25 Circle Rd, Lexington

Market Analysis for:

Greg Ornatowski & Takahashi Mihoko

I've done a market analysis on your home at 25 Circle Rd in Lexington and have prepared this document to help explain how I've arrived at a price for your home. I perform a market analysis and calculate a price taking into consideration a home’s location, size, configuration, number of bedrooms and baths, lot size and general condition. I also scrutinize the home for issues that, in my experience, will impact the price of a home making it more or less valuable. Then, I look at your current competition - the other homes that buyers in your price range will be viewing, to help determine your price.

Contents

  1. Description of Home
  2. Market Dynamics
  3. Analysis of Relevant Properties
  4. Pricing Recommendation
  5. Marketing

Description of home

Please note that these comments do not relate to marketing, but are included purely to ensure that we have captured the information and reflect the major components of your home.

Your home is located in the East Lexington neighborhood of Lexington. This area appeals to buyers because of its proximity to Arlington and Mass Ave (public transport to Alewife and Cambridge). The home is on 0.26 acres and is on an irregular rectangular plot. Your home was built in 1968 but had a second floor added in1999, and the first-floor bathroom and kitchen were remodeled in 2001. The first-floor and lower-level configuration (whilst remodeled) is typical of a split-level.  According to public records there is 1,580 sqft on the first floor, 1,540 sqft on the second floor, and 850 in the lower level. In addition, there is an enclosed porch (unheated) at 140 sqft. The total sqft we will use for this market analysis is 4,110 sqft.

As you enter the first floor you have the typical choice for a split level of choosing to go up or down. The first floor has a large family room with a wood burning fireplace (never used). This leads to a dining room with sliding French doors leading to a covered porch. The house has central A/C except for the dining and family room (window A/C in dining room). The kitchen was remodeled in 2001 and has cherry (?) cabinets, granite counters with white appliances. There is an informal dining area has a bay window and is separated by a peninsula and overhead glass fronted cabinetry, and a nook with a desk. The half bathroom was remodeled in 2001 and has a granite counter vanity and was expanded by ‘stealing’ space from one of the bedrooms. This small bedroom has no closet and even though there is an area where a closet could be created we would be best considering this an office. The large bedroom has been converted to a games room with a light over the pool/ping-pong table. The master has blue wallpaper and an en-suite bathroom (not updated). Excluding the kitchen and bathrooms (tiled) there are hardwoods throughout the first floor. Excluding the master suite, the first floor has wallpaper on all walls.

The second floor was added in 2001 and the stairs lead up from the living room. The second floor has wall-to-wall carpet except for the bathrooms. The large master has a walk-in-closet and large en-suite bathroom. In addition to the master, there are 4 other bedrooms – the smallest one is currently used as an office. The is a large family bathroom on this floor.

Downstairs in the lower level is a finished family room with wood paneling, wall to wall carpet and a wood-burning fireplace. A bonus room/office and half bathroom complete the finished space on this level. Unfinished space consists of a utility room and laundry.

We would consider your home to have 2 bedrooms on the first floor, 5 bedrooms on the second floor totaling 7 bedrooms. There is no advantage to having more than 7 bedrooms in a home, but if we market the home as having the 7 bedrooms and additional bonus rooms we would have a better response from the buyers. There are 1 full and 1 half bathroom on the first floor, with another 2 full bathrooms on the second level, along with a half bathroom on the lower level. This totals 3 full bathrooms and 2 half bathrooms.

There is a 2-car attached garage and 4 off-street parking areas.

Your request was 'what advice would we give to prepare your home for sale to get the highest price possible?'. Our advice would be to remove the wallpaper in the home. The return on investment in removing wallpaper and replacing with fresh paint is huge. In the 1st floor master bathroom painting the cabinet and replacing the cabinet hardware would smarten the bathroom up for low cost. While removing the wallpaper, painting the wood veneer in the lower level would also provide a huge ROI. The recommendation would be to remove curtains and curtain rods from the living room, the vertical blinds in the dining room, the curtains in the office, the curtains in the first floor master bedroom, the curtains in the lower level family room and bonus room. When removing curtains, leave the blinds there for privacy. During showings they will be raised fully open to allow the maximum light to enter the home. If you would like advice with regard to paint colors, then Dani would be happy to pop by with paint fans to assist you with choices. This market analysis will assume that the suggestions have been completed.

