Lottery Losers

[auntsue]

Why was I under the impression that the seller paid the closing costs? I thought that's why the price on the smaller contracts was so high, because the seller had to figure in closing costs and there weren't enough points to spread it around. So, you are saying that the buyer pays the price per point PLUS the closing costs? I think we'll wait for BCV.

 

[prplcrzy]

The seller does not pay the closing cost, they pay the commission on the points to the real estate agent. Just like you were buying a house. This is why smaller packages have higher resales, there is probably a minimum commission.

Jon, you hit the nail on the head. You need to determine the value of what you want to buy then negotiate a price you would be willing to pay for it.

Larger contracts have an advantage on the resale market -

They move slower than smaller ones do.

You can negotiate a good price if you do not care if there are current points available. You should not have to pay the dues on the current use year if there are no points available to use. If you buy a package from Disney you will pay the prorated use year dues for the current year even if you sell your points back for the current year in exchange for a more favorable price. If points are borrowed you can negotiate that they pay you the dues on the points that are borrowed from the next year. Do your homework, it's your money!

With Disney you do not have to pay closing costs, on the open market you do. With Disney you can get the use year you already have for your add on if you want. On the open market, if that is what you want that gives you a negotiating weakness as well as limits you to the contracts you may want to make an offer on, therefore limiting the flexibility in getting the best deal.

You have to make all of the decisions first decide which direction to go in and then get your calculator out and do some number crunching. Evaluate what is best for you and go after it!

By the way, why do you think Disney will buy back the Hilton Head and Vero points for $10 each and the Wilderness Lodge points for only $5 each??? And you still have to pay the dues!

Good luck to all and use that calculator that is sitting in the back of your junk drawer!!!

 

[Dean]

And that is why there are so few add on contracts available. $1500 is the usual minimum commission, closing min is usually $400. On a 50 point contract, that's $38 pp. Even if the seller gets the full DVC price but including closing, that only leaves them $37 return on their "investment". I bet there are far more people that would like to sell their add ons than their full contract but when they figure out the realitities, it's not worth it unless it's a real distress situation.

The tradtion is that the seller pays the sales commission and the buyer pays closing. The usualy timeshare tradition is that the buyer pays the years maint fee if they get the years usage and not if they don't. Sometimes you have the choice. Disney is an enigma in that, as prplcrzy pointed out extremely well, the yearly fees are tied to the year and not the points. That's why I get upset when I hear brokers say if you get the points, you need to pay the dues. It either means they are ill informed or worse, dishonest. This has been a problem even at some of the prominent DVC resale sites.