DVC Resale Commissions

[mdv1975]

I emailed the two big companies, but have not heard back...what is the standard commission charged by TTS?

I found some different info on the web that seemed to suggest the commission was between 10% and 30%.

Does anyone have direct experience they can share.

Hope this question is appropriate here, and also the mention of a competitor of the sponsor, TTS.

Thanks!

 

[JimMIA]

Unless they have changed recently, TTS charges 10%. I'm not sure what the others charge, but 30% would be nuts.

 

[jctwizzer]

Based on recent inquiries, I was quoted $1500 and $2000. No one mentioned percentages as a means of calculating commissions. Which means it can get pretty pricey for smaller contracts or values....

 

[Deb & Bill]

TTS is getting 10% from me. The contract said it was normally 12%, but they wanted to build up their inventory, so they lowered the price of the commission by 2%.

 

[mdv1975]

thank you all for the info

i agree on the 30% being outrageous - I was thinking of getting into the business!

jctwizzer - do you remember if those were flat fees or percentage based on you having a lot of points? Can you share the specific companies?

deb and bill - may i ask what you are selling and for how much? is it an open listing - ie, you can sell it elsewhere if you find a buyer? I read on one of the sites )I think TTS) they allow you to list in multiple places and let the best broker win.

 

[Deb & Bill]

We listed three contracts. We had a buyer for one of them the day it was posted. We had a buyer for the second contract about two days after posting. We don't have a buyer yet for the third and we are thinking about taking it off the website and keeping. All three were relatively small contracts.

 

[CarolAnnC]

Hope this question is appropriate here, and also the mention of a competitor of the sponsor, TTS.

Thanks!

The company name ***********s.com is in our word filter and not allowed on the boards. It is not because it is a competitor though. I have edited a couple of posts in this thread to remove reference to the above company. Please refrain from using spaces, etc., in order to place the banned name on our boards. Thanks everyone!

 

[Dean]

10% is the standard. Some companies also have a minimum that ranges from $695 to $1295.

 

[Terri2007]

10% standard?

Wow. Outrageous. I understand typical real estate - 6% total for both buyers and sellers commissions. These realtors generally work for their money. The time share companies really do not, particularly with DVC. They sit and make a few phone calls with an incredibly low marketing overhead... a website.

Sounds like a great racket. I just purchased...closed last week and hope never to sell, but if I had to I would try to find another option. Too bad there is nothing available on these boards. A good real estate attorney typically has standing negotiated agreements with title companies; DVC resale is really not that complicated (legally)....and other then providing a website for potential buyers to visit, you do not get much from the timeshare realtors to account for 10%....

Sheesh.

 

[Dean]

10% standard?

Wow. Outrageous. I understand typical real estate - 6% total for both buyers and sellers commissions. These realtors generally work for their money. The time share companies really do not, particularly with DVC. They sit and make a few phone calls with an incredibly low marketing overhead... a website.

Sounds like a great racket. I just purchased...closed last week and hope never to sell, but if I had to I would try to find another option. Too bad there is nothing available on these boards. A good real estate attorney typically has standing negotiated agreements with title companies; DVC resale is really not that complicated (legally)....and other then providing a website for potential buyers to visit, you do not get much from the timeshare realtors to account for 10%....

Sheesh.

I'd admit that on the surface it sounds high but when you figure that most timeshares never sell and that we're only talking $2000 on a $20K sale or $200 on a $2K sale, it puts things more into perspective. The 6% on a $200K house is the outrageous situation, should be more like 3% total.

 

[kmvand1]

I'd admit that on the surface it sounds high but when you figure that most timeshares never sell and that we're only talking $2000 on a $20K sale or $200 on a $2K sale, it puts things more into perspective. The 6% on a $200K house is the outrageous situation, should be more like 3% total.

Um - coming from a realtor herself, 6% is NOT outrageous. Especially in today's market where you are really working to sell a house and usually spending a lot of money on advertising,etc. that you may never recoup if the house never sells. Of course there are always a few FSBO's who try themselves to cut the commission out altogether and usually never sell their properties. Just my opinion.

 

[mdv1975]

I guess this is a bit off subject, but there is a disconnect between real estate agents and sellers in traditional real estate.

They are both right in my opinion. 6% is outrageous for a seller...Paying $12,000 of your equity on a $200,000 sale. Many times it erases any gains on the investment.

But the Realtor isn't getting rich either. 6% is traditionally split with the agent who brings a buyer - leaving the Listing agent with 3%.

That 3% is split again with their Broker...usually in half again, leaving 1.5%. So about $3,000 on the sale minus expenses.

I am the last one to defend realtors as I feel there are many who are less than fantastic. I just think we should all consider the real numbers.

6% is liked being robbed while sleeping if you are a Seller, and $3,000 to put up with average Seller and sell a home in this market isn't exactly winning the lottery.

The reason traditional real estate does not sell FSBO is because most Buyers use a Realtor to show them homes. And Realtors work for commission. And If I was on commission, I would only show homes that had guaranteed commission for me if I brought a Buyer. Thats why 90% of FSBOs fail.

I think 10% to the person selling a DVC feels like a ton. Especially if they are selling it because of drastic life changes, or financial needs. On the flip side again, 10% isn't going to get the resale agent into the Forbes 500.

If both feel like they are getting the bad end of the deal - it's probably the right number.

My two cents. Of which my agent gets 10%

 

[Terri2007]

Great replies both!

 

[Mtnman44]

6% can be very outrageous IMHO. I guess it depends on the particular house, the difficulty in selling, and how much effort / marketing the realtor actualy does. On a hypothetical $300,000 house average, that is an $18,000 commission. If the realtor spends three months selling each house, that means an annual pay of roughtly $72,000. Not too shabby most would say. And this is ONLY working one house at a time! What if they work three properties at a time? Ten?

As for TSS. I don't see why anyone would pay them more than 3% to sell a DVC. What do they do to get it sold? It's shooting fish in a barrell for them. They have buyers lined up on waiting lists for some contracts. The rest they simply place on the website and wait for the call. A 10% commission, compared to the "standard" 6% does seem like a real stretch to me. I know they are a board sponsor and it sounds like they are a great company in most respects and for some, it is worth it but I don't think I would ever pay 10% to sell. It's so easy to find a DVC buyer yourself with the internet, ebay, etc.

Um - coming from a realtor herself, 6% is NOT outrageous. Especially in today's market where you are really working to sell a house and usually spending a lot of money on advertising,etc. that you may never recoup if the house never sells. Of course there are always a few FSBO's who try themselves to cut the commission out altogether and usually never sell their properties. Just my opinion.

 

[Dean]

Um - coming from a realtor herself, 6% is NOT outrageous. Especially in today's market where you are really working to sell a house and usually spending a lot of money on advertising,etc. that you may never recoup if the house never sells. Of course there are always a few FSBO's who try themselves to cut the commission out altogether and usually never sell their properties. Just my opinion.

IMO 6% is outrageous overall. Maybe not on a low end property but it certainly is once you cross around $100k.As mvd points out, it's partly because the system is flawed and in large part responsible for much of the housing run up and to a degree, the current sLow down.