Researching re-sale, how much extra money will I need upfront?

[rusafee1183]

I am starting to look into resale, and I don't want to be surprised by the cost when it ends up being much more than I expect to pay.

In addition to the cost for your points, how much extra can I expect to pay at closing? I do understand that it varies with every agreement, but what all needs paid for?

I keep looking at contracts thinking "100 points at __ per point, OK I can swing that" but I don't want to be ambushed by all the additional costs and then waste everyone's time because I didn't account for everything and can't afford it.

And when you purchase resale, how do the MF's work? I have mine auto debited monthly from Disney, so will I be able to do that with a resale contract?

Thanks for any info!!

[thptrek]

On my upcoming transaction for 200 points I'm looking at about $700 in closing costs and I'm paying MF of about $950. It was explained to me that when you buy a resale contract that Disney wants this year's MF paid up in full at closing.

[amandaC]

Originally Posted by thptrek

On my upcoming transaction for 200 points I'm looking at about $700 in closing costs and I'm paying MF of about $950. It was explained to me that when you buy a resale contract that Disney wants this year's MF paid up in full at closing.

Same here-

My closing costs and MF are to be paid at closing. If you use Fidelity, there's an extra $195 fee which is non-negotiable- so look at then when you compare contract prices. You can always negotiate the CC and MF.

[rusafee1183]

Thanks for the info! I thought about closing costs and MF's, but I was unaware of the $195 Fidelity fee. That sucks! That was who I was leaning towards, so I will need to keep that in mind with pricing.

Thank you!!

[Dean]

Originally Posted by thptrek

On my upcoming transaction for 200 points I'm looking at about $700 in closing costs and I'm paying MF of about $950. It was explained to me that when you buy a resale contract that Disney wants this year's MF paid up in full at closing.

IF this is what you're being told, I think you're being misled. The mant fees are due in Jan. Some owners under certain circumstances may be able to spread those out over the whole year by having them deducted monthly from their checking. They are still the technical responsibility of the person who owns at the due date in Jan. Further, the dues due in Jan are to cover the upcoming 12 months, NOT the next UY. Depending on UY and assuming you only get the points for the upcoming UY, you're paying anywhere from 1 to 12 months of the previous or currently evaporating UY. $700 sounds high to me, I'm assuming that includes title insurance, an item I see as unnecessary for most DVC contracts, but even then it seems high.

Generally when you pay the current years dues, those are dollars back into the current owners pocket.

[rusafee1183]

Originally Posted by Dean

IF this is what you're being told, I think you're being misled. The mant fees are due in Jan. Some owners under certain circumstances may be able to spread those out over the whole year by having them deducted monthly from their checking. They are still the technical responsibility of the person who owns at the due date in Jan. Further, the dues due in Jan are to cover the upcoming 12 months, NOT the next UY. Depending on UY and assuming you only get the points for the upcoming UY, you're paying anywhere from 1 to 12 months of the previous or currently evaporating UY. $700 sounds high to me, I'm assuming that includes title insurance, an item I see as unnecessary for most DVC contracts, but even then it seems high.

Generally when you pay the current years dues, those are dollars back into the current owners pocket.

I only joined less than a year ago, and my MF's are auto debited every month so this still confuses me a bit.

I am looking for a Dec UY. Let's say that I find a contract now, and make an offer. Would I/Should I be responsible for current years MF's with a Dec UY at closing?

[Splashboat]

2013 points are 2013 points regardless of what month you have for a UY.

[Dean]

Originally Posted by rusafee1183

I only joined less than a year ago, and my MF's are auto debited every month so this still confuses me a bit.

I am looking for a Dec UY. Let's say that I find a contract now, and make an offer. Would I/Should I be responsible for current years MF's with a Dec UY at closing?

The main DVC resale companies will tell you that you get the points you pay the fees and if you work with them, you may have no choice. However, from a technical and cost standpoint, this is incorrect. The neutral position when you buy with only the points coming up the next UY is that you would pay the remaining months of the next UY times the total points for the year. So for a contract with only points starting in Dec 2013, you'd pay 1/12 of the current fees. You can adjust from there easily for current and banked points. Normally you don't pay any fees related to banked/borrowed points. Again, discussing the neutral position. I suggest you look at the overall package and decide what's best for you.

Originally Posted by Splashboat

2013 points are 2013 points regardless of what month you have for a UY.

IF you're referring to fees, that's definitely not the case as I addressed above.

[Splashboat]

Originally Posted by Dean

Further, the dues due in Jan are to cover the upcoming 12 months, NOT the next UY. Depending on UY and assuming you only get the points for the upcoming UY, you're paying anywhere from 1 to 12 months of the previous or currently evaporating UY.

Not sure where the confusion came in - that is exactly what you said.

[DizBub]

When we bought our 160 point resale contract last year we reimbursed the seller 2012 MFs. They had paid them in full in Jan. It just depends on what kind of deal you broker with the seller. We were ok with it because the contract came with all 2011 points and all but 19 points from 2012.

Plus, since we already had auto-deduct MFs with our older contracts I wrongly assumed they would bill me the same way. They will but you have to call and set it up.

[Dean]

Originally Posted by Splashboat

Not sure where the confusion came in - that is exactly what you said.

Maybe I misunderstood your post. What I read you as saying was that if you get the 2013 points you pay the years fees. If I misunderstood, I truly apologize.

[Splashboat]

No problem - I thought I was reiterating what you said but I might just have made the op more confused.

[DannysMom]

Originally Posted by DizBub

When we bought our 160 point resale contract last year we reimbursed the seller 2012 MFs. They had paid them in full in Jan. It just depends on what kind of deal you broker with the seller. We were ok with it because the contract came with all 2011 points and all but 19 points from 2012.

Plus, since we already had auto-deduct MFs with our older contracts I wrongly assumed they would bill me the same way. They will but you have to call and set it up.

And illustrating that in resale all is negotiable, last summer I bought 200 Feb UY BCV points, all 200 2012 included, ( plus 60 banked 2011 pts), NO 2012 MF reimbursed to seller. I did pay all closing costs.

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

[puffkin]

We just signed a 115 pt contract through Fidelity. I am paying all closing ($425 approx) and the seller is paying all 2013 MF. I am paying the $195...I just adjusted the price per point down to make up for that. Every thing is negotiable and I felt like Fidelity was much better with taking offers and negotiating.

[DizBub]

Originally Posted by DizBub

When we bought our 160 point resale contract last year we reimbursed the seller 2012 MFs. They had paid them in full in Jan. It just depends on what kind of deal you broker with the seller. We were ok with it because the contract came with all 2011 points and all but 19 points from 2012.

Just to add that since they wanted reimbursement for 2012 MFs they did take a lower purchase price and that made up for the MFs. It's all negotiable.

We pretty much decided how much we wanted to pay total and crafted an offer to achieve that.

Originally Posted by DannysMom

And illustrating that in resale all is negotiable, last summer I bought 200 Feb UY BCV points, all 200 2012 included, ( plus 60 banked 2011 pts), NO 2012 MF reimbursed to seller. I did pay all closing costs.