Closing cost question(Marriott)

[SpikeMauler]

Hi,
I just received a purchase agreement from G.M.A.C. sales for a Frenchman's Cove resale. It states the closing costs are approximately $1,500.I don't know who the closing company is, but I think it's an individual located on St. Thomas(I'll find out tomorrow). Are normal closing costs that much? I was quoted $700 to $850 from other brokers for the same property. Why is this one so high?
Thanks

 

[richardm]

Closing costs paid on recent purchase....

For a sales price at $27,000.

Closing costs;

$350.00 escrow fee
$250.00 title insurance policy
$25.00 resort transfer fee (no right of first refusal)
$540.00 transfer tax – 2%
$200.00 recording fees and tax clearance letter
------------

$1,365.00 total

The number you mentioned probably includes the $195. transaction fee to the brokerage. If your purchase price is less, you'll save a bit on the transfer tax but your other base costs will probably be the same.

The other estimates you've gotten probably are from resellers that aren't familiar with this property, and the island's required transfer tax.. Otherwise they are not including either a title policy, or possibly didn't include an escrow fee (which is basically the closing agent's profit margin unless they are also issuing the title policy, in which event they also have a margin there as well)... I doubt you'll find a closing agent willing to deal with the headache of one of these closings for free!

Regardless, shop around and see if you can obtain a better quote.. You should be able to request a specific closing agent unless there is a history of problems with that escrow company in the past. Also- be certain you ask for client referrals to prove they have in fact closed one of these before! You don't want to be the "one they try and learn with"....

Good luck and congrats on a great purchase!

 

[SpikeMauler]

Thanks Richard. I'm shopping around right now. It looks like the $1,500 quote could be in the ballpark?

 

[thinze3]

I would be very picky on finding the right unit for the right price at this time. Maintenence fee season is here and many people will be dumping their units to avoid that cost. Marriott prices are falling like a rock right now with many Marriotts are being sold for 60-70% discount of Retail. Most will probably pass ROFR at this time.

Examples of platinum units:
$40K retail sold for $14K - Waiohai
$30K retail sold for $6.1K - Beachplace
$22K retail sold for $6.6K - Manor Club
$21K retail sold for $5K - Legends Edge

Terry

 

[lovearuba]

These cost can be high

 

[SpikeMauler]

run away and fast

From the resale property or from the closing company LOL.

 

[lovearuba]

from purchasing any Marriott timeshare until Marriott takes care of the mess they dumped on the owners of the Aruba ocean club. This one is not going away and is a black eye to the Marriott name. Read the link.

 

[SpikeMauler]

Ah, the Aruba link. I've been following it. I hope everything works out for you guys. Marriott should do the right thing.

 

[richardm]

Maintenence fee season is here and many people will be dumping their units to avoid that cost. Marriott prices are falling like a rock right now with many Marriotts are being sold for 60-70% discount of Retail. Most will probably pass ROFR at this time.

Examples of platinum units:
$40K retail sold for $14K - Waiohai
$30K retail sold for $6.1K - Beachplace
$22K retail sold for $6.6K - Manor Club
$21K retail sold for $5K - Legends Edge

Terry

I haven't seen any annual usage platinum sales this low reported by any of our cooperating brokers- so I'm assuming you are probably pulling these numbers from eBay, which is unreliable at best.... 2br annual platinum weeks at BeachPlace still routinely sell for $13k to $15k...

Regardless, be very careful... Many sellers are trying to dump properties currently, so you are absolutely correct that for many locations incredible values are out there (better than I've ever seen before!).. However, be especially careful on the newer high-end resorts. Most of those sellers still have loan balances, but for some reason they don't seem to understand that the loan must be cleared at closing for the internal resort transfer to complete..

I've had three eBay buyers contact me this month for advice when their transfer request was rejected by the developer as the seller's hadn't paid off the original loan yet. All three have warranty deeds showing the property in their name and the sales cleared ROFR- but the PCC hadn't bothered to check to see if there was a mortgage..

The buyers are trying to get refunds and have the ownerships deeded back out of their names- while the PCC is fighting with the original owners (who paid them $3,000 to take over the ownership at a seminar where they were told the property was worthless!)... Don't forget, many developers are more than happy to see these kinds of problems occur, as they hope horror stories like these will cause fewer newbies to trust resales...

Needless to say- these are a huge mess... (The only advice I could give was to speak with an attorney)...

 

[thinze3]

You are correct. These are resale prices from eBay. Many Tuggers buy from eBay on a regular basis and are savy enough to handle the transaction carefully. The BeachPlace listed above is one I currently have under contract (hope it clears ROFR). The first thing I asked for was a copy of the estoppel from Marriott, which was clean. I currently own three timeshares and two of those were bought off eBay, including one of my Marriotts.

Anyhow, prices are ridiculously low at this time, and I believe any potential buyers should be ruthless in their negotiations, especially coming into Maintenance Fee season. IMO


Terry

 

[richardm]

Congrats on an incredible buy if it closes.. I'd be happy to sell that for you when it's in your name!