11 Sherburne Rd, Lexington

Market Analysis for:

Greg & Saana McDaniel

7/05/2018

I've done a market analysis on your home at 11 Sherburne Rd 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. 

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.

The home was originally a traditional Cape built in 1951, but was expanded in the 90’s.  It offers 3423 square feet of living area with 4 bedrooms, 2 bathrooms, and a single car garage. The home has nice curb appeal and sits on a large lot of 0.48 acres with an ideal location close to the town center. Some areas of the interior and exterior need painting/freshening up as discussed.  

From the front entry the formal living room lies to the left, the dining room is on the right, and the stairway to the second level is straight ahead, following the true fashion of a Cape style home. The formal living room is spacious and full of natural light with a wood-burning fireplace and hardwood floors. A cased opening from the rear of the living room leads to an area with an additional staircase to the second level and a large open space with a seamless transition to the formal dining room. The open concept formal dining room has hardwood floors and an exterior door via the home’s side entry.  The side entry opens to an enclosed porch/mudroom space with convenient access to the driveway. 

The traditional Cape feel transitions at this point as the rear of the home has been added on to.  The open area off the dining room has hardwood floors, and a wall of accent windows overlooking a large brick patio set in the backyard. A glass-paneled door allows access to the deck, while on the opposite side of the room another door offers additional access to the home’s side entry porch/mudroom area.  

The large area outside the dining room gradually transitions to a beautiful, huge open space spanning the kitchen and family room. A circular wall of windows graces the informal dining area with views out to the deck and backyard. Circular architectural details complement the curve of the windows.  The kitchen is spacious with stainless steel appliances, a center island, dark granite countertops spanning the large workspace, maple cabinetry with modern hardware, and some glass fronted cabinetry.  The kitchen opens to a large family room with another set of curved windows and a glass paneled door to the backyard. The first level continues with a full bathroom off the kitchen with a slate floor and a tiled shower stall.

The second level features the master bedroom, three more family bedrooms, and a family bathroom. The round walls of the lower level continue into the master bedroom as a cathedral ceiling creates an added feeling of expansiveness.  A walk-in closet with built-ins sits at the master bedroom doorway and transitions to the large room with lots of unique architectural details and hardwood floors. An exterior door from the master has potential to lead out to a deck/balcony, but there is currently nothing beyond the door.  An office area is privately tucked away behind a floating wall. 

The family bathroom is situated just outside the master bedroom with a dual sink vanity, granite countertop, a tiled shower with frameless glass door, separate spa tub, and slate floor tiles. The bathroom has a cathedral ceiling and a bank of accent windows almost at ceiling height adding abundant natural light. This bathroom is shared between all of the bedrooms. The family bedrooms are full of natural light with hardwood floors, one has a cathedral ceiling and an obscured glass door.  Two of the bedrooms are located in the older part of the home and have more of a traditional Cape feel, unlike the addition with all the unique architectural details and accent windows. The laundry room is also on the second floor. 

The unfinished basement offers storage and houses the oil fueled furnace and hot water tank. The home is heated by hot water baseboards and cooled by window a/c units. The basement is located under the original part of the home with a crawlspace beneath the home’s addition.

 

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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, 66 homes in 2016, and 55 homes in 2017.

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 $414 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 1950’s the average price per sq. ft. is $441.

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 $380 but it increases to $420 per sq. ft. when you decrease to the 2,000 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 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This colonial style home was built in 1780. It is smaller than your home with 2,564 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more bathroom than your home, having 3 full bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.13 acre lot on a busy street whereas your home sits on a 0.48 acre lot.
The home is positioned sideways on the lot on a busy street, and shares a driveway with next door. Upon entry to the foyer, the family room is on the left and the formal dining room is on the right. The family room has a fireplace, rustic beamed ceiling, chair rails, and hardwood floors. It also has access to the main level bathroom and an office. The formal dining room has crown molding, chair rails, and hardwood floors. The kitchen has a breakfast bar island with granite countertop, breakfast bar peninsula, box window, stainless steel appliances, upgraded cabinets with some glass paned doors on cabinets overhead, hardwood floors, china cabinet, and a bay windows with seats that serve as informal dining area. Your kitchen would appeal to buyers more. It also has access to the mudroom that leads to the garage. The bedrooms, the master suite, and the family bathroom are on the 2nd level. One of the bedrooms has a fireplace and it has access to a jack and jill bathroom shared with another bedroom. To get to these bedrooms from the master you either have to walk through a closet connecting 2 bedrooms or go downstairs, through the home and then upstairs via another set of stairs so the layout is not desirable. The master bedroom has custom built ins, bay window with built in seats, wall to wall carpets, and has an attached bathroom. The master bathroom has double sink vanity, a jacuzzi, and a shower stall.
This home is located in the Merriam Hill neighborhood in The Hancock-Clarke Historic District. It has an attached single car garage and paved 2 car off street parking with a driveway easement with 35 Hancock. It has hot water baseboard heating fueled by oil. It was listed for $1,149,000 and was sold for $1,135,000.

