Are the buyers becoming too cheeky with the low ball offers?

[cbyrne1174]

I've just remember the last DVC episode of DIS unplugged, the people from the Timeshare Store said that Disney isn't exercising their ROFR so really good deals have passed through already. The deeds still hold resale value, but you are able to now scoop up Grand Floridian for a reasonable price without Disney snatching it.

 

[Sandy VDH]

Since there is no more ROFR, it would seem that there is then less demand. If the developers don't want the deeds, it takes them out of the equation. One would expect prices to go down because of it?

I am with @dioxide45 on this. And with @GregT we talked about this. We did discuss this at the Group chat we had a few weeks ago.

I would expect prices to go down, because there is NO ROFR to prop it up. If I was a buyer and wanted a premium property I would low ball, and as we said, and if the first person balks, go to the next one on the list. There is NO incentive right now to buyer at resale prices that were in effect just 6 months ago. The market has changed.

You can hope that prices are going to hold, but it is a buyers market right now, not a sellers. If you are going to be offended by low ball offers, take it off the market for now.

 

[DannyTS]

I think it is important to mention that in the last 3-4 weeks I also received offers that are relatively close to the asking price. So I know the market value has not come down (yet) because of the virus, it just seems that the number of those who hope to get a valuable week for free has increased. As others pointed out, nothing wrong with that, an offer is an offer and it does not heart anyone, it was not my intention to vilify anyone, we all do it.

 

[R.J.C.]

I think it is important to mention that in the last 3-4 weeks I also received offers that are relatively close to the asking price. So I know the market value has not come down (yet) because of the virus, it just seems that the number of those who hope to get a valuable week for free has increased. As others pointed out, nothing wrong with that, an offer is an offer and it does not heart anyone, it was not my intention to vilify anyone, we all do it.

If not to vilify and nothing wrong with it, why use the adjective "cheeky"?

 

[DannyTS]

If not to vilify and nothing wrong with it, why use the adjective "cheeky"?

Probably when I wrote the post I was a bit rubbed the wrong way that some thought right away it was a good moment to take advantage of other people's misery in these difficult times. I was not talking about low offers being bad in general, just this time it seemed misplaced to me.

 

[elaine]

some thought right away it was a good moment to take advantage of other people's misery in these difficult times.

It's a business transaction, not personal. Some might want to just get rid of their TS and might be happy to accept, others not.
We just accepted an offer on my Mom's house for a price lower than it was likely worth. Agent even said, "I think the buyers are taking advantage of you and the situation--Mom in retirement center and C19 starting and RE going south." I said, "we're OK with the price. We're over the barrel bc we need to sell and have now had it off the market for almost a month during inspection. Unsure of outcome if we put back on market. We'll take the offer." I didn't begrudge them for getting the best deal that they could. In a different market, we might have said no, negotiated harder or relisted. In hindsight, we're thrilled to have $ in hand and be done with it.
I actually talked to the new buyer a few weeks later, told him he got a good bargain, but that we were happy with the deal.

 

[Fredflintstone]

It's a business transaction, not personal. Some might want to just get rid of their TS and might be happy to accept, others not.
We just accepted an offer on my Mom's house for a price lower than it was likely worth. Agent even said, "I think the buyers are taking advantage of you and the situation--Mom in retirement center and C19 starting and RE going south." I said, "we're OK with the price. We're over the barrel bc we need to sell and have now had it off the market for almost a month during inspection. Unsure of outcome if we put back on market. We'll take the offer." I didn't begrudge them for getting the best deal that they could. In a different market, we might have said no, negotiated harder or elisted. In hindsight, we're thrilled to have $ in hand and be done with it.
I actually talked to the new buyer a few weeks later, told him he got a good bargain, but that we were happy with the deal.

Personally, I think you made the right move. It is looking like mortgage loan requirements will be tightening up. JP Morgan recently tightened down payments to minimum of 20 percent plus CS over 700. Jumbo loans are near impossible. This will dry up buyers and force sellers to lower prices.


