40 Oak St, Lexington

Market Analysis for:

Robert Donaghey & Joan Lowenberg

I've done a market analysis on your home at 40 Oak St 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.

Your home is an expanded cape style home built in 1950, on 0.29 acre lot in a neighborhood adjacent to the Wilson Farm in Lexington which has easy access onto Route 2.
As you walk up the stairs from the driveway to the front door you admire the curb appeal of the home. Through the front door there is a small entry and then you have stairs in front, an office/bedroom to the left and the living room to the right. The living room has a bay window and a woodburning fireplace. Painted wood panels line one wall. The office/bedroom is currently being used as a craft room. From this room you enter a hallway, with the dining room and sitting room directly in front, and the full bathroom and kitchen to the right passing the opening leading to the living room. The dining room has a built in china cabinet and is open to the sitting room which is flooded with natural light with multiple windows and a skylight. The full bathroom is clean and tidy with a tub/shower.  The kitchen has a door leading to the screened porch and an opening into the informal dining and family room. Black appliances, laminate counter. The family room/informal dining has a bank of windows, with double opening sliding doors and a cathedral ceiling. Skylights provide lots of natural light.

Upstairs to the second floor you have 3 bedrooms. 2 are smaller and the larger one has wall to wall carpets, 3 double closets, soffit lighting and is an odd shape which we will need to be careful staging. 2 of the bedrooms have skylights in the ceiling. The family bathroom is fresh and clean with ceramic tiles on the walls of the tub/shower, single vanity and painted cabinet. 

Downstairs in the basement you have several doors at the bottom of the stairs.  One leads to the driveway under the overhang, and another leads to a finished area. The finished area has wall to wall carpets, built in cabinetry, a kitchenette area, a small full bathroom, and a finished bonus room. Through the finished bonus room is the laundry which has painted concrete floors and is nicely finished. Exterior access from this room is via the bulkhead and a door leads to the single car garage.

The home has high velocity air conditioning, hot water baseboard heat, 4 smaller bedrooms, 3 bathrooms, 1 car garage, 5 car off street parking, 1979 sq ft of above ground living area and 708 sq ft of living area in the basement, totaling 2687 sq ft.

The home will be painted inside, with bathroom wall tiles in the first floor bathroom painted, and also kitchen cabinets. There are 3 sump pumps in the basement.

The backyard is natural with a large cobbled patio area, cobble edge beds, and a storage shed.



Return to Top

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 $800K price range is around $411 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 is in the 1950’s the average price per sq. ft. is $413.

The chart below shows that single family homes in Lexington of similar size to your home in the 2,000 square foot range, have an average price per square foot of $401 but it increases to $478 per sq. ft. when you decrease to the 1,000 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 $800K price range is almost no supply showing a severe shortage.

Return to Top


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 2,687 sq ft (including 708 sq ft in the basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This ranch style home was built in 1954.  It is smaller than your home with 2,044 sq  ft of living area including a finished lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has 1 less bedroom than your home, having 3 bedrooms whereas your home has 4 bedrooms. It also has 1 less bathroom than your home, having 2 full bathrooms whereas your home has 3 full bathrooms.  It sits on a 0.29 acre lot as does your home.

The living room has a fireplace, skylight, and hardwood floors. It has an open floor plan with the formal dining room which also has hardwood floors. The eat-in-kitchen has a breakfast bar peninsula, custom built cabinets, mismatched appliances, ceramic tile backsplash and floors. The kitchen has access to the sunroom through a cased opening and a pass through window. The master bedroom and 2 family bedrooms are also on the main level and they have hardwood floors and share a family bathroom which is also on this level. The lower level includes the family room, an office, and a full bathroom with a separately enclosed shower and tub. This home abuts conservation land. It has an attached single car garage and 5 car off street parking, and has hot water baseboard  heat. It was initially listed for $685,000 and sold for $695,000.

