Question for all who bought RESALE

[NYmickey]

We are close to buying resale and are looking at our options as to what is out there. We are figuring budget and we are aware of the closing cost and their approximate costs but wondering are there other fees/costs that we will need to figure in as well. This may be a silly question but are there taxes that need to be paid?

 

[Sandisw]

When you buy resale, you will pay the contract price and possibly the closing costs and MF's.

Everything is negotiable when you make your offer, but those are what you should expect to pay. I have heard that there may be a broker who also charges an administration fee as well.

I bought (and have sold) through the Timeshare store. As a buyer, I paid for the contract price (I paid $2.00 less then asking), paid the closing costs, and then paid the 2009 MF's, since I bought in January. The closing costs and MF's added about $600 to the cost of the contract. I had to send in 10% down, and then the balance when we passed ROFR=we closed in about two weeks after passing ROFR.

Good luck!

 

[JimMIA]

There are some fees and taxes which are included in the closing costs, but no separate charges that you'd pay. The regular property taxes are included in the maintenance fees, which you may or may not have to pay.

A couple of things you should be aware of:

1. The costs due at closing can vary a LOT from broker to broker. GMAC, for example, charges a $195 "administrative fee" in addition to closing costs. What that supposedly covers is a mystery to most of us, and no other broker I know charges such a fee. Also, there is quite a bit of variation in the actual normal closing costs depending on the broker. By law, the broker is required to give you a full disclosure of all of the fees due at closing prior to the closing date.

2. Maintenance fees. Contrary to popular opinion, DVC dues (commonly called maintenance fees) are not in any way related to the allocation of points for a particular Use Year. Dues are paid on a calendar-year basis and pay for the expenses of your ownership from Jan 1 - Dec 31 of a particular year. They are billed in December and are paid in January.

The most accurate way of allocating MF's is prorating by the amount of the calendar year remaining, which is the way DVC does in direct sales. So, if you closed on July 1, 2009, you would pay 1/2 of the 2009 dues.

Very often, however, the negotiations include the purchaser paying the MF's of whatever current year points are still available in the account. Conversely, if some or all of the points have been used, purchasers typically do NOT pay the MF's for those points. In this scenario, typically MF's are NOT paid for banked points -- those are just deal-sweeteners.

As stated above, EVERYTHING in a resale is negotiable, so what you pay depends on what you negotiate.

Finally, the allocation of all these costs is not the most important thing in a resale. The most important thing in a resale is to pay a per-point price that is high enough to pass ROFR. If you don't pass ROFR, nothing else matters because you lose the contract.

Good luck.

P.S. We have also purchased from The Timeshare Store and enthusiastically recommend them.

 

[bangzoom6877]

We purchased our DVC resale through Jaki and ****. You can find their website online. They were a pleasure to work with, we told **** exactly what we wanted (150 points at BWV with a certain amount of points remaining in the current year, April Use Year). He found it for us very quickly. Even if something is not listed on their website, they have other listings in addition to those, plus they also find listings from other brokers.

The only fees you would have to worry about in addition to the resale cost are closing and maintenance fees. Maintenance fees are negotiable in your purchase.

Keep this in mind as well...Disney has the right of first refusal (ROFR as termed on these boards). That means that if Disney feels the offer you made and the seller accepted is too low, they will step in and purchase the membership at that price, and you start the process all over again. **** guided us as far as the safe amount to offer per point and it worked out. I have also heard good things here about the Timeshare Store. They too will guide you as to what an appropriate offer is for the contract you are interested in buying.

Good luck and enjoy! I know we are glad we bought a DVC membership, and we are looking forward to our first trip home next July!

 

[NYmickey]

Thank you all so much. You have been so helpful. I only hope that our experience is a smooth as yours. I just want to have a good idea of what the end cost is going to be. I'm so excited!!! But I will be even more excited when the whole process is successfully done and I can take a deep breath and know I own a piece of the magic for many years to come!

 

[Stevegriswold]

Hi,

When we purchase we ask the owner to pay ALL closing costs and fees. So we offer just the amount for the DVC points and ask the seller to pick up everything else. This also allows you to offer a little bit more for the price per point if you are worried that the price is so low that Disney might buy the contract during ROFR.

Steve

 

[Disneypirate85]

Like Steve said ask the seller to help out on the costs involved its all OBO...We used The TimeShare Store and were very pleased....Shawn