462 Marrett Rd, Lexington

Market Analysis for:

John Marshall & Kathy Olsen

I've done a market analysis on your home at 462 Marrett 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 is a Colonial built in 1920 offering 3 bedrooms and 2 full bathrooms. Public record has the home at 1,290 square feet, not including a finished room in the basement. The home sits on a large lot of 0.69 acres along busy Marrett Road. Although the road is busy, the home sits across from the Old Res swimming area and is also short walking distance to Bridge ES. Clarke MS is also walkable via a private path known to area residents. The town center and Lexington HS are both within walking distance via trails which pass through the popular Lincoln Park. The home’s interior has been freshly painted throughout. It is heated by gas fueled steam radiators. There is a detached garage at the rear of the backyard, used for storage and not parking as the driveway does not connect with the garage. 

The front entry welcomes you inside the formal living room with a brick faced wood burning fireplace with a wood mantel. Natural light streams in through the triple window overlooking the front yard. Hardwood floors span the area and flow to a set of French doors which open to a lovely heated sunroom. The sunroom has a large bay window, double window, and a sliding glass door leading out to the large deck and backyard beyond. 

The living room opens to the formal dining room through a large cased opening. A thoughtfully designed floor plan offers easy access to the kitchen via cased openings from both the living room and dining room. The dining room features hardwood floors, chair rail, and a double window for lots of natural light. A single French door from the dining room offers additional exterior access to the deck. The large backyard is lined by trees, has a garden area, and offers lots of privacy. 

A cased opening from the dining room leads into the kitchen with granite counters, black appliances, modern cabinetry, gas cooking, hardwood floors, and recessed lighting.  The kitchen area is a bit small, but is efficient with a modern and stylish feel. A full bathroom off the kitchen has ceramic tile floors, a pedestal sink, and a shower.

A lovely stairway with a carved post leads to the second level with a master bedroom, 2 family bedrooms, and another full bathroom. The bedrooms are full of natural light with hardwood floors. One of the family bedroom closets offers storage in addition to a stairway leading to the home’s walk-up attic for abundant storage space. The full bathroom on the second level has a modern feel with a stylish, granite-topped single sink vanity, ceramic tiled floor, and a beautifully tiled tub/shower.  

 A stairway from the kitchen leads to the home’s lower level.  A few steps down stops at a landing with exterior access via the home’s side entry.  Step down further to the lower level with a room finished in a basic fashion with vinyl flooring. There is a laundry room with a large utility sink. The unfinished section of the lower level offers plenty of storage space.

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Market Dynamics

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

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

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

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

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

Reviewing the price per sq. foot charts for single family homes shows us that the average price per sq. ft. in Lexington around the $700K price range is around $455 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 $447.

The chart below shows that single family homes in Lexington of similar size to your home in the 1,000 square foot range, have an average price per square foot of $483 but it increases to $582 per sq. ft. when you decrease to the under 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 $700K price range are under a 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 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This ranch style home was built in 1956.  It is of similar size of above ground living area than your home with 1,326 sq ft of approx. living area but this doesnt include a basically finished lower level. Your home has 1,290 square feet of approx living area of above ground living area according to public records, and approx 210 sq ft in the finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a similar size 0.63 acre lot set down off the street, whereas your home sits on a 0.69 acre lot.
The main living area has an open floor plan with hardwood floors. The living room has a fireplace with with brick facing and white mantel, recessed custom built ins on either sides of the fireplace. The sitting area has custom built ins, triple and arch windows. The kitchen is quite small, mismatched appliances, white cabinets to the ceiling, and crown molding. The kitchen also has exterior access to the deck. The bedrooms are also on this level separated from the main living area through a french door, and all have hardwood floors. The family bathroom is located adjacent to the bedrooms. The finished lower level has wall to wall carpeting and includes the family room and another full bathroom.
This home has a detached single car garage and has paved 3 car off street parking. It has hot water baseboard, oil heating. It was listed for $669,900 and was sold for $715,000.

Relevance: Relevant, but less. Given the inferior location, similar condition, inferior layout I believe this home is relevant to your home but your home should sell for more.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This ranch style home was built in 1955.  It is of similar size of above ground living area than your home with 1,241 sq ft of approx. living area but this doesnt include the finished lower level. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It has 1 less bathroom than your home, having 1 full bathroom whereas your home has 2 full bathrooms. It sits on a much smaller size 0.17 acre lot whereas your home sits on a 0.69 acre lot.
The living room has an open floor plan with the formal dining area and it has a fireplace on bricks to the ceiling, picture windows, and hardwood floors. The kitchen has a skylight, dated wooden cabinets to the ceiling, stainless steel appliances, and hardwood floors. It has an informal dining area and has an exterior access to the deck. The family bedrooms are also on this level and all have hardwood floors and double windows. The partially finished lower level has a fireplace on bricks to the ceiling, dated but painted cabinetry, and vinyl floors.
This home has an attached single car garage and has 3 car off street parking. It has hot water baseboard, oil heating. It was listed for $658,000 and was sold for $725,000.

