Broker charges for resale

[Gillian]

Since we are comparing timeshares to residential real estate, consider this -- minimum $$ commissions do exist!

Where I worked as a Realtor, we handled a lot of low price properties in the nearby city. Houses sold for less than DVC - $10,000 to $20,000 was typical. We did not charge sellers 6%. Instead they were charged a flat fee that was usually a few thousand $$.

A $20,000 house requires as much (or more!) work than a $200,000 one, which is why higher priced homes often carry a smaller % commission. At least in my area!

 

[Richyams]

Personally, if I were selling my timeshare, I would definitely give it to a broker. I couldn't be bothered with the phone calls and follow ups. $1500 or 15% is well worth a few days of my time, not having to deal with people and the assurance that the deal will go correctly.

For someone well versed in real estate, timeshares, etc, with free time on their hands, it may be worthwhole to go through TUG. For a professional couple with both partners working, I think its well worth the commission to go sell through a broker. If I were buying, there is no doubt at all that I would go through a broker....basically for the same reasons.

Its a service, like a massage, haircut or anything else people are paid to do. Some chose to cut their kids hair themselves to save a few bucks, many prefer to pay a barber.

 

[jt2323]

Lee Reid says on his website that his charge is "9.9% or $995....whichever is less". Anyone have any experience using him?

 

[Stinson]

Years ago, we purchased Boardwalk points ($52/point) from a seller on the TUG board and had a very easy transfer. We also purchased OKW points ($50/point) from The Timeshare Store and again had an easy transfer. Sunbelt Title Agency handled both transfers and was responsible for the easy transactions.

 

[Sims]

The Timeshare Store was 12% on the day we signed to put our BCV points on their list. So I assume that will be their rate for a while. In addition to having the broker handle all the phone calls and paperwork, we wanted one with a proven record of completing the transfer so that it is legally sound, and doing so in a relatively short time.
The first batch of BCV points sold on their site within three weeks.

 

[Shontell_Crawford]

Dean - Thank you! I joined this conversation to be helpful and provide some insight, but my feelings were starting to be hurt. Your post covered everything I might have added. I really appreciate your unbiased opinion.

For anyone considering selling, please call me AND my competitors when you are ready. I'm happy and comfortable discussing my fees, how I conduct business and what separates my organization from others.

Something no one has mentioned - my listings are non-exclusive (as are most resale companies who don't charge up-front fees) - meaning, you can list it with me, put in on TUG and/or sell it yourself or through someone else and as long as you notify me when it sells, and you don't owe me a dime. It gives the people you list it with incentive to do their job.
Just more food for thought.

Hopefully, none of you ever have to sell your Disney...it's much more fun to keep it!!!

Best regards,
Shontell Crawford
http://www.DVCByResale.com

 

[WDWMom]

Thank you Shontell for your insights. Please don't be hurt by some of the comments made here. As we have seen in the past sometimes one needs to have a thick skin to stick your nose in.

We have used Shontell in the past and found her to be extremely helpful. I would definately use her again. However I was in a buyer situation, as I always hope to be. I can't imagine selling my DVC. Especially if I had to pay 10- 12% to do it.

 

[Sharper]

Shontell, do NOT let anyone upset you about your commission. I am not sure what people want, but to paraphrase someone else, if they want to go cheap on a service, then that is their choice, but most of us are willing to pay a reasonable fee for a professional job handling something that can be as time-consuming and specific-knowledge involved as a real estate transaction. A larger percentage on a significantly smaller price makes perfectly good sense.

Sometimes people like to gripe when there is nothing to gripe about, and all the common sense in the world won't get through. Just brush it off and go on doing a good job!

 

[Richyams]

but to paraphrase someone else, if they want to go cheap on a service, then that is their choice,

I was the one who said that and she thanked Dean.

Personally, I have re-thought the whole thing and now believe that only fools go with a broker....

 

[we3luvdisney]

Originally posted by Dean
Of course on most house sales, the commissions end up being split between 2 or more parties many times from different companies.