Relevance: Less. Given the smaller size of the home, 1 less bedroom and 1 less bathroom, inferior condition, I believe your home will sell for more than this home.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This contemporary cape style home was built in 1958.  It is smaller than your home with 2,346 sq  ft of all above ground living area . Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home does, having 3 bathrooms.  It sits on a larger  0.41 acre lot whereas your home sits on a 0.29 acre lot.

As you enter the home from a deck at the front of the home, the main living area has an open floor plan with the dining room, the kitchen, a sitting room, and the family room. The formal dining room has a fireplace with white mantel and brick facing, wainscoting, crown molding, and hardwood floors. It directly connects to the kitchen which has ceramic tile floors, custom built cabinets to the ceiling, stainless steel appliances, a breakfast bar peninsula, granite countertop and decorative tile backsplash. It is directly connected to a sitting room through another peninsula bar with column, cabinets and drawers. The sitting room has a cathedral ceiling with exposed beams and access to the sunroom through a French door. The family room also has a cathedral ceiling with exposed beams and skylight, its own wood burning fireplace with brick mantel to the ceiling, and an exterior access to a patio. On one side of the fireplace are recessed shelves and cabinets. The master suite is also on the main level which has a cathedral ceiling with exposed beams and skylight, a spacious walk in closet and an attached bathroom. Another bedroom and an office are also on the main level. On the second level are 2 more bedrooms that share a full bathroom, and lots of storage space. This home is located in the Estabrook ES and Diamond Middle School district. It has an attached single car garage and 3 car off street parking, and has hot water baseboard  heat. It was initially listed for $895,000, went under agreement but came back on the market. Price was dropped to $880,000 and then to a lower $859,000. The home dropped price again to $850,000 before it went under agreement and was finally sold for $825,000.

Relevance: Relevant. Given a number of factors some being your home being a little larger, but this home having a master suite, your home having some small bedrooms, the kitchen of this home having cherry cabinets, granite counters and is nicely renovated, I believe this home is relevant to your home.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This garrison colonial style home was built in 1954.  It is larger than your home with 3,277 sq  ft of living area including a finished lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has half a bathroom more than your home does, having 3.5 bathrooms.  It sits on a larger  0.52 acre lot whereas your home sits on a 0.29 acre lot.

The living room has a fireplace with white mantel and brick facing, crown molding, picture windows and hardwood floors. It has access to the formal dining room through a cased opening. The dining room has picture windows, crown molding, and hardwood floors. The family room is also on this level adjacent to a family bedroom. Both have hardwood floors and picture windows. The kitchen has mismatched appliances where most are stainless steel, hardwood floors, and an informal dining area. The informal dining area has vaulted ceiling with skylight, and an exterior access to the deck through sliders and another to a porch. The master suite is on the upper level and it has a dressing room with walk in closet, and an attached bathroom. On this level are 2 more family bedrooms that share a bathroom. All rooms on this level have hardwood floors. The finished lower level is a playroom/ recreation room which has wood veneer walls, lots of built ins, half bathroom, and wall to wall carpeting. This home is located in the popular Manor neighborhood.  It has an attached single car garage and 3 car off street parking, and has hot water baseboard  heat. It was initially listed for $949,000 but price was dropped to $899,999 and then to $899,000 before it went under agreement and was sold to an even lower price of $865,000.

Relevance: Higher. Given the larger size of the home, larger lot size, traditional colonial floorplan, 1 extra full bathroom I believe it will sell for higher than your home.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This garrison colonial style home was built in 1954.  It is larger than your home with 2,990 sq  ft of living area including a finished lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has a full bathroom more than your home does, having 3 bathrooms.  It sits on a similar size lot of 0.3 acres whereas your home sits on a 0.29 acre lot.

