Resale Closing Costs

[Dman67]

Hi gang! I just inquired on a small 50 point contract that GMAC had listed. I got a speedy reply, which was nice, but was shocked when I was told their closing costs and processing fee. For a 50 point contract the closing cost would be $625 with an additional $195 for processing. I thought that was an awful lot for such a small contract. The contract not withstanding, if you compare those numbers to the contact I am currently waiting on to close with TTS it seems like a crazy amount. TTS is only charging me $475 to close. Am I missing something here or is it just that GMAC is that much more expensive to go through on resales?

 

[JimC]

You get to pick the closing company. Use Timeshare Closing Services.

 

[Amy5000]

GMAC also quoted me a high closing cost for a smaller contract. The price they quoted was lower than the $625 they quoted you. I chose a different title company (who GMAC approved of). I called the title co (Timeshare Title and More) directly and asked about the fees. Here's the link.

http://www.timesharetitleandmore.com/

GMAC seemed fine with me choosing a title co w/ lower fees. They just wanted someone who "knows DVC."

Good luck.

 

[Waseller77]

For what it's worth, I am paying $425 in closing costs for 100 points with DVC By Resale...

 

[Dman67]

I am thinking about buying a 50 point contract for HHI from GMAC. But after talking with them about the closing costs, processing fee and commission I'm not so sure it's a good deal. The price per point is listed at $66 but when you add the closing cost ($625 - apparently closing costs in SC are higher than in FL), the processing fee ($195) and the commission ($330 approx. - 10% of sale price) the price per share is more like $89. If I'm not mistaken buying direct from Disney for an HHI contract (assuming they have one) would cost around $76 point with minimal closing costs. That appears to me to be the way to go on this deal.

 

[CarolA]

GMAC, makes the buyer pay commission? If that's true, they really have a racket going!

 

[Dman67]

GMAC, makes the buyer pay commission? If that's true, they really have a racket going!

Oh wait...you're right...I read the email from Jackie wrong. The Seller pays commission. My bad!

With that correction it now appears that a 50 point contract at HHI would be roughly $82.4 a point. That's a little better!

 

[Delaware Mike]

Oh wait...you're right...I read the email from Jackie wrong. The Seller pays commission. My bad!

With that correction it now appears that a 50 point contract at HHI would be roughly $82.4 a point. That's a little better!

Wow! I'm glad that's cleared up, because I've recommended GMAC to a lot of folks. I know they don't run a "racket."

So you can compare closing costs, we purchased a 120 pt SSR resale from GMAC. Our closing costs were $350.00, plus another $100.00 because we wanted a Title Search and Title Insurance (optional).

We were one of the last to purchase from GMAC before the $195.00 Administrative Fee was put in-place. With the Admin Fee, however, GMAC provides a better II membership than provided by DVC.

When I spoke with Jackie last week about a possible add-on (our GMAC Agent), I was told the fee can be negotiated to have the seller pay it.

Just FYI...

 

[Amy5000]

With the Admin Fee, however, GMAC provides a better II membership than provided by DVC.

Mike: What does that mean? (I'm a DVC newbie and a timeshare newbie)

My view was that I would be less likely to use GMAC as a seller since they charge the same 10% commission plus a $195 admin fee. As a buyer, well, if they have what I'm looking for then I can do my math and take it or leave it. Even if the seller pays the 195 fee, I still don't feel good about it...

Thanks in advance.

Amy

 

[CarolA]

I don't see how GMAC can give you a "better" II membership unless the truth is that "Admin Fee" is some kind of "fee to join" something with II. DVC is not going to let you trade differently because you purchased via GMAC. Sorry, but it's a RIP OFF.

I don't think as a buyer I would be interested in payin an extra $195 "admin fee" when I know at least two major brokers I have worked with don't charge it. So as a seller I won't list with them... I want to sell the points. not wait forever. (I am planning to list some points later this summer so that's not an idol threat, just a statement of fact)

 

[Delaware Mike]

I guess to each their own. Every opinion is respected here...

I personally didn't wait forever to get the contract I wanted, the points I wanted, the UY I wanted, and the price I wanted. GMAC worked out great for me and the seller from whom I bought.

 

[Dman67]

I'm going to email Jackie about this processing fee. If GMAC truly does have a way to get you better represetnation within Interval International then it may be worth it for those wanting to trade out every now and then through II. I'll let you know what she says.

Also, sorry if this seems like a sore subject to some. I am just looking out for the best deal, as we all should.

 

[Amy5000]

I personally didn't wait forever to get the contract I wanted, the points I wanted, the UY I wanted, and the price I wanted. GMAC worked out great for me and the seller from whom I bought.