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Market Dynamics

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

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

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

Sales distribution statistics for single family homes show that the $1M-$1.5M price-range is the most active in Lexington. The next busiest price range in Lexington is the $1.5M - $2M price range. This is an indicator that new construction is having a significant impact on the average single family home prices in Lexington. The number of new construction homes being built in Lexington in 2013 was 55 homes, 70 homes in 2014, 71 homes in 2015, 66 homes in 2016, and 55 in 2017.

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

Reviewing the price per sq. foot charts for single family homes shows us that the average price per sq. ft. in Lexington around the $1M - $1.5M price range is around $392 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 $424.

The chart below shows that single family homes in Lexington of similar size to your home in the 4,000 square foot range, have an average price per square foot of $379 but it increases to $386 per sq. ft. when you decrease to the 3,000 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 $1M - $1.5M price range are less than 1 month’s supply showing a severe shortage.

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Analysis of Relevant Properties

The following map shows the  homes that we believe to be of value in determining the price of your  home. Below the map you will find basic information  provided for each home including the price the home was  listed at, and the price the home sold at (if sold), the listing date, Days on market, Bedrooms, Bathrooms, living area size and lot size.  Noted for each home is a classification of Relevance which outlines whether we think the  property is valued Less (L), Relevant/Comparable (R) or Higher (H) than  your home. The notes for each home outlines the similarities and differences between  your home and the one being analyzed.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2 half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This split entry style home was built in 1980.  It is smaller than your home with 3,500 sq ft which includes the finished living area in the lower level. Your home has 4,110 sq ft of living area which includes the lower level.  This home has less number of bedrooms than your home,having 5 bedrooms. It has less bathrooms than your home, having 3 full bathrooms as your home has an additional 2 half bathrooms. It sits on a larger size 0.46 acre lot whereas your home sits on a 0.26 acre lot.
As you enter the main level, the formal living room is on the left and the family room is in front. The family room has a full brick wall fireplace to the ceiling, a wet bar, and is open to the kitchen. It has access to the sunroom through a glass slider. The kitchen has a 2-tier breakfast bar peninsula, stainless steel appliances, granite countertops, ceramic tile backsplash, and white cabinets to the ceiling. It is a galley style kitchen which is quite small with an informal dining area, a built-in china cabinet with some glass panels, chair rails, and exterior access to a deck through a sliding glass door. The formal dining room has access to the same deck through glass sliders. The master suite is located on the main level and has an attached bathroom with granite countertop and white vanity cabinet. Another bedroom and another full bathroom are on this level. The lower level includes 2 bedrooms, an office, a utility room, a large storage room and another full bathroom. The entire home is sun-filled with huge windows. The main level of living features gleaming hardwood floors while the lower level has wall to wall carpeting. The bathrooms have all been updated and are quite large.
This home is located in a nice area and has an attached 2 car garage and 6 car off street parking, oil  heat, and central air cooling. It was initially listed for $1,175,000 but price was dropped to $1,125,000 before it went under agreement and was sold for $1,125,000.

Relevance: Less. Given the larger size of your home, inferior condition of kitchen and bathrooms, larger lot of this home, extra 2 bedrooms and 2 half bathrooms of your home but when considering all factors I believe your home will sell for more than this home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This contemporary style home was built in 2001.  It is of similar size but still smaller than your home with 4,000 sq ft of living area which includes some of the lower level. Your home has 4,110 sq ft of living area.  This home has 3 less bedrooms than your home,having 4 bedrooms. It has 4 full and 1 half bathrooms whereas your home has 3 full and 2 half bathrooms. It sits on a larger size 0.49 acre lot on a busier road whereas your home sits on a 0.26 acre lot.
The main level includes the living room which has hardwood floors and has an adjacent half bathroom. The formal dining room has wall to wall carpeting. The family room has cathedral ceiling with skylights, and wall to wall carpeting. The kitchen also has a cathedral ceiling, a breakfast bar island, granite countertops, and ceramic tile floors. A bedroom with walk in closet and wall to wall carpeting and a full bathroom are also on the main level. The master bedroom is on the upper level and it has a cathedral ceiling with skylights, wall to wall carpeting, an attached nursery, and an attached bathroom which has a jacuzzi. There are 2 more bedrooms, both having wall to wall carpeting and attached bathroom, are also on this level.
This home is located in the Fiske school neighborhood and has an attached 3 car garage and paved 6 car off street parking, forced air central  heat, and central air cooling. It was initially listed for $1,436,000 but was dropped to $1,390,000 until it expired. It was re listed for a lower price of $1,150,000 and was sold for $1,150,008 after a total of 137 days on the market. The seller lost money on this home because he did a For Sale By Owner and the home was not presented well at all. He could have gotten more money I believe if he had professionals helping him sell.

