2261 Massachusetts Ave, Lexington

Market Analysis for:

Maria Velonias

I've done a market analysis on your home at 2261 Massachusetts Ave in Lexington and have prepared this document to help explain how I've arrived at a price for your home. I perform a market analysis and calculate a price taking into consideration a home’s location, size, configuration, number of bedrooms and baths, lot size and general condition. I also scrutinize the home for issues that, in my experience, will impact the price of a home making it more or less valuable. Then, I look at your current competition - the other homes that buyers in your price range will be viewing, to help determine your price. I will also include in this report an analysis of what a builder would pay for your home as a teardown as part of the 'Buyer or Builder' program.

Contents

  1. Description of Home
  2. Market Dynamics
  3. Analysis of Relevant Properties
  4. Pricing Recommendation
  5. Marketing

Description of home

Please note that these comments do not relate to marketing, but are included purely to ensure that we have captured the information and reflect the major components of your home.

Your home is a home with great curb appeal in the desirable town of Lexington.  It is on the ‘quiet’ end of Massachusetts Ave and is walking distance to the town center, Hastings ES, Lexington HS. Your home is a colonial home built in 1992. It has 4 bedrooms, 3.5 baths. Public record has your living area as 2520 sq ft but this doesn’t include the lower level living spaces.  I am estimating your lower level as (624+374+302) – approx. 12*12 as the unfinished utility room = 1156.  So, 2520 + 1156 = 3676 sq ft is the estimate of living area I am using for this market analysis. Once we get a floor plan done we will be able to estimate the total living area, including the lower level, with more accuracy. I’m going to assume the cosmetic improvements we chatted about are done for the purposes of this market analysis.  It is on 0.54 acres, and has a lovely backyard and level lawn and is very private, and is nicely landscaped in front.  You have a 2 car garage, central air and forced hot air.  It has a deck which can be accessed from the informal dining area, and there is a patio which can be accessed by the full walkout lower level.
The following comments are not for the purposes of marketing. They are purely to ensure that each aspect of your home has been captured.
Walk into the home and the living room and dining room lead off from the foyer. The living room is off to the right and has a bay window and fireplace.  The dining room has chair rail. The half bath has a pedestal sink and granite/marble(?) tile floors.  Walk into the family room which has a wood burning fireplace, and is open to the informal dining area and the stainless steel applianced, granite countertop kitchen.  Direct access from this area to the large deck.
The master bedroom has bay windows, carpet, and the master bathroom has been beautifully done. Large shower with body jets, frameless shower door, granite(?) counter vanity. 3 other good size bedrooms.  The family bathroom will have some cosmetic improvements.
The lower level is a full walkout. Has carpets and is split into three rooms, one being used as a family room, exercise room, and a den. There is another full bathroom on this level.  There is a patio outside the walkout lower level. There is a newer furnace, battery backup sump pump.

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Market Dynamics

We have been experiencing shortages of housing inventory in Lexington over the last 5 years or so. There are always a number of buyers looking to buy in Lexington because of the strong school system, the community dynamics and vibrant downtown. People like the feeling of the downtown area, and want to stop and have a coffee, or have dinner at the many restaurants, or just watch the world go by, chatting with folks who are out and about. The Minuteman bike path and conservation areas close by pull those who desire an outdoor lifestyle while still remaining within commuting distance to Boston.

The Lexington market has seen increasing prices over the last few years given the limited inventory. The demand for homes in Lexington far outweighs the supply and each month a snapshot of available homes for sale shows the declining inventory levels.

Average prices in Lexington are well above average prices obtained in the peak of the market in 2005. Average single family home prices have been increasing steadily since 2009. The real estate market downturn that existed for the last few years is well and truly over and prices are continuing to increase each year.