Relevance: Relevant, but less. Given the smaller lot size, 1 less bathroom, but a 1 car attached garage I believe this home is relevant to  your home but your home should sell for more.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This cape style home was built in 1935.  It is smaller than your home with 1,182 sq ft of approx. living area. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It has less bathroom than your home, having 1.5 bathrooms whereas your home has 2 full bathrooms. It sits on a smaller size 0.20 acre lot whereas your home sits on a 0.69 acre lot.
From the foyer, the main level has hardwood floors. The living room is on the left and it leads to the home office which has an attached half bathroom. The formal dining room is from the foyer and it leads to the kitchen. The kitchen has older white painted cabinets to the ceiling, double windows, and has access to the 3 season porch which has exterior access to the fenced backyard. The family bedrooms are on the 2nd level and have lower ceilings, hardwood floors, and share a family bathroom. The bedrooms are quite narrow with 8' width's and there is a small sitting room before you take a step down to the bedroom which is over the garage.
This home has an attached single car garage and has paved 2 car off street parking. It has hot water baseboard, gas heating. It was listed for $639,000 and was sold for $745,000.

Relevance: Relevant, but less.  Given the smaller size of this home, inferior condition, smaller lot, only 1 full bathroom I believe that this home is relevant to your home but your home should sell for more.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This cape style home was built in 1950.  It is larger than your home with 1,821 sq ft of approx. living area which also includes living area in the nicely finished basement. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a smaller size 0.32 acre lot whereas your home sits on a 0.69 acre lot.
The home has lovely curb appeal. The living room has a fireplace with ceramic tile facade and white mantel, crown molding, chair rails, and picture windows. The formal dining room has crown molding, chair rails, and has access to a bedroom/home office on this level which has custom built ins and is adjacent to the main level bathroom. The family room connects the main part of the cape with the attached garage and has cathedral ceiling with skylight, a pot belly stove, double windows, and has 2 exterior accesses, one to the front and one to the deck through glass sliders which leads to the heated inground pool. The kitchen is large and has stained cabinets to the ceiling, black appliances, granite countertops, ceramic tile backsplash and ceramic tile floors.  It has an informal dining area also. The other 2 family bedrooms are on the 2nd level and both have sloped ceilings with skylights, double windows, and they share an updated family bathroom. The partially finished lower level has pot belly stove. This home has mainly wall to wall carpeting over hardwood floors.
This home has an attached single car garage and has 7 car off street parking, has a heated inground pool, and has a storage shed. It has forced air and central air cooling. It was listed for $739,000 and was sold for $760,000.

Relevance: Relevant. Given the larger size of this home, smaller lot size, similar location, similar condition I believe this home is relevant to your home.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This colonial style home was built in 1918.  It is larger than your home with 1,719 sq ft of approx. living area which is all above ground living area. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms.  It has less bathrooms than your home, having 1.5 bathrooms whereas your home has 2 full bathrooms. It sits on a smaller size 0.13 acre lot whereas your home sits on a 0.69 acre lot.
Upon entry to the foyer from the vestibule, the living room is on the left through double french doors and it has a fireplace with brick facing, custom custom built ins and windows on either sides of the fireplace, crown molding, picture windows, and has access to the sunroom through a french door. The sunroom has walls of windows, crown molding, and also has hardwood floors. The formal dining room is on the right of the foyer through double french doors and it has a large china cabinet, picture windows, crown molding, chair rails, and has access to the kitchen. The kitchen has a beamed cathedral ceiling with skylights, a kitchen island where the prep sink is located, white cabinets, white appliances, ceramic tile backsplash, hardwood floors, and has an exterior access leading to the detached garage. The family bedrooms are on the 2nd level and they all have hardwood floors, double windows, crown molding, and they share a family bathroom.  This home has mostly hardwood floors.
This home has a detached 2 car garage and has 6 car off street parking. It has hot water baseboard, oil heating. It was listed for $799,000 and was sold for $763,000.

Relevance: Relevant. Given the similar location, larger living area, smaller lot size, 2 car garage, inferior condition I believe this home is relevant to your home with all the factors considered.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This was bought by one of our buyers. This cape style home was built in 1950.  It is larger than your home with 1,783 sq ft of approx. living area which includes a small room in the basement. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a smaller size 0.20 acre lot whereas your home sits on a 0.69 acre lot.
The living room has a fireplace with white mantel, picture windows, and hardwood floor. The formal dining room has hardwood floors and has access to the kitchen. The kitchen has granite countertops, cabinets to the ceiling, an informal dining area, and it is partially open to the family room. The family room has cathedral ceiling, custom built ins, and has exterior access to the deck through glass sliders. One of the family bedrooms is on the main level and it has hardwood floors. The other family bedrooms are on the 2nd level and they have sloped ceiling with skylights, and hardwood floors. The finished room in the lower level has wall to wall carpeting, and custom built ins.
This home has an attached single car garage and has 1 car off street parking. It has gas heating and central air cooling. It was listed for $799,000 and was sold for $825,000.

