Thoughts on Lowball Offer

[EM Lawrence]

This is the reply I got on one of my three low ball offer... doesn’t even look like they put the offer to the seller! I didn’t get responses on the other two. They were all at figures that I am seeing other people get accepted on the ROFR thread, but were $20-30 below asking on GFV / PVB contracts.

I would go out of my way to avoid Karen in the future. I put in a lot of offers on my way to a contract, and I can tell you there are several brokers out there that I would never list with if the day ever came that I needed to sell. I don’t think they are doing themselves any favors by being rude. An initial lowball does not mean that you won’t increase your offer. I was always trying to get a feel for whether buyers were willing to negotiate. If not, I moved on, if yes, we could possibly put a deal together that was fair to both sides.

 

[MICKIMINI]

People who list their points for a realistic and reasonable price should expect 5 to 7% under asking perhaps but these people with $150pp PVB or $175pp VGF stripped contracts with 200 points can expect a 20% discount or more. Some of these brokers have more faith in the market rebounding than they should. The truth is that the recent drop in prices is not solely due to Coronavirus or the economic downturn. The recent price drops are every bit a correction of the overly inflated contract costs of the last 2 years.

So true. We haven't hit early 2019 prices yet!

 

[heynowirv]

So I just placed a bid on a nice 100point BWV contract ,some 2020 points but way overpriced in my mind. The broker took my bid and replied that the seller wants their asking price and nothing else as they don't need to sell and if they don't get it will probably pull it off the market. We both agreed it wasn't the contract for us .Oh well. Not in any hurry.Looking for the perfect contract for me .

 

[CarolMN]

IMO, some of you are being unnecessarily hard on "Karen" and are ASSUMING the worst. She might just be trying to help.

As I posted earlier in this thread, this is from Florida statute 475.278, which regulates real estate brokers:

e) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;

We don't know what the seller has instructed the agent regarding offers. The seller may have directed her not to bother presenting offers under the rejected one. If I were selling my contracts, I would instruct the broker to present only full rice offers. I know what my contracts are worth and should I receive no offers, I would revisit those instructions. Seller's choice, not the buyers choice.

Those who want to present lowball offers must be prepared to be rejected. That's just the way it is. No call to blame the broker unless you know for a fact he/she is not acting in accordance with the seller's instructions

JMHO. YMMV..

 

[JETSDAD]

If a higher offer had already been turned down then what Karen said is exactly what a negotiation would look like. Stating that a higher offer had already been turned down, where normal offers are being accepted, and letting the buyer know that if they wish to submit a higher offer they may do so. I fail to see the problem with that.

 

[EM Lawrence]

We don’t know how long ago the other offer was rejected. If it was yesterday, I’m sure the seller would be of the same mind. But if it was 2-3 weeks ago, the seller may have had a change of heart. Also, if a seller gets 2-3 offers that are low, but are in the same ballpark, to me that is the market speaking. I think the seller should see all of the low offers, even if they are not going to accept them, unless they have specifically instructed the broker not to present them. But the broker did not say that, so we don’t know if that is the case or not.

 

[MICKIMINI]

I have made two bids in two weeks. The first, sold before I had a chance to put an offer in, but I was working with a broker that calls me back in minutes and we have a great past working relationship. He told me he wouldn't get mad if I ended up buying elsewhere and he meant it. He is a gem!

The other was all by computer. Cold as ice. I don't think any buyer likes being told what the parameters are before they get into negotiations. I am willing to consider a higher price but don't appreciate being shut down by a computer so I moved on.

I was in high end sales most of my life and I put 100 % effort into trying to creatively find a way to make a deal. I never assumed a buyer didn't have the wherewithal to purchase and sometimes they were toying with me, but I rarely lost a sale. It took a tremendous effort and good will and I was often able to bring a buyer around and get a deal that worked for both of us. I don't understand why there is no true negotiations, mostly just electronic forms going back and forth. Sales takes effort!

 

[hlhlaw07]

Total BS. I don't like to work with brokers that won't work with me on the phone. I placed an automated bid over the weekend and had a rejection in my email box within a minute. This is not negotiation and there is really no way to try to work something out. I never spoke to a human. I take this as lazy brokers who aren't willing to put in the time to talk to a human and try to work out a deal FOR THEIR SELLER. I would never list a contract with these automated dealers - ever.

So sellers only ever take 5-7% off per Karen? Really? These brokers are sandbagging the dam. It is just a matter of time before they all get washed away. The brokers willing to take the time to chat on the phone and call the seller and then return your call to negotiate skillfully IMHO will be the winners in this market.