Sales distribution statistics for single family homes show that the $1M-$1.5M price-range is the most active in Lexington. The next busiest price range in Lexington is the $1.5M - $2M price range. This is an indicator that new construction is having a significant impact on the average single family home prices in Lexington. The number of new construction homes being built in Lexington in 2013 was 55 homes, 70 homes in 2014, 71 homes in 2015, and 66 homes in 2016.

Before reviewing the price per sq foot charts it is important to throw in a caveat of using the average as the definitive guide. There is wide variability among agents as to what is included in the living area reported in MLS. In some instances, agents will include a finished component of the basement in the living area and this is acceptable so long as how the living area is calculated is disclosed. Others report the living area reported in public record, which never includes finished areas in the basement, but note in MLS that there is a finished basement. To this end, it is important to review each individual listing to determine the ‘true’ price per sq. ft. of above ground living area, but we also need to factor into this when a home has a finished basement.

Reviewing the price per sq. foot charts for single family homes shows us that the average price per sq. ft. in Lexington around the $1M - $1.5M price range is around $391 per sq. ft. It’s important to note that the maximum price per sq. ft. achieved varies across most price ranges, along with the minimum obtained for each price range.

When the year built in the 1990’s the average price per sq. ft. is $360.

The chart below shows that single family homes in Lexington of similar size to your home in the 3,000 square foot range, have an average price per square foot of $387 but it decreases to $374 per sq. ft. when you increase to the 4,000 square foot range. It is common across municipalities to see an increase in the price per square foot for smaller sized homes, as it reflects the minimum cost of a home in a town irrespective of the property size.

The chart below shows how many months’ supply of inventory there is in a given price range. It uses the assumption that given the same rate of sales over the prior 12 months, and considering current inventory available for sale, how many months it should take to sell the available inventory. This is referred to “Absorption” in the real estate world. 

Any price range where there is more than 7 months’ supply, we consider there to be an oversupply of inventory, also known as a ‘buyer’s market’. Anything between 4 – 6 months is considered a balanced market. Anything less than 3 months’ supply is considered a shortage of inventory on the market at this price range, also known as a ‘sellers’ market’. As can be seen, currently, absorption rates for all homes in the $1M - $1.5M price range is under 1 month’s supply showing a severe shortage.

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Analysis of Relevant Properties

The following map shows the  homes that we believe to be of value in determining the price of your  home. Below the map you will find basic information  provided for each home including the price the home was  listed at, and the price the home sold at (if sold), the listing date, Days on market, Bedrooms, Bathrooms, living area size and lot size.  Noted for each home is a classification of Relevance which outlines whether we think the  property is valued Less (L), Relevant/Comparable (R) or Higher (H) than  your home. The notes for each home outlines the similarities and differences between  your home and the one being analyze.


Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This custom contemporary colonial style home was built in 1996, located in the Prospect Hill neighborhood.  It is larger than your home at 2908 sq  ft of above ground approx. living area, and an additional 400+ sq ft in the finished basement totaling 3363 sq ft. Your home has 3,676sq ft of approx. living area when including over 1100+ sq ft in the finished basement. This home has 1 bedroom more than your home, having 5 bedrooms, whereas your home has 4 bedrooms. This home has the same number of bathrooms as your home does, 3.5 bathrooms.  It sits on a smaller 0.35 acre lot in a desirable cul de sac location, whereas your home sits on a 0.54 acre lot on a busy street but closer to the town center.
The home has lovely curb appeal. The main level has an open floor plan that connects the living room and the formal dining area. The living room and the formal dining has a fireplace, bay window/s, hardwood floors, and crown molding flow around this level. The dining area has access to the family room through French doors, and also to the kitchen. The family room has beamed cathedral ceiling with skylights, picture windows, and exterior access to the deck. It is also open to the kitchen which has a breakfast bar peninsula and a 2 tier kitchen island where the stove is situated. The kitchen has mismatched appliances, lots of cabinets, and hardwood floors. It feels a little dated with laminate counters and the mismatched appliances.  The bedrooms are on the upper level including the master bedroom and 3 other family bedrooms. The master suite has an attached bathroom, walk in closet, and wall to wall carpeting. The master bathroom has double vanity sink, white cabinets, and ceramic tile countertop and feels a little dated.  One of the family bedrooms has hardwood floors with the other 4 having wall to wall carpets, and all 3 share a family bathroom with double vanity sink. This home has a third level which has another bedroom with an attached bathroom with shower stall and is more recently updated, and an office space.
This home has an attached 2-car garage, as yours does. It was listed for $1,299,000 and was sold for $1,222,000 after 27 days on the market.

