wait a long time to book their first vacation. A fully loaded contract has all of the last use year's points banked into the current use year, all of the current use year's points and all of the next use year's points available. Most contracts fall somewhere in between.

 

[Buckalew11]

We offered $1.00 less per point than asked, split the 2006 dues, and paid closing on a BCV contract in May. However, when all was said and done, it took us til August to get into Disney's system. We wanted that particular contract and weren't willing to risk losing it to Disney so we paid more $ per point. However, we passed ROFR quickly and felt it was because we hadn;t made an "iffy" offer.

 

[Boas]

i got a fully loaded & fully banked small contract (100 pnts @ BCV) and I was a new DVC member.

so my view was pay a slight premium (it was listed @ +$2/ pnt) + closing costs and maintence fees.

My Rule and Logic: on a small contract the upfront costs are a drop in the bucket compared to the on-going maintence fees every year and the cost of tickets, food, airfare, etc.

... so in the end, don't worry about it, ENJOY YOUR NEW FAMILY VACATION!

 

[Plutofan]

Resale contract listings will indicate how many banked, current use year and next use year points are available. A stripped contract has no banked points, no current use year points and all of the next use year's points have been borrowed and used. Anyone buying that contract will have to wait a long time to book their first vacation. A fully loaded contract has all of the last use year's points banked into the current use year, all of the current use year's points and all of the next use year's points available. Most contracts fall somewhere in between.

Actually a loaded contract could have three years of points available. We were lucky enough to buy 4 out 5 of our contracts as triples. For a 2006 contract this would mean 2004, 2005 and 2006 points were available. They are hard to come by but well worth the wait if you want to get the best value.

 

[Plutofan]

Actually I think you did the right thing with what you paid. Disney exercises ROFR a lot on small contracts for new DVC members. So offering a high price is well worth it. We negotiated on our VB contract since we knew that Disney usually does not exercise ROFR on Vero contracts since it would be hard for them to sell at the going rate.

 

[minniemomof3]

Being new to DVC, we weren't sure what to offer so we took the advice of our DVC Broker and offered $3 less a point and split the 06 MF's. We are now waiting to pass ROFR. We used one of the "Big 3" Timeshare Brokers, they were very helpful and knowledgable in negotiating our contract.

 

[NJOYURLIFE]

Actually I think you did the right thing with what you paid. Disney exercises ROFR a lot on small contracts for new DVC members. So offering a high price is well worth it. We negotiated on our VB contract since we knew that Disney usually does not exercise ROFR on Vero contracts since it would be hard for them to sell at the going rate.

Nothing is guaranteed on ROFR. We offered $92 on a 30 point VB contract. The broker thought for sure there would be no problems and we felt the same way. Well, Disney took it.

I really think that while anything is always negotiable, I don't think small contracts allow for little, if any, negotiation. There are waitlists for the small contracts and if one person is not willing to pay the asking price, there are always others willing to pay the asking or MORE.

Saving a few dollars in up front negotiations really doesn't matter much if you lose the contract to ROFR.

If you have the time to go through the process more than once, then maybe you could have negotiated a lower price and taken the chance on ROFR. If you wanted to have your best chance of getting by ROFR (even though there is still no guarantee), then I think you did good.