7 Carley Rd, Lexington

Market Analysis for:

Haihong Ni

6/17/2018

I've done a market analysis on your home at 7 Carley 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 Cape built in 1949 and set on a quiet street on a lot of 0.4 acres within walking distance to the town center, bike path, and the golf course. The home has 4 bedrooms and 2.5 bathrooms. The living area is 2,328 square feet including the finished basement. The home is to be freshly painted throughout, with floors on the 2nd floor being refinished and some minor cosmetic repairs. This market analysis will assume these things have been done.  

The home has nice curb appeal with a lovely brick pathway leading to the front entrance. The front foyer offers stairs to the second level through a doorway and a cased opening leads to the formal dining room straight ahead. There is wallpaper in the foyer (recommended it be removed) and hardwood floors. The spacious dining room features hardwood floors, crown molding, a wood-burning fireplace, and a large picture window. Built-in cabinetry and shelving accent the left side of the fireplace. The picture window offers delightful views of the large private backyard. This room is large and can be used as an open concept living room/dining room combo as there is space for a sitting area. (Painting the dark wood trim and wood paneled fireplace surround is recommended). The flooring on the second level needs refinishing, but the lower level floors should be fine as is.

A hallway off the dining/living room leads to a bedroom wing with 2 family bedrooms and a full bathroom (two bedrooms on first level, two more on second level). The bedrooms have hardwood floors, lots of natural light, and plenty of closet space. One of the bedrooms is larger with a desk area and a walk-in closet. The full bathroom on this level has a modern feel and presents nicely with a beautifully tiled shower stall and a marble topped vanity.  

The sunny kitchen is fresh and inviting with vinyl flooring, older appliances, laminate countertops, tile backsplash and wallpaper. It will present well when the walls, trim, and cabinetry are painted. The kitchen has room for an informal dining area. Sliding glass doors from the kitchen lead out to the back deck overlooking the yard. Steps from the kitchen lead up to a room with paneling (carpeting to be replaced). This room may be useful as a TV room/office/den. More stairs from the kitchen lead down to the home’s rear entrance to the backyard and access to the single car garage.  Another door from the garage leads to the basement for additional access.  

The second level continues with two more generously-sized bedrooms and a full bathroom. Both rooms have hardwood flooring (to be refinished), ample closet space, and large windows for abundant light. The full bathroom, with a tub/shower, has older tile work, but it is in good shape. The wallpaper in this bathroom will be removed and walls/tiles painted.  

More finished space awaits on the lower level with a room perfect for use as a family room or playroom and a half bathroom. (Walls on the stairway down to lower level to be painted). The playroom has carpeting and closets for storage. The half bathroom has a vanity with a laminate countertop. The unfinished section of the basement features the laundry area, additional garage access, and abundant storage space.

The home has oil fueled hot water radiators.  A radon system is installed in the home.  

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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 homes 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 $900K price range is around $405 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 1940’s the average price per sq. ft. is $455.

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 $407 but it increases to $489 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 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 analyze

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This ranch style home was built in 1956. It is larger than your home at 2,990 sq  ft of approx. living area although almost half of that living area is in the finished basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has more bathrooms than your home, having 3 full bathrooms. It sits on a smaller size 0.30 acre lot whereas your home sits on a 0.40 acre lot.
The living room has an open floor plan with the formal dining room. The living room has a fireplace, a large bay window and hardwood floor. The formal dining room has bay window and an exterior access to a deck through glass doors. The family room is full of natural light and has a cathedral ceiling, multiple picture windows that allows lots of natural light, and an exterior access to a patio and another one to the deck. The kitchen has all white appliances and stylish white cabinets to the ceiling. It has an open floor plan with the family room but partially separated through a 2 tier peninsula bar. The master bedroom is on the same level and has an attached bathroom, and hardwood floors. The master bathroom has double vanity sink with white cabinets, and Jacuzzi. There are 2 more bedrooms and an office on the main level and they all have hardwood floors including a full bathroom. The lower level includes a bedroom, a full bathroom, an office, a workshop, a wine cellar, an exercise room, a bonus room and another family room with its own kitchenette. This home has mostly hardwood floors on the first floor and vinyl in the finished lower level.
This home has a single car garage and has paved 4 car off street parking. It has hot water baseboard, oil heating and central air cooling. It was listed for $925,000,under agreement, but came back on the market before it went under agreement again and was sold for $910,000.

