DVC Resale: Offer and Counteroffer Timeline

DVC Resale: Offer and Counteroffer Timeline

Understanding the timeline for offers and counteroffers in DVC resale transactions helps buyers and sellers navigate negotiations effectively. Knowing what to expect at each stage prevents anxiety and enables timely responses.

Initial Offer Submission

After identifying a suitable contract, buyers work with their broker to submit an offer. Offer preparation and submission typically take one to two business days. The broker presents your offer to the seller's representative, beginning the negotiation process.

Offers should include your proposed price and any specific terms or conditions. Clear, complete offers help sellers evaluate your proposal quickly and reduce back-and-forth clarification requests.

Seller Response Time

Sellers typically respond to offers within one to five business days. Some respond within hours while others need several days to consider, especially when consulting with family members or comparing multiple offers.

Response time varies based on seller circumstances, broker communication efficiency, and how many offers the seller is evaluating. Your broker can often provide insight into expected response timing based on their communications with the listing side.

Types of Seller Responses

Sellers can accept, reject, or counter your offer. Acceptance means both parties agree and the transaction proceeds to contract execution. Rejection ends negotiations with you for that contract. Counter offers open dialogue for continued negotiation.

Counter offers propose modified terms, usually requesting higher prices than originally offered. They may also address other terms like closing timeline or point allocation at closing.

Responding to Counter Offers

When you receive a counter offer, you typically have 24 to 48 hours to respond. Some counters specify response deadlines while others allow reasonable time. Prompt responses keep negotiations moving productively.

You can accept the counter, reject it and end negotiations, or submit your own counter with different terms. Each counter resets the negotiation, potentially extending the overall timeline.

Multiple Round Negotiations

Some transactions involve several rounds of counteroffers before reaching agreement. Each round adds time to the negotiation phase. While extended negotiations can achieve better terms, they also risk losing the contract to other buyers or seller frustration.

Balance persistence with practicality. If you and the seller are far apart on price after multiple rounds, reassess whether agreement is realistic. Sometimes walking away and finding another contract serves you better than prolonged negotiations.

Maintaining Communication

Responsive communication throughout negotiations builds trust and keeps transactions progressing. If you cannot respond within expected timeframes, inform your broker so they can communicate with the other party appropriately.

Your broker facilitates all communications, presenting offers and counteroffers between parties. Clear communication with your broker ensures they can represent your interests effectively.

When Agreement Is Reached

Once buyer and seller agree on terms, the transaction moves to contract execution. Both parties sign purchase agreements, and the buyer submits earnest money. This typically occurs within one to two weeks after reaching agreement.

The ROFR submission follows contract execution, beginning the longer waiting period of the transaction. Getting to agreement efficiently allows the overall process to proceed without unnecessary delays.

Timeline Summary

The offer and counteroffer phase typically spans one to three weeks, though simple negotiations can complete faster and complex ones take longer. After agreement, contract signing adds another one to two weeks before ROFR submission.

Plan for this negotiation period when considering your overall purchase timeline. Combined with ROFR and closing, the full process typically takes 60 to 90 days from initial offer to membership activation.

Strategic Timing

Submit competitive offers to minimize negotiation rounds. Research market pricing to understand realistic price levels. Well-positioned initial offers often reach agreement faster than lowball offers requiring multiple counteroffers to reach fair prices.

Understanding the Right of First Refusal (ROFR)

One critical aspect of the DVC resale process is the Right of First Refusal (ROFR). After a buyer and seller agree on terms and sign the contract, Disney Vacation Club has the option to review the sale. During this period, Disney can choose to purchase the contract themselves, matching the agreed-upon terms. This step ensures Disney maintains control over the resale market and can keep contracts within the company if desired.

ROFR can take several weeks, and while it's an essential part of the process, it can add to the overall timeline. Buyers should be prepared for this waiting period and understand that the sale is not final until Disney waives their right or decides not to exercise it.

Finalizing the Purchase

Once the ROFR is waived, the transaction moves towards closing. During this phase, the title company handles the transfer of ownership, ensuring all legal and financial details are in order. This process typically takes a few weeks, after which the buyer receives their membership details and can begin enjoying their Disney Vacation Club benefits.

Overall, patience and clear communication are vital throughout the DVC resale process. By understanding each step and working closely with experienced brokers, both buyers and sellers can navigate the timeline effectively, resulting in a successful transaction.