Relevance: Relevant, but less.  Given the similar size of the home, inferior location, superior condition but poor presentation, larger lot, less bedrooms but more full bathrooms, I believe considering all of the factors that this home is relevant to your home but yours will sell for more.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This contemporary multi-level style home was built in 1965.  It is smaller than your home with 3,528 sq ft of living area including a finished lower level. Your home has 4,110 sq ft of living area including the lower level.  This home has less number of bedrooms than your home,having 5 bedrooms. It has more bathrooms than your home with 5 full bathrooms. It sits on a larger size 0.45 acre lot but backs onto the entry access road to Route 2 whereas your home sits on a 0.26 acre lot.
The main level has an open floor plan which includes the living room and the kitchen, the dining room and the family room. The living room has a fireplace, bay windows, crown molding, and hardwood floors. The kitchen has an informal dining area, with bay windows and external access to the deck through glass sliders. It also has a breakfast bar island, granite countertops, cabinets to the ceiling, ceramic tile backsplash, stainless steel appliances, and hardwood floors. It has access to the sunroom, which has hardwood floors, through a french door. The family room and the formal dining room have double windows, crown molding, and hardwood floors in one open plan. A family bedroom with an attached bathroom and hardwood floors is on this level. A den with lots of custom built ins, pantry, and exterior access to the deck together with 2 more full bathrooms are also on the main level. The master suite, 2 family bedrooms, and a bathroom are on the upper level. The master bedroom has an attached bathroom, walk in closet, and hardwood floors. The master bathroom has double vanity sink, and jacuzzi. The family bathroom also has double vanity sink. The finished lower level includes another family bedroom, the media room, and another full bathroom. All of the bathrooms have been renovated in this home and it presents well.
This home is located in the Bowman School neighborhood. It has an attached 2 car garage and 4 car off street parking, central heat, hot water baseboard  heat, and central air cooling. It was initially listed for $1,190,000 but was sold at a lower price of $1,180,000.

Relevance: Relevant, but less. Given the superior condition, smaller size, inferior location, less bedrooms but more full bathrooms I believe this home is relevant to your home but yours should sell for more.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This contemporary style home was built in 1969.  It is smaller than your home with 3,196 sq ft of approx living area including a finished lower level. Your home has 4,110 sq ft of living area including the lower level.  This home has less bedrooms than your home,having 5 bedrooms. It has 3 full and 1 half bathrooms which is 1 half bathroom less than your home. It sits on a larger size 0.37 acre lot in a very desirable area whereas your home sits on a 0.26 acre lot.
Entry through the portico to the foyer, options are to go up to the living room or to go down to the family room. The living room has high cathedral ceiling, transoms, and bay windows, a fireplace with marble facing, and hardwood floors. It is open to the formal dining room and the kitchen. The formal dining room has chair rails, hardwood floors, and access to the balcony. The kitchen has skylight, crown molding, stylish cabinets, granite countertops, stainless steel appliances, and ceramic tile floors. There are 4 family bedrooms on this level and one of them has an attached bathroom. All family bedrooms on this level have wall to wall carpeting and some share a family bathroom. The master bedroom is on the upper level and it has a cathedral ceiling with skylight, his and her walk in closets, a sitting area which has access to the balcony, and an attached bathroom. The master bathroom has double vanity sink, granite countertops, and marble floors. The family room is on the lower level and it has a fireplace with custom built ins on both sides of the fireplace,  custom built in, bay windows, and wall to wall carpeting. This level also has an office with an attached bathroom, and hardwood floors.
This home is located in the Follen Hill neighborhood. It has an attached 2 car garage and paved 6 car off street parking, has hot water baseboard  heat, and central air cooling. It was listed for $1,274,900 and was sold higher than the listing price, due to competition, for $1,285,000.

