Best way to sell a small DVC contract...

[hollypoast]

I have two DVC contracts and I am considering selling our second, smaller contract as it seems to just add confusion to our planning.

The Timeshare Store charges a hefty commission (my opinion) but maybe it's justified by their exposure and service.

Where and what is the best way to sell this type of contract? Any advice would be great appreciated.

 

[lodge]

Fidelity's charge of $195 on top of it would make your small point contract either too expensive or will cut into your profit (if they buyer decides to lower their offering price trying to compensate for this extra fee.... as later in this thread it was mentioned by others the fee gets passed on to the buyer).

I'll be curious to see what others think is the best option for you. Good luck.

 

[hollypoast]

Fidelity's charge of $195 on top of it would make your small point contract either too expensive or will cut into your profit.

I'll be curious to see what others think is the best option for you. Good luck.

What do you mean by "Fidelity's charge"? I'm new to selling... is this a fee on top of a commission paid to an agency?

 

[puffkin]

I'm pretty sure Fidelity charges 10% to the sellers which is pretty standard. The $195 is charged to the buyers....but of course is negotiable.

Such a small contract will move really fast regardless of who you use unless it is way over priced.

 

[bwvBound]

... I am considering selling our second, smaller contract as it seems to just add confusion to our planning.

I've never sold a contract so have no direct input on your question, sorry. I was curious about your statement that the smaller contract adds confusion to your planning. We have three contracts total, one of which is 25-points. As all three are from the same resort and, more importantly, same UY -- the points all behave as if they were a single pool of points. We've not experienced any issues based on the multiple contracts or their sizes. Personally, I've long felt that even if I should someday downscale my DVC holdings, I intend to retain the small contract for the owner benefits (assuming the 'perks' are continued).

What kinds of confusion are you suffering with the contract? Is it same UY as your larger account? Same resort?

Best wishes with your deliberations!

 

[lodge]

Yes. I'm drawing a blank currently on what it's called, but has been discussed on several threads. That extra fee would REALLY cut into a small contracts price (as others have noted, from the buyers perspective). I've been wondering, since I heard of it, whether this is why I don't see many small ones on Fidelity's DVC site.

I'll see if I can find something about it and send a link to the thread for you to see what I'm talking about.

Here's a few references to the fee: http://www.disboards.com/showpost.php?p=47391028&postcount=16

http://www.disboards.com/showpost.php?p=47221018&postcount=23

 

[Breyean]

What do you mean by "Fidelity's charge"? I'm new to selling... is this a fee on top of a commission paid to an agency?

As of Jan 1, Fidelity started charging BUYERS a flat $195 "admin fee" for every contract, no matter what the size or dollar amount.

So, unlike with the commission charged to the sellers, which is a percentage of the sales price, this buyer's fee is the same dollar amount no matter how small the contract.

This will result in smaller contracts having to absorb maybe a couple of extra dollars per point, so buyers will need to factor that into their offers.

For example, I am in ROFR with a Fidelity contract - 125 points at $90, so purchase price (excluding closing and mf) s/b $11,250. But add the $195 fee to that adds another $1.56 per point to my cost. That same week, another buyer did a 600 point contract at $88, so the fee's impact is only 30 cents per point.

That's what the impact could be on small contracts offered by Fidelity - buyers might offer less knowing $195 has to go to Fidelity so the seller might lose out some cash, esp with smaller contracts.

 

[DizBub]

IMHO you could price that high enough to cover the commission fee.

 

[hollypoast]

I've never sold a contract so have no direct input on your question, sorry. I was curious about your statement that the smaller contract adds confusion to your planning. We have three contracts total, one of which is 25-points. As all three are from the same resort and, more importantly, same UY -- the points all behave as if they were a single pool of points. We've not experienced any issues based on the multiple contracts or their sizes. Personally, I've long felt that even if I should someday downscale my DVC holdings, I intend to retain the small contract for the owner benefits (assuming the 'perks' are continued).

What kinds of confusion are you suffering with the contract? Is it same UY as your larger account? Same resort?

Best wishes with your deliberations!

Different resort and different use year. We also own 160 points at AKV.

We thought it would be fun to do a split stay every three years or so but we prefer to stay put once we arrive.

 

[Missyrose]

Yes. I'm drawing a blank currently on what it's called, but has been discussed on several threads. That extra fee would REALLY cut into a small contracts price (as others have noted, from the buyers perspective). I've been wondering, since I heard of it, whether this is why I don't see many small ones on Fidelity's DVC site.

