Is it just me.....

[SPLzero]

A low ball offer can be insulting if it's way below market value.

 

[crisi]

Well, she didn't insult you offering 30% less than asking price, but with all her other unacceptable behaviours. A low offer cannot be considered an insult in itself, that was my point.

I disagree with this. A very low offer is disrespectful of the seller's time. It implies that the seller's judgement about the value of their property is wrong. Its expected in a real estate transaction to make an offer that doesn't necessarily match asking price, but its also expected that the offer is a reasonable starting place. And since it is the receiver of the behavior that determines if the behavior is insulting - not the intention - I think its certainly the case that a lowball offer can be insulting.

 

[miTnosnhoJ]

A low ball offer is mainly a negotiating tactic. Most people in a negotiation assume that the two sides will start with a gap and then "meet in the middle". A lowball offer is an attempt to drag the "middle" down.

From the buyer's point of view, the best strategy is to make an offer a dollar or two below what they believe is a fair price. Also, make the offer very specific. When you bid a number like $132.50, it implies you have studied the market and come up with a reasonable number. If you bid a round number like $130, it looks like just an opening gambit.
The buyer's strategy becomes more constrained when they are bidding on a popular resort that has just come on the market. The buyer's negotiating leverage is much higher for a property that has been on the market for a couple of months with no takers. So you need a realistic view of the market (i.e. what would you pay for a similar property if you don't take this one?) and the willingness to walk away if you don't get that price. So this also implies that you need the luxury of time to implement the alternative strategy.

From the seller's point of view, some sellers (and brokers) price $10 to $20 above market in the hopes that the "greater fool theory" will kick in and someone will pay it. Other brokers set the price right at or below market in order to move a lot of volume. The buyer needs to know which one they are dealing with.
So if the seller gets a lowball offer, they have a couple of choices. 1) they can refuse to counter. This is the best strategy if their asking price is reasonable and they are getting other offers. 2) They can do an incremental counter to signal that they will negotiate, but not much. For example, priced at $141. Buyer offers $120. Seller counters at $140. This keeps the negotiation going, but otherwise signals that the seller is not open to lowballs. 3) Meet somewhere in the middle. This is a reasonable strategy if the seller started off way above the market anyway.

I would keep emotion out of it, if possible, but I would walk away if they other party seems unethical or erratic.

 

[Spartan86]

So what should I offer on the mostly stripped BWV I just saw in the Fidelity email at $130 LOL. TIC

 

[amccu18007]

So what should I offer on the mostly stripped BWV I just saw in the Fidelity email at $130 LOL. TIC

It was already taken. I am trying to wait out this dry spell too....Fall and winter can't come fast enough!

 

[amccu18007]

Prices on stripped contracts are out of control! Who sets the price, the seller? Are they given any guidance by the broker?

 

[Spartan86]

It was already taken. I am trying to wait out this dry spell too....Fall and winter can't come fast enough!

Wow! Did you call on that? I thought it quite the price stretch, but ya never know.

 

[minorthr]

Prices on stripped contracts are out of control! Who sets the price, the seller? Are they given any guidance by the broker?

Ive seen some wacky pricing the last two weeks and they are selling

 

[amccu18007]

Wow! Did you call on that? I thought it quite the price stretch, but ya never know.

I was actually calling about something else and asked because I thought it was a typo

 

[amccu18007]

Ive seen some wacky pricing the last two weeks and they are selling

Me too but I am hope that they aren't selling for the asking price.

 

[minorthr]

Me too but I am hope that they aren't selling for the asking price.

Based off the counters I have been getting when submitting offers and the conversation I had with an agent yesterday they are selling for pretty much ask.

 

[amccu18007]

 

[SPLzero]

I wonder if all the D23 announcments on top of the low inventory have cause all these crazy prices.

 

[aokeefe]

I thought for sure that BWV listing was a typo too! It happened on one of their listings several weeks ago.

 

[amccu18007]

I thought for sure that BWV listing was a typo too! It happened on one of their listings several weeks ago.

I was calling about the 170 listing and that one WAS a typo

 

[mustinjourney]

So what should I offer on the mostly stripped BWV I just saw in the Fidelity email at $130 LOL. TIC

I would have offered $85 max on that thing. At $130 for a stripped contract, you're better off just buying direct. If prices are going up this much, demand must have really taken off. So much for DVC being the best kept secret.

 

[amccu18007]

I would have offered $85 max on that thing. At $130 for a stripped contract, you're better off just buying direct. If prices are going up this much, demand must have really taken off. So much for DVC being the best kept secret.

The hassle of buy resale isn't worth it (almost) at that price. Plus, you will get a loaded contract through Disney!

 

[zavandor]

I disagree with this. A very low offer is disrespectful of the seller's time. It implies that the seller's judgement about the value of their property is wrong. Its expected in a real estate transaction to make an offer that doesn't necessarily match asking price, but its also expected that the offer is a reasonable starting place. And since it is the receiver of the behavior that determines if the behavior is insulting - not the intention - I think its certainly the case that a lowball offer can be insulting.

Maybe we give to the word "insult" different meanings. I have sold a house and a parking garage recently, for both I received a few low ball offers that I simply ignored. Why should I have been offended by those?

 

[CarolMN]

Maybe we give to the word "insult" different meanings. I have sold a house and a parking garage recently, for both I received a few low ball offers that I simply ignored. Why should I have been offended by those?

Agree. We recently sold our home (in a hot market) and received a low ball offer right after it hit the market. My DH & I laughed about it and just said no. (We accepted an offer the next week for more than list). Not offended at all - didn't even know the people and it only took a few minutes to decline their offer.

 

[w84no1]

So what should I offer on the mostly stripped BWV I just saw in the Fidelity email at $130 LOL. TIC

I just purchased BWV through Fidelity and I paid $92 pp on 100 points at the beginning of the month. At $130 pp, I might turn around and sell it, lol!