So, you’ve spotted the perfect DVC contract and you are wondering how to present a successful offer. We’re here to help! Here is some information based on our decades of experience and knowledge of the process itself.
Who pays what?
As in most real estate, there are some fees that the buyer typically pays and some things that the seller pays. Here are all the fees involved and who customarily pays them.
Closing costs: Buyer typically pays the closing costs because this is protecting you as the purchaser. You want to make sure you are covered with title search, title insurance and recording fees with the county. If you are financing, there will be additional lender fees and recording fees. Double check with your lender to be sure you understand these fees.
Current year’s maintenance fees: It is customary for the buyer to pay the current year’s maintenance fees if there are points that come with the purchase that you will be using.
Commission: The real estate commission is paid by the seller. A percentage of the purchase price comes out of the seller’s net at closing to cover this.
Disney’s estoppel fee: Disney charges a $150.00 fee for providing the necessary information in order to close on a sale. This fee comes out of the seller’s net at closing.
Things to Consider
Now that we’ve established what the fees are and who pays them, let’s talk about presenting an offer. You will see an asking sales price, usually based on the price per point of the property. We guide the seller where to list based on current market trends as well as the current rates at which Disney is allowing sales to get through the Right of First Refusal (ROFR). If you do not know what the right of first refusal is, here’s a brief description of this process: Disney has the option to either waive the sale (let the sale proceed with the new owner) or exercise their right of first refusal (step in and become the buyer themselves). Disney will exercise their right of first refusal if they feel the price is too low or if they feel they need a piece of inventory and see they can make a profit on the buyback. We keep detailed records of the DVC resales that are waived and exercised on our blog page. Be sure to check the figures to make sure you have the knowledge you need to see where you should offer to have a successful purchase.
When presenting an offer to the owner, consider their point of view. Asking sellers to pay the buyer’s fees generally puts up a red flag to the owner. The seller may be more likely to accept an offer a bit lower on the sales price rather than paying for the buyer’s fees. Of course, we will present the offer any way you would like.
What to Offer per point
When considering what to offer per point, first and foremost be mindful of Disney’s right of first refusal. Once you’ve reviewed our data and see where you would have the best chance to get through that crucial step, consider the owners asking price. Most owners are receptive when offers are within a few dollars per point of their asking price. Some owners are more receptive than others to lower offers. If your offer is below the average sale price and drastically lower than the sellers asking price, you will more than likely receive a counter offer or a decline from the owner. A little give and take on both sides are an important part of a successful agreement. We will negotiate for you until there is an agreement made or we can move on to something else that may work out better for you.
Once you have an idea of what you are going to offer, click on the “more info” tab next to the listing of your choice. Enter the offer details and we will reply with a confirmation of receipt.
As always, please feel free to contact us with any questions and we will be here to help you through each step of the offer process.