Determination of Closing Costs?

[Beth]

I'm still working on selling one of my add-on's...

How are closing costs determined? Is it based on the $$ amount of the transaction, or the number of points?

Can anyone give me an example of closing costs that they paid on a < 100-point resale?

TIA ºoº

 

[egroegsacul]

We recently purchased a 100 point resale at VWL at $68.00/point. The closing costs were $375.00. How the closing costs were determined, I don't know.

 

[Beth]

Thanks very much - that gives me an idea...

 

[JimC]

I believe that sellers pay 12% commission and $75 trasfer fee. Buyers pay about $2.00 per point for title insurance and other closing costs. Of course seller and buyer can negotiate who pays what. I suspect that there are minimums that raise these estimates for smaller contracts, probably below 150 points.

 

[drusba]

Things usually thought of as closing costs are real estate transfer fees or taxes, title insurance costs, and some document preparation and filing fees. Those for a DVC timeshare can range from just below $400 to $500 depending mostly on the title companies you are dealing. Those are mostly fixed and vary only in minor amounts whether you sell 1 or 1,000 points. Who actually pays them (or portions thereof) is something that should be spelled out in the contract of sale.

Other closing money transfers will be any commission the seller must pay to the broker, any amounts the seller still owes on his loan if he has one, and whatever has been agreed to as to dues. When you close, dues not yet paid for the calendar year must be paid in full. Also, if seller has already paid all dues for the calendar year he may feel entitled to a payment from the buyer for at least the amount applicable to those months in the calendar year that the buyer will have the property. Generally, exactly who is going to pay what in relation to dues is something that should be agreed to in the sale contract.

Note to above -- sellers don't necessarily pay a 12% commission to a broker. In timeshares, brokers often have a set fee ranging from $1,000 to $1,500 as a commission (and thus your percentage can be much lower than 12% or even much higher depending on how large the contract actually is). Brokers may also negotiate on what their commission will be.

 

[First Wave]

Not to worry. Buyer pays closing costs almost 100% of the time. However, seller is responsible for the $100 transfer fee Disney charges to change names on membership from seller to buyer.

 

[Dean]

Originally posted by First Wave
Not to worry. Buyer pays closing costs almost 100% of the time. However, seller is responsible for the $100 transfer fee Disney charges to change names on membership from seller to buyer.

I'd say it's closer to 90% of the time that buyer pays closing. With most timeshare the transfer fee is part of the closing and is now $100 for DVC. The breakdowns are:

• Transfer fee - $100
• Recording costs - variable but not that much.
• Deed Prep - $100 or slightly more depending.
• Mailings
• Title Insurance
• profit for the agency

Online services can get you down to about $300 total but you're looking at $400-500 for most of the companies.