Are commission rates negotiable when selling DVC? Plus other questions.

[canadiandisneymommy]

I am starting to research about selling my DVC contract (sad, I know) and have noticed commission rates ranging from 5-8.5% with the popular DVC brokers. Anyone been able to get their broker to lower their rates, especially the ones charging higher? Any other selling tips would be much appreciated. I'm in Canada and also curious about this 10% foreign sellers tax.

 

[Dean]

I am starting to research about selling my DVC contract (sad, I know) and have noticed commission rates ranging from 5-8.5% with the popular DVC brokers. Anyone been able to get their broker to lower their rates, especially the ones charging higher? Any other selling tips would be much appreciated. I'm in Canada and also curious about this 10% foreign sellers tax.

Historically some have done so but mostly when some were 12% and lowered to 10%. Unless it's a large number of points I wouldn't expect them to and I wouldn't be comfortable asking unless it were a lot of points, esp since they've all generally lowered them fairly recently.

 

[Cyberc1978]

I am starting to research about selling my DVC contract (sad, I know) and have noticed commission rates ranging from 5-8.5% with the popular DVC brokers. Anyone been able to get their broker to lower their rates, especially the ones charging higher? Any other selling tips would be much appreciated. I'm in Canada and also curious about this 10% foreign sellers tax.

Just wanted to help clarify the FIRPTA tax is 15% and not 10%, actually think it was Obama who raised it from 10% to 15%. One way of lowering the potential tax burden would be to sell your contract completely stripped and ofc priced accordingly. So no points in 2017,18 and 19. Those points you ofc either rent or take a nice long trip.

You ofc risk that it will take longer time to sell now that its stripped.

 

[Jason@dvcstore]

I am starting to research about selling my DVC contract (sad, I know) and have noticed commission rates ranging from 5-8.5% with the popular DVC brokers. Anyone been able to get their broker to lower their rates, especially the ones charging higher? Any other selling tips would be much appreciated. I'm in Canada and also curious about this 10% foreign sellers tax.

If you decide to list with The Timeshare Store, Inc.® (dvcstore.com) our commission is 8.5%, Disney has $170 in fees that the seller pays and there is the 15% FIRPTA TAX for foreign sellers.

Here is the process when selling and dealing with FIRPTA.

1) You would fill out a listing agreement and return it
2) Once we receive we would go over it with you and figure out the best way to price your property and her info is below
3) Once we find a buyer it takes about 8 weeks to close
4) As a seller your final documents would have to be notarized (hopefully, for you that is not an issue)
5) Your final payment is sent to you via FEDEX after it closes (assuming you own a DVC resort in Florida)
6) As a foreign seller you do have to pay a 15% FIRPTA tax, however, there is a company Foreign Investors Tax Services LLC that will help you get that money back. Her email is nancy@fitaxes.com and her info is below

Nancy Carpenter, AFSP
Foreign Investors Tax Services LLC
FIRPTA Specialist
ITIN Certified Acceptance Agent (CAA)
P.O. Box 722
Intercession City, Florida 33848
Email – nancy@fitaxes.com
Web address: fitaxes.com
Skype user name – nancyfits


Thanks and best of luck to you with your decision.

Jason@dvcstore

 

[Dean]

This is for withholding, not necessarily the amount of tax owed. And it's possible to avoid the withholding completely if one meets certain requirements by filing with the IRS and getting an exemption. It's also possible to get the refund afterwards but it has to be done I believe by the next year. It doesn't sound complicated, one just has to walk through the steps, file the form and get a Tax ID number. The actual tax, as I understand it, would be based on profit much like a US citizen would calculate the profit (sales price - what one paid - commissions - capital improvements). In reality there really shouldn't be any taxes for most DVC sellers if they walk through the steps.