Thoughts on Lowball Offer

[Lorana]

What is MF?

Maintenance Fees, aka Annual Dues.
Though for some reason my brain always wants to say Manufacturing Fees. ;-)

 

[bookbunny]

Maintenance fees.

Thank you.

 

[bookbunny]

Ok, quick calculations here: 210 @ $121.50 PP = $25,515, $1057+ MF's (?), $1200+/- close = $27, 772

Thinking is, an odd number will get someone's attention - I've used this strategy before. Only 151 points to reimburse seller for MF's so they feel it is a win. Close after August is a negative for them and should get you a lower price. I suggest giving them 24 hours to give you and yes or no.

I would say something like "I'd like to make an offer on a BCV contract I saw listed. It is the right UY for me, but I really am unsure about the after vacation August close...which means I won't even see the points until Halloween! (Pause) I just thought I would call and make an offer since it is the right UY. (Pause) I am willing to pay ****, cover the sellers MF's for 2020 and pay closing costs....(pause...wait...keep waiting...hold your breath). " When they tell you they will present it to the seller, then you say "Oh, and I'd like an answer in 24 hours please" in your sweetest voice! It's really important to pause, stay silent when appropriate and let them think about it!

Negotiations is what I have done pretty much my entire career...that is exactly what I would say if you sent me a check and told me to spend it LOL!

They did list that they had dues still owed and the buyer would have to pay for what is left $1067 in their price for the contract.

 

[heynowirv]

I was bidding on a few Poly through them last week, and was told that they had other offers and maybe it would become a bidding war, I responded not with me, I am out...lol.

Tru Dat, I refuse to get into bidding wars.

 

[MICKIMINI]

I just put in a bid and lost to a FULL PRICE offer just before my opening bid. I don't want to give too much away, since this person is my favorite broker. It was a smallish contract and we could have done it, but I couldn't show my face here LOL if I paid full price, unless of course it was a steal - it wasn't. They are "adapting". I think we'll see more listings and better prices in the next months. Movin' on...

 

[heynowirv]

Indeed ,I know what I want and what I'm looking to pay. Aug UY not many smallish Poly/ Bay Lake /BRV contracts,,,yet.

 

[mmackeymouse]

UPDATE:

Offer was accepted. The offer was actually less than I thought it was, as I offered an even total amount. It was actually $81.25. With closing costs and MF, it will be $92, but depending on how much I can get on the points rental/transfer, I'm hoping it will be around $75.

Would you consider this a good deal? (Assuming things work out with the holding points)

 

[DisMomKY]

UPDATE:

Offer was accepted. The offer was actually less than I thought it was, as I offered an even total amount. It was actually $81.25. With closing costs and MF, it will be $92, but depending on how much I can get on the points rental/transfer, I'm hoping it will be around $75.

Would you consider this a good deal? (Assuming things work out with the holding points)

81.25 per point for 160 point contract at SSR? That’s great!! We are paying 88 per point and I thought that was a steal!

 

[E2ME2]

UPDATE:

Offer was accepted. The offer was actually less than I thought it was, as I offered an even total amount. It was actually $81.25. With closing costs and MF, it will be $92, but depending on how much I can get on the points rental/transfer, I'm hoping it will be around $75.

Would you consider this a good deal? (Assuming things work out with the holding points)

Yes - I agree with DisMomKY - I also got SSR at just under $89/Pt.
Great Deal ! - & Good Luck with ROFR. Keep us posted on this one.
ET

 

[iflyjetzzz]

Funny but the usual thought is that sellers don't want to discount stripped contracts enough. It all depends on where you feel the real price is.

LOL! I never thought of it that way. OK, is $10/pt/yr reasonable?
For instance, SSR with all 2020/2021 pts = $100/pt
SSR with 2021 pts only = $90/pt
SSR stripped = $80/pt
Are those reasonable numbers? Or what would you say the correct prices are?

 

[npatellye]

LOL! I never thought of it that way. OK, is $10/pt/yr reasonable?
For instance, SSR with all 2020/2021 pts = $100/pt
SSR with 2021 pts only = $90/pt
SSR stripped = $80/pt
Are those reasonable numbers? Or what would you say the correct prices are?