Relevance: Relevant. Given the smaller size, but superior condition, superior location, larger lot, I believe once all factors are considered this home is relevant to your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This gambrel colonial style home was built in 1924.  It is larger  than your home with 5,418 sq ft of all living area which includes the lower level. Your home has 4,110 sq ft of living area including the lower level.  This home has the same number of bedrooms as your home,having 7 bedrooms. It has the same number of bathrooms as your home, having 3 full and 2 half bathrooms. It also sits on a similar size 0.24 acre lot in the town center whereas your home sits on a 0.26 acre lot.
As one enters the foyer from the covered farmer’s porch, the main level has an open floor plan. It includes the living room, which has bay windows, and the formal dining room and both have  crown molding, wainscoting, and hardwood floors. The kitchen is huge, with lots of white cabinets, crown molding, breakfast bar peninsula, granite countertops, ceramic tile backsplash, stainless steel appliances, an office nook, built in china cabinet, and an informal dining area that is also accessible from the foyer through french doors. The family room has a fireplace with granite facing and white mantel, crown molding, and hardwood floors. The master suite, 3 family bedrooms, a study, and a family bathroom are on the upper level. The master bedroom has crown molding, chair rails, hardwood floors, walk in closet, and an attached bathroom. The attached bathroom has his and her vanity sink, granite countertops, marble tile floors, a shower stand with frameless glass door, and a jacuzzi. The third floor includes 3 bedrooms, a den, a kitchenette, and a full bathroom. The partially finished lower level is a recreation room with an attached bathroom and an office. All of the bathrooms have been renovated.
This home is located steps from the town center. It has an attached 2 car garage and paved 8 car off street parking, has hot water baseboard  central heat, and central air cooling. It was listed for $1,398,000 and was sold for $1,343,000.

Relevance: Higher.  Given this homes larger size, similar configuration, superior condition, superior location I believe it will sell for more than your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This was bought by one of our buyers. This colonial style home was built in 1953 but it was stripped down to the studs and an upper level added.  It is larger than your home with 4,217 sq ft of all approx living area including a finished lower level. Your home has 4,110 sq ft of living area including the lower level.  This home has less bedrooms than your home having 4 bedrooms but has a couple of bonus rooms. It has 4 full  bathrooms. It sits on a larger size 0.33 acre lot whereas your home sits on a 0.26 acre lot.
The main level has an open floor plan with hardwood floors, wainscoting, and crown molding  which includes the living room, the formal dining room, and the kitchen. The living room has a fireplace with marble facing, white mantel, and built ins around the fireplace, and picture windows. The kitchen has a breakfast bar island, granite countertops, ceramic tile backsplash, white cabinets, stainless steel appliances, and an exterior access to the deck through sliding glass doors on the informal dining area. An office, a mudroom, and a bathroom are also on this level. The master suite, 3 family bedrooms one of them with an attached bathroom, and a family bathroom are on the upper level. The master bedroom has a cathedral ceiling, walk in closets, hardwood floors, and an attached bathroom. The master bathroom has double vanity sink, and shower stall. Another bedroom has a walk in closet, hardwood floors, and attached bathroom. The family room is on the finished lower level together with the recreation room and they have wall to wall carpeting. The home is basically new construction as there is virtually nothing remaining from the older home.
This home has an attached 2 car garage and 4 car off street parking, has forced air heat, and central air cooling. It was listed for $1,349,000 and was sold at its listing price.

