Thoughts on Lowball Offer

[Drewferin]

People on this board have had success low balling offers. You just need to get lucky As supply starts to come in more and more we will see price drops.

 

[Jason_79]

People on this board have had success low balling offers. You just need to get lucky As supply starts to come in more and more we will see price drops.

Yup!

And ignore the pro-seller reply you will most likely receive from the broker telling you the prices 'will never go that low' (paraphrase).

 

[DisMomKY]

Poly is really hard. But hang in there.

I’m also open to GFV or BLT

 

[E2ME2]

What would you all offer on this one? It’s listed at 143.
Poly Dec Use year 135 pts

December 2019 - 54 points December 2020 - 160 points December 2021 - 135 points

I would offer $130/PP ??

 

[DisMomKY]

I would offer $130/PP ??

That’s what I was thinking and hope to get it around 135 per point?

 

[MICKIMINI]

Use year Sept, 151 coming 2020, 210 next year

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!

 

[Sophie Weaver]

I feel you can offer 20% off any resorts average March price and probably have a lot of luck. I'm not in a hurry so I'm offering 30% off seeing if anybody accepts or if they counter.

I like your thought process here. What do you guys think regarding under 100pt contracts? I know they tend to go for a higher price than over those with over 100 pts, but I've never been sure of a good calculation to use that wouldn't be insulting to the seller. Any thoughts?

 

[MICKIMINI]

What would you all offer on this one? It’s listed at 143.
Poly Dec Use year 135 pts

December 2019 - 54 points December 2020 - 160 points December 2021 - 135 points

I've seen some low $130's for totally stripped contracts. They might hold the line but $143 seems high right now and will seem crazy in a month or so IMHO. I would definitely make sure 54 points are $0 cost to you.

 

[MICKIMINI]

I like your thought process here. What do you guys think regarding under 100pt contracts? I know they tend to go for a higher price than over those with over 100 pts, but I've never been sure of a good calculation to use that wouldn't be insulting to the seller. Any thoughts?

100 point contracts to me are the "line" between small (premium) and moderate. I think If you find something like 120-130 points you'll get a better deal.

 

[DisMomKY]

I've seen some low $130's for totally stripped contracts. They might hold the line but $143 seems high right now and will seem crazy in a month or so IMHO. I would definitely make sure 54 points are $0 cost to you.

I decided why not try and tried 125pp with them paying the 2020 dues since I can’t use points til 2021

 

[Sophie Weaver]

100 point contracts to me are the "line" between small (premium) and moderate. I think If you find something like 120-130 points you'll get a better deal.

I agree that 120-130 would get us a better deal. I think if we could snag a good deal at AKL with 120 points in October/December UY, we'd jump on it. However, we're oddballs and seem to have gotten into this weird enjoyment of smaller contracts. All of ours are under 80 points each right now. We're a little strange as well - we really enjoy split stays. Got to get a few days in at each favorite place when we can.

 

[Drewferin]

If the seller is semi interested they will counter instead of decline. Worst case is they say "No". You can either try a little higher or move on to another contract. I personally think most brokers are living in another reality thinking prices will not be impacted pretty heavy at some point. Seeing a 20% for a small amount of contracts right now proves that prices are headed down. As supply increases and demand decreases we will see where this all levels off at without ROFR. I'll low ball $65ish pp for stripped Aulani and see what happens.

 

[Jason_79]

If the seller is semi interested they will counter instead of decline. Worst case is they say "No". You can either try a little higher or move on to another contract. I personally think most brokers are living in another reality thinking prices will not be impacted pretty heavy at some point. Seeing a 20% for a small amount of contracts right now proves that prices are headed down. As supply increases and demand decreases we will see where this all levels off at without ROFR. I'll low ball $65ish pp for stripped Aulani and see what happens.

I completely agree with you here,

This morning we had an low offer rejected on a 100 points saratoga contract. I recevied the following email reply:


This is a Buyer's market but nothing is going 20% off list price. Sales are quite brisk:
2020: 1,274 contracts listed for sale and 1,247 sold through April (97.9%)
We are averaging $1.3 million /wk in sales since the Covid!

To me this is typical broker reply. Ignore it! We are early to the party, and they are late. When they arrive things will move faster.

 

[ABE4DISNEY]

This is a Buyer's market but nothing is going 20% off list price. Sales are quite brisk:
2020: 1,274 contracts listed for sale and 1,247 sold through April (97.9%)
We are averaging $1.3 million /wk in sales since the Covid!

To me this is typical broker reply. Ignore it! We are early to the party, and they are late. When they arrive things will move faster.

Wow--what a reply!!

 

[Jason_79]

Wow--what a reply!!

Tell me about it!!! Copy and pasted from the list of textbook replies being forced to send out, lol.

 

[MICKIMINI]

I completely agree with you here,

This morning we had an low offer rejected on a 100 points saratoga contract. I recevied the following email reply:


This is a Buyer's market but nothing is going 20% off list price. Sales are quite brisk:
2020: 1,274 contracts listed for sale and 1,247 sold through April (97.9%)
We are averaging $1.3 million /wk in sales since the Covid!

To me this is typical broker reply. Ignore it! We are early to the party, and they are late. When they arrive things will move faster.

It's called "spin"...politicians are the best but these guys are a good #2! Listings "sold" in April were initiated before the covid19 hit in the US and the unemployment rate was in the 2.5% give or take.

 

[Nocheeba20]

I saw the 135 pt poly contract your referencing there was a second contract yesterday for 135 points at poly with no points and 135 pts coming March of 2021. The seller was asking 143$ i offered 130$ they countered at 135$ i accepted. Lowering the cost 1080$ just for me asking was more than reasonable to me. Moving forward, very excited

 

[ABE4DISNEY]

I had one resale company email a couple days ago asking for points to sell. They listed several resorts that they are wanting to buy due to customer demands--so their inventory is low.

Resorts were:
BWV
BCV
GFV
BLT
SSR
VB
Poly

Most were for 100 points or less and had specific use years.

 

[DisMomKY]

I saw the 135 pt poly contract your referencing there was a second contract yesterday for 135 points at poly with no points and 135 pts coming March of 2021. The seller was asking 143$ i offered 130$ they countered at 135$ i accepted. Lowering the cost 1080$ just for me asking was more than reasonable to me. Moving forward, very excited

I offered on that one too and they countered at 135 and we passed

 

[Nocheeba20]

I offered on that one too and they countered at 135 and we passed

Small world, best of luck