Reader seeks definition of ‘closing value’
Q: I read an article in which a writer suggested a method of estimating the value of one’s home by analyzing “closing values.” You responded by saying in part that there’s nothing more accurate than recent “comparable” sales. My question to you is this: What was the writer’s definition of “closing values”? I took that to mean selling prices. Am I correct? — D.
A: In real estate, “comps” are the recent sale prices of nearby comparable properties. “Closing value” is a term used mostly by stockbrokers and traders, but in this instance, it evidently does mean the same thing: the actual final sale price of a parcel of real estate.
Q: I was looking for your thoughts on a letter I received from a Realtor I’ve never had contact with. I attached a copy below.
He is basically asking whether I would like to sell my home to a couple with whom he is working. Is this a new tactic in the real estate market,
and a good, legit way of going about selling your home? I have been thinking of selling in the near future. I’m just a little cautious of this and how I am even on his mailing list. — L.
A: The letter you received is nothing new — it represents “prospecting” on the part of the broker who sent it. He may well specialize in your area and probably sent the same letter to your neighbors. He lists his credentials, and he has evidently been long associated with a well-respected brokerage. It’s perfectly OK to respond. It won’t cost anything or obligate you. At the least, you’ll get a chance to hear his opinion on asking price, on ways to make your home attractive to buyers and the like. And you’ll get a chance to meet a broker who has some initiative.
If you’re still suspicious or not ready to list your home for sale, you could (with his supervising broker’s OK) sign a one-shot contract. That would give him permission to show the property to just the one couple he mentions.
Timeshare tips
Edith: You mentioned you don’t hear about the joys of timeshare ownership. I was deeded a timeshare by my parents, and I’ve been paying for the yearly maintenance and using it for many years.
I have taken some magnificent vacations there. When you swap timeshares, you just never know and hope for the best — but how is that truly different from booking any other accommodation?
You need to very seriously look at this before purchasing. I would tell anyone to research. Think about your goals and where you want to be years from today.
If possible, use someone else’s timeshare and attend one of the promotional meetings (which can be grueling) to see what they tell you about benefits.
I have swapped for a place in Tenerife, Spain, which was marble and had a beautiful view. I swapped for Barbados and had a penthouse because I was patient. I also swapped for a resort in Orlando and had two entirely different experiences: The first time was excellent; the second time, I could hear everyone walking around above me and lots of noise.
Just research. You also can go on eBay and see what you can purchase for a dollar. They typically spell out the terms, the maintenance cost and, if it is deeded, whether it is every year, every other year, etc. — K.