Relevance:  Higher.  Given the larger size, superior condition, larger lot, extra full bathroom, junior suite as well as master suite I believe it will sell for more than your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This popular colonial style home was built in 2002.  It is larger than your home with 4,852 sq ft of all above ground approx living area which does not include the beautifully finished lower level. Your home has 4,110 sq ft of living area which includes the lower level.  This home has less  bedrooms than your home having 6 bedrooms. It has the same number of bathrooms as your home does, having 3 full and 2 half bathrooms. It sits on a larger size 0.46 acre lot on a busier road whereas your home sits on a 0.26 acre lot.
The main level has an open floor plan and includes the living room which is on the right from the foyer. The living room has a fireplace with brick facing and white mantel, picture windows, crown molding, and hardwood floors. The formal dining room has coffered ceiling, crown molding, picture windows, wainscoting, and hardwood floors. The kitchen is large and has an accented ceiling, cherry cabinets with built in china cabinets, a breakfast bar island with a second prep sink, granite countertops, ceramic tile backsplash, an office nook, stainless steel appliances, ceramic tile floors. The family room has a 2-story cathedral ceiling, 2-story windows, french doors, and transoms, and hardwood floors. An office is accessible from the foyer through french doors and it has a fireplace with brick facing and white mantel, hardwood floors, and lots of built ins. The master suite is on the upper level together with 3 more family bedrooms and 1 family bathroom. The master bedroom has a walk in closet, an attached bathroom, vaulted ceiling, and wall to wall flooring. The master bathroom has double vanity sink with granite countertops, white cabinets, a shower stall, and a jacuzzi. Another family bedroom has an attached bathroom. A bedroom on the 3ed level has cathedral ceiling and wall to wall carpeting.
This home has an attached 2 car garage and paved 8 car off street parking, has hydro and oil central heat, and central air cooling. It was initially overpriced at $1,599,000 and they ultimately dropped the price by $200K over several price changes to $1,399,900 before it went under agreement and was finally sold for $1,350,000 after 137 days on the market.

Relevance: Higher. Given the home is much larger than your home, superior style, larger lot, superior condition I believe it will sell for more than your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This was our listing. This popular colonial style home was built in 1997.  It is of similar size as your home with 4,073 sq ft of approx living area which includes the finished basement and gazebo. Your home has 4,110 sq ft of living area which includes the lower level.  This home has less number of bedrooms than your home having 4 bedrooms. It has more full bathrooms with 4 full bathrooms. It sits on a larger size 0.76 acre lot in a popular area whereas your home sits on a 0.26 acre lot.
As you enter this home, you have the living room on the left from the spacious foyer. This living room has 11’ ceilings, crown moldings, picture windows, chair rails, and hardwood floors. It has access to the gazebo through a French door. The formal dining room has open floor plan with the living room and also has an 11’ ceiling giving both rooms a grand feeling. The dining room has an accented ceiling, triple picture windows, and hardwood floors. The kitchen has a center breakfast bar island, granite countertops, ceramic tile backsplash, white custom built cabinets, and a breakfast area inset into a bay window area. It has an open floor plan with the family room which has a gas fireplace with built in shelves and cabinets on both sides, hardwood floors, and has exterior access to the huge deck through a French door with matching height windows along the wall which provide lots of natural light. Also on this level is an office with crown molding, bay window with seat, hardwood floors, and built in white cabinetry with desk and shelving. The master suite and 3 more family bedrooms are on the second level. The master bedroom has an attached master bathroom, a walk in closet, picture windows, and wall to wall carpeting. The bathroom has double vanity sink, granite countertop and white cabinets, a shower stall, a separately enclosed toilet, a jacuzzi, picture windows, and ceramic tile floors. One of the family bedrooms has a cathedral ceiling, hardwood floors and picture windows. Another one has a bay window with wall to wall carpet. The finished lower level has another family room with wall to wall carpet and a full bathroom.
This home has an attached 2 car garage and 6 car off street parking, has forced air  heat, and central air cooling. It was listed for $1,299,000 and we had 10 offers on the home and sold it for $1,400,000.

