Should I worry about Closing Costs?

Closing costs can sometimes be an unexpected expense at the time of buying. Hence should I really be worried about it? I, for instance, have already identified certain areas, but would be better if I have a checklist to look forward to.

Are you buying from an individual or from a developer sale? If you're buying from an individual, the two of you would have to negotiate and stipulate who pays the closing costs. If you agree to do so, you should be able to select the closing company. Some reputable ones will do it for $200-$300.

Then don't forget about the transfer fees that the resorts and sometimes timeshare company (eg. Wyndham) charge. Again, that would have to be discussed between you and the seller beforehand.

Thanks for that reply. I'm getting it from an individual and hence I did not have any idea about the costs. Spoke with the people from Northwood mortgage the other day and he suggested a checklist: http://www.northwoodmortgage.com/closing-costs/6-closing-costs-to-expect-when-buying-a-house/ I should be aware of. I assume I should talk with the seller and sort things out.

You don't need to "worry", but you DO need to become fully informed about these costs before committing to a price or the overall transaction, particularly if YOU are the one paying all of the closing costs in any given transaction.

Resale timeshare closing costs differ considerably from the closing costs involved with other types of real estate, particularly where a mortgage (and a need for title insurance) might be involved. Accordingly, the info you reportedly got from Northwood may not be directly or particularly applicable for a private resale timeshare transaction. Anyway, some specific details follow on typical costs:

1. Depending on the resort or "chain" / system, there is very likely to be a mandatory "transfer fee", typically $75 -- $100 at smaller independent facilities, $299 for any Wyndham deed, at least twice that latter amount (or more) for transfers in the Hyatt system. This transfer fee is completely unrelated to (and completely separate from) any actual deed preparation and / or deed recording costs.

2. Issuance of an "estoppel" letter, which documents under resort (or its' management company) letterhead and signature, the current owner's account status (whether there are unpaid fees, any liens, etc.) can be anywhere from no charge at all to $150, depending on the system or management company involved.

3. Deed preparation work and deed recording costs (recording fees vary by location and County) and document stamp costs (if any are applicable) will generally collectively cost somewhere between $150 -- $350. Anything more than that is frankly excessive, although many "eBay reseller closers" routinely charge in excess of $400.

4. Some closing companies charge an additional fee to have the buyer funds held in an independent escrow account until closing. Sometimes it's a $50 charge, rarely is it more than $100, sometimes there no escrow charge at all. This cost tends to be influenced by whether or not the closer has a working affiliation with an attorney's office.

I hope this helps. You need to ascertain who in any given transaction (buyer or seller) is going to pay these costs.