Relevance: Relevant, but less.  Given the smaller above ground living area of this home, corner lot with little backyard I believe once all factors are considered this home is relevant to your home but yours should sell for more.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This garrison colonial style home was built in 1969. It is larger than your home at 2,572 sq  ft of approx. living area which includes the finished basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home, having 2.5 bathrooms. It sits on a similar size 0.39 acre lot whereas your home sits on a 0.40 acre lot.
From the foyer, the living room is on the left and it has a fireplace, picture windows, crown molding, hardwood floors, and has a partially open floor plan with the dining room through a cased opening. The family room has a fireplace inset into bricks to the ceiling, skylights, picture with arch windows, and exterior access through glass sliders leading to the deck. The kitchen has a breakfast bar peninsula, double windows, ceramic tile backsplash, chair rails, and ceramic tile flooring. The 2nd level has 3 bedrooms, including the master bedroom and they all have hardwood floors. The master bedroom has double windows, chair rails, and has an attached bathroom. Another bedroom is on the 3rd level and it has a vaulted ceiling with skylights, wall to wall carpeting. The finished lower level has a fireplace inset into a wall of bricks, cedar closet, and wall to wall carpeting.
This home has no garage space but has 4 car off street parking. It has hot water baseboard, gas heating and wall AC cooling. It was listed for $936,500 and was sold for $955,000.

Relevance: Relevant.  Given the larger size of this home, lack of garage, slightly superior condition of your bathrooms I believe this home is relevant to your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This cape style home was built in 1946. It is larger than your home at 2,443 sq  ft of approx. living area which includes some areas in the finished basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has 1 less half bathroom than your home, having 2 full bathrooms. It sits on a same size 0.40 acre lot as your home.
The living room has an open floor plan with the dining area and the kitchen. The living room has a fireplace with white mantel and recessed built ins, crown molding, chair rails, and hardwood floors and an exterior access to the stunning screened porch. Passing through a cased opening leads to the dining area which also has hardwood floors and picture windows, and exterior access to the deck. The kitchen has a skylight, custom built cabinets and shelves, pantry, breakfast bar island, granite countertops, ceramic tile backsplash, and stainless steel appliances. On this level are 2 family bedrooms and an adjacent full bathroom. The master bedroom is on the upper level and it has a cathedral ceiling with skylights, and hardwood floors. Another family bedroom is on this level and it also has cathedral ceiling with skylights, but with wall to wall carpeting. Both rooms share a family bathroom with shower stall. The semi finished lower level has the family / play room.
This home is located in the Manor Section neighborhood. It has a single car garage and has paved 4 car off street parking. It has hot water baseboard, oil heating. It was listed for $899,000 and was sold for $955,000.

Relevance: Relevant, but higher.  Given the larger size of this home, the superior condition of kitchen and bathrooms I believe that this home is relevant to your home but it should sell for more.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This gambrel style home was built in 1942. It is larger than your home at 2,540 sq  ft of approx. living area which doesnt include a finished room in the basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home, having 2.5 bathrooms. It sits on a smaller size 0.28 acre lot whereas your home sits on a 0.40 acre lot.
The main level includes the living room which has a fireplace with white mantel. The living room also has crown molding, recessed built ins by the triple window, and hardwood floors. It has access to the family room which has triple windows and hardwood floors. The formal dining room has crown molding, chair rails, a china cabinet, and hardwood floors. The kitchen has hardwood floors, white appliances, laminate counters, and exterior access to the deck. The master bedroom is on the upper level and has an attached bathroom and hardwood floors. On this level are 3 more family bedrooms and 2 of them having walk in closets. The partially finished lower level includes a playroom and has an exterior access to the backyard.
This home is located in The Manor neighborhood. It has an attached 2 car garage and has 4 car off street parking. It has hot water radiators, oil heating. It was listed for $875,000 and was sold for $963,000.

Relevance: Relevant, but higher.  Given the larger above ground living area size of this home, 2 car garage I believe this home is relevant to your home but it should sell for more.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This cape style home was built in 1950. It is smaller than your home at 1,874 sq  ft of approx. living area although this doesnt include 433 sq ft of finished area in the basement, so it is a similar size to your home. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has 1 less half bathroom than your home, having 2 full bathrooms. It sits on a smaller size 0.30 acre lot as your home whereas your home sits on a 0.40 acre lot.
Upon entry from the portico, the living room is on the left and it has a fireplace with brick facing and white mantel, picture windows, and hardwood floors. It is partially open to the dining area and the kitchen through a cased opening. The formal dining room has an open floor plan with the eat-in kitchen. The kitchen has a vaulted ceiling with skylights, a breakfast bar island where the 2nd prep sink is situated, granite countertops, ceramic tile backsplash, cherry cabinets to the ceiling, custom built ins, a china cabinet, stainless steel and inlay appliances, double windows, and hardwood floors. It has an exterior access to the deck through glass sliders, and has access to the mudroom that leads to the attached garage. This level also includes an office which has custom built ins and hardwood floors, as well as a bedroom with hardwood floors. These are adjacent to a full bathroom which is also on the main level. The 2nd level includes 2 family bedrooms, and the master bedroom. The family bedrooms have vaulted ceiling with skylights, and hardwood floors. The family bathroom has double sink vanity and has both access from the master bedroom and another access from the hall to act as the family bathroom. The family room is on the lower level and it has a fireplace on bricks to the ceiling, custom built ins, and vinyl flooring.
This home has an attached single car garage and has 4 car off street parking. It has gas heating and wall AC cooling. It was listed for $889,000 and was sold for $965,000.