Relevance: HIgher. Given the superior curb appeal of the home, similar size, superior condition, larger lot I believe it will sell for more than your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This colonial style home was built in 1951.  It is larger than your home with 4,672 sq ft of living area which includes the lower level. Your home has 4,110 sq ft of living area which includes the lower level.  This home has less bedrooms than your home having 5 bedrooms. It has an extra full bathroom with 4 full bathrooms. It sits on a larger size 0.39 acre lot whereas your home sits on a 0.26 acre lot.
The main level includes the living room which has a fireplace with granite facing, picture windows, a cathedral ceiling, hardwood floors, and access to the mudroom. The formal dining room is on the right from the 2-story foyer and it also has a fireplace with granite facing, picture windows, and hardwood floors. The family room has cathedral ceiling with skylights, and a fireplace with granite facing. The kitchen is huge and has stylish white cabinets to the ceiling and some with glass panels, a breakfast bar island, granite countertops, ceramic tile backsplash, a pantry, ceramic tile floors, and white appliances. It also has an informal dining area which has a cathedral ceiling with skylight and exterior access. A bedroom/office which is not included in the bedroom count, is also on this level and a family bathroom which has a vanity with granite countertop. The master suite is on the upper level. It has a fireplace with marble facing and mantel, a cathedral ceiling, walk in closet, hardwood floors, and an attached bathroom. The master bathroom has his and her vanity with sink and granite countertops, ceramic tile floors and half height walls, and a Jacuzzi and shower stall. On this level are 4 more family bedrooms and they share a family bathroom which has a vanity and a separate sink with granite countertops. The finished lower level has been beautifully finished and it includes an exercise room with ceramic floor tiles, a full bathroom, and a media room which has a fireplace on brick wall to the ceiling. The home was fully renovated recently and is quite stunning inside.
This home has an attached 2 car garage and 8 car off street parking, has hot water baseboard  heat, and central air cooling. It was listed for $1,299,000 and was sold higher than the listing price, for $1,425,000, with competing offers.

Relevance: Higher. Given the larger size, superior condition, extra full bathroom, larger lot size I believe it will sell for more than your home.

Your details: Living area 4110 sq ft | 7 beds + office | 3 full baths, 2  half baths | Lot size 0.26 acres | Built 1968 | 2 car garage

This is our listing. This popular colonial style home was built in 2014.  It is smaller than your home with 3,745 sq ft of all above ground approx living area. Your home has 4,110 sq ft of living area which includes the finished lower level.  This home has less number of bedrooms than your home,having 4 bedrooms. It has more bathrooms with 4 full and 1 half bathrooms. It sits on a similar size 0.28 acre lot whereas your home sits on a 0.26 acre lot.
Upon entry to the foyer, the living room is on the right and it has wainscoting, picture windows, crown molding, hardwood floors, and access to the kitchen through a french door. The formal dining room is on the left from the foyer and it has chair rails, crown molding, picture window, hardwood floors and also has access to the kitchen through french doors. The kitchen is large and has a breakfast bar island, granite countertops, white cabinets with built in china cabinets, high end stainless steel appliances, and exterior access through the informal dining area and the mudroom. The family room has an open floor plan to the kitchen and has a fireplace with white mantel, built ins, and transoms, high cathedral ceiling, picture windows, and hardwood floors. The master suite, 3 family bedrooms, and a shared family bathroom are on the upper level. The master bedroom has a walk in closet, crown molding, hardwood floors, and an attached bathroom. The master bathroom has double vanity sink, granite countertop, custom built ins, vaulted ceiling, and a shower stall with frameless glass door. Another bedroom also has an attached bathroom while the 2 others share the family bathroom. All bedrooms on this level have hardwood floors. The 3rd level is a bonus room which has a cathedral ceiling, hardwood floors, picture windows, and a bathroom.
This home has an attached 3 car garage and 6 car off street parking, has forced air heating, and central air cooling. It was listed for $1,399,000 and was sold higher than the listing price due to competition, for $1,490,000.

Relevance: Higher. Given its larger above ground living area, superior condition,extra full bathroom, recent construction 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 $1,250,000-$1,300,000.  