Relevance: Less. Given the smaller size of the home, inferior location, inferior layout, shared driveway I believe your home will sell for more than this home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This home was bought by one of our buyers. This bungalow style home was built in 1952. It is smaller than your home with 2,177 sq ft of approx. living area which includes a finished room in the lower level. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more bathroom than your home, having 3 full bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.27 acre lot whereas your home sits on a 0.48 acre lot.
The home sits sideways on the lot and as you enter from the farmer’s porch, the living room is on the right and has an open floor plan with the formal dining room. It has a fireplace with white mantel, picture windows, hardwood floors, and exterior access to the huge deck (780+ sq ft) through 2 sliding glass doors. The kitchen has custom built ins, china cabinet, wine racks, and offwhite cabinets to the ceiling, some with glass paneled doors, granite countertops, stainless steel appliances, bay window, and ceramic tile floors. The main level also includes a bedroom which has hardwood floors, and a nicely renovated attached full bathroom. The 2nd level includes 2 family bedrooms which have hardwood floors, and the master suite. The master suite has a sitting area, walk in closet, hardwood floors, and a stunning attached full bathroom. This master bathroom has granite countertops, clawfoot bathtub, and a shower stall with frameless glass door.  The family bathroom has been nicely renovated and has a tiled tub/shower, ceramic tile floor, moder vanity with granite countertop. The family room is in the partially finished lower level which has wall to wall carpeting, and custom built ins.
This home has an attached 2 car garage and paved 6 car off street parking. It has hot water baseboard, gas heating and central air cooling. It was listed for $1,050,000 and was sold for $1,170,000 after competing offers.

Relevance: Relevant but less.  Given its smaller size, superior condition, inferior location, master suite along with a first floor bedroom/bathroom suite, air conditioning I believe that this home is relevant to your home but yours should sell for more.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This home was bought by one of our buyers. This colonial style home was built in 1928. It is smaller than your home with 2,050 sq ft of approx. living area which doesnt include a huge stunning family room with wetbar in the basement. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1.5 more bathrooms than your home, having 3.5 bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.16 acre lot in a popular area whereas your home sits on a 0.48 acre lot.
The home has lots of curb appeal with a wrap around farmers porch which extends into the huge deck. From the foyer, the living room is immediately accessible and it has a fireplace with a painted brick facade and has hardwood floors. It has access to the library, the kitchen and dining area, and has exterior access to the wrap around deck through double glass doors. It also has another exterior access through a side entry leading to a side porch. The library has vaulted ceiling, custom built ins and cabinets, triple windows, and hardwood floor. The dining area has an open floor plan with the kitchen. It has a china cabinet and wine rack, and has 2 exterior access to the wrap around deck through double glass doors. The kitchen has been totally renovated and has a large, 2 tier breakfast bar island with prep sink and granite countertops, stylish white cabinets to the ceiling, overhead cabinets with glass paned doors, high end stainless steel appliances (Wolf), glass tile backsplash, ceramic tile floors, and box windows with built in seats overlooking the deck. The deck is huge and has a hot tub/ spa. The 2nd level includes 2 family bedrooms, 2 bathrooms and custom built ins by the staircase with the laundry built in. The bedrooms have double windows and hardwood floors and one of these has a renovated attached bathroom. The other bedroom has access to the family bathroom across the hall which has white painted beadboard, tub/shower and is immaculate. The master suite is the entire 3rd level and it has a cathedral ceiling, walk in closet, an attached bathroom which has a shower stall with frameless glass door and walls, french doors separating a sitting area and a study, and has hardwood floors. The finished lower level is stunning with a decorative ceiling, a rustic barnwood wall, custom built ins, a 2-tier wetbar with a polished custom wooden counter, hardwood floors, and has a half french door to the backyard, and access to the garage.
This home has an attached 2 car garage and 3 car off street parking. It has central heat, gas heating and central air cooling. It was listed for $1,200,000 and was sold for $1,201,000.

