Theoretical Question....tell me if I am nuts to think this.

[LisaS]

OK. I'm really going to need to give this some thought. I would really like to have the advantage to book at 11 months but the loss in value after brokerage fees might just make me gamble by keeping it. I can't believe they get 10% when most of the real estate world only works on 4-6%.

If your BLT contract sold for $20,000, at 10% the broker's commission is $2,000. At 7%-8% the commission drops to $1,400 - $1,600. The broker gets part of that money, the rest of it goes to the owner of the firm.

The real estate brokers who charge 4%-6% are selling homes. The commission on a $200,000 home/condo sale at 4% is $8,000. Home prices in our area are much higher than that so a 4% commission takes a big chunk out of the selling owner's sales proceeds.

 

[stocker1042]

Agreed on the fact that the brokers aren't making the same money on the sale of a DVC contract vs. a house, but they are literally doing 10% of the work also. There are no showings, no advertising fees outside of a relatively simple website, no signs, and no inspections to deal with. Not to sound harsh, but a DVC broker is doing very little when compared to a "regular" real estate broker.

The more I think about this...the better off I think I am just to stay put, book exactly 7 months in advance, and be flexible if I need to be.