DVC Resale, Can I counter a counteroffer?

Negotiating DVC Resale Offers: How to Counter a Counteroffer

When it comes to purchasing a Disney Vacation Club (DVC) contract on the resale market, negotiation is often a key part of the process. Understanding how to effectively counter a counteroffer can be crucial in securing the best deal possible. This guide will walk you through the steps and considerations involved in this aspect of DVC resale negotiations.

Understanding the DVC Resale Market

The Disney Vacation Club operates as a points-based timeshare system, allowing members to use points at various DVC resorts, subject to availability. When buying on the resale market, potential buyers should be aware that Disney retains a Right of First Refusal (ROFR) on resale contracts. This means Disney can choose to purchase the contract themselves if they believe the terms are too favorable to the buyer. This factor can influence negotiations, as sellers may be hesitant to accept offers that could trigger Disney's ROFR.

The Importance of the Home Resort Advantage

Each DVC resort offers a "home resort" booking advantage, allowing owners to book accommodations at their home resort up to 11 months in advance, compared to 7 months for non-home resorts. This advantage can significantly impact the value of a contract, especially for popular resorts or times of the year. When negotiating, consider how the home resort advantage aligns with your vacation preferences and how it might affect your willingness to accept or counter a counteroffer.

Steps to Counter a Counteroffer

When you receive a counteroffer from a seller, it's important to evaluate it carefully before responding. Here are some steps to guide you:

• Assess the Offer: Consider the terms of the counteroffer, including the price per point, the number of points, and any additional conditions. Compare these to recent sales data for similar contracts to determine if the counteroffer is reasonable.
• Evaluate Your Budget: Ensure that the new terms align with your budget and financial goals. Remember to account for annual dues, which vary by resort and can increase periodically.
• Consider Contract Expiration: DVC contracts have expiration dates ranging from 2042 to 2077, depending on the resort. A contract with a longer remaining term may justify a higher price.
• Think About Resale Restrictions: Be aware that resale contracts come with certain restrictions, such as the inability to use points for Disney Collection, Adventure, or Cruise Line perks. Consider how these restrictions impact the overall value of the contract to you.
• Communicate Clearly: When making a counter-counteroffer, be clear and concise in your communication. Provide a rationale for your offer, referencing market data or personal considerations that support your position.

Practical Tips for Successful Negotiation

Here are some practical tips to help you navigate the negotiation process effectively:

• Do Your Research: Familiarize yourself with recent sales data and trends in the DVC resale market. This knowledge will empower you to make informed decisions and negotiate confidently.
• Be Patient: The resale process typically takes 30-60 days, including the ROFR period. Patience can be a valuable asset, allowing you to wait for the right deal rather than rushing into a less favorable agreement.
• Stay Flexible: While it's important to have clear goals, remaining open to compromise can facilitate a successful negotiation. Consider what aspects of the contract are most important to you and where you might be willing to adjust.
• Work with a Professional: Consider enlisting the help of a licensed real estate agent or broker who specializes in DVC resales. Their expertise can provide valuable insights and assistance throughout the negotiation process.

Conclusion

Negotiating a DVC resale contract, including countering a counteroffer, requires careful consideration and strategic thinking. By understanding the nuances of the DVC system and the resale market, you can approach negotiations with confidence and increase your chances of securing a contract that meets your needs and budget. Remember to leverage the home resort advantage, evaluate the terms carefully, and communicate effectively to achieve the best possible outcome.