That correct, if the commission is 6%, this can be split between two brokers, each receiving 3%. However, the timeshare brokers are receiving between 10 - 15% and not spliting with anyone.

The "home sellers" are driving around, spending hours showing homes to potential clients, just to receive 3%. They can spend many weekends with one client and not receive anything. I can see them charging a greater commission, more so than a timeshare broker. How many timeshare brokers are driving potential clients around showing them different timeshares?

 

[we3luvdisney]

Originally posted by Dean
LOL. Now there's an above board industry with special deals, lavish gifts, kickbacks and the likes. I realize the liability and extreme costs in the drug manufacturing sector but when I see 8-10 drug reps in one area for one company, many promoting the same drug, I know that something is wrong with the system. I though maybe you were important like a timeshare sales rep or a used care salesperson. LOL. Just pulling your chain.

First of all, I work for a living. My job deals with contact with the FDA. However, I see how much money is spent to develop drugs. There are millions/billions spent and they be lucky to get a few drugs approved by the FDA. This just talks about the development, lets not forget the amount for the manufacturing equipment, specialized water (WFI, DI and PFW) and the validation to show the FDA.

Just like the timeshare brokers that charge between 10 - 15%, we charge what the public will pay. However, if everyone decided to cross the border into Mexico, I'm sure the drug prices would be reduced.

 

[Dean]

Originally posted by we3luvdisney
First of all, I work for a living. My job deals with contact with the FDA. However, I see how much money is spent to develop drugs. There are millions/billions spent and they be lucky to get a few drugs approved by the FDA. This just talks about the development, lets not forget the amount for the manufacturing equipment, specialized water (WFI, DI and PFW) and the validation to show the FDA.

Just like the timeshare brokers that charge between 10 - 15%, we charge what the public will pay. However, if everyone decided to cross the border into Mexico, I'm sure the drug prices would be reduced.

LOL, I know what you say is true, I was just pulling your chain and I couldn't help myself. I know all about the good things and things that no one has control over like liability, spending money on a 100 drugs just to get one to the market and having to make up the entire costs on just a few drugs. I've seen the drug companies supply meds for those that had no other means and the formula companies send multiple trucks filled with formula to help the residents a few years ago when there was a flood in the area. Still the system is flawed in he arena I jabbed at you. I know there have been some reforms with the Pharma guidelines but there is a way to go. Apparently the OIG thinks so to, at least in the arena of the kickbacks (rebates) and PBM's (Pharmacy Benefit Managers).

As for the timeshare brokers, it doesn't sound like I can convince you. Obviously the type of job is different than for a local housing type agent. I'm sure in both cases the "company" take a percentage. While they are not generally driving people around, there are exceptions. Their day is likely spent on the phone, internet and email for the most part. I've seen it in print that only about 2-3% of timeshares offered for sale are ever sold and this seems reasonable from what I can tell. They have someone calling wanting to sell and "just get their money back". The problem is that the person gave $15000 for something worth only about $2500-4000. I'm sure when they hear that they give the agents what for, but it's not the agents fault. Then if they do list it, it's still likely to sit there for months to years unless their expectations are truly reasonable, maybe the agent calls them from time to time with low ball offers from those that know more the real value. Even if it's priced at a reasonable value, finding a buyer can still be difficult. Who buys timeshares? Mostly people like us, along with those that have looked and like the system but know better than buying retail and those that already own timeshares. Joe Blow doesn't go out and out of the blue say he wants to buy a timeshare.

I'd like to hear Shontell's guestimate of how much work she does and how many contacts she makes just to sell a timeshare. I'd especially like to hear her response in relationship to non DVC properties as I'm sure DVC is much easier than most everything else. Even then for the newer properties, VB, HH and stripped contracts, it must be a challenge. While I'd likely sell anything myself that I wanted to, I have bought through resale companies and from private individuals. I don't begrudge them the chance to at least make a living and I suspect that even at the prices quoted, it's hard to do this full time and make enough to support oneself.