Relevance: Relevant.  Given the slightly smaller size of the home once you include the stunning lower level, 2 car garage, central air, superior condition, master suite, extra bathrooms, smaller lot in an inferior location I believe once all factors are considered this home is relevant to your home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This contemporary, craftsman style home was built in 1953 and has lots of curb appeal. It is smaller than your home with 2,630 sq ft of approx. living area which includes some finished rooms in the basement. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more bathroom than your home, having 3 full bathrooms, whereas your home has 2 full bathrooms. It sits on a similar size 0.50 acre lot in popular Follen Hill whereas your home sits on a 0.48 acre lot.
The home has lots of curb appeal  with a farmers porch out front. Upon entry form the farmer’s porch, the living room is on the left with an open floor plan with the formal dining room. This area has has a beamed cathedral ceiling, and hardwood floors. The living room has a fireplace with marble tile surround, bay and triple windows. The formal dining room has custom built ins, and it has exterior access leading to the back porch through double french doors. This area has access to the sunroom which has walls of windows to the cathedral ceiling, and hardwood floors. The kitchen has granite countertops, overhead cabinets with glass paned doors, stainless steel appliances, hardwood floors, and has an informal dining area defined by a 2- tier breakfast bar peninsula. The informal dining area has a beamed cathedral ceiling, walls of windows, and has hardwood floors. Another sun room with walls of windows and a cathedral ceiling is off the dining room via double french doors. This level also includes 3 bedrooms and a bathroom. One of the bedrooms has a picture window and custom built ins. Another bedroom has a box window and the other one has triple windows. All of these bedrooms also have hardwood floors. The master suite is stunning and is the entire 2nd level which has hardwood floors and a sitting area. The master bedroom has a cathedral ceiling which is cedar lined, 2 walk in closets, access to a balcony through double french doors, and has an attached bathroom. The attached master bathroom has double sink vanity with granite countertop, skylights on vaulted ceiling,a jacuzzi, a shower stall with marble wall and floor tiles, and marble floors. A family room is on the finished lower level which has beadboard walls, wall to wall carpeting, and another full bathroom.
This home has an attached single car garage and paved 4 car off street parking. It has hot water baseboard, hot water radiators, gas heating and central air cooling. It was listed for $1,228,000 and sold for $1,238,000.

Relevance: Relevant, but higher.  Given the smaller size, huge master suite with marble tiled bathroom, new roof, extra full bathroom, stunning condition, inferior location I believe this home is relevant to  your home  but it should sell for more.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This colonial style home was built in 1905 and has huge curb appeal. It is smaller than your home with 2,702 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more bathroom than your home, having 3 full bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.28 acre lot in a very popular location overlooking Hastings Park whereas your home sits on a 0.48 acre lot.
The center entrance colonial is one of the most popular styles. As you walk in the front door through the portico. The living room has a coffered ceiling, a fireplace with white mantel, bay window, and hardwood floors. The formal dining room has crown molding, a custom built in china cabinet, and hardwood floors. The family room has floor to ceiling windows, crown molding, wall to wall carpeting, and has exterior access to the deck through glass sliders. The kitchen has a vaulted ceiling with skylight, a breakfast bar peninsula, granite countertops, stainless steel appliances, an office nook, and has an exterior access leading out to the deck through a french door. A full bathroom is on the first floor.  Upstairs on the second floor are the 4 bedrooms which all have wall to wall carpeting over hardwood floors, crown molding. The master suite has walk in closet, double windows, a sitting room, and has an attached bathroom.
This home has a detached 2 car garage and 2 car off street parking. It has hot water baseboard, floor furnace heating and central air cooling. It was initially overpriced for $1,348,000 but the price was dropped to $1,248,000 before it went under agreement.