Given the current market dynamics in Lexington, I would suggest listing your home at the lower end of this price range to attract more interest and potentially multiple offers.  If the market deems your home to be worth more than the list price, then the price will be pushed over the market value of your home, and sometimes well over when we get multiple offers. You can see many examples above that came on the market for a lot less, and competition pushed them up to the price they sold for. The challenge in estimating a price for a home is ‘would this home have sold for this price if they had priced it higher?’ or was competition the driving factor that got to this price.  Experience tells me that competition is why they sold for what they did, so we have to be careful with pricing. A couple of good examples of competition pushing a price higher are our listing at 845 Emerson Gardens Rd which came on the market for $1,299,000 and sold for $1,400,000, our listing at 37 Tarbell which came on the market for $1,399,000 and sold for $1,490,000 and the home at 171 Burlington St which came on the market for $1,299,000 and sold for $1,425,000.  

When homes are overpriced they end up sitting on the market and ultimately selling for less than market value an example of this is the home at 481 Concord Ave, 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. Competition occurs with homes in your price range so the value of  pricing realistically is that sometimes competition will push the price  up over market value when buyers become emotional about 'have to have  this home'.

I have to stress that these are recommendations. We would bring your home on the market at whatever price you deem to be appropriate.  

When determining the right price - it all depends on your motivation and your risk tolerance level. We know that homes that are priced at the 'strike price' will sell quicker and may generate more than one offer.  I’m an excellent negotiator and know how to push a price up if we have the market activity. I also know that some sellers want to put their home on for a higher price than I might recommend, which I’m willing to do, so long as it is understood that putting the home on for more than the majority of buyers perceive its value, could mean that your home will have a much longer market time and sell for less than it should have had it been priced properly out of the gate.

I DO NOT DETERMINE THE PRICE - the market dictates the value - what a buyer is willing to pay. My job is to make sure that you have the best market exposure and that your home is positioned well in the market.   I do not believe in projecting more money than I think your home will sell for just to get your business.

My team and I know how to stage and market your home, and I understand its value, but I can only sell it for what the market or a buyer will pay. I strongly believe that a home should be priced compared to the current competition, not just on what has sold in the last six months.  At the end of the day, you will be competing for the buyers looking for a home like yours and in the same price range. You can do far more 'damage' to the resultant price we get for your home if we overprice. The prospective serious buyers will see your home within the first weekend of your home coming on the market, and they will have seen everything else in this price range.  In other words, the serious buyer knows what is priced well.  If they don't see value in your home at its listing price and are not motivated to make an offer, then they will move on and keep looking.  In times of increasing prices, it is often hard to predict what a home will sell for, but be assured that even if we price your home lower than what market value is currently, market dynamics will bring the price of the home up to where it should be.  Prospective buyers should walk in thinking the price 'feels right' and are motivated to make an offer in the short term, rather than letting several months’ pass.

It is important to stress the value of marketing your home to capture the highest price.  In times of low inventory, we know your home will sell by doing the bare minimum to market it, BUT that is not going to get you the maximum price for your home.  Key to getting the maximum price for your home is to prepare a comprehensive marketing plan that incorporates all avenues available to us to expose your home to the maximum number of buyers out there looking.  Exposure, and feet in the door, is what will get you the highest price for your home. Basic ratios help explain this.  If 10% of the buyers who walk in your door fall in love with your home, then if you only have 10 buyers walking in, then potentially there is only 1 buyer - if you have 100 buyers walking in your door then using the same ratios, you will potentially have 10 buyers falling in love with your home.  10 buyers will push the price up versus only one buyer.

Given the price point you are at your home would be categorized as a RE/MAX Collections home, which is the Luxury home brand for RE/MAX. For the first Open House we would organize to have a pianist come in to play, and food for Open House guests. We would market it as our Signature Open House. The aim is to have an ‘event’ of your Open House and get serious buyers seeing the home with as many people as we can to stimulate activity and excitement for the home. In addition to this we do additional marketing for our Collections listings and can be reviewed below.

 New statistics state that over 100% of potential buyers search the web as their primary search vehicle.  Thankfully, your home will show fabulously in photos. With historically low interest rates likely to increase and inventory at a 7-year low, there are still homes that do not sell in this market.  I’m making my recommendations to ensure that you are one of the sellers who will have success in the first month of being on the market, but optimally the first weekend.

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 Because your home is a Luxury home, we offer additional marketing on top of the standard marketing seen above.

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