High cost of selling!

[appleorchard]

We were planning on selling our BLT points and buying BWV instead, but--holy cow! 10% commission to sell through the Timeshare Store?? Even realtors charge only 6 %--am I missing something here?? And closing costs on top of that? We can't afford to sell--looking like we'll be keeping the points.

 

[AKVTiger]

10-12% is the going rate for commission on resales. It's a bit steep but you don't have many other options. The buyer pays closing cost and maintenance fees in most cases.

 

[Tiger926]

We were planning on selling our BLT points and buying BWV instead, but--holy cow! 10% commission to sell through the Timeshare Store?? Even realtors charge only 6 %--am I missing something here?? And closing costs on top of that? We can't afford to sell--looking like we'll be keeping the points.

We would love to sell SSR, and purchase BWV too, but will never be able to, due to what you mentioned above, plus, when we purchased our CDN exchange was high. Our SSR points cost us $123.00/point. Ouch! No selling for us - we've done very well with 7 month windows thus far though.

Good luck and hope you are happy with your points, Tiger

 

[Deb & Bill]

Actually, it's 10-12%. But most of the resellers are charging 10%. The amount being sold isn't nearly as much as a house, so they need to get something for their efforts.

 

[LisaS]

We were planning on selling our BLT points and buying BWV instead, but--holy cow! 10% commission to sell through the Timeshare Store?? Even realtors charge only 6 %--am I missing something here?? And closing costs on top of that? We can't afford to sell--looking like we'll be keeping the points.

You can't really compare the two commission rates since realtors are getting 6% of a very big number while The Timeshare Store is getting 10% of a much smaller number.

 

[Dean]

We were planning on selling our BLT points and buying BWV instead, but--holy cow! 10% commission to sell through the Timeshare Store?? Even realtors charge only 6 %--am I missing something here?? And closing costs on top of that? We can't afford to sell--looking like we'll be keeping the points.

Not only is the 10% of a smaller number, they have to work more to sell timeshares than houses overall. Some companies also have a min charge somewhere in the $1K range but none of the ones usually discussed here that I am aware of. If you already own BLT but prefer BWV, I wouldn't sell as you'll lose not only the 10% but another 10% or more below the lowest specials price. Plus you'd have at least one if not two closings to pay for. You'd be better off keeping the BLT and taking your chances at 7 months out or just adding a small amount of BWV points. IF you could find someone that owned at BWV interested in making a direct swap for BLT, you could do it for much less. If that is a direction you want to investigate email me directly and I can provide some additional suggestions on how to go about trying to find someone (TUG, Redweeks, craigslist, etc). You'll still lose the difference between the retail value and resale value and likely have to pay at least one closing but you'll save the 10% commission and may also save some of the $$$ difference in the per point sales/purchase differential.

 

[CarolMN]

The cost will be much lower if you find your own buyer and then hire a closing company to take care of the paperwork. However, that is a lot of work (IMO). TTS earns it money.

Even in better economic times, it's very difficult to sell without taking a loss if you've only held the membership a few years. I'm not at all surprised that you'd take a huge loss if you sold BLT to buy BWV right now. Things might look better in 4 or 5 years. In the meantime, for most times of the year, you can usually get a Pool/Garden room if you call right at 7 months and aren't afraid to waitlist. Hope that works out for you.

AKVTiger - The OP would probably have to pay closing costs on the BWV purchase as well as commission on the BLT sale.

 

[seashoreCM]

How much does it cost to book your points in a different resort each year, rather than sell?

You're at least fortunate that you own Disney points, which are popular. (I'm told that Marriott points are popular too.) Many timeshares and vacation club memberships can't even be given away since their annual or maintenance fees are personal liabilities.

Disney hints: http://www.cockam.com/disney.htm
.

 

[Jason@dvcstore]

We were planning on selling our BLT points and buying BWV instead, but--holy cow! 10% commission to sell through the Timeshare Store?? Even realtors charge only 6 %--am I missing something here?? And closing costs on top of that? We can't afford to sell--looking like we'll be keeping the points.

As AKVTiger stated the buyer typically pays the closing costs. With The Timeshare Store, Inc.® the seller will only be paying the closing costs if they accepted an offer to pay the closing costs or wanted to advertise as "seller will pay closing costs" to try and attract more buyers. Be advised that Disney does charge a $20 ROFR fee and a $50 Estoppel fee and the seller typically pays those expenses.

The Timeshare Store, Inc.® has tried to basically specialize in Disney (we sell some Marriott, Hilton, Vistana and Orange Lake) so we can offer a low commission of 10%. In the past we charged as high as 15%. I would caution listing your timeshare with any company that charges an upfront fee. The fee might be small but I have come across many sellers who listed with these companies only to find they never sold the property for them. In my opinion these companies seem to make their money on the front end and don't concern themselves with selling the properties.

Jason at The Timeshare Store, Inc.®

 

[backyardponder]

If you are concerned about commission fees, you probably also need to consider annual dues if you decide to sell BLT and buy BWV. For 2010, BLT is $3.78 per point, while BWV is $5.36. The charts for all resorts is at http://www.disboards.com/showthread.php?t=2355996.

