Buying Resale, Closing Costs and 2009 Dues

[joeytdog]

I was advised by the Timeshare Store that 80% of the time, the Buyer pays 2009 dues and closing costs. This adds to the downpayment.

Say, 300 points, $5 per point, that is $1500 more plus $600 in closing plus 10%

Dont make this a thread about financing a timeshare please

The question is, given the state of the economy, would you not think it unreasonable for the SELLER to pay closing costs and annual dues if you pay full price per point? Or close to full asking price per point?

 

[5forDiz]

I was advised by the Timeshare Store that 80% of the time, the Buyer pays 2009 dues and closing costs. This adds to the downpayment.

Say, 300 points, $5 per point, that is $1500 more plus $600 in closing plus 10%

Dont make this a thread about financing a timeshare please

The question is, given the state of the economy, would you not think it unreasonable for the SELLER to pay closing costs and annual dues if you pay full price per point? Or close to full asking price per point?

That depends - if the seller is in a hurry because of personal or financial concerns maybe they may want to negotiate the terms but they very well may not care about the state of the economy. Many sellers can and will wait until their price is met and their terms. Just like many buyers will patiently wait until they see the perfect resale for them - price, # of pts, Home Resort, banked points instead of a contract that is stripped of points and other terms that are acceptable to them regarding closing fees & MFs.

If a resale sells at the beginning or early on in calendar year it is typical that the buyer pays MF for that entire year but often a seller will pro-rate MF so the buyer may only need to cover what months remain in the calendar year at the point they make offer.

Also, you probably stand a better chance negotiating with a seller on a stripped contract.

Just wondering, were you quoted $600 closing costs from a resale agent? it seems high for 300 pt contract. I seem to recall GMAC having some extra fees involved ( that amount to well over $100 ) that other resalers don't so maybe that is why you say $600 ?

Best wishes to you & hope you find a contract soon that's a perfect fit

 

[joeytdog]

That depends - if the seller is in a hurry because of personal or financial concerns maybe they may want to negotiate the terms but they very well may not care about the state of the economy. Many sellers can and will wait until their price is met and their terms. Just like many buyers will patiently wait until they see the perfect resale for them - price, # of pts, Home Resort, banked points instead of a contract that is stripped of points and other terms that are acceptable to them regarding closing fees & MFs.

If a resale sells at the beginning or early on in calendar year it is typical that the buyer pays MF for that entire year but often a seller will pro-rate MF so the buyer may only need to cover what months remain in the calendar year at the point they make offer.

Also, you probably stand a better chance negotiating with a seller on a stripped contract.

Just wondering, where you quoted $600 closing costs from a resale agent? it seems high for 300 pt contract.

Best wishes to you & hope you find a contract soon that's a perfect fit

The Timeshare Store quoted me $600 closing costs.......

 

[backyardponder]

OP: In your original post, you said $1500 plus $600 plus 10%. I think the 10% is the broker's fee, which is usually paid by the seller.

Remember, everything is negotiable. If there are 2009 points available in the contract, then, to me, it is fair that the buyer pay the fees for the 2009 points. If no points come until 2010, the 2009 points have been used and I would think the seller should pay for those. But, it is all in the negotiation and agreement which is reached.

Closing costs are also negotiable. Make an offer and see what happens.

 

[joeytdog]

The 10% down was the 10% for the loan depsoit, not broker fees

I figure right now there are 3 deals I could live with, so I am going to make the offer to all 3

full asking price per point minus they pay 09 fees and closing costs

worse that could happen is all 3 say no

but in this economy, I have to figure one would bite

but then it has to get through ROFR and at an average of $73 per point, that might not happen