Closing costs on re-sale???

[MycatlovesEeyore]

We are considering purchasing some additional points through a resale broker. To those that have done this, how are the closing costs determined? Is it a set amount per point purchased?

Also, if one were to make an offer, how far below the asking price would you offer? Especially if the poinjts in the current use-year have been used and the points for 2004 have been borrowed?

Thanks in advance for your help!

Mycat

 

[drusba]

Closing costs generally range from $400 to $500. That is the case whether you buy 50 points or a 1000 as most such costs are little affected by the size of the contract. They are same kinds of costs you get in any residential real estate sale such as title insurance, transfer taxes, recording fees, costs of the closing company. Note the buyer pays closing costs unless you negotiate otherwise (which you can try to do).


Contracts that have all their current points are worth more than contracts that do not and even contracts without current points are worth more than one that has no current points and the seller has also borrowed and used the next year's points. After the sale you will be paying dues on the contract even though you have no points to use. What you offer ultimately depends on what you think the seller might take or what you set as your highest price for the contract. Probably well more than half the sales now are in the $66 to $74 range per point and I would definitely be on the low range of that and even lower (as low as $62) if I were to make a bid on a contract with no current points and many borrowed from next year and used. Of course, you need to be prepared to walk away from the particular sale if the seller holds out for more than you want to pay.

 

[Dean]

For a smaller package it might be worth using one of the on line companies like Prodox or doing the closing yourself. You can get a law firm familiar with DVC to do a deed for around $100 and the only other required fees are the recording fees. You can likely forego the escrow for a smaller package and take your chances since the total is around $3000 for 50 points.

 

[Simba's Mom]

Do you think that the resort makes much difference in the cost per point? I've read that sellers typically want to sell for near the price they bought at. If that's true, an OKW resale would probably go for less than a Boardwalk or Beach Club resale since OKW owners paid considerably less than Beach Club owners for their points originally.

 

[Dean]

Originally posted by Simba's Mom
Do you think that the resort makes much difference in the cost per point? I've read that sellers typically want to sell for near the price they bought at. If that's true, an OKW resale would probably go for less than a Boardwalk or Beach Club resale since OKW owners paid considerably less than Beach Club owners for their points originally.

Absolutely. HH, OKW and VB will be the cheapest for reasons of demand and availability. The new resorts will be more because there are less contracts available and the seller paid more per point. Price seller paid is a big factor in timeshare resales in general. Some people just can't stand losing money on things even if it's the obvious thing to do.

 

[drusba]

Price of OKW contracts are often less than others at WDW because the Sellers paid less when they bought. Even so most sellers want to get the best price they can regardless of what they paid in the first place and thus the fact that it is an OKW contract does not mean the seller is going to be way below the going price for the other resorts at WDW. Also, sellers who use a broker have to pay the broker and with timeshare sales brokers often have a floor, such as $1,000, for their commission regardless of the size of the contract. Thus, someone selling a low point contract in those circumstances may often actually want a price per point higher than someone selling a contract with say 300 points because with a low point contract the commission is going to eat up a very high percentage of the sale price.