Closing costs

[Michael623]

Are closing costs a certain percentage of the cost of the contract? I am just curious because I am considering buying 40 points and I've only heard closing costs quoted for bigger (150 pts+) contracts. Ideally I'd like to have 100-125 points but if I could buy a few smaller contracts it would allow me to pay cash for them. If I bought say 3, 50 pt contracts would the closing costs get a little pricey?

 

[dianeschlicht]

Closing costs don't seem to fluctuate with the size of the contract, and yes, you would be getting pretty pricey with closing costs if you did three small resales rather than one larger one.

 

[Granny]

I'm assuming you're talking about buying resale, right? There are no closing costs when buying through Disney.

As Diane said, closing costs on a small resale will be a bit pricy. For a 50 point contract, they will come to somewhere around $5 a point additional.

 

[JeffPort]

Closing costs DO fluctuate by contract size, but not by much. Most closing costs are fixed (stay the same, no matter the size of the contract), but the title insurance is variable by contract size. You can expect total closing costs for a contract of 100 points or less to be about $400.

 

[salvatorejrm]

You may make out better buying the 3 smaller contracts and paying the closing costs vs financing a 150 point contract for 5 or 10 years. We just bought a 50 point contract from Jaki and our closing costs were $375. 3 contracts x $375 = $1125. I can tell you to finance a 150 point contract through Disney or a finance company for 5 or 10 years it will cost you alot more than $1125 in finance charges. And the other advantage to the 3 contracts vs. 1 is if you had to sell 1 you could. Also with 3 contracts you could buy at 3 different resorts to get the 11 month window. With banking and borrowing you could have 150 points at each resort. Something to think about.

 

[dianeschlicht]

But if you are not planning to finance, but pay cash, you would be better off with a larger contract.

 

[Michael623]

Thanks for all of the advice. I just don't have the cash to buy a bigger contract now and I'd like to have some points for this summer as a bifthday present for my wife. How would having 3 different use years effect making a reservation? The use year is the one that I don't really get about DVC.

 

[Dean]

Timeshare transfers will do it for $250 but remember there's also a $10 transfer fee. You could do it yourself but that means sending the cash directly to the seller. TT will also act as escrow agent for $100. In this situation, I'd do it myself. Of course finding the right contract can be tough. DO NOT BUY A SMALL CONTRACT IN A DIFFERENT USE YEAR THAN YOU OWN, IT'S NOT WORTH IT FOR THE HASSLES. Good luck to you.

 

[salvatorejrm]

Quote From Dean:

"DO NOT BUY A SMALL CONTRACT IN A DIFFERENT USE YEAR THAN YOU OWN, IT'S NOT WORTH IT FOR THE HASSLES."

I agree with Dean, wait until the right contracts come along and buy the same use year.