is it common for a seller...

1911

DIS Dad #856
Joined
Apr 6, 2014
to ask the buyer to pay the dues for the points left on a contract at the time of sale? I have seen this a lot in listings.some are just for the current use year others have wanted dues for the banked points from the previous year also.
 
very common as long as the points would be usable for you. So if the contract has current points, but it is close to or after the banking period and will then expire soon after you take control of the contract then I would vote "no" to paying the MF. But if a seller knows what they are doing they will have banked those points. They have essentially already paid for those MF at say a rate of ~$6+/- pp, so they are looking to get back that money. Everything is negotiable so it certainly is on the table for discussion.
 
It's all negotiable and in the end, what matters to a buyer should be the total paid.

Some will agree to pay dues & closing costs and then offer a lower ppp to the seller. ( A more savvy seller may even prefer this as ppp determines the amount of commission the seller will pay. But again, it's all negotiable.
 


Whether I was buying or selling, I've always been of the mind that the one who uses the points pays the fees. Seems only fair but as stated above, all is negotiable.
 
It seems to me that it used to be pretty common to pay MFs for current years points, but uncommon to pay for previous years banked points. Then one of the newer brokers started asking for MFs for banked points. Personally that’s a bridge too far for me, as by the time I can use those banked points it would probably be well w/in the 11 or even 7 month booking window thus they had less value in my mind.
That said, I just compared total price for the points, so it didn’t matter to me what we called what I was paying, what mattered was the total price - for example:
Contract = 100 banked points + 100 current points + 100 next year points
Broker A wants $104 per point + current year MFs of $6 per point = total price of $110 per point.
Broker B wants $100 per point + current & banked MFs of $6 per point = total price of $112 per point.
Broker C wants $108 per point no MFs = total price of $108 per point.
W/ direct sales DVC doesn’t even want full MFs for this years points - they prorate them.
 
to ask the buyer to pay the dues for the points left on a contract at the time of sale? I have seen this a lot in listings.some are just for the current use year others have wanted dues for the banked points from the previous year also.
It's common to reimburse for current fees on points you get and rare for banked points, unfortunately this practice almost always means you'll overpay in this area. I can't say why the resale companies think it's standard but the reality is it's effetely money in the sellers pocket. If you understand what you'd pay on those points IF you were buying retail, you'll understand what you should be paying. Dues are paid on a Calendar year basis so if you bought 100 points with a Dec UY with all 2018 points but no current points and reimbursed for the years dues, you just overpaid by 11 months. Here's why, the dues paid this past Jan were for 11 months of the 2017 UY and only ONE month of the 2018 UY. Thus when you reimburse the full amount then pay the dues in Jan, you just double paid for 11/12 of the 2018 points. That is fact and absolute.

But since the resale companies default to the standard timeshare spiel and treat them like a weeks purchase, you just have to decide the overall savings and reality you may overpay in one area (dues, closing, etc) for the larger good. That's one of the reasons a fully loaded contract is the best value resale because not only are you minimizing this issue, you aren't losing on lost points in the future. A lost point that you can use has a value, that value is what you could rent it for minus what you'd pay in dues. That's around $13 per point for non restricted points that are current or future and less for banked or restricted points (like holding account).
 


Everything is negotiable. The seller wants to get the most for what they are selling and the buyer wants to pay the least.
The art is finding a compromise that both parties are happy with.
With our contracts we found the price per point, closing costs and who pays the MF for banked points were all negotiable.
Good luck.
 
I asked the seller to pay all the closing costs as well as the dues for the year, and she did. My contract was for AKV, 272 points, December use year, not stripped, and I got it for $73pp. I think she was asking around $80pp. I made that offer, and it was accepted in February 2017. I fully expected to be laughed at, and was floored when it was accepted with no counter. I googled my seller, and she is a physician, so maybe she just wanted to be rid of it, and didn't care about the money? I don't know. I just couldn't believe my good fortune. Resales exploded right after that.
 

GET A DISNEY VACATION QUOTE

Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.

Let us help you with your next Disney Vacation!









Top