54 Eldred St, Lexington

Market Analysis for:

Deepak Shenoy and Maya Prabhu

I've done a market analysis on your home at 54 Eldred 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 was built in 1960 and is on large lot of 0.99 acres in Lexington. It is a colonial style home with 4 bedrooms, 3 full and 1 half bathrooms, and a 1-car garage. The total square footage of your home, including the 500 square feet in the finished part of the basement, is 2384 square feet. This market analysis is assuming the freshening up we discussed.

The home has a small entry foyer from the beautiful artistic front door. Through the front door there is a coat closet immediately to your right. As you walk further ahead, to the right side past the closet, there is a living/family room area with a fireplace and windows making it bright and inviting. The entire home has beautiful shiny hardwood floors throughout. To the left of the living area, you enter the formal dining area, which has 2 windows as well. The dining room connects to the kitchen which has lovely backsplash with granite countertops and a mahogany  kitchen and stainless steel appliances. The kitchen has a gas stove and hood along with recess lighting. The kitchen also has a huge pantry and a half bath with windows across the pantry. There is another door in the kitchen that opens to the back deck as well.

As you take the hardwood floor steps to the second floor, there is a window with sunlight streaming on your left at the top of the stairs. There is a full bathroom with a window and corian countertop vanity, along with a tub. There is a bedroom diagonally across this bathroom that has a small walk in closet. There is also a ceiling fan along with a whole house fan on this level. There are three additional bedrooms on this floor, including the master suite – all with shining hardwood floors and windows and plenty of closet space. The master bedroom suite has a double vanity with granite countertops and a frameless glass door shower. The master suite has cathedral ceilings and an arched window along with double closets. The french doors in the bedroom open out to a private balcony where you hear the birds chirping and see conservation land around you. This completes the second floor.

Basement: The basement door is off of the kitchen and will have carpeted stairs heading into the basement. It is finished and has carpeted floors and plenty of windows along with many closets for storage along with the laundry area. The utilities are enclosed in a separate closed area. There is also a full bath on this level with vinyl tiles and sunmica vanity and a full shower along with a linen closet. There is also a 3-season enclosed sunroom with pine-board walls off of the basement which has huge windows and lots of skylights making this room very bright and sunny. There is a door here which also opens to the massive lower deck in the backyard. This deck also connects to a huge upper deck via a set of stairs. The upper deck is also accessible via the kitchen back door.

 The home has 200Amps electrical,  updated new windows throughout, new 6-panel doors almost everywhere, natural gas heat, portable AC, whole house fan and no sump pump. There have never been any issues with water.



The location of your home has surrounding conservation land and wetlands.

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 $900K price range is around $400 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 1960’s the average price per sq. ft. is $434.

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 $406 but it increases to $483 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 $900K price range are under a month’s 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 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This multi-level style home was built in 1960. This home has 2,005 sq ft of approx. living area. Your home has 2,384 sq ft of approx. living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has less bathrooms than your home, having 2 full and 1 half bathrooms while your home has 3.5 bathrooms. It sits on a smaller size lot of 0.36 acre, whereas your home sits on a large 0.99 acre lot.
The home has hardwood floors throughout and plenty of windows for natural light. The kitchen has granite countertops, stainless steel appliances, white cabinets to the ceiling, double windows, hardwood flooring. The bathrooms are updated with tile floors and Corian countertops.
This home has an attached single car garage and 4-car off street parking. It has hot water baseboard heating. It has 200Amp electrical and was listed for $879,000 and was sold for $872,000 which is lower than the listing price.

Relevance: Relevant, but less. Given the smaller size, similar condition and location for this home, I believe that once all factors are considered it is relevant to your home but yours should sell for more.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This ranch style home was built in 1956. This home has 2,990 sq ft of approx. living area. Your home has 2,384 sq ft of approx. living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has less bathrooms than your home, having 3 full bathrooms while your home has 3.5 bathrooms. It sits on a smaller size lot of 0.3 acre lot whereas your home sits on a large 0.99 acre lot.
The living room has bay windows and hardwood floors. The formal dining area has hardwood floors and has exterior access to the deck through glass paned doors. The family room has bay windows, and hardwood floors. The kitchen has Corian countertops, white appliances, cabinets to the ceiling, double windows, hardwood flooring and exterior access to the deck. The bedrooms are on the 1st level and all have hardwood floors together with a family bathroom.
This home has an attached single car garage and 4-car off street parking. It has hot water baseboard heating. It was listed for $925,000 and was sold for $910,000 which is lower than the listing price.

Relevance: Relevant, but less. Even though this home is larger is size, but given the inferior condition, I believe that once all factors are considered it is relevant to your home but yours should sell for more.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1955. It is slightly bigger than your home at 2,453 sq  ft of approx. living area. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has more bedrooms than your home, having 5 bedrooms. It has the same number of bathrooms as your home does, both having 3.5 bathrooms. It sits on a smaller size 0.17 acre lot whereas your home sits on a large 0.99 acre lot. This home has central air conditioning and it has undergone renovation in 2010 and made updates to windows, roof, windows, electrical which is very similar to your home.
The kitchen has older white appliances, custom built cabinetry to the ceiling, ceramic tile flooring, and exterior access through glass paned door in the family room leading to the deck. The bathrooms are updated with granite countertops and new vanities. The family bedrooms are on the 2nd floor and all have hardwood floors. The lower level has the laundry room.
This home is located on a gentle slope. It has an attached single car garage and 4 off street parking. It has oil heating versus yours with gas. It was listed for $959,000 and sold for $933,000

Relevance: Relevant. Given the almost similar size of this home, above ground square footage, smaller lot size, similar home condition, I believe that once all factors are considered this home is relevant to your home.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1955. It is slightly bigger than your home at 2584 sq  ft of approx. living area. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home including an office room, having 4 bedrooms. It has the same number of bathrooms as your home does, both having 3.5 bathrooms. It sits on a smaller size 0.17 acre lot whereas your home sits on a large 0.99 acre lot. This home has central air conditioning and natural gas. The kitchen is beautiful like yours with granite countertops, stainless steel appliances, kitchen island and mahogany cabinetry to the ceiling along with hardwood flooring. The family bedrooms are on the 2nd floor and all have hardwood floors. The master bedroom has a walk-in closet. The lower level has finished carpeted area. This home is located on a gentle slope. It has an attached single car garage and 4 off street parking. It was listed for $1,050,000 and sold for $959,000.


