Do closing costs vary?

[Sammy]

Just wondering if the closing costs on a resale vary according to purchase price. ie: would the closing cost on a 25 point resale be less than closing cost on a 300 point resale? I'm talking about through one of the timeshare companies, not Disney.

TIA!
Sammy

 

[kdzgon]

Just wondering if the closing costs on a resale vary according to purchase price. ie: would the closing cost on a 25 point resale be less than closing cost on a 300 point resale? I'm talking about through one of the timeshare companies, not Disney.

TIA!
Sammy

Yes, the closing costs vary, based on the cost of the contract. The difference seems to be relatively less as the contracts get larger (closing costs for 250 points are not 10 times that of a 25 pt contract).

Closing costs vary at Disney, too, but I believe the only diff is whether or not the contract is financed.

 

[senecabeach]

Here's some verbage from 3 different resellers to be un-named on E-Bay. BTW..the 1st one is for 25 pts.

Transaction Information
We simply require a 25% deposit or $500, which ever is greater. Closing costs for this resort will be ($515est.) for a complete closing which includes warranty deed, title search, title insurance, and escrow services. Buyer is also responsible for a ($195.) administrative fee.

HOW DO I KNOW WHAT THE CLOSING COSTS WILL BE?

The closing costs average between $275 up to $775 based on the purchase price. Your agent can give you an exact amount on each of our listings.

Buyer will pay closing costs of approx. $525 and is responsible for obtaining full payment in certified funds prior to the closing date (approximately 6 weeks from the signing of the contracts). Note that payment will go to our closing service, Timeshare, Title and More, LLC and not to us.

 

[Mtnman44]

Don't foget, most of those are negotiable also. The broker could lower their cut or the seller could reduce the sales price to compensate the buyer for some of the closing costs. It all depends on the amount of buyers in the market as to how much negotiating power they have.

If you ask me $775 bucks for a timeshare transfer is quite a hefty charge. Of course, part of that is probably the transfer fee for Disney. Are they also making a commision off the sales price? I've been asking myself, "Just how much work is really involved for them."

Sending forms to buyer & seller. Collecting forms. Depositing payment. Mailing forms to Disney. Recording Deed. Mailing proceeds check to seller. Is there much else?

 

[MILLZ]

Seems Like Alot To Me

 

[kdzgon]

Just wondering if the closing costs on a resale vary according to purchase price. ie: would the closing cost on a 25 point resale be less than closing cost on a 300 point resale? I'm talking about through one of the timeshare companies, not Disney.

TIA!
Sammy

Sammy,

I saw on another thread that you are actually looking to sell your DVC, not buy. I don't believe sellers pay closing costs per se (unless you agree to do so as a result of negotiations). There is usually a commission to pay and a $20 ROFR fee that is due Disney if you sell through a reseller.

 

[Sammy]

Sammy,

I saw on another thread that you are actually looking to sell your DVC, not buy. I don't believe sellers pay closing costs per se (unless you agree to do so as a result of negotiations). There is usually a commission to pay and a $20 ROFR fee that is due Disney if you sell through a reseller.

Hi...thanks for the info. Yes, unfortunately we listed with a broker yesterday and we accepted an offer from a buyer today already for our asking price. I didn't think it would take long, but I wasn't ready for less than a 24-hour turnaround!! I was asking about closing costs because I was wondering if it would be worth buying a very small contract just to stay in the system. If closing costs were high even if the contract were say....25 or 50 points......I wasn't sure it would be worth it.

 

[kdzgon]

Hi...thanks for the info. Yes, unfortunately we listed with a broker yesterday and we accepted an offer from a buyer today already for our asking price. I didn't think it would take long, but I wasn't ready for less than a 24-hour turnaround!! I was asking about closing costs because I was wondering if it would be worth buying a very small contract just to stay in the system. If closing costs were high even if the contract were say....25 or 50 points......I wasn't sure it would be worth it.

"Everything for a reason...". I'm glad is sold so quickly for you. Any chance of doing an add-on from Disney before closing on your contract? I'm new to all this and don't know the rules, but I suspect that it might be less expensive to add on a small contract that way if you could do it. It would be a separate contract (same membership no., but separate contract) so you'd still remain in the system. Good luck with your current situation - I hope it resolves itself soon!

 

[LisaS]

"Everything for a reason...". I'm glad is sold so quickly for you. Any chance of doing an add-on from Disney before closing on your contract? I'm new to all this and don't know the rules, but I suspect that it might be less expensive to add on a small contract that way if you could do it. It would be a separate contract (same membership no., but separate contract) so you'd still remain in the system. Good luck with your current situation - I hope it resolves itself soon!

I was going to suggest the same thing. Disney's price/point will be a bit higher than the resale contracts' list prices but there won't be closing costs with Disney and your dues for 2006 will be pro-rated (you would pay about 2 month's worth of dues on your add-on for 2006, then full dues starting in Jan 2007).

On the resale market the small contracts are priced much higher per point than larger contracts. By the time you add in closing costs and dues reimbursement (which will add $6-$8/point and $4.50/pt respectively) I think you would end up paying more for a 25-point contract on the resale market than if you buy a 25-pointer directly from Disney while you are still a member.

I know you are trying to reduce spending not add on more obligations, but one thing to consider is that with a 25-point contract you will only pay about $115/year in dues but still be a full member of DVC and eligible for perks such as the $100 discount on APs.

 

[Sammy]

....I know you are trying to reduce spending not add on more obligations, but one thing to consider is that with a 25-point contract you will only pay about $115/year in dues but still be a full member of DVC and eligible for perks such as the $100 discount on APs.

Hi LisaS:

That's exactly what I was thinking.....thanks for the info. Our current contract was purchased through the resale market, so I had no idea there were no closing costs with Disney. Looks like I'll be making a little call to my guide this morning! We could definitely swing a small contract for now.

 

[kdzgon]

Hi LisaS:

That's exactly what I was thinking.....thanks for the info. Our current contract was purchased through the resale market, so I had no idea there were no closing costs with Disney. Looks like I'll be making a little call to my guide this morning! We could definitely swing a small contract for now.

Plus, no ROFR worries, which (IMO) usually adds to the price when buying small contracts resale. The trick is to add before you close, so good luck with your call today!