Relevance: 
Relevant, but lessGiven its larger size and cul de sac location, but inferior condition and not being close to the town center as is yours I believe it is relevant to your home but yours should sell for more.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This was our listing. This colonial style home was built in 1920 and is located at the intersection of Cary Ave, Middle St and Marrett Rd.  It is smaller than your home at 3,480 sq  ft including the lower level. Your home has 3,676sq ft of approx. living area including the lower level. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home has 3 full bathrooms, which is half a bathroom less than your home, which has 3.5 bathrooms.  It sits on a smaller 0.41 acre lot on a busy street, whereas your home sits on a 0.54 acre lot on a busy street but close to the town center.
As you enter the home you enter into an unheated, enclosed porch. When you enter the door from the porch you have the family room on the left and the living room on the right. The living room has a fireplace, with coffered wood ceiling, and wood baseboard and window trim. The rest of the home has white painted window trim, door trim and baseboard. It also has picture windows, and hardwood floors. From the living room you have access to the dining room and the family room via French doors. The dining room has wallpaper, wainscoting, crown molding, and hardwood floors, and the kitchen is adjacent. The kitchen has white cabinetry, granite countertops, an island with a prep sink, a 2-tier breakfast bar peninsula, bay window, and a small office desk in a corner, hardwood floors and white appliances. There is an informal dining area adjacent to the kitchen with lots of windows overlooking the deck and garden beyond. There is also a small desk area in the kitchen. Outside there is a mahogany deck and this leads to the 2 car detached garage and shed. There is also a full bathroom on this level with an updated vanity with wallpaper on the walls. Upstairs via stairs in the center of the home are 4 bedrooms along with an office and family bathroom. The master bedroom has a walk-in closet along with an attached bathroom  and a small office space. The master bathroom has white cabinets, double vanity sink with ceramic tile backsplash, ceramic tile floors, and a shower stall but was a little dated.  The finished lower level is a recreation room with a prep sink and cabinets, and ceramic tile floors. The home had been freshly painted throughout and the hardwood floors refinished.
It was listed for $1,199,000 and was sold at a higher price of $1,250,000 after just 5 days on the market.

Relevance: 
Relevant, but less. Given the similar size, similar location, similar condition, but the fact that this home was built in the 20's and didn't have the type of layout that buyers are looking for today, nor an attached garage, I believe it is relevant to your home but your home should sell for more.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This colonial style home was built in 1976, yours in 1992.  It is larger above ground, but smaller overall than your home at 3,450 sq  ft including the lower level. Your home has 3,676sq ft of approx. living area inlcuding 1100+ sq ft in the lower level. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home has 3.5 bathrooms like your home does.  It sits on a larger 0.71 acre lot in a very desirable area, whereas your home sits on a 0.54 acre lot on a busy street.
The main level includes the living room which has hardwood floors and picture windows. The formal dining room has picture window, crown molding, wainscoting, and hardwood floors. It is connected to the kitchen which has an open floor plan to family room. The kitchen has a breakfast bar island, granite countertops and backsplash, stainless steel appliances, wine rack, stylish cabinets, cathedral ceiling and an informal dining area. It is also adjacent, and has access, to the screened porch that leads to the deck.  A fireplace sits in between the kitchen and the family room which also has cathedral ceiling and picture windows. An office/ library is also on this level. The master bedroom and 3 more bedrooms are on the upper level. The master suite has an attached bathroom, and walk in closet. The master bathroom has double vanity sink, and shower stall. A family bathroom is also on this level and it also has a double vanity sink. The lower level serves as bonus rooms and there is another full bathroom in the full walkout lower level.
This home has an attached 2-car garage, as yours does. It was listed for $1,250,000 and was sold for the same price after 12 days on the market.

