Purchasing resale - fees?

[meryll83]

Hi All,

When purchasing resale, are there any fees to be aware of?

I've read somewhere the standard closing fee is around $200 direct, is this the same with resale?

Any other fees that come with buying through an agency? Do I need any legal party at my end to be involved or is it just me dealing directly with the reseller?

Thanks in advance!

 

[chalee94]

I've read somewhere the standard closing fee is around $200 direct, is this the same with resale?

resale is a little higher. the amount depends on the broker (and DVC-hilton head (HHI) contracts often have an additional fee due to south carolina law).

the timeshare starts around $325 for very small contracts and goes up to $500-600 for larger contracts.

no additional representation on your side is needed. (in the U.S. anyway - you may want to check out the UK boards for differences there.)

 

[cfw213]

With Fidelity, the closing costs are $425 for a contract up to $10,000 (per Sharon at Fidelity). There are also additional closing costs if you use financing (We used TimeShareLending.net) - I believe it was around $175.

 

[meryll83]

Thanks both - is there a list of recommended resellers somewhere?

 

[permavac]

Don't forget about current year maintenance fees. The standard operating procedure by the timeshare resellers is to charge the buyer for the current use year maintenance fees - unless you negotiate otherwise. I am not sure how Disney handles this. Does anyone know if Disney charges you MFs for the points you get in the current use year if you buy direct? I am pretty sure it is no...

Terri

 

[drusba]

Don't forget about current year maintenance fees. The standard operating procedure by the timeshare resellers is to charge the buyer for the current use year maintenance fees - unless you negotiate otherwise. I am not sure how Disney handles this. Does anyone know if Disney charges you MFs for the points you get in the current use year if you buy direct? I am pretty sure it is no...

Terri

Disney charges you the pro rata share of the annual maintenance fees for the period from the date you enter into the contract to purchase (not later date of closing) till the end of the year.If you do monthly withdrawal from checking account, your first payment will be due about one to two months after closing.

 

[permavac]

Disney charges you the pro rata share of the annual maintenance fees for the period from the date you enter into the contract to purchase (not later date of closing) till the end of the year.If you do monthly withdrawal from checking account, your first payment will be due about one to two months after closing.

Thanks for this. At some point I was planning on picking up 25 BCV points and probably direct through Disney since they are so hard to come by. I need to re-work the numbers now to see if it is still worth it...

Terri

 

[ELMC]

Thanks both - is there a list of recommended resellers somewhere?

There are four major resellers, one of which is The Timeshare Store who is an official sponsor of these boards. You can find them by clicking on the banner on top of any page here. The other three you can find by googling "DVC resales".

Keep in mind a few things...closing costs and maintenance fee reimbursement are negotiable and do not necessarily need to be paid by you. It will make things smoother if you offer to pay them, but it's not a given. Also, as a foreign owner, if you ever decide to sell your DVC contract you will have to pay a 10% tax to the US government. That's a hidden fee down the line that you might want to consider.

Good luck in your search!

 

[drusba]

There are four major resellers, one of which is The Timeshare Store who is an official sponsor of these boards. You can find them by clicking on the banner on top of any page here. The other three you can find by googling "DVC resales".

Keep in mind a few things...closing costs and maintenance fee reimbursement are negotiable and do not necessarily need to be paid by you. It will make things smoother if you offer to pay them, but it's not a given. Also, as a foreign owner, if you ever decide to sell your DVC contract you will have to pay a 10% tax to the US government. That's a hidden fee down the line that you might want to consider.

Good luck in your search!

It is not a 10% tax for sales by internationals of US properties. It is a 10% withholding from the sale proceeds to assure that the international pays any capital gains taxes on the sale. The actual tax is currently 15% on the actual gain which gain is determined by sale price minus initial purchase price and minus allowable costs of sale such as brokerage fees. If that person submits the proper tax forms and pays that tax (which for timeshares is often zero because you don't make a profit off the sale), he gets back the 10% withheld.

 

[ELMC]

It is not a 10% tax for sales by internationals of US properties. It is a 10% withholding from the sale proceeds to assure that the international pays any capital gains taxes on the sale. The actual tax is currently 15% on the actual gain which gain is determined by sale price minus initial purchase price and minus allowable costs of sale such as brokerage fees. If that person submits the proper tax forms and pays that tax (which for timeshares is often zero because you don't make a profit off the sale), he gets back the 10% withheld.

Thanks for giving a better explanation of my oversimplified statement. From now on I'll use the word "withholding" to try to be more clear.

 

[Jason@dvcstore]

Hi All,

When purchasing resale, are there any fees to be aware of?

I've read somewhere the standard closing fee is around $200 direct, is this the same with resale?

Any other fees that come with buying through an agency? Do I need any legal party at my end to be involved or is it just me dealing directly with the reseller?

Thanks in advance!

I can only speak for The Timeshare Store, Inc.®. Below describes the cost associated when buying from The Timeshare Store, Inc.®.

All Disney Vacation Club transactions involve three costs. The purchase price, closing costs and annual dues.

Closing costs run from $322 to $825 (if sales price more than $40,501, ask associate). Closing costs include a title search, estopple information from DVC that shows any outstanding liens, and deed recording. Any outstanding monies owed by the seller will be paid from his/her proceeds. Disney has the first right of refusal on all contracts.