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[DannyTS]

I think people are forgetting that there will be a lot of liquidity in the market in the next few months, possibly a year. Goldman predicts a GDP contraction of about 30% in Q2, so the economy will lose about 2 trillion dollars. But the bills passed by the congress are close to 3 trillion dollars and there is no sign that they will stop after they run out of cash for these programs. Q3 and Q4 are supposed to be positive nicely, albeit compared with the very low level of Q2.

The problem is that the 3 trillion dollars are not going to go necessarily to the ones that lost the most, we will have losers and winners but we may not have the doom and gloom across the board as some expect since that liquidity will find its way to a lot of wallets. Of course a lot depends on how fast the economy can start to pick up steam again.

 

[Fredflintstone]

I think people are forgetting that there will be a lot of liquidity in the market in the next few months, possibly a year. Goldman predicts a GDP contraction of about 30% in Q2, so the economy will lose about 2 trillion dollars. But the bills passed by the congress are close to 3 trillion dollars and there is no sign that they will stop after they run out of cash for these programs. Q3 and Q4 are supposed to be positive nicely, albeit compared with the very low level of Q2.

The problem is that the 3 trillion dollars are not going to go necessarily to the ones that lost the most, we will have losers and winners but we may not have the doom and gloom across the board as some expect since that liquidity will find its way in a lot of wallets. Of course a lot depends on how fast the economy can start to pick up steam again.

With all that liquidity, do we risk hyperinflation? Hence, the money in those wallets won’t buy as much?


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[montygz]

With all that liquidity, do we risk hyperinflation? Hence, the money in those wallets won’t buy as much?


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Because of the GDP contraction and likely recession with trillions removed from the economy, even the printing of $3 trillion likely won't make a dent.

Also, a good chunk of what the government is offering are loans. Many companies may not even use the money, or they may use the cheap government money to repay previous, more expensive debt, so the net gain in money supply may not be as great as speculated.

 

[jbiza]

I agree with @elaine that it's a business transaction, not personal.

Also, when referring to a "low ball offer" is there an exact dollar amount increase where the offer is no longer a "low ball offer" ?

 

[planzfortomorrow]

I haven't had to sell timeshares, but I know what OP means by cheeky buyers. They are the ones that offer less than half of your asking price. I can assure you, if there was a better deal then the buyer would have focused on those ones first. It's not like you go to the person that's asking $10K for their timeshare when everyone else is asking $1. You know? Instead, they go with the already cheapest/best deal & then try to get an even better deal. I usually end up telling buyers they'll probably find someone to match their price, but it won't be me. Sometimes they end up buying the item, sometimes not. TS are slightly different as you have MF that just keep on, so of course sometimes a seller is more motivated.

As a seller you learn to just laugh & move on. For the items I sell, I've no interest in the race to the bottom/lowest offer.

 

[TravelTime]

I have an update on my Disney sales that happened post Covid. I put them on the market pre Covid right when the world started collapsing. I had 7 contracts for sale. Now I have closed and received the funds for 3 contracts. I am doing closing paperwork for one contract that I will notarize tomorrow, and I have the fifth contract submitted for ROFR as of today. These 5 contracts all sold close to asking, a little below asking due to Covid, but I was happy with the offers and accepted some outright and countered some that were close but a little below what I thought was fair. For the remaining two contracts, I have had low ball offers but I said no. I decided just to hold them longer until I get a serious offer.

So I am writing this to show you guys that, in my experience, timeshare prices have taken a hit but not as bad as you would expect. Not everyone is submitting low ball/cheeky offers. If you can say no to a cheeky offer and wait it out for a serious offer, then you are still in the driver's seat. Part of me is sad to leave the DVC family but with my child adoption falling through a couple years ago, holding them no longer made sense. Also I needed to downsize because I own too many timeshares, more than we can use.

I also have a Hyatt contract and a Marriott contract pending that I agreed to sell back to them pre Covid at decent prices. I have not heard from Marriott on the status so I need to follow up. Hyatt emailed me that they were delaying the closing until July due to Covid. I am pessimistic as to whether Hyatt and Marriott will still follow through on our agreement. I do have the agreements in writing but I do not have any closing docs so I assume they could rescind. Does anyone know if they agree to a buyback, can they rescind later?