Relevance: Relevant, but higher.  Given its slightly smaller size, similar location, superior curb appeal, 2 car garage, master suite, extra bathroom I believe this home is relevant to your home but it should sell for more than your home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This popular colonial style home was built in 1931. It is smaller than your home with 2,241 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more half bathroom than your home, having 2.5 bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.26 acre lot in desirable Merriam Hill, whereas your home sits on a 0.48 acre also in a very popular area.
The home is the most popular style home that buyers look for. Upon entry to the foyer from the front portico, the living room is on the right and it has a fireplace, crown molding, hardwood floors, and 2 french doors to the sunroom, and a door to an office. The formal dining room is on the left from the foyer through double french doors, and it has wainscoting, crown molding, and hardwood floors. The kitchen has stainless steel appliances, granite countertops, ceramic tile backsplash, freshly painted white cabinets, is large with a china cabinet/butlers pantry area on the way to the dining room, picture windows, vinyl flooring, and has exterior access through a side entry porch. The sunroom has walls of windows, wall to wall carpeting, and has exterior access through glass sliders. The office has custom built ins, crown molding, and hardwood floors. The master suite, 3 family bedrooms, and a family bathroom are on the 2nd level. The master bedroom has walk in closet, triple windows, crown molding, hardwood floors, and has an attached bathroom and access to a balcony.
This home is located in the Merriam Hill neighborhood. It has an attached 2 car garage and 4 car off street parking. It has hot water radiators, oil heating. It was listed for $1,199,000 and was sold for $1,350,000 after competing offers.

Relevance: Relevant.  Given the smaller size, far better curb appeal, master suite I believe that this home is relevant to yours but because they priced it for competition it has ended up selling for more than true market value.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This is our listing. This colonial style home was built in 1886. It is of similar size to your home with 3,239 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1.5 more bathrooms than your home, having 3.5 bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.28 acre lot in popular Lexington Center whereas your home sits on a 0.48 acre lot.
The home has lots of curb appeal. Upon entry from the wrap around porch through the foyer, the living room is on the right and the formal dining room straight ahead. The living room has a fireplace with a beautiful mantel, crown molding, double windows, hardwood floors, and access to the family room through double french doors. The formal dining room has bay window, hardwood floors, and has access to the kitchen through stained glass doors. The family room is open plan to the kitchen and the informal dining area. The family room has custom built ins, triple windows, and hardwood floors. The kitchen had recently been renovated and has a peninsula bar, granite countertops, ceramic tile backsplash, stainless steel appliances, a beverage fridge, white cabinets, hardwood floors, and it is adjacent to a half bathroom and the laundry area. It also has an informal dining area which has a pot belly stove, picture windows, vaulted ceiling with skylights, and has exterior access to the deck through double french doors. The 2nd level includes the master suite, 2 bedrooms, an office, a huge walk in closet, and a family bathroom. The master suite has crown moldings, hardwood floors, and has a recently renovated attached bathroom with marble counters, marble wall and floor tiles, and which has a shower stall with frameless glass door. The office has crown molding and custom built ins. One of the bedrooms has a cathedral ceiling with skylights, triple windows, and hardwood floors. The family bathroom has also been recently renovated. The 3rd level has a play room, bedroom and bathroom. The area has a beamed cathedral ceiling with skylights, box window, and hardwood floors. The exterior is a resort style area with a new inground heating swimming pool, patio area. 2 car garage.

Relevance: Higher. Given the curb appeal of the home, similar location, desirable outdoor entertaining area, master suite, extra 1.5 bathrooms, superior condition I believe this home will sell for more than your home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This popular colonial style home was built in 1997. It is a similar size to your home with 3,200 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1.5 more bathrooms than your home, having 3.5 bathrooms, whereas your home has 2 full bathrooms. It sits on a smaller size 0.37 acre lot whereas your home sits on a 0.48 acre lot.
The home is the most popular style being a center entrance colonial. The home is stunning inside with modern fixtures and modern finishes. From the foyer, the living room is on the right and the office is on the left. The main level has crown moldings, triple windows, and hardwood floors throughout. The living room has a fireplace with white mantel and marble surround. There is a large cased opening from the living room to the dining room. The formal dining room has chair rails and access to the kitchen. The kitchen is stunning and has a breakfast bar peninsula, granite countertops, ceramic tile backsplash, stainless steel appliances, white cabinets to the ceiling, a walk in pantry, and an informal dining area which has an exterior access to the deck through glass sliders. Its all open to the family room which also has an exterior access to the deck through a glass door. It also has a french door opening to the screened porch located at the front of the home. The office off the foyer has double french doors leading into it.  A half bathroom is also on this floor. The master suite, the 3 family bedrooms, and a family bathroom are on the 2nd level. All bedrooms have hardwood floors and one of them has a walk in closet. The master suite has a walk in closet, and a stunning attached bathroom which has a double sink vanity and granite countertop. The finished lower level is finished beautifully with a playroom with wall to wall carpeting and a full bathroom and access to the garage through the mudroom. The mudroom has ceramic floor tiles and is large.
This home has an attached 2 car garage and 5 car off street parking an has a storage shed. It has forced air, radiant, oil, hydro air heating and central air cooling. It was listed for $1,599,000 and is currently under agreement after competing offers.

