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Timeshare resale Commissions

tarponsprings

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I have a unit at the Westin Kaanapali in Maui and have it up for sale on Red Week, with them handling the transaction. They charge a commission of 3% for their activity. They have just advised me that they have an offer from another broker for my unit for $15,000, but the broker wants a $4,000 commission. Is this standard industry practice?
 

vacationhopeful

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The broker thru my one resorts wants 35% ... yes, 35%. It is ON THE PAPER WORK. The agent told me there were additiaonal closing costs and a ONE YEAR contract. And this was about a 3 weeks ago. His daddy is the broker ... and I am roosting back here at the resort now. Can't wait to see how many leads or offers he was collected in the last 3+ weeks.

Are you sure you read the numbers correctly? Makes the TUG Marketplace seem cheap!

PS I did NOT list my 'BEST' weeks .... 1 year listing, 35% commission. Brian and TUG seems way more feasible and HONEST.
 

tarponsprings

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The broker thru my one resorts wants 35% ... yes, 35%. It is ON THE PAPER WORK. The agent told me there were additiaonal closing costs and a ONE YEAR contract. And this was about a 3 weeks ago. His daddy is the broker ... and I am roosting back here at the resort now. Can't wait to see how many leads or offers he was collected in the last 3+ weeks.

Are you sure you read the numbers correctly? Makes the TUG Marketplace seem cheap!

PS I did NOT list my 'BEST' weeks .... 1 year listing, 35% commission. Brian and TUG seems way more feasible and HONEST.

Red Week does a lot for their fee, they handle all of the paperwork, all I have to do is to sign off. It just does not seem reasonable for a broker to charge this much commission.
 

Panina

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I have a unit at the Westin Kaanapali in Maui and have it up for sale on Red Week, with them handling the transaction. They charge a commission of 3% for their activity. They have just advised me that they have an offer from another broker for my unit for $15,000, but the broker wants a $4,000 commission. Is this standard industry practice?
I can just tell you that I listed a unit through a higher end resort I own and the in house realtor charges 25% if a deal is done. Brokers who work for buyers and spend time finding what they want, need to get paid from someone. If their contract says no fee to buyer they will look to the seller for payment since they brought the buyer to the deal.

If you really want this deal offer less but first make sure you verify this is a legit broker.

Then I would offer 1/2 of a usual fee. I will use 25% of $15000, that is $3750, divide that by two and my offer would be $1875. This is how I came up with this, if you used a broker who would charge you 25% if they sold your unit and then another broker brought a buyer it would be customary for your listing broker to share half the fee.
 

tarponsprings

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Thanks for the feedback, I will give it a go and see what happens.
 

vacationtime1

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I was once in the situation of selling a WKORV unit when a broker contacted me with an offer than included a commission. My response was that I needed to clear "X" dollars, and if they could make that happen by increasing the stated price, lowering the commission, etc., I would sell.

The broker did both and we closed the deal. The buyer was oblivious that s/he paid a couple thousand dollars more than my asking price -- because the buyer was relying completely on the broker and didn't know the true market value.
 

JudyS

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Always remember, any commission to a broker should come out of the closing proceeds. Never pay a large fee upfront.

Not sure what a Westin Kaanapali should go for or what the usual commission is -- I suggest asking on the VSE board for names of brokers who handle them.
 

TUGBrian

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seems like you could offer your unit yourself for a few thousand less than the regular resale price and still come out way ahead vs paying 25% commissions...but thats just me!
 

montygz

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I have a unit at the Westin Kaanapali in Maui and have it up for sale on Red Week, with them handling the transaction. They charge a commission of 3% for their activity. They have just advised me that they have an offer from another broker for my unit for $15,000, but the broker wants a $4,000 commission. Is this standard industry practice?
If your unit is worth $1, like many timeshares, this is a fabulous deal. If it is actually worth $15,000, it is horrible.

It really comes down to the value of your timeshare. is $11,000 a good price for you? If it is then so what if the broker makes $4K.
 

DeniseM

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What TUGBrian said...

You don't need a broker (or Redweek's full service) - all you need to transfer the title is a timeshare title company.
 

tombanjo

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The broker is charging as they **supposedly** have a buyer. If the price at $15k is reasonable, and the market vibrant, you don't need their offer. If you are desperate, they offer an expensive out. If not, wait till redweek gets you a viable lead.
 

tarponsprings

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I was once in the situation of selling a WKORV unit when a broker contacted me with an offer than included a commission. My response was that I needed to clear "X" dollars, and if they could make that happen by increasing the stated price, lowering the commission, etc., I would sell.

The broker did both and we closed the deal. The buyer was oblivious that s/he paid a couple thousand dollars more than my asking price -- because the buyer was relying completely on the broker and didn't know the true market value.

Robert,
Thanks for the input. I followed your suggestions and got a deal with the broker.
 
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