Help me understand selling resale...PLEASE

[kkmauch]

I received some info from Timeshare Store today (thank you!) for listing our DVC property. Can someone help me understand the following:

Here is the situation:
$50 estopple fee
$20 ROFR fee
? closing costs ?
? commission ?
? maintenance fees ?

We have spoken for all 2011 and 302 of the 2012 points with booked vacations. We know we won't be able to close until our last vacation ends in November. But we do plan to list sooner.

Can someone walk me through all of this and what we can expect our profit to be once all fees and such have been taken out? Let's assume the above and show me your math so I can replicate with other price points please

 

[robert@dvcstore]

I'm glad you received the information to sell your DVC property. Give our office a call and we would be happy to answer your questions and give you an idea of the proceeds you would receive after the property sells and closes.

Robert

 

[kkmauch]

No issue calling Robert, just at work and looking for the answers on the sly since I can't just give your office a call while at my desk. Can anyone walk me through the math so I udnerstamd an estimate?

 

[hellerjw]

Since you will be listing what is referred to as a stripped contract (essentially no points available until 2013 UY) it will most likely sell for significantly less than a similarly sized contract with current or banked points.

Any buyer willing to purchase your stripped contract will most likely want additional concessions, like you paying all maintenance fees on the used 2011 points (if you haven't already) plus closing costs. A quick look at other contracts on the resale market leads me to believe the closing costs in your case will be around $600. The commission should be 10% of the selling price. Since we don't know yet what 2012 dues will be and therefore can't pre-pay them, I would expect the buyer to want an additional price reduction since they essentially aren't getting any meaningful amount of points until 2013.

You didn't mention if your contract expires in 2042.

The Timeshare Store can work up all the numbers for you and provide advice on what price to ask given your current situation.

 

[kkmauch]

Yes. Agreed. We know it is "stripped" and aren't expecting anything major. We're just using some of the cash for moving expenses. We are also really looking forward to owning at SSR because it is our favorite of the DVC resorts. Anyone on the math?

 

[Sandisw]

Here is how it might go:

310 with a selling price of $52--total price would be about $16,120. Commission and fees will bring it down to $14,400.

Deduct from that the 2011 MFs & 2012 MF's (if you pay them and not the buyer since you are using the points) and that would bring you just around $13,500.

Selling for less, leads less and if you negotiate anything else re: MF's, could lead a bit more.

Good luck!

 

[JWG]

Here is how it might go:

310 with a selling price of $52--total price would be about $16,120. Commission and fees will bring it down to $14,400.

Deduct from that the 2011 MFs & 2012 MF's (if you pay them and not the buyer since you are using the points) and that would bring you just around $13,500.

Selling for less, leads less and if you negotiate anything else re: MF's, could lead a bit more.

Good luck!

Given your other thread on wanting to sell and rebuy direct after moving. You can also plan to pay (under current pricing, which could change) $99 per point to rebuy those points direct.

310 x $99 = $30,690
Closting costs = $600ish

$31,290 - $13,500 = $17,790 net loss.
SSR is fairly easy to get 7 months out (less the THV). Obviously you need to do what you need to do, but you're essentially paying close to $18,000 to trade resorts and in "fees" to have cash up front for a move.

If you were to rent those 310 points at $11 per point, you'd get $3,410 each year you do so and not lose on the sale/rebuy.

 

[kkmauch]

Thanks everyone! I think we've got it figured out now!