The approximate annual dues per point for 2012 at each resort are: Bay Lake Tower $4.23, Grand Californian $4.33, Aulani, Disney Vacation Club Villas $5.97, Saratoga Springs $4.74, Old Key West $5.21, Animal Kingdom $5.44, Beach Club Villas $5.51, Wilderness Lodge $5.61, Boardwalk Villas $5.62, Hilton Head $5.93 and Vero Beach $7.12. All include real estate taxes. If a buyer is getting points (regular points) for the current use year (2012) they are purchasing they will be responsible for the annual dues on those points (unless the seller has the property advertised as no annual dues until 2013). The buyer will pay those dues in one lump sum at the time of closing and that will cover their annual dues until January 2013. In 2013 the buyer will have the option of paying them in one lump sum or monthly with Disney. If the buyer is not getting points until the 2013 use year then they would not have any dues until then.

I hope that helps.

Jason Erpelding
Lic. Real Estate Broker Associate
From The Timeshare Store, Inc.®

 

[Dean]

Thanks for this. At some point I was planning on picking up 25 BCV points and probably direct through Disney since they are so hard to come by. I need to re-work the numbers now to see if it is still worth it...

Terri

The proper neutral position on fees is the same that Disney would charge but as noted, all is negotiable. Disney prorates fees based on when the points are available and UY. Dues are paid on a calendar year basis as well and NOT on a UY basis. Almost everyone who buys resale overpays on dues for all but the most loaded of contracts. The "you get the points you pay the dues" is simply, completely and absolutely incorrect and no one can defend it. However, it's the way the usual suspects do things so one has to decide where to play and to look at the overall situation. Frankly I'm not sure why they do it this way other than that Disney is the only system I know of that does dues on a calendar year basis rather than a UY basis so they'd have to alter their stance for this one option. That's less understandable for those that specialize in DVC than those that are heavily involved in other timeshares. Put another way, if you bought a contract on 1 Jan with an August UY and no current points but all points coming in August, you'd be over paying by 7/12 if you paid the entire years dues.

 

[meryll83]

Am I right in thinking that buying resale means you'll have less years remaining than if you bought new?

I don't seem to see any mention on the resale sites as to what year the deal ends?

 

[pangyal]

Am I right in thinking that buying resale means you'll have less years remaining than if you bought new?

I don't seem to see any mention on the resale sites as to what year the deal ends?

The contracts end at the sale time, as the contracts are the same length regardless of whether you buy direct or resale. The difference is by resort, not by seller. So, for example, a BCV contract will end in 2042 no matter where you bought it, and the same goes for VGF in 2064 .

 

[chalee94]

Am I right in thinking that buying resale means you'll have less years remaining than if you bought new?

I don't seem to see any mention on the resale sites as to what year the deal ends?

yep, all contracts end at the same date whether purchased resale or direct. the only current difference is the ability to trade out for disney hotels and a few other deluxe resorts - resale pts can still be exchanged for other RCI timeshare weeks, for example.

the only confusing issue is that some OKW resales were extended to 2057 while most still expire in 2042. all direct sales of OKW contracts end in 2057.

knowledgeable resale brokers will tell you what the expiration dates are:

http://www.dvc-resales.com/faq.htm#6

HOW DO I KNOW HOW MANY YEARS ARE LEFT ON EACH LISTING?

The Vacation Club Resort listings except those at Saratoga Springs, Animal Kingdom and Bay Lake Towers end the same day - January 31, 2042 (Old Key West*, Boardwalk Villas, Beach Club Villas, Villas at Wilderness Lodge, Vero Beach Resort and Hilton Head Resort.) Saratoga Springs memberships end on January 31, 2054, Animal Kingdom Listings end on January 31, 2057, Bay Lake Towers listings and The Villas at Disney's Grand Californian Hotel® and Spa end end January 31, 2060. *Some Old Key West listings end 2057 and those are clearly marked.

this is a typical OKW resale - it ends in 2042:

http://www.dvc-resales.com/detail.cfm?ID=OKW100-02-0402

this is what an extended OKW looks like:

http://www.dvc-resales.com/detail.cfm?ID=OKW2057100-04-0325

 

[HookdonWDW]

Has anyone ever gotten a definitive answer to what would happen if someone was to buy an OKW contract that expires in 2042 and pay for the extension - would those points change from resale to direct purchase?

 

[disneynutz]

Has anyone ever gotten a definitive answer to what would happen if someone was to buy an OKW contract that expires in 2042 and pay for the extension - would those points change from resale to direct purchase?

I doubt that even Disney knows what they intend to do. The OKW extension was a total mess from start to finish.

Bill

 

[dsnydaddy]

Don't forget about current year maintenance fees. The standard operating procedure by the timeshare resellers is to charge the buyer for the current use year maintenance fees - unless you negotiate otherwise. I am not sure how Disney handles this. Does anyone know if Disney charges you MFs for the points you get in the current use year if you buy direct? I am pretty sure it is no...

Terri

While I knew that I was on the hook for current year MF and closing costs, What I didn't realize that I couldn't wrap those fees into my loan. Not a big deal I just had to out of pocket a bit more than I thought I would. Had I known that I might have negotiated my purchase prices and terms a bit more aggressively.