Relevance: Relevant. Given the almost similar size of this home, overall condition of this home, location, along with a smaller lot size I believe that once all factors are considered this home is relevant to your home.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1947. It is almost the same size as your  home at 2,304 sq  ft of approx. living area and does not include the basement or the unfinished attic. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as yours at 5 bedrooms but an additional office. It has lesser number of bathrooms than your home at 2 full bathrooms. It sits on a smaller size 0.33 acre lot whereas your home sits on a large 0.99 acre lot. This home does not have central air conditioning. The kitchen is similar to yours with custom built cabinetry to the ceiling, hardwood floors, and exterior access through french doors leading to the deck. The bathrooms look clean but not updated. The bedrooms and office are on the 1st and 2nd floor and have carpeted floors. The lower level has the laundry room.
This home is located in a very nice neighborhood. It has an attached single car garage and 4 off street parking. It has natural gas heating. It was listed for $969,000 and went under agreement in only 7 days of being listed. This likely suggests it may have gone under agreement at asking or above asking price.

Relevance: Slightly higher. Given the almost similar size of this home, above ground square footage and superior   location (Woodhaven), I believe that once all factors are considered this home will likely sell slightly higher than your home.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1955. It is smaller than your home at 2148 sq  ft of approx. living area. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home having 4 bedrooms. It has lesser number of bathrooms as your home does, at 2.5 bathrooms. It sits on a smaller size 0.22 acre lot whereas your home sits on a large 0.99 acre lot.
The kitchen opens into the family room with a fireplace and bay window. It has stainless steel appliances, white cabinets to the ceiling and ceramic tile floors. The dining room has wainscoting and hardwood flooring. All the bathrooms have also been updated including the master bathroom with marble floor, double vanity and glass door shower. The 2nd level includes 4 family bedrooms, and 2 bathrooms. All the bedrooms have carpeted flooring. The home does not have cooling. This home is located in a wonderful neighborhood close to Hayden and the high school. It has an attached single car garage space and paved 3 car off street parking. It has hot water baseboard heating. It was listed for $988,000 and had competing offers on it and sold for $995,000.

Relevance: Given the superior location and good condition and floorplan for this home, even though many features are similar to your home, your home may likely sell lower than this home.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1780. It is bigger than your home at 2564 sq  ft of approx. living area. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home having 4 bedrooms. It has lesser number of bathrooms as your home does, at 3 full bathrooms. It sits on a smaller size 0.13 acre lot whereas your home sits on a large 0.99 acre lot.
The entrance opens into a foyer with curved stairway entering the dining room with oak flooring. The family room has a fireplace, original exposed beams, and wide pine hardwood floors. The kitchen has box windows, hardwood floors with upgraded cabinetry and countertops. The bedrooms are on the 2nd level. The master bedroom has a fireplace as well as a walk in closet. The rooms are carpeted upstairs. The electric is updated at 200Amps.
This home is located in Meriam Hill neighborhood. It has an attached single car garage and 2 car off street parking. It has hot water baseboard heating, and window AC cooling.

Relevance: Relevant, but higher. Given the larger size of this home, superior location in Meriam Hill, same number of bedrooms, 1 car garage I believe that all factors consider this home is relevant to your home but it will sell for more. It was listed for $1,149,000 and was sold for $1,135,000.

Your details: Living area 2384 sq ft | 4 beds | 3.5 baths | Lot size 0.99 acres | Built 1960 | 1 car garage

This colonial style home was built in 1961. It is bigger than your home at 2856 sq  ft of approx. living area. Your home has 2,384 sq ft of approx living area which includes 500 sq ft in the finished basement. This home has the same number of bedrooms as your home having 4 bedrooms. It also has the same number of bathrooms as your home does, at 3 full and 1 half bathroom. It sits on a smaller size 0.26 acre lot whereas your home sits on a large 0.99 acre lot.
The living room has a fireplace and hardwood floors. The kitchen has granite countertops, white cabinetry and hardwood floors. The bedrooms are on the 2nd level. The master bedroom suite has cathedral ceilings and recessed lighting as well as a walk in closet. The home has hardwood floors throughout the first and second floor.
This home is located in a quite side street neighborhood. It has an attached single car garage and 4 car off street parking. It has forced hot air and central air cooling, that runs on oil.

Relevance: Relevant, but higher. Given the larger size of this home, superior location same number of bedrooms, 1 car garage I believe that all factors consider this home is relevant to your home but it will sell for more. It was listed for $1,089,000 and sold for $1,182,000.

Return to Top

Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $915,000 to $960,000 when selling to a buyer.  

If you were to sell to a buyer, then 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 listing at 99 East St which came on the market for $759,000 and sold for $875,000, and the listing at 57 Blake St which came on the market for $899,000 and sold for $955,000.


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.  

If selling to buyers, 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