How To Bid On a DVC Contract
So you want to buy a Disney Vacation Club (DVC) contract? I certainly don’t blame you. I’m in the club, too! To become a member, you have to do something first, and it’s easy to guess what. You need to bid! Here’s a guide on how to make an offer for a DVC contract.
[embedyt] https://www.youtube.com/watch?v=5lZoyGjlzfE[/embedyt]What Are the Basics of Bidding?
You should think about the basics of DVC when ready to bid. Every DVC contract represents the acquisition of an ownership interest in a piece of real estate. It’s important to remember that because bidding on a DVC contract involves a familiar process.
Have you ever bid on a home or bought a used car? The process is similar. You’re a would-be buyer with significant interest in the product. The seller wants to maximize their return when they sign away their DVC contract to you.
Bidding is a negotiation. The buyer wants the item, and the seller wants to get paid. Approach the situation from this perspective, understanding that both parties are likely to get what they want.
What’s the Bidding Process?
As a buyer, you can bid on any listed contract. It’s akin to posting something on Craigslist…well, Craigslist in 2007. Nobody uses that place now, right?
Anyway, the seller has an item that they want to exchange for money. They list it on a DVC resales site, and you realize that you have an interest in buying it. So, you contact the seller with an offer.
Usually, you’ll go through an intermediary, the DVC resales associate. This person is a professional who can guide you through the process, holding your hand during the various hiccups that arise.
When you place a bid, the seller has three options. They may accept, reject, or counteroffer. A fair offer is likely to be accepted or, at a minimum, countered. A lowball offer will almost certainly get rejected, possibly without a counter or even an acknowledgment.
Good sellers will communicate well. They’ll inform you when you’re a few dollars per point short of an acceptable bid. Don’t take this as a mean-spirited negotiating tactic.
Many sellers simply don’t want to get involved in a protracted negotiation. Instead, they’re telling you the price that will close the deal. That sort of transparency is treasured in business dealings.
What Should I Know about Bidding?
Would you expect a ridiculous offer to get accepted on the house or used car? Of course not! Take the same approach when bidding on a DVC contract.
The concepts of a buyer’s market and a seller’s market apply to DVC contracts, just as with cars and houses. At times, you’ll have more competition for DVC contracts that at others.
For example, should the economy take a downturn, more members may sell some of their DVC points. They may accept less than the list price in such instances. When the economy is strong and/or DVC is doing well, contracts will go quicker and sell higher. The entire situation is an excellent example of supply and demand.
You’ll notice this behavior over time. Should a contract remain on the market for an extended period, the price will get lowered down to a more acceptable range for bidders.
In instances where you believe that you’re placing a fair bid, track the contract. If it doesn’t sell, you can always try again at a later date. I should stress that this behavior doesn’t happen often, at least not during healthy market conditions, which is the case right now.
What’s a Fair Bid?
Many people selling their DVC contracts have hired DVC resales associates. These professionals know the market as well as anyone possibly can. They’ll advise the seller on what a fair price is, using information such as historical and recent DVC purchase trends.
In other words, most DVC contracts are already listed at fair prices. This news is extremely beneficial to you as a buyer. Most of the guesswork is already taken out of the process. The list price is likely within a few dollars of what someone will pay to buy the DVC points.
A fair bid is something that is within $5 of the list price. You may start with a lowball offer of $5 under that price, but I should warn you. Many DVC contracts sell almost immediately. You could feasibly get only one shot at an offer, and that’s not a hyperbolic statement. You could lose out on the contract that you want by haggling over only a few dollars.
Taking that thought process to its logical conclusion, a lowball offer of $15 or more under the asking price is almost certain to get rejected. The only possible exception would be during a huge buyer’s market with a terrible economy
Even then, the listing price should reflect those factors anyway. Such lowball offers are likely to get rejected, making them a waste of everyone’s time. Don’t be that person.
Obviously, the quickest way to close a deal is to bid for the asking price. Only you can decide whether that’s a fair bid that you’re willing to submit. But it’s the most efficient practice.
What’s the Best Way to Offer?
The most straightforward way to place a bid is by phone. Call 1-800-550-6493 and tell the associate which contract interests you. If there’s more than one, ask the associate for advice on the best way to proceed.
DVC resales associates are your best friends during negotiations. They cycle through dozens of transactions each month and have detailed experience with all of your questions.
You may prefer to address negotiations via email, though. And that’s one of many ways that DVC resales is significantly better than direct DVC purchase through Disney.
Actual Disney employees cannot negotiate via email. When you send them an email, they’ll call you back. DVC resales associates have joined the 21st century and will send you an email, maybe even a text!
Whichever method you choose, the process is the same. You’ll place a bid with the associate. This person will relay your offer to the potential seller, who will respond in turn. You’ll learn whether your offer is accepted, rejected, or countered. It’s a seamless process that’s quick and efficient.