Closing Cost Comparison - Large versus Small Contract

[hayesdvc]

In looking at the closing cost on various contracts, I know closing cost would vary by title company, however, the fee appears to be flat as it relates to the number of points on a particular contract. For example, if someone wanted to "add on" a small contract they possible would pay the same closing cost as a much larger contract. Am I correct?

 

[supersnoop]

Nope. Over at the timeshare store, they display the closing costs on each listing, and they increase with the size of the contract.

 

[hayesdvc]

I guess what I was comparing was if a buyer if thinking about, for example, getting a total of 250 within a few years, from a closing cost perspective it would be better to save up and get a contract for 250 points rather than getting one for 200 then add on another one for 50.

 

[Dean]

I guess what I was comparing was if a buyer if thinking about, for example, getting a total of 250 within a few years, from a closing cost perspective it would be better to save up and get a contract for 250 points rather than getting one for 200 then add on another one for 50.

In many ways. One of the best ways to at this issue is buying multiple small contracts vs one large one. Going that route will add a significant cost maybe $10 a point total. This is due partly to the additional closing costs and partly because smaller contracts currently tend to sell for more (who knows if this will be so down the line). Certainly different home resorts and being able to save and buy more later can offer additional value. IMO it's not worth it just to get smaller contracts but may be if there are other considerations. Also, sometimes one can find someone selling multiple contracts and buy like it's one larger one saving on closing.

 

[ustasmom]

My 50 point contract's closing costs were more than my 100 point contract's closing costs.