44 Somerset Rd, Lexington

Market Analysis for:

Sidra and Brian Michon

I've done a market analysis on your home at 44 Somerset 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.

Your home is a lovely garrison colonial that has been renovated and expanded from top to bottom.   The home is located in the very desirable area of Merriam Hill and is walking distance to the town center, the bike path, Fiske ES, Diamond MS, Lexington HS. The home was built in 1927 and has 4 bedrooms and 4 full bathrooms. Public record has your home as 2762 sq ft but this misses a lot of your living area. Based on my calculations there is 996 sq ft (after floorplans have been drawn up, not 1225) sq ft in the finished lower level,  1517 sq ft in the first floor,  1327 sq ft  (not the 1245 sq ft town assessors database value) in the second floor, 921 (after floorplans this figure is not, 1025 sq ft) in the third floor totaling 4761 sq ft (after floorplans, not 5002) sq ft of living area. I have all of my calculations if you would like to review them.  Once we have floor plans drawn up it will be easier to identify what living area has been calculated into the living area and what has not, and to validate the living area calculations. Your home is located on 0.32 acres and has a 2 car garage underneath.

As you walk up to the front steps you notice the immaculate care that has been taken with the home. As you enter the front door under the portico you have the dining room off to the left, the living room off to the right, stairs up to the second floor immediatly in front and have views of the kitchen and family room through the hallway. The living room has a gas burning fireplace with white mantel and has 2 single french doors leading into the sunroom/office beyond. The sunroom has a vaulted ceiling, windows on all walls, with the back of the brick chimney on one wall. The dining room has chair rails, built in china cabinet with in cabinet lighting, and opens into the stunning kitchen. The kitchen has red gloss cabinetry, modern sleek handles, high end stainless steel appliances including a Subzero fridge/freezer, trash compactor, dishwasher, range, microwave, warming drawer, exhaust hood, beverage fridge, granite counters, platinum(?) industrial strength floor tiles, open cabinetry, breakfast bar, exterior french door to the deck and is open to the family room and 4 level stairwell. The stairwell is sleek and contemporary with dark wood sides, solid maple stair treads, stainless steel railings and is bathed in natural light with all the windows throughout. The family room has double french doors out to the huge deck and lots of windows on two sides. Off from the family room is a full bathroom with vessel sink, obscured glass paneled door, modern cabinetry and fittings. The huge wrap around deck has a natural gas hookup for a grill and exterior speakers.

Upstairs to the second level we have a master bedroom suite and 2 family bedrooms. The family bathroom has an obscured glass paneled door, double sink vanity with granite counters,  and a separate toilet and shower room. A huge laundry is also on this level. The main stairs from the front door lead up to the landing. The master bedroom is full of natural light, has a closet as well as a walk in closet, and a stunning master bathroom. The vanity has dual sinks, granite counter, high gloss tiger wood cabinetry, black trim, huge shower with body sprays, rain showerhead, white pebble accent wall and polished brass(?) pebbled floor. Separate toilet. A small office is on this level, along with 2 bedrooms both with closets. 

Upstairs to the third floor there is access to storage under the eaves, stairs up to the widows walk on the roof (which has electricity and water outlet), obscured glass paneled door to the bedroom/teen suite on this level. Lots of built ins, closet, decorative light accent wall, skylights.  Additional soundproofing was added between the floors. Thoughtful design has gone into the design of this home with accent windows on the stair landing providing additional light into the master bedroom hallway below.

Downstairs in the lower level you have the mudroom with large ceramic(?) tiled floor, exterior french door out to the driveway area, 2 car garage to the left and the finished lower level to the right up a couple of steps and through a french door. A large family room/media room with mirrored wall, and a finished area currently used as a gym with double french doors leading out to the driveway and backyard. A full bathroom with marble floor tiles, and modern fixtures is off the family room. A second laundry is in a stackable laundry closet.

Nest thermostats, 7 zones of hot water baseboard heat, high velocity central air conditioning throughout. Wired speakers in the sunroom, living room, dining room, kitchen, family room and deck are controlled by keypads on the first floor.  Intercom throughout the home.