Mike: I'm sure it did, but you also didn't factor the $195 fee into your transaction. I'm in the process of buying from GMAC right now b/c they had the contract I wanted. The seller agreed to pay the $195 fee but I can't help but feel like the seller's now paying a 12% commission instead of a 10% commission. If there was no ROFR I would say we should split that savings, but I don't know how much less I can pay and still get past ROFR. I guess I would stil prefer seller get the benefit. (I will acknowledge that it shouldn't make a difference to me as GMAC is giving me good service. But I also have seen good things said about the other brokers who specialize in the DVC resale market.)

This fee hits smaller contracts especially hard, and I'm concernd that if GMAC starts doing it then next thing you know the other brokers will start charging the fee and now the cost of resales will be higher.

Not sure why I'm so up in arms about this...I'm a newbie, not planning to go into business doing this.

just my thoughts...

 

[RobDoc]

...
We were one of the last to purchase from GMAC before the $195.00 Administrative Fee was put in-place. With the Admin Fee, however, GMAC provides a better II membership than provided by DVC. ...

This is NOT true. The only contact DVC members will have with II is thru MS - there is no separate membership available - only the corporate II membership held with DVC. Individual DVC members do not have an II membership and to suggest that it is available thru a resale broker is not true.

 

[Delaware Mike]

This is NOT true. The only contact DVC members will have with II is thru MS - there is no separate membership available - only the corporate II membership held with DVC. Individual DVC members do not have an II membership and to suggest that it is available thru a resale broker is not true.

I understand, Doc, however this is the information told to me by the agent.

Tell ya what..... I'll email my agent and post her response, just to be fair.

EDIT: I emailed GMAC and will post any response received. Until then, quoting from the letter received when our resale file was closed-out (post-closing): [GMAC] has begun charging a $195.00 administrative fee and along with the fee our buyers are receiving the complimentary Interval International Membership." The letter goes on to say my agent initially thought I qualified for this membership, but since I wasn't charged the administrative fee, I did not...

BTW, I don't believe I said it was for use WITH DVC points.

 

[CarolA]

See I think this is misleading. Disney won't let you trade those points out for anything but the "approved" resorts. So.... even if GMAC gives you an full membership you have nothing to trade.

 

[Amy5000]

[GMAC] has begun charging a $195.00 administrative fee and along with the fee our buyers are receiving the complimentary Interval International Membership." The letter goes on to say my agent initially thought I qualified for this membership, but since I wasn't charged the administrative fee, I did not...

Interesting. I wonder if I'll get a membership in Interval International, if it will go to Seller, or if we'll both get it? (Seller is paying admin fee).

 

[Delaware Mike]

See I think this is misleading. Disney won't let you trade those points out for anything but the "approved" resorts. So.... even if GMAC gives you an full membership you have nothing to trade.

My apologies, Carol, I wasn't trying to be mis-leading.

However, I don't believe I ever said it the complimentary II membership through GMAC was for DVC point trades.

 

[Dman67]

Hi gang! I just received a reply from Jackie at GMAC regarding their processing fee. Here's what she had to say...

This issue of our admin fee can be quite confusing even though administrative fees are becoming quite common in all types of real estate transactions. The admin fee is used by this brokerage to offset costs related to the transaction, including fed-ex and mailing fees, credit card processing fees, office expenses, and is also used to supplement the costs for our contracts department. International Properties GMAC Real Estate is one of the few resale brokerages that operates with the belief that a client is better served and protected by having an individual other than the sales associate oversee the transaction throughout the contracts process, and then act as a second set of eyes with the title company during the closing process. Because this contract person is not compensated in the form of commission from the closed sale, they are better able to protect both parties without any type of worry over potential lost income if the sale needs to be cancelled or postponed to protect the parties. We currently have eleven employees in our contracts department, and I don't know of any other resale brokerage that makes such a commitment.

This fee also helps make it possible for IPGMAC to sell so many small point deeds. Obviously, with a 10% commission structure- there isn't much money to be made on a 25 pt OKW sale! I always laugh when people tell me that other brokers don't even bother advertising small point contract listings. We even cooperate with outside brokers on Disney sales- splitting the commission earned between two offices! This is part of the reason why our sellers get so much exposure.

In regards to the Interval International VIP memberships, these are currently being given to buyers as a premium gift when applicable, but are not directly related to the admin fee. For resort systems such as Disney, Hyatt, Club Sunterra, etc. that have a corporate Interval International membership as part of their ownership- this gift cannot be applied as it would simply duplicate the benefits already in place. In transactions where a Disney buyer already has a separate membership (for example- a Disney owner who also owns a Marriott resort and has the DVC Corporate and a second personal membership) we would add a year extension to their personal membership as a thank you for buying from us!


There ya have it ladies and gentleman!

 

[JimC]

Before you do a deal with GMAC do a BBB search and a check on the broker's license.

BBB

GMAC Realty BBB report

Florida RE licensing portal