Purchasing two contracts vs. one

[lovethesun12]

Hello all! Thanks for answering all my questions. I've had a lot lately, and still have a few more

1) Are closing costs generally higher if you purchase 2 contracts vs. 1 (i.e., will the closing costs for two 100pt contracts be higher than for one 200pt contract)
2) If the answer to the question above is yes, if you purchase two contracts together from the same resale site at the same time, is it possible to save on closing costs if you combine them into the same membership?

Thanks in advance =)

 

[zakdavid]

Hello all! Thanks for answering all my questions. I've had a lot lately, and still have a few more

1) Are closing costs generally higher if you purchase 2 contracts vs. 1 (i.e., will the closing costs for two 100pt contracts be higher than for one 200pt contract)
2) If the answer to the question above is yes, if you purchase two contracts together from the same resale site at the same time, is it possible to save on closing costs if you combine them into the same membership?

Thanks in advance =)

Howdy! If you are buying direct or resale you essentially need to pay closing costs on each contract regardless of whether they are the same membership or not. They are separate deeds, so they are separate transactions.

 

[Momtomouselover]

How are closing costs calculated? If buying direct is there a set price?

 

[Sandisw]

Direct is not a set pricebut Based on contract size..

 

[lovethesun12]

Howdy! If you are buying direct or resale you essentially need to pay closing costs on each contract regardless of whether they are the same membership or not. They are separate deeds, so they are separate transactions.

Thanks! This is why I'm really confused. I was looking at an online calculator for closing costs. I was looking at two contracts. When I estimated the closing costs on one contract, it was $556. When I estimated the other, it was $558. When I enter them both together, It's $579.55, which is about the price I was quoted? I would have expected it to be higher..

 

[zakdavid]

Thanks! This is why I'm really confused. I was looking at an online calculator for closing costs. I was looking at two contracts. When I estimated the closing costs on one contract, it was $556. When I estimated the other, it was $558. When I enter them both together, It's $579.55, which is about the price I was quoted? I would have expected it to be higher..

When you put them together do you mean if it was just all the points in one? When you buy two contracts there's no way to merge them into one contract. A lot of the closings costs are things likes fees to record the deed with the comptroller, that would need to be paid twice.

 

[lovethesun12]

When you put them together do you mean if it was just all the points in one? When you buy two contracts there's no way to merge them into one contract. A lot of the closings costs are things likes fees to record the deed with the comptroller, that would need to be paid twice.

Yes. I input one contract and got the first closing of $556. Then I tried the second, and got $558. So basically, if I purchased one contract I would pay around $556, then later purchased the other I would pay $558, so going that route in total I would pay $1114 in closing costs.

So I would expect if I close on two contracts at the same time I should pay around $1114. But the quote was much less, just a little higher than what I would expect to close on one of the contracts.

I just asked in case someone knew the quick answer but I'm pretty sure I must have missed something. I'm just going to run through the calculations again.

 

[zakdavid]

Yes. I input one contract and got the first closing of $556. Then I tried the second, and got $558. So basically, if I purchased one contract I would pay around $556, then later purchased the other I would pay $558, so going that route in total I would pay $1114 in closing costs.

So I would expect if I close on two contracts at the same time I should pay around $1114. But the quote was much less, just a little higher than what I would expect to close on one of the contracts.

I just asked in case someone knew the quick answer but I'm pretty sure I must have missed something. I'm just going to run through the calculations again.

If it helps see attached a screenshot of one of my resale contracts that lists out what the closings costs are. This was for a 150 point at the Poly. Look under title charges and recording fees.

 

[lovethesun12]

If it helps see attached a screenshot of one of my resale contracts that lists out what the closings costs are. This was for a 150 point at the Poly. Look under title charges and recording fees.

Thanks so much! That was so helpful. I think 1 of 2 things are happening. Either A) I'm only being quoted to be charged once for the closing fees (quoted as $350 on yours) to the title company or B) The amount I was quoted applies to both contracts and I thought it was just the entire cost (so I would have to double the amount). I guess I will see and ask some questions before I decide what I'm going to do =)

Thanks again!

 

[jerseygal]

We bought 2 separate identical contracts basically for estate planning purposes. Two sons and their families will each get an identical contract at AKV when we both pass if before contract expires. There will be no need to sell one contract etc so that each family can manage their own vacation planning, make reservations, pay maintenance fees, just easier!