 

[Sandisw]

I went through the same process last year. It was only a small contract, 50 points, but I really wanted to own only at BLT. I bought VWL to become a member so I could add on at BLT in smaller increments.

After only 2 months, I knew I really just wanted BLT and sold. I knew it meant a slight loss but am much happier. At first, I was going to simply handle the loss by replacing the 50 VWL with only 32 BLT (that is what I could buy with the check I received from the sale after commission and fees). I didn't (as I knew I would be buying them sooner or later). I had also gotten a trip out of the VWL contract before selling so that helped.

I don't know the size of the contract and the loss you would be looking at, but since BWV sells for around $20.00 less than BLT right now, you might be able to still end up with the same (if not more) BWV points than you currently own at BLT. And, if this is the case, you really haven't lost, but rather just paid more for BWV than others.

Of course, MF"s at BWV are more than BLT, but if having that 11 month window to book at the resort you know you want is important, that has to be considered as well. DVC is for the long term and over the next 10 - 20 years, will the loss you take now really be that much if it makes you happier?

Just a thought...good luck!!!

 

[lugnut33]

If he could find somebody to switch straight up with him, could he conceivably just do a title transfer with the other person? Just curious.

 

[CarolMN]

If he could find somebody to switch straight up with him, could he conceivably just do a title transfer with the other person? Just curious.

Still have to get ROFR waivers from Disney. You are still essentially doing a sell follwed by a buy. You can do the deed work yourself if you know what you are doing (there are still fees involved).

I do not think it would be very easy to find someone who wants to switch - BLT points are worth more than BWV points (on the resale market. Personally, I would not trade my BWV contract for a BLT contract, even if I got more BLT points than I have BWV points.) You would have to first find someone and then negotiate terms that are acceptable to both parties. Not easy, IMO.

 

[CarolMN]

As AKVTiger stated the buyer typically pays the closing costs. With The Timeshare Store, Inc.® the seller will only be paying the closing costs if they accepted an offer to pay the closing costs or wanted to advertise as "seller will pay closing costs" to try and attract more buyers. Be advised that Disney does charge a $20 ROFR fee and a $50 Estoppel fee and the seller typically pays those expenses.
....(snip).....

True, but the OP wants to sell and then buy. He would most likely have to pay closing costs on the BWV buy as well as the commission & other fees on the BLT sell, right?

I'm sure that is what the OP meant when he posted "And closing costs on top of that? "

 

[djh597]

I know someone who would most likely trade 160 BWV points for 160 BLT tower points, straight up.

 

[Sandisw]

I know someone who would most likely trade 160 BWV points for 160 BLT tower points, straight up.

Depending on the size of the contract, I think the OP can achieve this, an even swap of points, by just selling and re-buying (even given the commission and closing costs for the new contract).

To sell 160 BLT points, at say $100.00 per point, would net the seller around $14,300.

To buy 160 BWV points, at say $80.00 per point and paying closing costs, would cost around $13,300.

The issue is that those 160 BLT points, probably cost around $18,000 to start and that for some, is hard to deal with in terms of value.

In reality, this type of swap, would mean the person ends up paying $17,000 for BWV points, making the price per point $106.00. And, only the seller can decide if having BWV points is worth it for that price.

 

[Dean]

I know someone who would most likely trade 160 BWV points for 160 BLT tower points, straight up.

That is one of the issues with direct permanent trades, that there is a significant variation of valuation between the 2 parties. As long as both are realistic, it can be a win win. It's very easy to work out differences between total yearly points, points availability, UY and even different resorts if both parties are realistic.

Between BWV you're looking at roughly a $20 pp differential. Assuming the same UY and points availability, the BWV owner would have to pay the BLT owner roughly $4K on trading 200 points plus each would have another $275 or so closing though you could get that down as well with a little work on your own. The BWV owner could simply have added on 50 points for around the same out of pocket. While it's doable, I think it rarely makes sense to do any type of sell and rebuy UNLESS one is downsizing dramatically.

 

[soonertxmickey]

I am sure the experts may have already covered this in another thread but.,How difficult would it be to pay outside outside to acquire a small(50pt) contract? Would it still need to pass thru DVC? Could he save the commission and we would just use dvc to transfer?

Thanks for the info in advance.

SoonertxMickey

 

[CarolMN]

I am sure the experts may have already covered this in another thread but.,How difficult would it be to pay outside outside to acquire a small(50pt) contract? Would it still need to pass thru DVC? Could he save the commission and we would just use dvc to transfer?

Thanks for the info in advance.

SoonertxMickey

All sales / title transfers have to go through ROFR. No exceptions.

You don't have to pay a commission to a broker if you find your own buyer. But there are other fees to complete a sale, even if you do all that is required yourself without any outside help.

 

[Deb & Bill]

I am sure the experts may have already covered this in another thread but.,How difficult would it be to pay outside outside to acquire a small(50pt) contract? Would it still need to pass thru DVC? Could he save the commission and we would just use dvc to transfer?

Thanks for the info in advance.

SoonertxMickey

Any purchase must be approved by DVC. Whether through a large reseller or an individual.