36 Sanderson Rd, Lexington

Market Analysis for:

Sangeeta & Rahul Krishnan

I've done a market analysis on your home at 36 Sanderson 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 stunning colonial that has been renovated and expanded from top to bottom.   The home is located in a very popular area of Lexington with large homes being built on the large lots. The home was built in 1976 and has 5 bedrooms and 3.5 bathrooms. Based on calculations there is 4218 sq ft of living area in the home which includes the finished basement, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level.  The home is located on 0.53 acres and has a 2 car garage.

As you walk up to the front steps you notice the immaculate care that has been taken with the home, and notice the newly finished portico with square half walls and seating built in, and a covered area. A light fixture along the pathway echoes the style of the portico.  As you walk in the front door you have stairs leading to the second floor directly in front, a living room off to the left and the dining room off to the right. The foyer has wainscoting around the walls and up the stairs and crown molding. The living room is a front to back and has recessed lights, with a cased opening leading to the kitchen at the end of the room. The dining room has wainscoting and crown molding. Entering into the kitchen area prepared to be wowed. The kitchen in simply stunning. White shaker cabinets, with an island with cherry (?) cabinetry, stainless steel appliances, quartz(?) counters, and is open to the family room. The family room has a cathedral ceiling, built in wet bar with a beverage fridge, fireplace with marble tile surround and hearth, French doors leading out to the deck. Adjoining the kitchen is a full bathroom, and a bedroom.

Upstairs to the second floor you have 3 family bedrooms, a laundry room on the way to the family bathroom which has dual sink granite vanity, white cabinetry, and a separate tub/shower/toilet room.  The master bedroom has a partially sloped ceiling, a walk in closet, and a huge master bathroom. The master bathroom has dual sink vanity with marble(?) counters, dark wood cabinetry, ceramic wall and floor tiles, a shower with frameless glass shower door and separate toilet.

Access to the lower level is via stairs in the back, with a half French door on the landing which leads out to the stunning back yard. The lower level has ceramic floor tiles at the bottom of the stairs and toward the garage, and is fully finished with a half bathroom. The family room has wall to wall carpet, and a granite topped cabinet. There is a mudroom on the way to the 2 car garage.

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

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Market Dynamics

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

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

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

Sales distribution statistics for single family homes show that the $1M-$1.5M price-range is the most active in Lexington. The next busiest price range in Lexington is the $1.5M - $2M price range. This is an indicator that new construction is having a significant impact on the average single family home prices in Lexington. The number of new construction homes being built in Lexington in 2013 was 55 homes, 70 homes in 2014, 71 homes in 2015, 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 $1.5M - $2M price range is around $378 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 before the 1970’s the average price per sq. ft. is $350.

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 $368 but it increases to $382 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 $1.5M - $2M price range are just over 2 month’s supply showing a 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 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home is smaller than your home having 3,829 sq ft of all above ground approx. living area whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home also has the same number of bathrooms as your home does, both having 3.5 bathrooms. It sits on a smaller 0.17 acre lot while yours sits on a 0.53 acre lot. This home was built in 2008 while your home was built in 1976. Like your home, it has an attached 2 car garage.
 As one enters from the farmers’ porch, the living room is on the left of the foyer. It has crown molding and hardwood floors. It connects to the formal dining room through double French doors. The formal dining room has raised ceiling detail, wainscoting, and hardwood floors. The family room has a fireplace with white mantel and marble facing and window seats on each sides, crown molding and hardwood floors. It has an open floor plan to the informal ding area and the kitchen. The kitchen has a 2 tier breakfast bar island, granite countertops and back splash, pantry, white cabinets and some with glass panels, stainless steel appliances, and crown molding. It also has an informal dining area where the exterior access to the screened porch/sunroom through glass sliders and the deck through a French door are located. The master suite is on the second level and it has a fireplace with white mantel and cast facing, crown molding, hardwood floors, walk in closet and an attached bathroom. The master bathroom has double vanity sink with granite countertop and white cabinets, a Jacuzzi and a shower stall, and ceramic tile floors. On this level are 3 more family bedrooms where one has a walk in closet with cathedral ceiling. They all have hardwood floors and share a family bathroom which also has a double vanity sink with granite countertop and stylish cabinets. The 3rd floor includes 2 bonus rooms and they both have cathedral ceiling and wall to wall carpeting. A full bathroom is also on this level and it has granite countertop.
 It is walking distance from Hastings Elementary and on a busier road than yours. It was listed for $1,325,000 and sold for $1,380,000 after 5 days on the market.

Relevance: Less
Given the smaller size of this home along with the smaller lot size and inferior condition I believe your home will sell for more than this home.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home is larger than your home having 4,672 sq ft of approx. living area including the finished basement whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has an extra half bathroom, having 4 bathrooms vs your home with 3.5 bathrooms. It sits on a smaller 0.39 acre lot while yours sits on a 0.53 acre lot. This home was built in 1951 while your home was built in 1976. Like your home, it has an attached 2 car garage.
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 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 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 a drop ceiling and it includes an exercise room with ceramic floor tiles and a media room which has a fireplace on brick wall to the ceiling.
 It is located in the new Estabrook Elementary school district near Willards woods. It was listed for $1,299,000 and sold for $1,425,000 after competing offers pushed the price up.