Relevance: 
Relevant. Given the similar size, similar condition but superior location I believe this home is relevant to yours.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This Gambrel colonial style home was built in 1968, located in Lexington Center.  It is larger than your home at 3,800 sq  ft of approx. living area including lower level living. Your home has 3,676 sq ft of approx. living area including the lower level. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home has more bathrooms than your home having 3 full and 3 half bathrooms, whereas your home has 3.5 bathrooms.  It sits on a larger 0.69 acre lot on a busy corner of Mass Ave and Worthen Rd, whereas your home sits on a 0.54 acre lot on busy Mass Ave.
The main level includes the living room which has a fireplace with brick facing and white mantel, custom built ins, crown molding, picture windows, and hardwood floors. The formal dining room has crown molding, wall paper, chair rails, custom built ins, and hardwood floors. The kitchen has beamed ceiling, natural wood colored custom cabinets, marble backsplash, and breakfast bar peninsula, granite countertops, and stainless steel appliances. It also has an informal dining area, and has an open floor plan to the great room. The great room has a fireplace on brick wall, beamed cathedral ceiling with skylights, picture windows and access to the covered porch on one side and a larger porch on the other side. The master suite is also on the main level. It has an attached bathroom, walk in closets, and wall to wall carpeting. The 3 other bedrooms are on the upper level and 2 of them have attached bathrooms. The finished lower level includes an office with firewall on brick wall, family room, a half bathroom, and it has exterior access to the covered patio under the large deck and is a really appealing space. The family room also has a fireplace and it has an open floor plan to the game room. Each bathroom has been updated nicely.
This home has an attached 2-car garage, as yours does. It was initially listed for $1,320,000 but price dropped to $1,298,000 before it went under agreement and was sold for $1,265,000 after 36 days on the market.

Relevance: 
Relevant. Given the similar size, but more bathrooms all of which are beautifully updated, versus its inferior location being on the corner of 2 busy roads I believe this home is relevant to your home.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This split level style home was built in 1969, located in the Follen Hill neighborhood.  It is larger than your home at 3,196 sq  ft of approx. living area which does not include 1000 sq ft of finished lower level. Your home has 3,676sq ft of approx. living area which includes 1100+ sq ft of finished lower level. This home has 1 bedroom more than your home, having 5 bedrooms, whereas your home has 4 bedrooms. This home has the same number of bathrooms as your home does, 3.5 bathrooms.  It sits on a smaller 0.37 acre lot in a desirable area, whereas your home sits on a 0.54 acre lot on a busy street.
The living room has a fireplace, cathedral ceiling, picture and high windows, hardwood floors, and is directly connected to the kitchen and the formal dining room. The formal dining room has chair rails, hardwood floors, and exterior access to the balcony. The kitchen has skylight, crown molding, stylish cabinets, stainless steel appliances, granite countertop, ceramic tile floors, and an informal dining area. There are 4 bedrooms on this level, all having wall to wall carpeting, and the family full bathroom with shower stall. There is also a guest half bathroom on this level. Up a few stairs is the master suite. It has walk in closets, an attached full bathroom, and a sitting area with a balcony. It also has cathedral ceiling with skylights, wall to wall carpeting, and picture windows. The master bathroom has double vanity sink with custom built cabinets and granite countertop, shower stall, and ceramic tile floors. The lower level includes the family room with a fireplace and wall to wall carpeting, and an office with an attached bathroom.
This home has an attached 2-car garage, as yours does. It was listed for $1,274,900 and was sold for $1,285,000 after 6 days on the market.