Everything inside the home has been beautifully renovated and is in as-new condition. Paint colors are strong but appealing, window coverings are appealing choices throughout the home. This is a great example of how careful and considered improvements have been done to the home that has made the home shine!

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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 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 $1.5M - $2M 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 1920’s the average price per sq. ft. is $446.

The chart below shows that single family homes in Lexington of similar size to your home in the 5,000 square foot range, have an average price per square foot of $358 but it increases to $379 per sq. ft. when you decrease 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 $1.5M - $2M price range are less than 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 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This multi-level contemporary style home was built in 1961.  It is smaller than your home with 3,536 sq  ft of living area including a finished lower level. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has the same number of bedrooms as your home, having 4 bedrooms. It has 1 less bathroom than your home, having 3 full bathrooms whereas your home has 4 full bathrooms.  It sits on a larger 0.42 acre lot while your home sits on a 0.32 acre lot.

As you enter this home through glass stained doors, you are in the foyer with skylights above and can either go up to the living room or down to the lower level. The main level has an open floor plan and includes the living room, the dining room, the kitchen and the family room. The living room has a fireplace with natural wood colored mantel and granite facing, a cathedral ceiling, picture windows, and hardwood floors. The dining room has an accented ceiling and is separated from the family room through a cased entry with half height column. The kitchen has a breakfast bar peninsula, and a center island with cooktop, granite countertops, skylights, custom built cabinets to the ceiling with glass paneled doors, and in-lay and stainless steel appliances. The family room also has a cathedral ceiling, picture and bay windows,  and hardwood floors. The 2 family bedrooms and the master suite are on this level. The master bedroom has hardwood floors, and an attached bathroom with shower stall and is fresh and clean. Another bathroom is located at the end of the hallway which has a double vanity sink and ceramic tile floors. The lower level has 1 more bedroom, a media room, and a recreation room. The recreation room has a wet bar with a prep sink, beverage fridge, white cabinets, and granite countertop. The media room has a fireplace with a painted brick wall. The lower level is a full walkout, has been beautifully finished and one end has floor to ceiling windows and access to the large backyard.

This home is also located in the Merriam Hill neighborhood. It has an attached 2 car garage and paved 5 car off street parking, and has hot water baseboard  heat and central air cooling. It was initially listed for $1,589,000 and went under agreement with our buyers but they backed out after the inspection, and went under agreement shortly after and sold for $1,600,000.


Relevance: Less.  Given the lack of the 'wow' factor your home has, inferior style of home, smaller size, one less bathroom, inferior condition I believe your home will sell for more than this home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home was built in 2008.  It is smaller than your home with 4,168 sq ft of all above ground living area. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has 1 bedroom more than your home, having 5 bedrooms. It also has more bathroom than your home, having 4.5 bathrooms whereas your home has 4 full bathrooms.  It sits on a smaller 0.27 acre lot although the home is set well back off the street and there is virtually no backyard, whereas your home sits on a 0.32 acre lot with a great backyard.

The living room has wainscoting, crown molding, triple windows, and hardwood floors. The formal dining area also has wainscoting, crown molding, triple windows, and hardwood floors, and is connected to the living room through a cased opening. The family room has an open floor plan to the kitchen. It has a fireplace with cast iron stove and granite facing and white mantel, recessed built ins on each side of the fireplace, a cathedral ceiling with skylights, hardwood floors, and an exterior access to the deck through large glass sliders. The kitchen has crown molding, stylish white cabinets to the ceiling, 2 tier breakfast bar island, granite countertops, ceramic tile backsplash, stainless steel and cabinet in-lay appliances, and informal dining area. The informal dining area has a cathedral ceiling, hardwood floors, and decorative and picture windows. A bedroom with an attached bathroom and walk in closet is also on the main level. A mudroom is at the end of a hall near the study. The upper level has 3 more family bedrooms and the master suite. One of the family bedrooms has a walk in closet and an attached bathroom with shower stall. Another bedroom also has a walk in closet but shares a bathroom with another family bedroom.  This family bathroom has double vanity sink and granite countertop, and separately enclosed toilet and tub. The master bedroom has a renovated attached bathroom, a walk in closet, a dressing room, and a bay window. The master bathroom has cathedral ceiling, a separately enclosed shower with marble floors and walls, double vanity sink with granite countertop and cherry cabinets, and marble floors.

