Seller ??ALWAYS?? Pays Closing Costs?

[Lothlórien]

According to a rep I spoke to at Fidelity, the seller always pays the closing cost. Is this true or is this a suggestion?

When I questioned, she made it sound as if it is not an option. The seller pays all of the fidelity fees, closing fees, all dues through the date that points are available for use and application fees for both parties. Basically, she is suggesting I pay them to take my contract. She said this is customary and how all sales work.

 

[KAT4DISNEY]

No. Seller pays the commission. Everything else is negotiable and more often than not the buyer pays closing, although not always.

I'd personally never sell thru a Fidelity, especially if that is the info you've been given.

 

[Lothlórien]

No. Seller pays the commission. Everything else is negotiable and more often than not the buyer pays closing, although not always.

I'd personally never sell thru a Fidelity, especially if that is the info you've been given.

Somebody suggested I sell outright and avoid a place like that or even DVC Resale, but when I called MS they told me I had to use Fidelity. I didn't think that was right, but I gave them a call anyway. I would prefer to sell outright, but I need to dig into that and find out what I need to do.

 

[KAT4DISNEY]

Dvc just has a broker they recommend. It isn't required you use them. Selling on your own is doable I'm sure but someone else will need to help with that.

 

[suebeelin]

I've bought from fidelity twice. Once the seller paid for closing, buyer paid maint fees and admin fee. The other time buyer paid all costs (closing, admin fee, maint fees).

Everything is negotiable.

Fidelity is a place I would buy through, but wouldn't sell through.

 

[ColinBlair]

Somebody suggested I sell outright and avoid a place like that or even DVC Resale, but when I called MS they told me I had to use Fidelity. I didn't think that was right, but I gave them a call anyway. I would prefer to sell outright, but I need to dig into that and find out what I need to do.

When was this? There has been talk for awhile that Fidelity had lost their status as the reseller that Disney sent people to. If this is recent, either that wasn't the case or their status has changed. Just curious.

 

[sndral]

IME, sometimes people think they are communicating yet are misunderstanding each other.

According to a rep I spoke to at Fidelity, the seller always pays the closing cost. Is this true or is this a suggestion?

When I questioned, she made it sound as if it is not an option. The seller pays all of the fidelity fees, closing fees, all dues through the date that points are available for use and application fees for both parties. Basically, she is suggesting I pay them to take my contract. She said this is customary and how all sales work.

Not knowing any details, but based on what I've highlighted in pink, I wonder if there is money owed on the contract (eg: a loan that will need to be paid off) and the resale value of the points is too low to recover the amount owed on them plus the sales commission plus the application fee and the closing costs. In that scenario the seller who wants to get out from under the debt obligation may have to bring money to the table to close. It's sort of like all those people a couple of years ago who were upside down on their houses. The agent may have been trying to communicate that fact - that the points will not sell for a high enough price to cover the costs, in which case the seller would have to pay any extra. When I bought my contract through Fidelity a few years ago I agreed to pay closing and admin. fee, but I was paying a very low price per point and if I hadn't agreed to pay those things the seller would have owed money as they had borrowed money to buy their points and their loan needed to be paid off.

Somebody suggested I sell outright and avoid a place like that or even DVC Resale, but when I called MS they told me I had to use Fidelity. I didn't think that was right, but I gave them a call anyway. I would prefer to sell outright, but I need to dig into that and find out what I need to do.

Not sure why you were calling member services - seems that would be more an accounting dept. question, so it's possible the member services person wasn't familiar with how to sell your points as they typically are helping people in using their points. DVC used to refer people to Fidelity when people would call about getting rid of their contracts, but who knows if that's still the case. You are free to use any broker you want, or none at all.
Only Fidelity charged that extra $195 adm. fee when I bought, so I personally wouldn't go w/ them as a buyer unless I got a really good price on the points to make up for that extra $1-2 per point that I was paying for that fee.
Selling your DVC points is just like selling a house - most people find a broker/agent to take care of selling for them. You can sell it yourself, but most people prefer not to mess with ROFR, estoppel, title insurance & co.s and escrow accounts as well as paying off any loans secured by the points and of course recording title - all of which has to happen in Florida for the WDW properties.
There are several brokers who specialize in DVC resales, the Timeshare Store, a sponsor of this site, is one of about 4 or 5 brokers. The commissions charged by the brokers vary a bit w/ some brokers charging less than 10% commission lately.
Good luck in finding a broker that works for you, or braving the sell it yourself route.

 

[Lothlórien]

IME, sometimes people think they are communicating yet are misunderstanding each other.
Not knowing any details, but based on what I've highlighted in pink, I wonder if there is money owed on the contract (eg: a loan that will need to be paid off) and the resale value of the points is too low to recover the amount owed on them plus the sales commission plus the application fee and the closing costs. In that scenario the seller who wants to get out from under the debt obligation may have to bring money to the table to close. It's sort of like all those people a couple of years ago who were upside down on their houses. The agent may have been trying to communicate that fact - that the points will not sell for a high enough price to cover the costs, in which case the seller would have to pay any extra. When I bought my contract through Fidelity a few years ago I agreed to pay closing and admin. fee, but I was paying a very low price per point and if I hadn't agreed to pay those things the seller would have owed money as they had borrowed money to buy their points and their loan needed to be paid off.


Not sure why you were calling member services - seems that would be more an accounting dept. question, so it's possible the member services person wasn't familiar with how to sell your points as they typically are helping people in using their points. DVC used to refer people to Fidelity when people would call about getting rid of their contracts, but who knows if that's still the case. You are free to use any broker you want, or none at all.
Only Fidelity charged that extra $195 adm. fee when I bought, so I personally wouldn't go w/ them as a buyer unless I got a really good price on the points to make up for that extra $1-2 per point that I was paying for that fee.
Selling your DVC points is just like selling a house - most people find a broker/agent to take care of selling for them. You can sell it yourself, but most people prefer not to mess with ROFR, estoppel, title insurance & co.s and escrow accounts as well as paying off any loans secured by the points and of course recording title - all of which has to happen in Florida for the WDW properties.
There are several brokers who specialize in DVC resales, the Timeshare Store, a sponsor of this site, is one of about 4 or 5 brokers. The commissions charged by the brokers vary a bit w/ some brokers charging less than 10% commission lately.
Good luck in finding a broker that works for you, or braving the sell it yourself route.

I owe no money on the contract and dues are paid through the year. My contract was paid off 6 years early. I was very clear about where we stand financially. The lady asked a bunch of questions, so I hope she understood. LOL

I dialed 800.800.9800 and spoke with Member Accounting. I just typically refer to anything regarding my DVC membership Member Services. Just incorrect terminology on my part. Sorry for the confusion.

Thank you for the information regarding brokers. I think I am going to try to sell it myself. I don't want to pay a bunch of unnecessary fees to somebody else if I can handle it myself. We have sold a home ourselves, so I am hoping this will be close to the same thing.

 

[supersnoop]

Thank you for the information regarding brokers. I think I am going to try to sell it myself. I don't want to pay a bunch of unnecessary fees to somebody else if I can handle it myself. We have sold a home ourselves, so I am hoping this will be close to the same thing.

Since all sales must be submitted for ROFR, there is very little benefit to a buyer, and lots of additional risk, to cutting out the broker.

 

[msjprincess]

Since all sales must be submitted for ROFR, there is very little benefit to a buyer, and lots of additional risk, to cutting out the broker.

As a buyer, I agree. The only way I could see me buying without a broker is if it were from someone I knew.