So, I have been looking on and off for DVC resale for about a year now, and me and hubs agreed finally that if something comes up in our price range that we like and its a decent amount of points, then we should make an offer… after all, the person can only say “no”.
Now, like every real estate transaction I’d obviously like to offer less than asking, so what would you consider to be a good price point for making an offer? I imagine that some people in selling are doing so for either financial reasons, or disinterest in going anymore and may just want to make a % of their money back, and therefore I could stand to offer quite a bit less than asking.
What say you, liners?
It definitely depends on which location and amount of points you are looking for. I would take a look back at transactions of similar types and see how long it took for them to sell, and at what price points. I wouldn’t worry so much about what asking is as what recent transactions are going for. Keep in mind that larger contracts will take longer to sell, so you will be able to get a much better price per point for a large contract. Smaller contracts get scooped up almost immediately so personally I would make a competitive offer if you are looking for a small contract.
Here’s one site where you can look up recent transactions. I have this filtered by Boardwalk.
For example, an 80-point contract with points available in 2021 just sold for $165/point, whereas a 400-point contract with no points till 2022 is asking at $115/point.
I hear you. We would like to keep it under 20K and are looking at AKL, or Copper Creek, and while I’d love to do beach club, I don’t think the price point is there for us. Since its our first time purchase, we’re looking for probably around 160 points. I just didn’t know if asking for $20 less per point would be too 'insulting". Thanks for the link!
This is actually the website I’m looking at. But It doesn’t actually tell you what the buyer offered…
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I second what Jeff says here. If you’re looking for a small contract, those go quickly and I would offer full price or close to it. I recently bought two small contracts. One had points from 2019 (banked into 2020 and good until 7/31/2021), 2020 (banked in 2021), and going forward. I offered full price for that one. The other was stripped - no points until 2022. I offered a little less than asking and wasn’t sure it would be accepted but it was. Both of these were 50 point contracts so quite small. I did find a list of current pricing on a different website that gave going rates for large and small contracts. Both of my purchases were in the range but on the high side. Given how small they were, I thought that was reasonable. Good luck!
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Oh that is a good point that I didn’t realize. 160 points is mid-sized so you can probably get a decent deal for that, though not as good as if you went for 200-400 (not saying you should!). There is a 160 point contract for Animal Kingdom right now that is being offered for $119, which is considerably lower than other contracts both above and below. Might want to consider putting in an offer!
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I echo everyone else. The only other tip I can share is that when contracts are ‘discounted’ or ‘reduced’ on a site it’s normally only $2-5ppt so I think $20 is a stretch and will most certainly get rejected. If someone is desperate to sell they will price accordingly, otherwise they are probably willing to wait until they get closer to asking.
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$20 less would be a super aggressive lowball offer and might offend the seller into not even countering. The market is hot right now. I would be careful to do your homework to find out what is fair and then generally do not start off more than 10% lower. You’ll find that most contracts are listed at similar per point costs; the brokers work hard to guide sellers into a fair listing so as to keep from wasting everyone’s time. Most times sellers listen.
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I’m not a DVC owner, but isn’t there a rule that DVC has the right of first refusal on a resale? I may be mistaken, but I was thinking that existed so they can protect the resale value so that it isn’t too much better priced than new points and also so they can turn around and resell them for a profit.
Or did I dream that up?
The point being, if I’m correct, a very low offer might not even be successful for a buyer even if the seller accepts.
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That’s correct. One of my contracts, the broker seemed pretty sure Disney would exercise their right of first refusal. He was surprised that it passed.
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Good to know I didn’t just make that up on my own!
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Go spend some times on the DVC boards on the disboards. They keep some good offered/passed ROFR threads that can give you a lot of information about what’s being accepted and what’s getting through. I find it much more useful than list price.
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Oh that’s right - someone shared this recently. Super detailed and high volume of transactions shared. If someone has that link handy it would be helpful to share here.
Mouse owners also have a ROFR thread which may help.
http://www.mouseowners.com/forums/showthread.php?t=142692
I’m glad someone brought up ROFR as it is definitely worth watching. Also It seems to happen in batches, so maybe there’s a lot of Bay Lake and BCV contracts taken for a month or two, then SSR and AKL. So it isn’t always just price that is the main factor.
Some people get deterred by losing in ROFR , and it can be gutting to lose out if you have invested the time and effort in finding the ideal contract.
Being overly aggressive in your offer will usually result in losing the contract, But if you’re OK with that risk then you can always try.
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I just bought my 3rd contract, second resale. My first resale I offered $5 less per point and got a counter offer of $3 less which I accepted. This was a smaller 120 point contract and it was last March when the market was low. As @OBNurseNH said the market is hot right now the prices are coming back up and contracts are selling fast. My second resale was 150 points. I was more aggressive and offered $3 less which was accepted.
As many have said going thru the motions just to have the ROFR deny your purchase is tough. Remember it take 30-45 days to hear back from Disney. I have a friend who was trying to get a good deal and had 5 contracts not make it past ROFR.
The sight that you are using also has a blog that they put out with the previous month’s ROFR prices that were bought back from Disney.
Here is the link to the full blog
DVC Right of First Refusal Report (ROFR): March ’21 Report | DVC Resale Market
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In a hot market (current market), the first full price offer gets accepted.
CC, can you book at exactly 11 months? You are ok not getting any bookings some months (I am thinking about December).
A have seen direct v resale numbers recently for OKW. Make sure you run those numbers. At 150 points there has been a discount prince (maybe $3 off) but you get a 2057 deed for the same cost as some resale contracts.
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Thanks! This is exactly the info I’m looking. For. I certainly don’t want to be insulting, I want to be fair but also advocate for myself as well!
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I don’t like crowds so I don’t think I’d ever go in December
Well we are definitely keeping in mind the length of contract which is why we have ruled some places out. I know I’ve heard before people saying not to buy into a place they don’t want because it’s hard to book other resorts, how true is that?
We are a family of 3 so the most we would need would be a 1 BR …
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