The living room has an open floor plan with the formal dining room. The living room has a fireplace, a large bay window and hardwood floor. The formal dining room has bay window and an exterior access to a deck through glass doors. The family room is huge and is full of natural light and has a cathedral ceiling, multiple picture windows, and exterior access to a patio and another one to the deck. The kitchen has all white appliances and stylish white modern shaker style cabinets to the ceiling. It has an open floor plan with the family room but partially separated through a 2 tier peninsula bar. The master bedroom is on the same level and has an attached bathroom, and hardwood floors. The master bathroom has double vanity sink with white cabinets, and Jacuzzi. There are 2 more bedrooms and an office on the main level and they all have hardwood floors including a full bathroom. The lower level had an aupair suite and it includes a bedroom, a full bathroom, an office, a workshop, a wine cellar, an exercise room, a bonus room and another family room with its own kitchenette. This home has mostly hardwood floors including the finished lower level.  This home has an attached single car garage and 4 car paved driveway parking, and has hot water baseboard  heat and central air cooling. It was listed for $925,000 and went under agreement for $910,000.

Relevance: Higher.  Given the renovated kitchen, larger above ground living area, master suite, I believe it will sell for more than your home.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This colonial style home was built in 1955.  It is smaller than your home with 2,453 sq  ft of all above ground  living area. Your home has 2,687 sq ft of living area including a finished basement. This home has 1 bedroom more than your home, having 5 bedrooms. It also has half a bathroom more than your home does, having 3.5 bathrooms.  It sits on a smaller 0.17 acre lot whereas your home sits on a 0.29 acre lot. 

The main level has an open floor plan that includes the living room, the dining area and the kitchen. The living room and the dining area has a fireplace with stylish white mantel and brick facing, bay windows, and hardwood floors. The kitchen is renovated and has granite countertops, decorative ceramic tile backsplash, shaker style cabinets, white appliances, and ceramic tile floors. The family room, a family bedroom, and the bonus room/office have hardwood floors and are also on this level together with 1 full bathroom and a half bathroom.  The family room has a sliding glass door that leads to a concrete patio and lush backyard. The master bedroom is on the second level and it has walk in closet, an attached bathroom with granite countertop, and hardwood floors. On the same level are 3 more bedrooms and all have hardwood floors. They share 1 bathroom which has granite countertops, and ceramic tile floor.  The home had been completely renovated in 2010. This home has an attached single car garage and 4 car off street parking, and has hot water baseboard  heat and central air cooling. It was listed for $959,000 but was sold for a lower price of $933,000.

Relevance: Higher. Even though total living area is a little smaller than yours, it is all above ground living area. Given the larger above ground living area, renovated kitchens and bathrooms, an extra bedroom and the master suite I believe it will sell for higher than your home.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This cape style home was built in 1946.  It is smaller than your home with 2,443 sq  ft of living area which does not include a finished family room in the lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, having 4 bedrooms. It also has 1 less bathroom than your home, having 2 full bathrooms whereas your home has 3 full bathrooms. It sits on a larger  0.4 acre lot whereas your home sits on a 0.29 acre lot.

The living room has an open floor plan with the dining area and the kitchen. The living room has a fireplace with white mantel and recessed built ins, crown molding, chair rails, and hardwood floors and an exterior access to the screened porch. Passing through a cased opening leads to the dining area which also has hardwood floors and picture windows, and exterior access to the deck. The kitchen is huge with a vaulted ceiling with skylight, custom built cabinets and shelves, pantry, breakfast bar island, granite countertops, ceramic tile backsplash, and stainless steel appliances. It is open plan with a sitting room, a dining room, the living room.  On this level are 2 family bedrooms and an adjacent full bathroom. The master bedroom is on the upper level and is large. It has a cathedral ceiling with skylights, and hardwood floors. Another family bedroom is on this level and it also has cathedral ceiling with skylights, but with wall to wall carpeting. Both rooms share a newly renovated family bathroom with shower stall. The finished lower level has the family room. It had a new roof, new appliances, new furnace, new kitchen, new bathroom. Freshly painted inside and outside. This home is located in the Manor neighborhood and has an attached single car garage and 4 car paved driveway parking, and has hot water baseboard  heat. It was listed for $899,000 and was sold for a higher price of $955,000 with competition.