I'd do yourself a favor and "Not Put" Karen as the agent on ur next offer lol

I would go out of my way to avoid Karen in the future. I put in a lot of offers on my way to a contract, and I can tell you there are several brokers out there that I would never list with if the day ever came that I needed to sell. I don’t think they are doing themselves any favors by being rude. An initial lowball does not mean that you won’t increase your offer. I was always trying to get a feel for whether buyers were willing to negotiate. If not, I moved on, if yes, we could possibly put a deal together that was fair to both sides.

In defense of Karen, I agree you guys are jumping to conclusions and being overly harsh on her response. I have dealt with Karen on at least 10 different contracts and I can tell you she is not the problem in this situation, it’s the unrealistic seller who still thinks their contract is going to attract the sky high prices of not too long ago. She will present lowball offers, even when she doesn’t think the seller will accept. She has done it for me numerous times with the latest being a few days ago. Her response here is likely because she is acting at the seller’s direction. Just because she didn’t lay that out in her response, doesn’t mean she should be avoided.

 

[Tiggeroo1964]

What are your thoughts on a 250 point contract for SSR $96pp 278 points for 2020 full for 2021?

 

[deedubb]

I have no problem making a low ball offer. You never know if someone is desperate and willing to let it go at a low price.

I have been looking at Boardwalk and Beach Club lately. I don't really need more points but wouldn't mind having one of those as my home resort. IMO, Beach Club is overpriced given the short duration of the contracts. In the end, you 'll only save a bit of money by the time the contract expires vs just renting points, so you are investing a lot of $ up front to only save a bit in the end. I think those who are dumping their Beach Club contracts right now are smart, given the $ they are commanding. In a few years, they won't be worth much.

 

[glamdring269]

I bid on a contract like that a couple weeks ago. It went immediately at $110 full price. Only a few hundred more than you want to pay. I was going to offer a lowball, but little gems like this are worth what it is worth to YOU. Hopefully, the universe will answer your call!

This was actually my contract. It's funny how these things work out depending on an individual's perspective. This thread is about lowballing an offer and as the seller of this specific contract, that sold almost immediately, all I could think about was whether I priced it too low even though all indications were that it was reasonably priced.

 

[Thegoatfeeder]

Just a bit of an update, my offer has been excited! We're absolutely thrilled, it was the perfect contract for us and we've got it for a price way better than we anticipated. Now just to get through the dreaded ROFR!

 

[MICKIMINI]

Just a bit of an update, my offer has been excited! We're absolutely thrilled, it was the perfect contract for us and we've got it for a price way better than we anticipated. Now just to get through the dreaded ROFR!
[/QUOTE
There is no ROFR - at least for now anyway! Fingers crossed for you !

 

[Rob Huff]

This is the reply I got on one of my three low ball offer... doesn’t even look like they put the offer to the seller! I didn’t get responses on the other two. They were all at figures that I am seeing other people get accepted on the ROFR thread, but were $20-30 below asking on GFV / PVB contracts.

That would be the end of my relationship with that broker.

On our first ever DVC offer, the contract was listed at $154 pp. We offered $121 pp. The broker insisted that it wouldn't be accepted, but (1) we had a good feel for the market at that point and were confident that we could get a contract in the $120s, and (2) he was plenty willing to submit the offer regardless of what advice he gave. He submitted the offer, and the Seller countered at $125 pp. We accepted.

To be fair, the contract got ROFR'd -- it was surely one of the first (perhaps the first?) Poly contract to get ROFR'd, but that's not the point. When we tried again, and had more specific parameters (including a specific UY), we were willing to pay a bit more at $134 pp for a loaded contract in our desired UY. That contract was listed at $140 pp, but the negotiation basically paid for a year of dues.

 

[Abby Jacobson]

How did it turn out?

 

[My3kids1989]

There’s a bunch of new listings today!

I think it’s just unfortunate her name is Karen and it’s nothing against her personally just the name with the current memes and that it’s what a lot of people have been hearing right now.

 

[My3kids1989]

Just a bit of an update, my offer has been excited! We're absolutely thrilled, it was the perfect contract for us and we've got it for a price way better than we anticipated. Now just to get through the dreaded ROFR!

Thanks for the good news!! Congrats

 

[badeacon]

There’s a bunch of new listings today!

I think it’s just unfortunate her name is Karen and it’s nothing against her personally just the name with the current memes and that it’s what a lot of people have been hearing right now.

Bunch of new listings with no current year points came out the woodwork today

 

[becauseimnew]

Bunch of new listings with no current year points came out the woodwork today

Originally I thought about buying one of those, but they are asking too much. At this point I'm willing to wait and see if direct sales has any good incentives.

 

[TinkB278]

Originally I thought about buying one of those, but they are asking too much. At this point I'm willing to wait and see if direct sales has any good incentives.

I agree.