This home has an attached 2 car garage and 6 car off street parking, and has forced air heat and central air cooling. It was initially listed for $1,849,000 and sold for $1,750,200.

Relevance: Less. Given the similar desirability of location but smaller size, smaller lot with virtually no backyard, 1 more bedroom, and lacking the 'wow' factor I believe your home will sell for more than this home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home was built in 1997.  It is smaller than your home with 3,982 sq ft of all above ground living area. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has the same number of bedrooms as your home, having 4 bedrooms. It has 3.5 bathrooms whereas your home has 4 full bathrooms. It sits on a smaller 0.27 acre lot whereas your home sits on a 0.32 acre lot.
As you enter under the portico into the 2 story foyer, you can go straight to the living room or to the left is the kitchen. The living room has a fireplace with white mantel, crown moldings, hardwood floors, and exterior access to the patio in the backyard through double French doors. The formal dining room has ceiling details, crown moldings, wainscoting, wallpaper, triple windows, 2 built in china cabinets, and hardwood floors. The kitchen is dated being 20 years old and has a center island where the cooktop is, laminate counters, white cabinets, a pantry, an informal dining area which has triple windows that lets in lots of natural light. The family room has a built in entertainment center, crown molding, double windows, hardwood floors, and French doors to the patio. There are 2 master suites, 1 on the first floor and 1 on the second floor. The master suite on the first floor has a walk in closet, crown moldings, triple windows, hardwood floors, and an attached master bath. The master bathroom is quite dated (20 years old) and has ceramic floor tiles and countertop, shower stall, triple windows, and a Jacuzzi. On the second floor are 3 more bedrooms with wall to wall carpet, one of them a second master suite. One of the bedrooms has wallpaper on the walls. The second master suite has a vaulted ceiling, attached full bathroom and a walk in closet. This bathroom is more updated than the others with marble tile floors and counters, with lots of glass. Another bedroom has triple windows and decorative crown moldings.
This home is also located in the Merriam Hill neighborhood. It has an attached 2 car garage and 4 car off street parking, and has forced air heat and central air cooling. It was initially listed for $1,649,000 and sold with competition for $1,760,000.

Relevance: Less. Given the smaller size, similar location, inferior condition I believe your home will sell for more than this home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home is a similar style as your home and was built in 1915.  It is smaller than your home with 3,700 sq ft of all above ground living area. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has 1 bedroom more than your home, having 5 bedrooms. It also has a half bathroom more than your home, having 4.5 bathrooms whereas your home has 4 full bathrooms.  It sits on a larger 0.39 acre lot in a similarly desirable neighborhood, whereas your home sits on a 0.32 acre lot.

The formal dining room has chair rails, picture windows, coffered ceilings, crown molding, and hardwood floors and French doors. The living room has a fireplace with white mantel and granite facing, crown molding, hardwood floors. It is adjacent to a small bonus room and to the office with doorways either side of the fireplace. The family room has an open floor plan with the kitchen. The family room has a fireplace with rock facade, custom built ins, crown molding, and hardwood floors. The kitchen feels dated and has a 2-tier breakfast bar island with a second prep sink, granite countertops, ceramic tile backsplash, stainless steel appliances, custom built oak cabinets, crown molding, hardwood floors, an office nook with custom built ins, an informal dining area which has access to the pergola leading to the patio, and a pantry which has access to the mudroom and the bathroom. The family bedrooms are on the upper level including the master suite. The master bedroom has a cathedral ceiling, crown molding, hardwood floors, walk in closet and an attached bathroom. The attached bathroom has double vanity sink, granite countertop, and white cabinets, shower stall and tub. There are 2 more bedrooms with attached bathrooms and walk in closets. The family bathroom on this level has double vanity sink, granite countertop, and white cabinets and is shared by 2 adjacent bedrooms. 

This home is located in the Munroe Hill neighborhood. It has a detached 2 car garage and paved 5 car off street parking, and has hot water baseboard, and hot water radiant heat and central air cooling. It was listed for $1,795,000 and sold for $1,790,000.