Now I am debating what to do with my Four Seasons odd year (2 contracts) and my WKOVR-N odd year. I was thinking of selling them pre covid but Four Seasons is hard to sell. Now that travel by air is down, maybe we can take the dogs on a road trip to San Diego in 2021. I was holding WKOVR-N in the hope that Marriott will integrate Westin into the MVC points system. I am still okay with holding it longer since I assume MVC plans for integration are all up in the air right now. I like that it is EOY and we can bank the points if we do not go in 2021.

P.S. I am sure I am getting a little less for the DVC contracts due to Covid and they took longer to sell. But I assumed post Covid that no one would buy my contracts at a decent price so closing on 5 of 7 is really good IMO. I do not want to wait and sell post Covid when Disney reopens because I want to get my cash back and avoid 2021 MFs. I suspect the DVC resale market will come back and prices will go up again in 2021. I am sure I could get a few dollars more if I were willing to wait it out.

 

[Sandy VDH]

Laura @TravelTime

DVC is an exception to nearly all industry wide statements. It must be that darn Magic dust. People get stupid over Disney. Marriott, Hyatt, Westin, Hilton, I would expect all to fall some off there previous ranges.

You may also had great timing on all those contracts. You go girl.

S

 

[rickandcindy23]

Probably when I wrote the post I was a bit rubbed the wrong way that some thought right away it was a good moment to take advantage of other people's misery in these difficult times. I was not talking about low offers being bad in general, just this time it seemed misplaced to me.

It's perfectly fine. I liked the word you used. It well described how I feel sometimes.

 

[escanoe]

As long as my situation holds, I am interested in picking up a good timeshare at the right price (most likely looking to get in another system outside HGVC, but could reshuffle some of my HGVC holdings if the price is right).

I have not yet seen much increased listing activity on eBay or bargains appear elsewhere. I assume long-term strategic sellers are putting a hold on new listings at this time, expecting it will become even more of a buyers market during COVID-19 and the recession.

While my first preference is for the economy and travel to recover quickly, like @CalGalTraveler said I expect the more motivated sellers to enter the market once they have sorted out what damage they are facing and the MFs come due.

The other thing that may make it more of a buyers market, is I do not expect many people to be feeling much pressure to buy because they need more points in the next several months. COVID-19 likely has left many people like me with a greater short term supply of points than we need.

I have not noticed any decrease in ads from the "cancel you timeshare" industry. If anything, it looks like they are wanting to position themselves for what may be in the offing.

The market will be flooded with timeshares sales once MFs hit this fall. There is only one house in each location and buyers don't want to upset the seller and lose the deal.

Timeshares are not unique like houses. If the first seller rejects a lowball offer, a buyer can go down the list and get the exact same unit from another seller. If the seller is upset, well, there will likely be another seller who would be overjoyed at exiting.

 

[Banyan@KW]

No one, I was replying to @TravelTime. I was curious if many were out there still looking, real takers.

Vulture Lookers are always out there for freebies and timeshares that cost money. For freebies These types of lookers will want closing costs, transfer fees, a few years of mf’s, etc even for good freebies.

It is about a real looker wanting what you have. For timeshares that we are selling, like any real estate transaction, supply and demand will dictate price. The right price sells sooner rather then later.

Hello Panini, do you have some to give away? Yes, there will be takers... I may be one. This is a great time to buy, this mess won’t last forever.

 

[Tank]

Supply and demand / desperate or not
I have become aware of the rest of the worlds traveling woes to the USA that are in a pickle and can’t use what they own do to travel restrictions.
flooding the market driving lower prices with ownership they cannot use.
Not being able to travel to the USA Has put a huge dent in the market.Example would be what I feel is the busiest week middle of March Canada’s spring break followed by Christmas.

Offers are ok , just say no. Don’t badger me though.
I’m always amazed at the ones that chime in and tell you how much you should be selling / renting your vacation yet have no interest other than telling us how nuts we are for thinking you can really make a profit renting / selling vacations. Making profit is not a crime.

Knowledge is power. That is what will make timesharing work for you, C19 has put a big wrench in it for us all.
Dave