Relevance: 
Relevant, but higher. Given the larger size of the home, the additional bedroom, superior location, I believe this home is relevant to yours but it should sell for a smidge higher than yours.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This colonial style home was built in 1965, located in Meriam Hill.  It is still smaller than your home at 2,856 sq  ft of all above ground approx. living area. Your home has 3,676sq ft of approx. living area which includes 1100+ sq ft of living area in the basement. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home is 1 full bathroom less than your home having 2.5 bathrooms, whereas your home has 3.5 bathrooms.  It sits on a smaller 0.36 acre lot on a  busy street, whereas your home sits on a 0.54 acre lot on a busy street.
The living room is on the main level and it has a fireplace with white mantel, crown molding, picture windows, hardwood floors, and access to the sunroom through French doors. The formal dining room has hardwood floors. The kitchen has an open floor plan to the family room. The kitchen has bay window/s, stylish cabinets with glass paned cabinet doors, stainless steel appliances, an informal dining area, breakfast bar peninsula, and granite countertops, and an exterior access to the deck. It was renovated recently and is very appealing. The family room has a fireplace on brick wall, crown molding, picture windows, and wall to wall carpeting. From the living room via double french doors you have access to a stunning sun room with walls of windows, ceramic tiled floor and access to the back yard. The upper level includes the master suite, 3 family bedrooms and 1 full family bathroom. The master suite has an attached bathroom, and hardwood floors. The master bathroom has ceramic tile walls and floors, granite countertop, and a huge shower stall. All bathrooms have been beautifully updated. There is a brick fireplace, brick patio accessed from the walk out lower level and deck which is very appealing.
This home has an attached 2-car garage, as yours does. It was listed for $1,268,000 and was sold for $1,300,000 after 5 days on the market.

Relevance: 
Relevant. Given the larger above ground living area, but overall smaller living area when we include your finished basement, along with the kitchen and bathrooms being recently renovated, and a similar location I believe this home is relevant to yours.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This colonial style home was built in 1984, yours in 1992.  It is a similar size but a little smaller than your home at 3,427 sq  ft including the lower level. Your home has 3,676sq ft of approx. living area including 1100+ sq ft in the finished lower level. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home has 3 full bathrooms, which is half a bathroom less than your home, which has 3.5 bathrooms.  It sits on a smaller 0.32 acre lot on a quiet street close to the town center, whereas your home sits on a 0.54 acre lot on a busy road.
As you walk in the front door you have a large foyer. The living room has a fireplace, crown molding, and hardwood floors. It is directly connected to the formal dining room which has a large built in china cabinet with glass panels, crown molding, hardwood floors, and access to the sunroom and the kitchen. The kitchen has stylish cabinets to the ceiling, a pantry, ceramic tile backsplash, stainless steel appliances, ceramic tile floors, and an informal dining area which has an open floor plan to the family room. The informal dining area has picture window/s and access to a huge sunroom. The family room has cathedral ceiling with skylight, custom built-ins, hardwood floors, and exterior access through double French doors. On this level is one of the family bedrooms, a mudroom with walk-in closet, and a full bathroom. The master suite is on the second level and it has a fireplace, an attached bathroom, walk-in closet, and hardwood floors. The master bathroom has marble countertop, and stylish cabinets. On this level are 2 more bedrooms, both having hardwood floors, and they share a full bathroom with white cabinetry, marble countertop vanity. The finished lower level is used as a game room. Accessed by the family room and sunroom is a large patio area.
This home has an attached 2-car garage, as yours does. It was listed for $1,198,000 and was sold for $1,331,000 after 4 days on the market.