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

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This is our listing.  It is a village colonial and has a lovely farmers porch and curb appeal. It is larger than your home with 2887 sq ft of living area which includes the finished basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. It has the same number of bedrooms as your home with 4 bedrooms. It has 1 more full bathroom than your home at 3 full bathrooms, yours has 2.5 bathrooms. It is on a similar size lot of 0.37 acres, yours is 0.4 acres. It does not have a garage but does have a large off street parking area for cars.
The home has recently been renovated. As you walk in the front door you enter the open plan family room and dining room combination which is open to the fully renovated kitchen. The living room is on the left of the front door and is front to back with a fireplace and has double french doors out to the huge deck. Hardwood floors span all areas of the home apart from the kitchen and bathrooms. The kitchen has been fully renovated recently. It has a skylight providing lots of natural light, stainless steel appliances, granite counters, cathedral ceiling, ceramic tile floors. A full bathroom is off the kitchen that has been totally renovated, and there is exterior access to the huge deck. Upstairs is the master suite which has a huge bedroom and a renovated full bathroom. The family bathroom has been renovated also. There is another bedroom and an office up on the 3rd floor. In the finished basement there is a game room, laundry and lots of storage.
We had competing offers on the home and it will sell for $965,000.

Relevance: Higher. Given the larger size, superior kitchen and bathroom condition, master suite, inferior location and no garage I believe that once all factors are considered it should sell for more than your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This colonial style home was built in 1977. It is larger than your home at 2,560 sq  ft of approx. living area which is all above ground living area. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home, having 2.5 bathrooms. It sits on a similar size 0.36 acre lot, your home sits on a 0.40 acre lot.
From the foyer, the living room is on the right and it has bay window, and hardwood floors. The formal dining room has bay window, wainscoting, and hardwood floors. The family room has a fireplace inset into bricks to the beamed ceiling, wainscoting, wall to wall carpeting, and exterior access to the deck through sliding glass doors. It is open to the kitchen which has vinyl flooring, white appliances, laminate counters and an informal dining area. The second level includes the master bedroom and 3 family bedrooms. The master bedroom has walk in closet, wall to wall carpeting,and an attached bathroom which has a double sink vanity. The family bedrooms have wall to wall carpeting and share a family bathroom which has a shower stall.
It has an attached 2 car garage and has paved 4 car off street parking. It has central heat, hot water baseboard, oil heating and window AC cooling. It was listed for $935,000 and came back on the market after being under agreement, and then went under agreement again. It was sold for $985,000 after a total of 24 days on the market.

Relevance: Higher. Given the larger above ground living area, master suite, 2 car garage I believe this home will sell for more than your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This Multi-Level style home was built in 1960. It is larger than your home at 2,594 sq  ft of approx. living area. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has 1 less half bathroom than your home, having 2 full bathrooms. It sits on a smaller size 0.19 acre lot as your home whereas your home sits on a 0.40 acre lot.
The main living area has an open floor plan which includes the living room, the dining area, and the kitchen, and it has hardwood floors and has crown molding flowing throughout the main living area. The living room has a fireplace with granite facing and white mantel, and picture windows. The dining area has double windows. The kitchen has cherry cabinets, ceramic tile backsplash, stainless steel appliances, breakfast bar peninsula, granite countertops, and hardwood floors. It is connected to the family room through a cased opening and an arched pass through window. The family room has cathedral ceiling with skylights, picture windows, and exterior access to the screened porch. The master bedroom and 2 family bedrooms are up a few steps and they all have hardwood floors and share a family bathroom. One bedroom is a few steps down from the main level and also on this level is an office with a fireplace and laminate flooring, a full bathroom with tub and shower stall, and a playroom with laminate flooring.
This home has an attached single car garage and has 4 car off street parking. It has hot water baseboard, oil heating and central air cooling. It was listed for $898,000 and was sold for $990,000.