Relevance: Higher.  Given the similar size, superior condition, superior curb appeal and popular style, extra bathrooms, master suite, central air conditioning I believe that once all factors are considered it will sell for more than your home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This popular center entrance colonial style home was built in 2011. It is larger than your home with 3,814  sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 1 more bathroom than your home, having 3 full bathrooms, whereas your home has 2 full bathrooms. It sits on a similar size 0.40 acre lot whereas your home sits on a 0.48 acre lot.
A popular center entrance style, newly built, is exactly what the buyers are looking for.  It was lovely inside. with a traditional layout. The main level has an open floor plan which has hardwood floors, picture windows, and crown molding on each area. The living room has a fireplace with white mantel, floor to ceiling windows, and tray ceiling. The formal dining room also has a tray ceiling and floor to ceiling windows. The family room is connected to the living room and the kitchen defined by a half height wall, and it has floor to ceiling bay windows. The kitchen has a breakfast bar island, granite countertops, ceramic tile backsplash, stylish cabinets, high end stainless steel appliances, pantry, and has an exterior access to the large deck through glass sliders by the informal dining area. The 2nd level includes the family bedrooms, a bonus room, a shared family bathroom, and the master suite. The bedrooms have hardwood floors, and large windows. The master bedroom has an attached bathroom with double sink vanity and granite countertops.
This home is situated on a cul-de-sac. It has an attached 2 car garage and 3 car off street parking. It has central heat, forced air, gas heating and central air cooling. It was listed for $1,525,000 and was sold for  $1,600,000.

Relevance: Higher. Given the larger size, master suite, extra bathroom, 2 car garage, new construction, central air conditioning I believe this home will sell for more than your home.

Your details: Living area 3423 sq ft | 4 beds | 2 baths | Lot size 0.48 acres | Built 1951 | 1 car garage

This is our listing. This home is included in this analysis purely for the reference point that homes at this price point also get competing offers if they are priced well. This colonial style home was built in 1998. It is larger than your home with 5,835 sq ft of approx. living area. Your home has 3,423 sq ft of approx living area according to public records. This home has 4 bedrooms as does your home. It has 2.5 more bathrooms than your home, having 4.5 bathrooms, whereas your home has 2 full bathrooms. It sits on a larger size 0.69 acre lot whereas your home sits on a 0.48 acre lot.
From the foyer, the living room is on the left and the formal dining room is on the right and both have crown moldings and hardwood floors. The living room has bay window. The formal dining room has chair rails and double windows. The kitchen has a 2-tier breakfast bar island, granite countertops, white cabinets to the ceiling, stainless steel appliances, picture windows, an office nook, ceramic tile floors, and has an informal dining area with bay windows and vaulted ceiling. The family room has a fireplace, column accents, double windows, and has an exterior access to the deck through glass sliders. This level also has a home office which has a bay window and hardwood floors and is adjacent to a full bathroom. The 2nd level includes the master suite, 3 family bedrooms, a billiard room, and 2 family bathrooms. Two of the bedrooms are almost identical with their wall to wall carpeting and are adjacent to a family bathroom which has a double sink vanity. One of the bedrooms is attached to a full bathroom which is also accessible through the billiards room. The master bedroom has a fireplace, wall to wall carpeting, has an attached office, and an attached bathroom. The master bathroom has a double sink vanity, shower stall, and a jacuzzi. The finished lower level is huge and has a recreation room which has hardwood floors, and custom cabinets with granite countertops, and wine rack. It also has a fireplace, and a half bathroom. It has lots of exterior access on all directions through glass sliders.
This home has an attached 3 car garage and 6 car off street parking. It has hot water baseboard, gas heating and central air cooling. It was listed for $1,635,000 and we had competing offers on it and it is selling for $1,741,000.

Relevance: Higher.  Given the larger size, lots more bathrooms, extra bonus rooms, larger lot size, 3 car garage, superior condition 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 $1,200,000-$1,250,000.  

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 than market value is our listing at 135 Grant St which came on the market for $1,635,000 and will sell for $1,741,000, and the listing at 77 Meriam St which came on the market for $1,199,000 and sold for $1,350,000. 

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.

I have to stress that these are recommendations.  We would bring your home on the market at whatever price you deem to be appropriate.  

Determining the right price 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.

 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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