New $500 Resale DVC Transfer Fee

[Sandisw]

Yeah I never understood why so many chooses NOT to use https://www.lttransfers.com/. They are cheaper and IMO just as good - or at least that’s my experience.

I used First American when I changed deeds to add my kids. It was who MA recommended.

I was in the process of buying RIv direct and wanted them on my Aug UY contract so it could be titled the same and be the same membership.

They were almost $300 more but because I was adding on, they pushed things through for me and it was only 2 weeks!

Unless you have a specific situation , it seems that they would be a good choice.

But, we also know that people have companies and agents that they feel go above and beyond and choose them.

 

[Patmcpsu]

I'll just add in some numbers. I believe that there are about 400 resale contracts recorded each month, give or take. So that's $2.5M total revenue for the year for doing existing work.

But for the sake of argument, let's say that $2.5 million is divided by the total number of DVC points. How much would that bring everybody's dues down?

AI estimates that there are ~100 million DVC points outstanding, so that would bring everyone's annual dues down by 2.5 cents per point. To put it another way, it would save somebody with a 150 point contract $3.75 per year in dues. Meaning that if they paid the $500 one-time fee for those "savings", the breakeven period would be 133 years.

And yeah, these are all back of the envelope calculations.

 

[Sandisw]

I'll just add in some numbers. I believe that there are about 400 resale contracts recorded each month, give or take. So that's $2.5M total revenue for the year for doing existing work.

We are seeing faster turn around times so it possible that they have decided to increase the staffing in that department to ensure these transfers happen quickly.

It has always been a frustration for how long it can take…

Now, we don’t have all the details, but if we start seeing this timeline become the norm with the new fee, then some may see it as a positive.

I will say that with a fee, it certainly gives buyers a reason to expect it to be faster and not take a month or more to transfer.

 

[Carouselofplanning]

I really do wonder if DVD is thinking this fee might drive people to handle their own transactions without brokers.

DVD is the one confirming state of contract and setting up the new account. So if push comes to shove, people can trim costs by creating ways for buyers and sellers to find each other without a broker.

View attachment 1029130

If you’re an experienced buyer and seller of DVC contracts then sure but if you are a first timer or would benefit from broker marketing then going it alone could be messy.

 

[RivShore]

I'll just add in some numbers. I believe that there are about 400 resale contracts recorded each month, give or take. So that's $2.5M total revenue for the year for doing existing work.

So somewhere around 1% of gross annual revenue, not a lot but not nothing.

one question that would help justify it would be the year over year changes. Has it gone from 100/month 5 years ago to 400 now? There must be a reason for suddenly doing it now and going from $0 to $500 all at once. Or it could just be some random dude in finance who had to explain increased cost in the processing department...hmm all the resale processes must cost something, let's blame them....one off hand comment on a variance report 6 months ago leads to a new FAQ and $500 fee today. I have seen very similar things happen in big companies, where the pressure to explain and remedy (mostly minor) variances from budget is great.

 

[Cyberc1978]

I used First American when I changed deeds to add my kids. It was who MA recommended.

I was in the process of buying RIv direct and wanted them on my Aug UY contract so it could be titled the same and be the same membership.

They were almost $300 more but because I was adding on, they pushed things through for me and it was only 2 weeks!

Unless you have a specific situation , it seems that they would be a good choice.

But, we also know that people have companies and agents that they feel go above and beyond and choose them.

Most ppl want cheap but fast and lt transfer perform well in those regards. They charge between $275-$450 for closing. However years back they didn’t provide title insurance don’t know about that today.

 

[VGCgroupie]

I really do wonder if DVD is thinking this fee might drive people to handle their own transactions without brokers.

DVD is the one confirming state of contract and setting up the new account. So if push comes to shove, people can trim costs by creating ways for buyers and sellers to find each other without a broker.

View attachment 1029130

I think this is how they always intended things to be. Not for there to be wide resale market like in the pre social media days.

 

[Genie+]

If you’re an experienced buyer and seller of DVC contracts then sure but if you are a first timer or would benefit from broker marketing then going it alone could be messy.

Yeah broker service is here to stay but with this new fee it is easier to cut them out of loop than DVD lol, especially if costs are a growing concern.

Just like people do with rentals, they could copy existing contracts to follow. The title insurance and DVD does the heavy lifting where verification is concerned. DVD confirms the state and existence of the contract and handles setting up the transferred ownership. The title insurance confirms it is free and clear of defects, forgeries, liens, etc and handles escrow.