SERIOUSLY thinking of purchasing DVC...closing costs?

[jessirae]

Hi! After MUCH consideration (and countless trips to WDW with my mom's DVC membership...thanks mom!), I am seriously considering purchasing DVC. I've been reading posts, and am a bit confused about closing costs. If I buy directly through Disney, do I still have to pay closing costs up front, or do they fold that cost into the total price? I'm on the fence about going through Disney or re-sale. Closing costs are a BIG factor...

Any help/info/advice would be greatly appreciated!

Thank you!!!

 

[D-Trick]

You still have to pay closing costs when purchasing direct. It is not baked into the per point cost.

 

[jessirae]

Thank you!

 

[lovin'fl]

But closing costs are less with direct than with resale. You can use a Disney Chase Visa to pay down payment or all of the payment and then get rewards dollars which can help offset those costs. They also now charge a $195 contract fee on top of the closing costs but the total is still less, I believe, than resale closing costs (and there is at least 1 broker I know of that also charges that $195 fee).

 

[andycat]

There are some costs charged by third parties even when buying direct from Disney. The Orange County Clerk's office charges a fee to record the deed, so that's a requirement. When buying resale, the title company is going to charge to do a title search, estopel letter, and handling escrow. Still those are minimal when comparing the big difference in price between direct and resale.

 

[Networth]

You could always make resale offer that the seller pay closings costs or even half of closings cost, if they are that important in your decision.

 

[Jerry5788]

Hi! After MUCH consideration (and countless trips to WDW with my mom's DVC membership...thanks mom!), I am seriously considering purchasing DVC. I've been reading posts, and am a bit confused about closing costs. If I buy directly through Disney, do I still have to pay closing costs up front, or do they fold that cost into the total price? I'm on the fence about going through Disney or re-sale. Closing costs are a BIG factor...

Any help/info/advice would be greatly appreciated!

Thank you!!!

Just curious why is closing costs a big factor? The discount from resale more than cover the higher closing costs. Maybe I am thinking of it wrong and if so please let me know what I’m missing.

 

[disneynutz]

If closing costs are a big factor, then you shouldn't buy DVC. Owning DVC will cost you thousands and thousands of dollars for years and years. That is why Disney has DVC.

Bill

 

[jessirae]

Thank you! Yes, re-sale savings is so worth not worrying about closing costs. For some reason, I thought if I bought direct through Disney, they allowed you to fold the closing costs into the total price. I am leaning toward re-sale.

Thank you so much! I can always count on the DIS boards!

 

[Dean]

But closing costs are less with direct than with resale. You can use a Disney Chase Visa to pay down payment or all of the payment and then get rewards dollars which can help offset those costs. They also now charge a $195 contract fee on top of the closing costs but the total is still less, I believe, than resale closing costs (and there is at least 1 broker I know of that also charges that $195 fee).

It depends. They are usually more but don't have to be. LT transfers can be under $200 for many locations. Some can be a lot more, in the $850 range.

There are some other variables. Normally Title insurance is a wasted expense for a DVC purchase unless it's a foreclosure, divorce or international seller. Dues reimbursement can be a bigger difference than closing costs depending on the size of the contract and MOST people overpay in this area. One just needs to look at the overall situation and decide what's bst.

 

[kniquy]

Closing costs are a BIG factor...

The actual closing costs are only a small fraction of what your total purchase and long term cost would be. Something to strongly consider is the fact that the bigger cost of owning are the yearly increasing maintenance fees, that typically adds up to more than what your initial buy in was.

I thought if I bought direct through Disney, they allowed you to fold the closing costs into the total price. I am leaning toward re-sale.

When you say "fold into the total price" -- are you looking at financing the purchase? It is just like when you purchase a house - you put down a deposit on the property you want and if all goes well with the purchase you will have a closing which will list all the fees associated with the purchase (your contract price, any maintenance fees, title insurance, recording fees etc) and then they would come up with a final payment due to close, less the amount of your deposit.

So i'm still a little confused why you use the phrase "fold in the closing costs".

 

[lovin'fl]

The actual closing costs are only a small fraction of what your total purchase and long term cost would. Something to strongly consider is the fact that the bigger cost of owning are the yearly increasing maintenance fees, that typically adds up to more than what your initial buy in was.

When you say "fold into the total price" -- are you looking at financing the purchase? It is just like when you purchase a house - you put down a deposit on the property you want and if all goes well with the purchase you will have a closing which will list all the fees associated with the purchase (your contract price, any maintenance fees, title insurance, recording fees etc) and then they would come up with a final payment due to close, less the amount of your deposit.

So i'm still a little confused why you use the phrase "fold in the closing costs".

Yeah, I was confused too. As when I just bought CCV direct in July. They took my CC for deposit. Told me total cost after deposit (total cost is price per point buy in and closing costs and now also a $195 process fee). I also paid that with CC but if financed it would all go into loan (less deposit) and then you'd pay monthly payments. Annual dues are separate and can be lump sum payment in January or set up as monthly payments as well.