I haven’t bought resale yet (but am looking to do so to add to our points) but that seems reasonable to me. However, I have had sellers ask for asking or higher ($137 and $144) on two stripped SSR contracts of 100 points. Those were this week. So maybe my perception of what’s reasonable is really far off.

 

[Disney Teresa]

I have offered on a few between $80 and $90 a point. No luck yet

 

[CastAStone]

LOL! I never thought of it that way. OK, is $10/pt/yr reasonable?
For instance, SSR with all 2020/2021 pts = $100/pt
SSR with 2021 pts only = $90/pt
SSR stripped = $80/pt
Are those reasonable numbers? Or what would you say the correct prices are?

The DVC Resale Market value estimator puts a fully loaded 100 point SSR contract at $109, one with 2020 and 2021 points at $103, one with just 2021 points at $97, and a fully stripped one at $91.

So $6/point/year

 

[Lorana]

I haven’t bought resale yet (but am looking to do so to add to our points) but that seems reasonable to me. However, I have had sellers ask for asking or higher ($137 and $144) on two stripped SSR contracts of 100 points. Those were this week. So maybe my perception of what’s reasonable is really far off.

I just got an offer accepted for $95/point for 100 points with most 2019 points (86) banked into 2020 and full 2020/2021 points. I had hoped for $90/point but as it’s only 100 points, decided I was happy with it. So there’s reasonable contracts out there.

 

[iflyjetzzz]

The DVC Resale Market value estimator puts a fully loaded 100 point SSR contract at $109, one with 2020 and 2021 points at $103, one with just 2021 points at $97, and a fully stripped one at $91.

So $6/point/year

Thanks; $6/pt seems a little low; $8/pt (after MFs) would be close to what one could sell the points for on the open market.

 

[npatellye]

I just got an offer accepted for $95/point for 100 points with most 2019 points (86) banked into 2020 and full 2020/2021 points. I had hoped for $90/point but as it’s only 100 points, decided I was happy with it. So there’s reasonable contracts out there.

Good to know! I just guess I’m finding ones where the sellers don’t want to budge and that is fine, too. I am in no rush to add on; I’m sure the right one will eventually come along!

 

[MICKIMINI]

I'm beginning to see a stark contrast of stale listings and new listings at SSR (probably because it is so obvious). Lots of new listings $95 or so as opposed to $110-115. Of course, it isn't what I want - sigh, but I know lots of you are still looking for that killer SSR contract!

 

[ljlaurajane]

I just got an offer accepted for $95/point for 100 points with most 2019 points (86) banked into 2020 and full 2020/2021 points. I had hoped for $90/point but as it’s only 100 points, decided I was happy with it. So there’s reasonable contracts out there.

I think that was the same contract I was trying for but congrats, higher than I wanted to go, but still an ok deal

 

[heynowirv]

I've got my eyes on poly/Bay Lake & BRV.

 

[Lorana]

I think that was the same contract I was trying for but congrats, higher than I wanted to go, but still an ok deal

I’ll admit I really wanted $90 and even debated just waiting to see if eventually the right AKL, CCV or Poly came out. Ultimately I probably should’ve been patient. But keeping our annual fees low is desirable, and I happened to read a post about how for low point contracts, that few dollar per point contract is not a lot of money, do you want to lose the contract for that? So I decided I’d accept $95, especially as the Poly I was offering on I couldn’t get the sellers below $135. If it were a larger contract, I’d have cared a lot more about getting to the price point I wanted, but in the long term we decided $500 was not that much and it was the right contract for us.

Sorry to have snatched it from you, though! It almost had been yours as we almost picked up a 160-point AKL last week instead but then someone bid higher than us while we were going back and forth with the owner. That’s part of the reason I was convinced to not quibble over a small amount. If I had accepted their counter at $108/point I’d have gotten a fully loaded AKL contract, but I had really wanted lower. Ah, well. Only paying for another 100 points of dues is probably better anyway.