Questions about selling one of 5 contracts

[bababear_50]

Mods I truly need advise here and this is not an ad for sale .

Ok I have 5 contracts and am thinking of downsizing to 4.

I know I will lose 10% as a Canadian.

I'm not sure what the going rate is for the broker?

I am not sure how this will effect my next two vacations-already booked -Jan and March 2012.

I have no points available on any of the contracts until 2013.

Who pays for closing costs?

What do I need to know before doing this and tips would be appreciated.

Thanks and Hugs
Mel

 

[backyardponder]

I'd suggest contacting one of the companies specializing in DVC resale and ask them. The Timeshare Store, who sponsors these boards, is a great company to work with. There's also others out there.

 

[chalee94]

I'm not sure what the going rate is for the broker?

10% to 12% has been the going commission rate. not sure if that has changed as contract values have fallen.

I am not sure how this will effect my next two vacations-already booked -Jan and March 2012.

you cannot sell a contract until all trips using pts from that contract have been completed. if you do sell the contract now, any trips using pts from that contract will be cancelled.

I have no points available on any of the contracts until 2013.

you should naturally expect that to lower the value you will receive for the contract. i wouldn't want to pay annual dues for 2012 without getting any pts for that year...

Who pays for closing costs?

typically the buyer. but it's completely negotiable.

 

[bababear_50]

Thanks guys
I appreciate the response,,
I put a call into a few brokers and now have to decide which one to sell.

Thanks

Hugs Mel

 

[Buckeye Fan]

The other things you may want to discuss with the folks you contacted is if it's an exclusive listing or not. Two of the three brokers I contacted said I could list with as many brokers as I'd like, and that they would only collect a fee if they sold the contract. Other brokers require that you list solely with them.

Good luck selling your contract!

 

[Sandisw]

You can also list a contract now, even with a pending reservation, but have it listed as a delayed closing.

I did this. I put a contract up for sale in April with an August reservation. The broker suggested that I do it since there are people that don't mind buying this way.

It was a small contract but I got an offer in 24 hours, even with the delayed closing. It went to ROFR right away, passed in about 21 days, and then we simply waited until my trip was done. The day we returned, they closed the contract and it was transferred to the new owners. We got our payment shortly after that.

So, this is certainly an option for you as well. Good luck!

 

[JimMIA]

I know I will lose 10% as a Canadian.

I'm not so sure that's true, but the brokers who specialize in DVC can tell you for sure. I was under the impression that 10% of the proceeds are withheld from foreign sellers in case you own US taxes on the transaction, and that if no taxes are due, you get that money back.

Check with the Timeshare Store. They deal with this stuff every day and will know exactly what the situation really is.

 

[logan115]

I recently sold a contract with no points until 2013. Sold a 160 pt SSR contract for $59, but provided the buyer with a credit of approximately $4.50/pt as they will pay the 2012 dues but won't have any 2012 points.

You can sell a contract even though you still have an existing reservation, however as someone pointed out, you cannot close until the reservation has occurred.

Good luck,

Chris