Relevance: Relevant, but higher. Given the superior location on a side street, larger living area of the home, attached garage, similar condition I believe that once all factors are considered this home is relevant to your home but it should sell for more than your home.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This was our listing. This cape style home was built in 1951 and it was completely renovated within a couple of weeks prior to coming on the market.  Everything, including the roof, windows, siding, kitchen and bathrooms was completely new in the home.  It is larger than your home with 1,644 sq ft of approx. living area which includes a nicely finished room in the lower level. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a similar size 0.51 acre lot whereas your home sits on a 0.69 acre lot.
The living room has a fireplace with white mantel, picture windows, and hardwood floors. The formal dining room also has picture windows and hardwood floors. The kitchen has new white cabinetry, new stainless steel appliances, granite countertops, picture windows, and has chair rails along the informal dining area. It also has an exterior access. One of the family bedrooms is on the main level and it has hardwood floors and is adjacent to the main level new bathroom. The rest of  the family bedrooms are on the 2nd level and they also have hardwood floors, and have sloping ceilings, and share a new family bathroom. One of these bedrooms has chair rails. The finished lower level has vinyl flooring and includes the family room.
This home has no garage space but has 2 car off street parking. It has hot water baseboard, oil heating. It was listed for $749,000 and was sold for $830,000 after 5 offers on the home, all with no inspection contingency or mortgage contingency.

Relevance: Relevant but higher.  Given the superior condition, larger living area, similar lot size, superior location I believe this home is relevant to your home but it should sell for more than your home.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This colonial style home was built in 1910.  It is larger than your home with 1,548 sq ft of approx. living area which does not include the living area in the finished basement. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a smaller size 0.19 acre lot whereas your home sits on a 0.69 acre lot.
The living room has an open floor plan with the formal dining room  and they have bay windows, hardwood floors, and has an exterior access to the deck through double glass doors. The kitchen is new, large and has white cabinetry with glass paned doors on some overhead cabinets, a breakfast bar peninsula, granite countertops, box window, hardwood floors, and stainless steel appliances. It also has an informal dining area, and has exterior access. The 2nd level includes 2 family bedrooms with hardwood floors, and both have jack and jill access to a full bathroom. The master suite is on the 3rd level and it has walk in closet, vaulted ceiling with skylight, a study, and has an attached master bathroom with double sink vanity and jacuzzi. The finished lower level includes a playroom.
This home has a detached 2 car garage and has paved 2 car off street parking. It has hot water baseboard gas heating. It was listed for $819,000 and was sold for  $865,000.

Relevance: Relevant, but higher. Given the superior condition, larger living area, superior location, 2 car garage I believe that once all factors are considered this home is relevant to your home but it will sell for more.

Your details: Living area 1500 sq ft | 3 beds | 2 baths | Lot size 0.69 acres | Built 1920

This colonial style home was built in 1948.  It is larger than your home with 1,632 sq ft of approx. living area. Your home has 1,290 square feet of approx living area of above ground  living area according to public records, and approx 210 sq ft in the  finished room in the basement. This home has the same number of bedrooms as your home, both having 3 bedrooms. It also has the same number of bathroom as your home, both having 2 full bathrooms. It sits on a smaller size 0.14 acre lot whereas your home sits on a 0.69 acre lot.
The home has been completely renovated inside. The main level has an open floor plan with each room defined by cased openings and have hardwood floors. The living room has a fireplace with white mantel, and deep crown molding. The formal dining area has chair rails, and crown molding. The kitchen is newer and fresh, and has stainless steel appliances, glass tile backsplash, double windows, off-white cabinetry, and hardwood floors. It also has an exterior access leading to the deck through double glass doors in the informal dining area. There is a full bathroom on this level. The 3 family bedrooms, and a renovated family bathroom are on the 2nd level and have hardwood floors. The master bedroom has a walk in closet, custom built ins, and double windows. The play room has wall to wall carpeting and is located at the lower level.
This home has a detached 2 car garage and has paved 4 car off street parking. It has forced air gas heating and central air cooling. It was listed for $795,000 and was sold for  $905,000.

Relevance: Relevant, but higher.  Given the superior condition, larger living area, 2 car garage I believe that once all factors are considered this home is relevant to your home but it will sell for more.

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Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $750,000-$800,000.  

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 the home at 15 Bridge St which came on the market for $639,000 and sold for $745,000, and our listing at 116 Burlington St which came on the market for $749,000 and sold for $83,000, and the listing at 77 Hancock St which came on the market for $795,000 and sold for $905,000. 

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.  

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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