I'll see if I can find something about it and send a link to the thread for you to see what I'm talking about.

Here's a few references to the fee: http://www.disboards.com/showpost.php?p=47391028&postcount=16

http://www.disboards.com/showpost.php?p=47221018&postcount=23

The threads here and on other boards have made it clear that the $195 admin fee is charged to the buyer (and most of the time the buyer isn't told until after an agreement on price), the only real way for a buyer to take the sting out of the fee is to lower their per-point offer to compensate for the added fee.

10 percent commissions are pretty standard across the board for selling DVC contracts.

 

[bwvBound]

Different resort and different use year. We also own 160 points at AKV.

We thought it would be fun to do a split stay every three years or so but we prefer to stay put once we arrive.

Oh, we sooooo agree! Thanks and sorry to be nosy. Yep, I think I'd find points of different resort and UY a bit "sticky" as well. Hope it all works smoothly for you!

 

[lovin'fl]

As well as charging that $195 fee (that turns some buyers off) Fidelity doesn't work late evenings or on the weekends like other brokers do (so if someone wants to make an offer on your contract late Friday or Saturday morning, they will not be able to until Monday)...just food for thought.

 

[::danielle::]

Pardon my naivete, but couldn't any Florida licensed real estate agent technically sell it for you?

I would bet there are many people who would be happy to bypass the whole "small-contract DVC resale negotiations via a broker" process as long as there is a neutral third party who makes sure that the legal procedures are followed.

 

[ELMC]

In my opinion, the extra exposure and bump in price that you will get by listing with a broker will negate any money you lose by paying them a commission. Yes, 10% seems like a lot, but I feel that brokers provide a value that justifies paying this commission.

 

[ELMC]

I'm pretty sure Fidelity charges 10% to the sellers which is pretty standard. The $195 is charged to the buyers....but of course is negotiable.

I am someone who tries to negotiate everything when buying resales. The majority of my offers include sellers paying the closing cost and my not reimbursing maintenance fees. That being said, I think that the chance of getting the seller to pay the $195 "buyer's fee" is an extreme long shot.

 

[puffkin]

I am someone who tries to negotiate everything when buying resales. The majority of my offers include sellers paying the closing cost and my not reimbursing maintenance fees. That being said, I think that the chance of getting the seller to pay the $195 "buyer's fee" is an extreme long shot.

It is, but every offer I made on a Fidelity contract, they asked me who I wanted to pay MF, Admin ($195), closing and Price Per Point. I offered to pay
all closing and admin, but I adjusted my PP down accordingly. Since they asked though (and they did every time) I take it to be as negotiable as everything else.

 

[hollypoast]

It is, but every offer I made on a Fidelity contract, they asked me who I wanted to pay MF, Admin ($195), closing and Price Per Point. I offered to pay
all closing and admin, but I adjusted my PP down accordingly. Since they asked though (and they did every time) I take it to be as negotiable as everything else.

Follow up question... What does the buyers fee cover? And if I were to sell without an agency would that deter possible buyers or would it be a win-win for both sides?

 

[ELMC]

Follow up question... What does the buyers fee cover? And if I were to sell without an agency would that deter possible buyers or would it be a win-win for both sides?

The buyer's fee is an administrative fee charged to buyers for purchasing a contract. It's an additional fee, there is nothing extra provided. To me, it seems like a cash grab and I have let management at Fidelity know that this is how I feel.

As for selling without a broker, it can be done, but I'm not sure there is any real venue for matching buyers and sellers. So if you have someone you know who wants your contract, there are ways to do it. Otherwise, I feel that the services provided by the brokers are valuable, and they justify the 10% commission.

 

[chalee94]

Follow up question... What does the buyers fee cover? And if I were to sell without an agency would that deter possible buyers or would it be a win-win for both sides?

eh, as a potential buyer, if the price goes too low, the contract might still get ROFRed...so there may or may not be that much room for a "win-win." i'd generally rather deal with a broker. just my opinion...

 

[hollypoast]

The buyer's fee is an administrative fee charged to buyers for purchasing a contract. It's an additional fee, there is nothing extra provided. To me, it seems like a cash grab and I have let management at Fidelity know that this is how I feel.

As for selling without a broker, it can be done, but I'm not sure there is any real venue for matching buyers and sellers. So if you have someone you know who wants your contract, there are ways to do it. Otherwise, I feel that the services provided by the brokers are valuable, and they justify the 10% commission.

Sorry, forgot to ask... Are the closing costs on top of all of these fees and if so who get them?