Curious-- what costs are involved in selling a contract?

[BWVDenise]

Not sure if we'll do it or not, but I'd like to know all the facts!
TIA

 

[Lasrnw]

There seem to be two sets of costs, the way I understand it.....the cost to Disney which are approx. $200.00 and the closing costs thru a title company which start at $325.00 and work their way up based on the number of points.

 

[calypso*a*go-go]

The only costs you will have depend on whether or not you use a broker or sell as a FSBO. Obviously, you will pay a commission to a broker. In most of the contracts people have given details on, it seems to be customary for the buyers to pay the closing costs and the sellers to pay the transfer/ROFR fees. That seems to be the best formula to pass ROFR -- but everything is negotiable.

 

[LisaS]

If you sell your contract/points for more than you paid for it/them, is that considered a taxable capital gain?

 

[vascubaguy]

If you sell your contract/points for more than you paid for it/them, is that considered a taxable capital gain?

That's a good question... and I'm no tax advisor, but since this is real estate stuff, I'm guessing yes. But, I'd be curious to know too, not that I think if I buy now that I'll sell for more than I paid later on...

 

[Dean]

If you sell your contract/points for more than you paid for it/them, is that considered a taxable capital gain?

I don't believe so unless you're depreciated in as a business venture. But one should check their own situation with their tax consultant to be sure.

Potential costs in selling.

• Closing costs - usually paid by the buyer and between around $250-500
• Transfer fee - $200 and usually paid by the seller.
• comission potentially - usually 10-12% with a min between $795 and $1500 from my experience.
• Any advertising costs.
• Any lost points while involved in the process.