Relevance: Higher. Given the larger living area size, superior kitchen and bathroom condition I believe this home will sell for more than your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This colonial style home was built in 1955. It has larger above ground living area than your home at 2,148 sq ft of approx. living area. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home, having 2.5 bathrooms. It sits on a smaller size 0.22 acre lot whereas your home sits on a 0.40 acre lot.
Upon entry, the living room is on the left and it has bay windows. The formal dining area is partially open to the living room through a cased opening. The formal dining room has crown molding, and wainscoting. From the entry hall, the family room is on the right and it has a fireplace with brick facing and white mantel, and bay windows, and it is partially open to the kitchen. The eat-in kitchen has been completely renovated and has granite countertops, marble tile backsplash, stainless steel appliances, upgraded white cabinets to the ceiling, crown molding, bay window, and has exterior access to the deck from the informal dining area. The main living area has mainly hardwood floors. The family bedrooms, including the master suite, are on the 2nd level and they all have wall to wall carpeting. The master bedroom has an attached bathroom which has been recently renovated and has a double sink vanity with marble countertops and marble floors, while the rest share a family bathroom which has also been renovated.
This home has an attached single car garage and has paved 3 car off street parking. It has hot water baseboard, oil heating. It was listed for $988,000 and was sold for  $995,000.

Relevance: Higher.  Given the larger above ground living area, master suite, superior condition of kitchen and bathrooms I believe this home will sell for more than your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This is our listing. This home is a garrison colonial located in the desirable Follen Hill.  It is larger than your home with 2626 sq ft which includes a finished room in the basement. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. It has the same number of bedrooms as your home with 4 bedrooms although they have a superior configuration all being on the same level. It has a full bathroom less than your home at 1.5 bathrooms, whereas your home has 2.5 bathrooms. 
As you walk in the front door you have the living room with a fireplace on the right hand side, stairs to the upper level on the left, and access to the kitchen in front. The living room is open to the formal dining room with wainscoting, which is open to a stunning sunroom with a gas burning fireplace, walls and ceiling of glass panels and access to the backyard via a french door.  The kitchen has been renovated and has cherry cabinets to the ceiling, a bay window, informal dining area and access to the backyard. The half bathroom has been renovated and has white beadboard lining the walls. Upstairs are 4 large size bedrooms, all with access to the renovated full bathroom with marble counters, dual sink, tub/shower with marble wall tiles. The basement is a full walkout and outside is a brick patio and a large manicured garden. The home has a single car garage.
We had competing offers on the home and the home is under agreement for $995,000.

Relevance: Higher. Given the larger size of the home, the superior condition of the kitchen and bathrooms (albeit only 1.5 bathrooms), stunning sunroom, superior location I believe this home will sell for more than your home.

Your details: Living area 2328 sq ft  (includes 285 sq ft in the finished basement) | 4 beds | 2.5 baths | Lot size 0.4 acres | Built 1949 | 1 car garage

This is our listing. This colonial style home was built in 1985. It is larger than your home at 2,432 sq ft of approx. living area. Your home has 2,328 sq ft of approx living area which includes 285 sq ft in the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It also has the same number of bathrooms as your home, having 2.5 bathrooms. It sits on a similar size 0.43 acre lot whereas your home sits on a 0.40 acre lot.
The foyer and majority of the home was freshly painted. The living room has a fireplace with brick facing and white mantel, hardwood floors, and has an exterior access through glass sliders which leads to the fully fenced backyard & brick patio. The living room connects to a formal dining area which has hardwood floors & chair rail. The dining room has an open floor plan with the modern kitchen. The kitchen has granite countertops, stainless steel appliances, maple cabinets, tile backsplash & an informal dining area, and has a bay window which provides lots of natural light. The main level also has the master suite with wall to wall carpets, walk in closet and full bathroom which has granite countertop & tiled shower/tub. Another family bedroom with wall to wall carpets is on this level along with a half bath. Two additional large bedrooms with wall to wall carpets are on the 2nd level and share a bathroom. This family bathroom has shower and tub, and ceramic tile floor, and granite counters.  The lower level has a bonus room with wall to wall carpet.
This home is powered by “owned” solar panels. It has an attached 2 car garage and has 4 car off street parking. It has forced air, heat pump, humidifier, active solar heating and central air cooling. It was listed for $899,000 and we sold it for $1,060,000 after competing offers.

Relevance: Higher. Given the larger living area, master suite, superior kitchen and bathroom condition, 2 car garage I believe this home will sell for more than your home.

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Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $920,000-$960,000.  

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 our listing at 124 Woburn St which came on the market for $899,000 and will sell for $965,000, and our listing at 4 S Rindge which came on the market for $899,000 and sold for $1,060,000. 

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.  

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.


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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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