Relevance: 
Relevant, but higher. Given the similar size, additional living areas on the main level, but superior location I believe this home is relevant to yours but it will sell for more.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This colonial style home was built in 1999.  It is slightly smaller than your home at 3,136 sq  ft of approx. living area which includes 700 sq ft of finished lower level space. Your home has 3,676 sq ft of approx. living area which includes over 1100+ sq ft of living area in the basement. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home is 1 full bathroom less than your home having 2.5 bathrooms, whereas your home has 3.5 bathrooms.  It sits on a smaller 0.24 acre lot in a desirable area walking distance to the town center, whereas your home sits on a 0.54 acre lot on a busy road.
The main level has an open floor plan, and has hardwood floors, and picture windows. The dining room has ceiling detail work and chair rails. The living room has a fireplace with white mantel, and has an exterior access to the patio through double French doors. The kitchen has white cabinets, stainless steel appliances, a breakfast bar island, granite countertops, and pantry with an informal dining area and access to the back yard. A family room also has access to the backyard. The master bedroom has an attached bathroom, walk in closet, custom built-ins, and hardwood floors.  The master bathroom has double vanity sink, and Jacuzzi. There are 3 more bedrooms and a family bathroom on the upper level. The finished lower level has a home office and a large bonus room.
This home has an attached 2-car garage, as yours does. It was listed for $1,350,000 and was sold for $1,360,002 after only 2 days on the market.

Relevance: 
Relevant, but higher. Given the similar above ground living area, superior kitchen appeal with white cabinetry, along with superior location I believe this home is relevant to yours but it should sell for higher.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This garrison colonial style home was built in 1964, yours in 1992.  It is smaller than your home at 3,114 sq  ft including the lower level family room and laundry area, albeit the same above ground living area. Your home has 3,676sq ft of living area which includes the finished lower level. This home has 5 bedrooms, which is 1 bedroom more than your home, having 4 bedrooms. It has 2.5 bathrooms, which is 1 full bathroom less than your home, having 3.5 bathrooms.  It sits on a larger 0.77 acre lot in a very desirable location backing onto Willard Woods in an area of high value homes, whereas your home sits on a 0.54 acre lot on a busy street.
The main level includes the living room which has picture windows, crown molding, hardwood floors and has access to the screened porch through French doors. The formal dining room has beaded walls, crown molding, hardwood floors, and a recessed china cabinet. The den/family room is also on this level and it has a fireplace on brick wall to the ceiling, crown molding, custom built-ins, and hardwood floors. The kitchen has a breakfast bar peninsula, a pantry, laminate flooring, white cabinets, ceramic tile back splash, mismatched appliances, and an informal dining area with exterior access to the backyard. The master bedroom and 4 other family bedrooms are on the upper level. The master suite has an attached bathroom with a shower stall, walk in closet, a dressing room, and hardwood floors. The other bedrooms share a common bathroom which has a double vanity sink. The lower level serves as a recreation room and it has a fireplace and vinyl flooring. The home is in overall inferior condition to your home.
This home has an attached 2-car garage, as yours does. It was listed for $1,195,000 and was sold for $1,375,000 after 8 days on the market.

Relevance: Relevant, but higher. Given the similar above ground living area, inferior condition but far superior location I believe this home is relevant to your home but it will sell for higher given the number of people clamoring to buy in this location.


Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This home was our listing. This colonial style home was built in 1997.  It is larger than your home at 4,073 sq  ft of approx. living area including a finished lower level. Your home has 3,676sq ft of approx. living area including the finished lower level. This home has the same number of bedrooms as with your home, having 4 bedrooms. This home a full bathroom more than your home having 4 bathrooms, whereas your home has 3.5 bathrooms.  It sits on a larger 0.76 acre lot on a quiet side street, whereas your home sits on a 0.54 acre lot on a busy street.
The main level has an open floor plan, large triple windows, chair rails, hardwood floors, crown molding, and 11 foot high ceilings in the formal rooms. The living room is connected to the formal dining partially separated by a faux wall with column. The formal dining room has intricate ceiling detail work.  The living room also has access to the gazebo like sunroom at the front of the home. The family room has a fireplace, custom built-ins, and has exterior access to the deck through French doors. The kitchen has stylish white cabinets, stainless steel appliances, a breakfast bar island, granite countertops and ceramic tile backsplash. It also has an informal dining area inset into the bay window. An office and a full bathroom with shower stall are also on the main level. The master suite and 3 bedrooms are on the upper level. The master bedroom has an attached bathroom, walk in closet, wall to wall carpet, and picture windows. The master bathroom has double vanity sink, white cabinets, granite countertop, shower stall, separately enclosed toilet, and Jacuzzi. A family bathroom is also on this level. The finished lower level is a large family room area and has a full bathroom.
This home has an attached 2-car garage, as yours does. It was listed for $1,299,000 and was sold for $1,400,000 after only 5 days on the market with 10 offers on the home.

Relevance: 
Higher. Given the larger size of the home, additional full bathroom, larger lot size and superior location I believe this home will sell for more than your home.

Your details: Living area 3676 sq ft | 4 beds | 3.5 baths | Lot size 0.54 acres | Built 1992

This colonial style home was built in 1993.  It is larger than your home at 3,513 sq  ft of all above ground approx. living area which does not include the lower level. Your home has 3,676sq ft of approx. living area which includes 1100+ sq ft of living area in the basement. This home has 1 bedroom more than your home, having 5 bedrooms, whereas your home has 4 bedrooms. This home has the same number of bathrooms as your home does, 3.5 bathrooms.  It sits on a larger 0.92 acre lot in a desirable location, whereas your home sits on a 0.54 acre lot on a busy street.
The main level has an open floor plan with picture windows, and hardwood floors. The formal dining room has wainscoting, and crown molding. The kitchen has white cabinets, stainless steel appliances, a breakfast bar island, granite countertops, an informal dining area, and has an exterior access to the patio. It was recently renovated and was quite lovely. The family room has a fireplace with white mantel, and has a cathedral ceiling with skylights. There is a beautifully updated half bathroom on this level. This home also has an in-law apartment which has its own kitchenette, a bedroom, and an attached bathroom. The master bedroom, and 3 family bedrooms, a full family bathroom with double vanity sink, and a study are on the upper level. The master suite has an attached bathroom, a walk in closet, and hardwood floors. The master bathroom has double vanity sink, and Jacuzzi.
This home has an attached 2-car garage, as yours does. It was listed for $1,395,000 and was sold for $1,410,000 after only 5 days on the market.

Relevance: 
Higher. Given the larger living area, the larger lot size and the superior location I believe this home will sell for more than your home.

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Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $1,260,000-$1,300,000.  

Given the current market dynamics in Lexington, I would suggest listing your home at the lower end of this price range to attract more interest and potentially multiple offers.  If the market deems your home to be worth more than the list price, then the price will be pushed over the market value of your home, and sometimes well over when we get multiple offers. You can see many examples above that came on the market for a lot less, and competition pushed them up to the price they sold for. The challenge in estimating a price for a home is ‘would this home have sold for this price if they had priced it higher?’ or was competition the driving factor that got to this price.  Experience tells me that competition is why they sold for what they did, so we have to be careful with pricing. A couple of good examples of competition pushing a price higher are our listing at 2 Middle St which came on the market for $1,199,000 and sold for $1,250,000, the home at 21 Suzanne Rd which came on the market at $1,195,000 and sold for $1,375,000 and our listing at 845 Emerson Gardens Rd which came on the market for $1,299,000 and sold for $1,400,000.  

When homes are overpriced they end up sitting on the market and ultimately selling for less than market value, whereas homes priced realistically can often sell for well over market value. Competition is what will get us the highest sales price. As we see time and time again, if the buyers consider the market value of your home to be realistic in relation to the asking price, then competition will push the price up higher and often over the market value of the home. The challenge with overpricing is that the buyers are very educated – they go week after week to see homes in their price range so they KNOW what the prices are and what ‘feels’ right. Competition occurs with homes in your price range so the value of  pricing realistically is that sometimes competition will push the price  up over market value when buyers become emotional about 'have to have  this home'.