Relevance: Less. Given the similar location, smaller sq footage although with 1 extra bedroom and 1 extra half bathroom, but a detached garage I believe your home will sell for more than this home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This contemporary style home was built in 1950.  It is smaller than your home with 3,912 sq ft of all above ground living area. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has the same number of bedrooms as your home, having 4 bedrooms. It has more half bathroom than your home, having 4.5 bathrooms whereas your home has 4 full bathrooms.  It sits on a similar size 0.33 acre lot whereas your home sits on a 0.32 acre lot.

The main level has an open floor plan which includes the living room, the dining area, and the kitchen. The living room has a fireplace with brick facing and white mantel, crown molding, custom built ins, picture windows, and hardwood floors. The dining area also has crown molding, picture windows, and hardwood floors. The kitchen is large and is a step higher. It has a breakfast bar island where the cooktop is. It also has granite countertops, stylish white Scandia cabinets to the ceiling, stainless steel appliances, and exterior access to the backyard through a French door. The family room is accessible from the living room through double french doors. It has a cathedral ceiling with skylights, picture windows, and hardwood floors.  The open plan area is huge, and great for entertaining. This home also has 2 master bedrooms. The first master suite is on the main level and it has an attached bathroom, walk in closet, cathedral ceiling, picture windows, and hardwood floors. The master bathroom on this level has granite countertop, custom cabinets,  and whirlpool soaking tub. An office is also on this level which has double windows and hardwood floors.  The mudroom is large with picture windows, and is adjacent to a bathroom. The second master suite is on the upper level and it has a cathedral ceiling, picture windows, attached bathroom, walk in closet, dressing room, and hardwood floors. The master bathroom on this level also has granite countertop, custom cabinets,  and whirlpool soaking tub and shower stall. There are 2 bedrooms on this level and they share a jack and jill bathroom with shower stall, custom cabinets, and granite countertop. 

This home has an attached 2 car garage and paved 4 car off street parking, and hot water baseboard, and hydro air heat and central air cooling. It was listed for $1,779,000 and sold for $1,806,000.

Relevance: Relevant, but less. Given the smaller size, albeit very appealing layout of open plan living areas, similar desirability location I believe it is relevant to your home but yours should still sell for more.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home was built in 1929.  It is a similar size to your home with 4,574 sq ft of all above ground living area but this does not include 225 sq ft in the lower level. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor. This home has 2 bedrooms more than your home, having 6 bedrooms.  It has more half bathroom than your home, having 4.5 bathrooms whereas your home has 4 full bathrooms.  It sits on a similar size 0.37 acre lot, albeit not in as desirable a location as its the corner of York and Meriam, whereas your home sits on a 0.32 acre lot.

The living room has a fireplace, decorative crown molding, wainscoting, triple windows, custom built ins and hardwood floors. It has access to the sunroom through 2 french doors on either sides of the fireplace. The sunroom has crown molding, and wall to wall carpeting. The formal dining room also has decorative crown molding, wainscoting, recessed china cabinet, triple windows, and hardwood floors. The kitchen is large and stunning, with a 2-tier island with an attached table. The cooktop is located on the lower part of the breakfast bar island in between 2 large columns. It also has granite countertops, stylish white cabinets, high end stainless steel appliances, crown molding, hardwood floors, and lots of custom built ins with glass panels, and directly connected to the mudroom adjacent to the main level bathroom. It has an open floor plan with the family room through half height built ins with massive columns. The family room has crown molding, lots of built ins, hardwood floors, and exterior access to the backyard deck and the front deck through french doors. The office also has access to the front deck through triple french doors, has custom built ins, crown moldings, and ceramic tile floors. The upper level includes 3 family bedrooms and the master suite. The master bedroom has a walk in closet, an attached bathroom, crown molding, double windows, and hardwood floors. The master bathroom has been beautifully renovated and has custom built ins, double vanity sink with marble countertop, a shower stall, marble flooring, whirlpool soaking tub, and lots of windows. There are 2 bedrooms that share a jack and jill bathroom and they both have hardwood floors. A second office is also on the third floor and it has lots of built ins and has hardwood floors. There are 2 more bedrooms with vaulted ceiling and a bathroom on the third floor. 

