Broker management fee ?

[PearlyJoy]

I had made an offer on a contract at the fidelity real estate site. The sales agent contacted me and mentioned the total cost will include some sort of a $195 management fee in addition to the closing cost besides the total cost of the points.

I have not seen any additional management feel when I worked with the dvc resale market broker.

I would appreciate anyone with any insights on this kindly advise

Thank you so much

 

[CarolMN]

Fidelity is the only broker that charges the buyer an "administrative fee". It's a way for them to shift some of the costs normally paid by the seller over to the buyer. Factor that into any offer you make.

 

[PearlyJoy]

Thank you CarolMN, I appreciate the information and insight. The total closing cost is not terribly different, probably a few 10s of dollars more.

Cheers

 

[MICKIMINI]

IMO their prices usually offset the fee. It really depends on the bottom line and what you are comfortable with. Good luck!

 

[PearlyJoy]

IMO their prices usually offset the fee. It really depends on the bottom line and what you are comfortable with. Good luck!

Love the handle "MICKIMINI" . Their prices do seem to offset the fee. Thank you

 

[hammer1995]

Fidelity is the only broker that charges the buyer an "administrative fee". It's a way for them to shift some of the costs normally paid by the seller over to the buyer. Factor that into any offer you make.

This, and it's really a "gotcha" fee that I detest. Just make sure you remember to factor this into your offer. Could amount to as much as $7.80 per point on a 25 point contract.

 

[ILoveMyDVC]

Fidelity is the only broker that charges the buyer an "administrative fee". It's a way for them to shift some of the costs normally paid by the seller over to the buyer. Factor that into any offer you make.

Carol, Who would you buy a resale from now?

 

[MICKIMINI]

This, and it's really a "gotcha" fee that I detest. Just make sure you remember to factor this into your offer. Could amount to as much as $7.80 per point on a 25 point contract.

Contract fees and expenses always requires evaluation. I've recently been picking up smaller contracts to add to our larger ones. I've added on six times in the past year.

A 50 point contract is $4 extra PP. For example: I paid $110 per point (closing pending) for a 50 SSR loaded. Similar contracts out there I've seen up to $145 PP. I saved $35 PP (in this example) but paid $4 PP for the fee, so in the end I saved $31 PP. Total savings $1550 over the example. That savings pays for four years MF's at the least.

On a larger contract - even 100 points it's $2 PP and going into the 150+ it isn't much of a factor if you can save even $10 PP. Again, it is the bottom line as in every large purchase. To be transparent two of my recent deals have been with fidelityrealestate.com. The other contracts were with two other brokers.

Bottom line is do the math and have comps ready (just like residential real estate) so you can quickly decide if it is a good deal and bid or not. Bid immediately and be ready with your bottom line PP. Preparation IMO is key.

 

[CarolMN]

Carol, Who would you buy a resale from now?

Any reputable broker that has the contract I want. - there is a good list of some of those in this thread:
https://www.disboards.com/threads/p...iness-you-wish-to-mention-or-discuss.3821848/
I would also re-read some of the threads discussing closing companies and make sure the broker isn't using one with lots of complaints.

 

[MICKIMINI]

The buyer can request a specific closing company, otherwise the broker passes you through one they work with.

 

[ILoveMyDVC]

Any reputable broker that has the contract I want. - there is a good list of some of those in this thread:
https://www.disboards.com/threads/p...iness-you-wish-to-mention-or-discuss.3821848/
I would also re-read some of the threads discussing closing companies and make sure the broker isn't using one with lots of complaints.

I'd long planned on adding on (despite complaining from time to time - made an offer that just about doubled my points. Hope I didn't pick a bad company.

 

[CarolMN]

I'd long planned on adding on (despite complaining from time to time - made an offer that just about doubled my points. Hope I didn't pick a bad company.

If it's a good contract for you, I'm sure you will be fine. Good luck with ROFR.

 

[ILoveMyDVC]

If it's a good contract for you, I'm sure you will be fine. Good luck with ROFR.

Turns out I picked a good one - I did a search onthe Dis last night. And a sponsor to boot.
https://www.dvcresalemarket.com/listings/

 

[PearlyJoy]

Contract fees and expenses always requires evaluation. I've recently been picking up smaller contracts to add to our larger ones. I've added on six times in the past year.

A 50 point contract is $4 extra PP. For example: I paid $110 per point (closing pending) for a 50 SSR loaded. Similar contracts out there I've seen up to $145 PP. I saved $35 PP (in this example) but paid $4 PP for the fee, so in the end I saved $31 PP. Total savings $1550 over the example. That savings pays for four years MF's at the least.

On a larger contract - even 100 points it's $2 PP and going into the 150+ it isn't much of a factor if you can save even $10 PP. Again, it is the bottom line as in every large purchase. To be transparent two of my recent deals have been with fidelityrealestate.com. The other contracts were with two other brokers.

Bottom line is do the math and have comps ready (just like residential real estate) so you can quickly decide if it is a good deal and bid or not. Bid immediately and be ready with your bottom line PP. Preparation IMO is key.

Great explanation. Thank you