I have to stress that these are recommendations.  If you decided to sell your home, then we would bring your home on the market at whatever price you deem to be appropriate.  

When determining the right price - it all depends on your motivation and your risk tolerance level. We know that homes that are priced at the 'strike price' will sell quicker and may generate more than one offer.  I’m an excellent negotiator and know how to push a price up if we have the market activity. I also know that some sellers want to put their home on for a higher price than I might recommend, which I’m willing to do, so long as it is understood that putting the home on for more than the majority of buyers perceive its value, could mean that your home will have a much longer market time and sell for less than it should have had it been priced properly out of the gate.

I DO NOT DETERMINE THE PRICE - the market dictates the value - what a buyer is willing to pay. My job is to make sure that you have the best market exposure and that your home is positioned well in the market.   I do not believe in projecting more money than I think your home will sell for just to get your business.

My team and I know how to stage and market your home, and I understand its value, but I can only sell it for what the market or a buyer will pay. I strongly believe that a home should be priced compared to the current competition, not just on what has sold in the last six months.  At the end of the day, you will be competing for the buyers looking for a home like yours and in the same price range. You can do far more 'damage' to the resultant price we get for your home if we overprice. The prospective serious buyers will see your home within the first weekend of your home coming on the market, and they will have seen everything else in this price range.  In other words, the serious buyer knows what is priced well.  If they don't see value in your home at its listing price and are not motivated to make an offer, then they will move on and keep looking.  In times of increasing prices, it is often hard to predict what a home will sell for, but be assured that even if we price your home lower than what market value is currently, market dynamics will bring the price of the home up to where it should be.  Prospective buyers should walk in thinking the price 'feels right' and are motivated to make an offer in the short term, rather than letting several months’ pass.

It is important to stress the value of marketing your home to capture the highest price.  In times of low inventory, we know your home will sell by doing the bare minimum to market it, BUT that is not going to get you the maximum price for your home.  Key to getting the maximum price for your home is to prepare a comprehensive marketing plan that incorporates all avenues available to us to expose your home to the maximum number of buyers out there looking.  Exposure, and feet in the door, is what will get you the highest price for your home. Basic ratios help explain this.  If 10% of the buyers who walk in your door fall in love with your home, then if you only have 10 buyers walking in, then potentially there is only 1 buyer - if you have 100 buyers walking in your door then using the same ratios, you will potentially have 10 buyers falling in love with your home.  10 buyers will push the price up versus only one buyer.

Given the price point you are at your home would be categorized as a RE/MAX Collections home, which is the Luxury home brand for RE/MAX. For the first Open House we would organize to have a pianist come in to play, and food for Open House guests. We would market it as our Signature Open House. The aim is to have an ‘event’ of your Open House and get serious buyers seeing the home with as many people as we can to stimulate activity and excitement for the home. In addition to this we do additional marketing for our Collections listings and can be reviewed below.

 New statistics state that over 100% of potential buyers search the web as their primary search vehicle.  Thankfully, your home will show fabulously in photos. With historically low interest rates likely to increase and inventory at a 7-year low, there are still homes that do not sell in this market.  I’m making my recommendations to ensure that you are one of the sellers who will have success in the first month of being on the market, but optimally the first weekend.

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So, what is our Marketing Plan? 

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Marketing to sell your home

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 Because your home is a Luxury home, we offer additional marketing on top of the standard marketing seen above.

Marketing our Luxury homes

Additional marketing occurs when the home is a Collections listing.   RE/MAX Collecti...

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We look forward to working with you!   Please reach out if you have any questions at all about this market analysis or our plans to market your home! 

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