Relevance: Relevant, but higher. Given the larger above ground living area, renovations and open plan living spaces I believe it is relevant to your home but it will sell for more than yours.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This colonial style home was built in 1954.  It is smaller than your home with 2,584 sq  ft of living area which does not include a finished lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has half a bathroom more than your home does, having 3.5 bathrooms.  It sits on a smaller 0.17 acre lot whereas your home sits on a 0.29 acre lot.

The main level has an open floor plan including the living room, the dining area, and the kitchen. The living room and the family room both have fireplace and hardwood floors. The kitchen has been newly renovated with cherry cabinets to the ceiling, stainless steel appliances, ceramic tile backsplash, breakfast bar island, granite countertops, and hardwood floors. There is a lovely sunroom with a cathedral ceiling and walls of windows on the side of the home. A family bedroom with hardwood floors and a half bathroom are also on this level. There are 2 family bedrooms are on the upper level and they have hardwood floors and share a renovated full bathroom. The master suite is also on this level and it has a walk in closet and an attached renovated bathroom with a jacuzzi tub and shower combination. Another bedroom and bathroom are in the finished lower level. This home has an attached single car garage and 4 car off street parking, and has central  heat and central air cooling. It was listed for $1,050,000 but was dropped to $970,000 before it went under agreement and was sold to an even lower price of $959,000.

Relevance: Higher.  Given the larger above ground living area, renovated kitchen and bathrooms, additional half bathroom I believe this home will sell for more than yours.

Your details: Living area 2,687 sq ft (including 708 sq ft in the  basement) | 4 beds | 3 baths | Lot size 0.29 acres | Built 1950

This multi-level style home was built in 1960.  It is smaller than your home with 2,594 sq  ft of living area including a finished lower level. Your home has 2,687 sq ft of living area including a finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has only has 2 full bathrooms.  It sits on a smaller 0.19 acre lot whereas your home sits on a 0.29 acre lot. The home has been stunningly renovated.

The main living area is has an open floor plan which includes the living room, the dining area, and the kitchen. The living room has a fireplace with granite facing and white mantel, crown molding, picture windows, and hardwood floors. The dining area has double windows, crown molding, and hardwood floors. The kitchen has cherry cabinets, ceramic tile backsplash, stainless steel appliances, breakfast bar peninsula, granite countertops, and hardwood floors. It is connected to the family room through a cased opening and a pass through window. The family room is huge and has a cathedral ceiling with skylights, 3 double huge picture windows, and large sliding glass door out to the screened porch. The master bedroom and 2 family bedrooms are upstairs and they all have hardwood floors and share a renovated full bathroom. One bedroom is situated on the first level. The finished basement includes an office with a fireplace and laminate flooring, a full bathroom with tub and shower stall, and a playroom with laminate flooring.  This home has an attached single car garage and 4 car off street parking, and has hot water baseboard heat and central air cooling. It was listed for $898,000 and was sold for $990,000, with competition.

Relevance: Higher. Given the similar size, superior condition, traditional layout I believe this home will sell for more than your home.

Return to Top

Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $800,000-$850,000.  

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 57 Blake Rd which came on the market for $899,000 and sold for $955,000, and 25 Eastern Road which came on the market for $898,000 and sold for $990,000. 

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.  If you decided to sell your home, then 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.

Return to Top

So, what is our Marketing Plan? 

Read More to find out all about the standard marketing we offer, at no additional charge to the standard fee.

Marketing to sell your home

Make your home stand out with MA Properties Online's Marketing Today's technology makes it...

Read More


 

Who We Are | MA Properties Online | RE/MAX Leading Edge

The MA Properties Online team takes a 'data driven approach' to real estate . ...

Read More

 


 

Testimonials | MA Properties Online | RE/MAX Leading Edge

Read Reviews about MA Properties Online | RE/MAX Leading Edge...

Read More


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! 

Return to Top