14 Barbara Circle, Woburn

Market Analysis for:

Steve Howe

I've done a market analysis on your home at 114 Barbara Circle, Woburn 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 take into account your reported condition and how, in my experience, that will impact the price of a home making it more or less valuable. 

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 single family home with 3 bedrooms, 1.5 bathrooms, on 0.28 acres. Public record has your home as 1095 sq ft above ground and 768 sq ft in the lower level. We will consider your home to have 1863 sq ft of living area in total. You have reported your home as being a 10 out of 10 for condition so I will assume granite counters and stainless steel appliances in the kitchen.

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Market Dynamics

We have been experiencing shortages of housing inventory in Woburn over the last 5 years or so. There are always a number of buyers looking to buy in Woburn because of the community dynamics, ease of commuting into Boston 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 Woburn market has seen increasing prices over the last few years given the limited inventory. The demand for homes in Woburn far outweighs the supply and each month a snapshot of available homes for sale shows the declining inventory levels.

Average prices in Woburn are well above average prices obtained in the peak of the market in 2005. Average single family home prices have been increasing steadily since 2012. 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 $400K price-range is the most active in Woburn. The next busiest price range in Woburn is the $500K price range. 

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 Woburn around the $500K price range is around $283 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 1970’s the average price per sq. ft. is $303.

The chart below shows that single family homes in Woburn of similar size to your home in the 1,000 square foot range, have an average price per square foot of $305 but it increases to $402 per sq. ft. when you decrease to the  under1,000 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 condos in the $500K price range are 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 analyzed.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is a similar size to your home. It has 2 full bathrooms though rather than the 1.5.  The home was in lovely condition but did not have granite/stainless steel kitchen. 

Relevance: Less.
Given the smaller size of the home, inferior condition but with 2 full bathrooms, I believe your home will sell for more than this home.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is a similar size to your home as the 1132 sq ft does not include the lower level finished area. We have included that in your measurement. It has the same number of beds/baths. The kitchen has mismatched appliances but has granite counters.

Relevance: Relevant, but Less.
Given the similar size of the home, but inferior condition I believe it is relevant to your home but yours will sell for more.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is larger than your home. It has 2 full bathrooms. It has an au-pair suite downstairs which is less desirable. It was in lovely condition.

Relevance: Relevant.
Given the larger size of this home, two full baths, similar condition but with an au-pair which is less desirable, I believe it is relevant to your home.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is larger than your home but the home would not be described as a 10 out of 10 condition.  The kitchen and baths need updating. 

Relevance: Relevant
Given the larger size, but inferior condition I believe this home is relevant to yours.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is a similar size to your home, but has 2 full bathrooms vs your 1.5. The kitchen has granite counters and stainless steel appliances.

Relevance: Relevant.
Given the similar size of the home,  1 more full bathroom, superior location in west woburn, similar condition, I believe this home is relevant to yours. 

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is larger than your home and is on the same street. It has 2 full bathrooms vs your 1.5 bathrooms. The condition was lovely inside.

Relevance: Relevant, but higher
Given the larger size and 2 full bathrooms, similar condition and location I believe this home is relevant to yours but should sell a little higher than yours.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is a similar size to your home, but is on a bigger lot.  It has 2 full bathrooms vs your 1.5 baths. There was wall to wall carpet in the formal rooms which is less desirable. It's condition inside was nice but not as nice as I believe yours to be.

Relevance: Relevant
Given the similar size, but with 2 bathrooms instead of 1.5 baths, superior location in west Woburn and with carpet instead of hardwoods, I believe this home would be relevant to yours.

Your details: Living area 1863 sq ft | 3 beds | 1.5 bath | Built 1978 | 1 car garage | 0.28 acres

This home is larger than your home as the 1236 sq ft does not include the lower level, nor a large sunroom. It has 2 full bathrooms vs your 1.5 bathrooms.  It was in lovely condition inside with granite counters and white appliances.

Relevance: Higher
Given the larger size, but having 2 full bathrooms, similar condition, superior location I believe it 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 $510,000-$550,000.  

This analysis is not based on having viewed your home but relying on your interpretation of condition. For a more accurate estimate I would need to see your home.

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.

 New statistics state that over 100% of potential buyers search the web as their primary search vehicle.  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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