This home is also located in the  Merriam Hill neighborhood. It has an attached 2 car garage and 5 car off street parking, and forced  air heat and central air cooling. It was initially listed for $2,025,000 but price was dropped to  $1,950,000 after being on the market for more than 2 months before it went under agreement and was sold for $1,825,000.

Relevance: Relevant. Even though the location of this one is not as good as yours, the huge appealing kitchen open to the family room will appeal to most buyers.  Similar size, similar location, 2 more bedrooms and 1 more half bathroom mean that I believe this home is relevant to your home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This craftsman style home was our listing and was built in 1997.  It is smaller than your home with 4,544 sq ft of approx living area including a finished lower. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor.  This home has the same number of bedrooms as your home, having 4 bedrooms. It has 3.5 bathrooms whereas your home has 4 full bathrooms. It sits on a similar size 0.35 acre lot on the corner of Somerset and Franklin, whereas your home sits on a 0.32 acre lot. 

As you enter the home, the living room is on the right of the foyer through double French doors. It has picture windows, a fireplace with white mantel and marble facing, crown molding, chair rails, picture windows, and hardwood floors. It has an open floor plan to the office connected through an entry with half wall with columns. The office has custom built in desk area, hardwood floors, cathedral ceiling, picture windows with a round accent window above. To the left of the foyer is the kitchen with center island, a 2-tier peninsula breakfast bar, stainless steel appliances, granite countertops, decorative ceramic tile backsplash, stylish cabinets some with glass paneled doors, and access to the huge mudroom. It has an informal dining area and is open to the family room. The informal dining area has an exterior access to the patio via double glass doors and bay window which allow lots of natural light in. The family room has a coffered arched ceiling, a fireplace with white mantel, exterior access through 2 glass doors on either sides of the fireplace, and a built in entertainment center. The formal dining room is accessible from the family room through double french doors and it has chair rails, crown molding, picture windows, custom built ins with glass panels, and hardwood floors. The master suite is on the second floor and has an attached master bathroom and a large walk in closet accessed via double French doors. The master bedroom has a tray ceiling, hardwood floors, the bathroom has cathedral ceiling, picture windows with large transom windows above, ceramic floor tiles and ceramic tile walls, white cabinets, shower stall, and Jacuzzi but is a little dated. On the same level are 3 more family bedrooms and a family bathroom. One bedroom has a cathedral ceiling with skylight. The family bathroom has double vanity sink and white cabinets but is a little dated. The lower level is finished with ceramic floor tiles and has a wood burning fireplace with white mantel and brick facing. Also in the basement is a recreation room with a wet bar and prep sink, a gym, a bonus room and a full bathroom.

This home is also located in the Merriam Hill neighborhood. It has an attached 2 car garage and 4 car off street parking, and hot water baseboard heat and central air cooling. It was initially listed for $1,899,000 but we changed the price to $1,879,000 before it went under agreement and sold for $1,830,000.

Relevance: Relevant, but less. Given the smaller size of this home, and inferior condition, but having superior curb appeal I believe this home is relevant to your home but yours should sell for more.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home was built in 1895.  It is smaller than your home with 4,304 sq ft of approx living area including a finished lower level and upper level. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor.  This home has 1 bedroom more than your home, having 5 bedrooms. It has 3.5 bathrooms whereas your home has 4 full bathrooms. It sits on a larger size 0.69 acre lot in the same Merriam Hill neighborhood, whereas your home sits on a 0.32 acre lot. 

Entry to this home is through a grand portico and through a vestibule to the foyer. From the foyer, you have the living room on the right and the formal dining room on the left and both having formal 8’ tall sliding doors. The living room has a fireplace with white mantel and granite facing, crown moldings, picture windows, and hardwood floors. The formal dining room has picture windows, crown moldings, and hardwood floors. The family room has crown moldings, a built in bookshelf, wall to wall carpet, and lots of windows including a bay window. The kitchen is huge and full of light with lots of windows, hardwood floors, a built in china cabinet, quartz countertops and backsplash, custom built white cabinetry extending to the ceiling, crown moldings, and stainless steel appliances. It has a breakfast bar peninsula located in between the kitchen and the informal dining area. The informal dining area is double story height with huge windows on all walls, and lots of transom windows above, and has exterior access to the deck down to a patio in the backyard through a french door.  There is a huge mudroom along with a huge laundry with granite counters and a butlers pantry. On the second floor are 3 family bedrooms and the master suite. The master bedroom has a huge bathroom, a fireplace, wall to wall carpet, and has a dressing room with lots of built in custom cabinetry. The master bathroom is beautifully renovated with a shower stall with frameless glass enclosure and marble walls and floor, marble countertop, white cabinets, and ceramic floors. One of the family bedrooms has ceiling detail work, and wall to wall carpet. Upstairs on the third floor there is another bedroom and a bonus room. Both rooms have high ceilings and bay windows with seats. There are lots of built ins in this home that provide lots of storage space. Also on this level is a stunning full bathroom. The lower level has an exercise/ recreation room. The patio outside is stunning with privacy galore and accessed from the stunning informal dining area.

This home is also located in the Merriam Hill neighborhood. It has a detached 2 car garage and paved 3 car off street parking, and forced air, steam heat and central air cooling. It was listed for $1,850,000 and was sold for $1,895,000.

Relevance: Relevant, but higher. Given the curb appeal of the home, size of the kitchen with the associated informal dining area, 1 extra bedroom, larger lot albeit smaller size, I believe it is relevant your home but I believe it will sell for more than your home.

Your details: Living area 4761 sq ft | 4 beds | 4 baths | Lot size 0.32 acres | Built 1927 | 2 car garage

This colonial style home was newly built in 2017.  It was bought by one of our buyers. It is larger than your home with 5,200 sq ft of approx living area including a finished lower. Your home has 4761 sq ft of living area based on my calculations which includes the finished lower level and the 3rd floor.  This home has 1 bedroom more than your home, having 5 bedrooms. It has the same number of bathrooms as your home, both having 4 full bathrooms. It sits on a larger size 0.65 acre lot whereas your home sits on a 0.32 acre lot.

The build quality of this home is stunning. As you enter the foyer from a covered porch, the living room is on the left through a cased entry. The living room has coffered ceiling, and wainscoting. The formal dining room is accessible from the living room through 8 ft sliding doors. It has wainscoting, and coffered ceiling. The family room has an open floor plan with the informal dining area and the kitchen. It has a fireplace with granite facing, white mantel and built ins on both sides of the fireplace. The family room also has coffered ceiling, crown molding, and exterior access to the deck through double glass sliders. The kitchen has a breakfast bar island, granite countertops and backsplash, custom cabinetry to the ceiling, beamed ceiling, crown molding, and high end stainless steel appliances. It leads to the walk in butlers pantry with granite countertops, ceramic tile backsplash, and built in china cabinetry and a mudroom with seats. A study/bedroom is also on this level and it has coffered ceiling, and wainscoting. The upper level includes 3 family bedrooms and the master suite. The master bedroom has a fireplace with white mantel, coffered ceiling, his and her walk in closets, and an attached bathroom. The master bathroom has double vanity sink and granite countertop, spa bath, whirlpool soaking tub, a separately enclosed toilet, and marble flooring. One of the bedrooms has an attached bathroom and the other 2 bedrooms share a jack and jill bathroom with double vanity sink.  This home has mostly dark stained oak hardwood floors. The finished lower level have wall to wall carpeting and serves as game room and a bonus room.

This home is also located in the Merriam Hill neighborhood. It has an attached 2 car garage and 6 car off street parking, and forced air heat and central air cooling. It was initially listed for $2,295,000 but the price was dropped a couple of times, to $2,195,000 and to $2,095,000, before it went under agreement and we bought it for $2,050,000.

Relevance: Higher. Given that it is new construction which appeals to buyers, larger in living area, larger lot size, similar location I don't believe your home will sell for as much as this home.

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Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $1,850,000-$1,890,000.  

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 at 27 Oakland which came on the market for $1,850,000 and sold for $1,895,000, the listing at 8 Patriots Dr which came on the market for $1,649,000 and sold for $1,760,000.

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. I believe 59 York St is an example of this with it initially coming on the market for over $2M, and ultimately selling for 90% of its list price. 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.  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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 Because your home is a Luxury home, we offer additional marketing on top of the standard marketing seen above.

Marketing our Luxury homes

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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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