Relevance: Relevant but less
Given the larger size of the home, inferior location, inferior curb appeal I believe this home is relevant to your home but yours should sell for more.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This home was bought by our buyers. This colonial style home is smaller than your home having 3,690 sq ft of approx. living area including the finished basement whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has 1 bathroom less than your home does, having 2.5 bathrooms vs your home with 3.5 bathrooms. It sits on a larger 0.72 acre lot while yours sits on a 0.53 acre lot. This home was built in 1960 while your home was built in 1976. Like your home, it has an attached 2 car garage.
The main level has mostly hardwood floors and crown molding. It includes the living room which has a fireplace with brick facing and white mantel. The formal dining room  has chair rail and access to the kitchen. The kitchen has lots of natural, wood colored cabinets and some with glass panels, 2 prep sinks, granite countertops, ceramic tile backsplash, and in-lay appliances that match the cabinets. It has access to the sunroom which has a fireplace with white mantel, bead board/wainscoting, and stone floors. All the bedrooms including the master bedroom are on the upper level. The master bedroom has crown molding and hardwood floors, walk in closet, and attached bathroom. The master bathroom has crown molding, double vanity sink with marble countertop and stylish cabinets, bead board, and marble floors. The shared family bathroom has granite countertop and bead board. The family room is on the finished lower level which has wall to wall carpeting. It also has a fireplace  and a play area.
 It is located in the desirable Burnham Farms neighborhood. It was listed for $1,399,000 and sold for $1,460,000 after competition.

Relevance: Relevant, but less
Given the smaller size of the home, 1 less bathroom but superior location I believe it is relevant to your home but yours should still sell for more.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This contemporary, multi-level style home is larger than your home having 4,560 sq ft of all above ground approx. living area whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home also has the same number of bathrooms as your home does, both having 3.5 bathrooms. It sits on a smaller 0.35 acre lot while yours sits on a 0.53 acre lot. This home was built in 1951 while your home was built in 1976. Like your home, it has an attached 2 car garage.
The main level has mostly hardwood floors and crown molding. The living room has an open floor plan to the formal dining area. They have double windows and are slightly separated by built in shelves. The family room has bead board walls, double windows overlooking the deck, a fireplace with white mantel and ceramic tile facing, and is slightly open to the kitchen. The kitchen has lots of cherry cabinets to the ceiling, stainless steel appliances, a breakfast bar island with a prep sink, and granite countertops. It has access to the sunroom which has skylights and 2 exterior accesses to decks on 2 sides. An office with skylights, floor to ceiling windows, stone flooring, rustic wood walls, and exterior access is on this level. There is also a bedroom accessible through the foyer area and the mudroom that connects to the garage. The upper level has mostly wall to wall carpeting and includes 3 family bedrooms that share a bathroom with dual vanity sink with white cabinets, and ceramic tile floors. The master suite is also on this level which has walk in closets, and an attached bathroom. The master bathroom has double vanity sink with white cabinets, ceramic tile floors, a Jacuzzi, and a shower stall. The finished lower level includes a bonus room and a media room and both have wall to wall carpeting.
 This home is located in desirable Munroe Hill walking distance to the town center. It was listed for $1,499,000 and sold for $1,540,000 after competition.

Relevance: Relevant
Given the larger size of this home, superior location, inferior condition I believe it is relevant to your home.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home is larger than your home having 4,525 sq ft of approx. living area including the finished basement whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has 1 extra bathroom than yours, having 4.5 bathrooms vs your home with 3.5 bathrooms. It sits on a larger 0.69 acre lot while yours sits on a 0.53 acre lot. This home was built in 1995 while your home was built in 1976. Like your home, it has an attached 2 car garage.
The main level has mostly hardwood floors and crown molding. The living room has a fireplace with white mantel and marble facing. It os connected to the family room through a French door. The family room also has a fireplace with white mantel, recessed built ins, and picture windows. The formal dining room has wainscoting and recessed, hanging china cabinet. It has access to the kitchen through a French door. The kitchen has picture windows, a breakfast bar island, granite countertops, and ceramic tile backsplash, cherry cabinets to the ceiling, stainless steel appliances, and an exterior access to the deck. A half bathroom on this level has wainscoting. A bedroom with an attached bathroom is also on this level and is accessible through the foyer and the mudroom that connects to the garage. The master bedroom is on the upper level and it has a walk in closet, and an attached bathroom. There are 3 more family bedrooms on this level and they share a bathroom. The finished lower level includes a media room with wall to wall carpeting, decorative column and beam, and a bonus room with an attached full bathroom.
 It is located walking distance to Lexington Center & the bike path. It was listed for $1,495,000 and sold for $1,548,500 after competition.

Relevance: Relevant, but higher
Given the larger size of this home, extra bathroom, larger lot, superior location being walking distance to the town center I believe this home is relevant to your home but it should sell for more.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home has similar size with your home having 4,297 sq ft of approx. living area including the finished basement whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has half a bathroom less than your home does, having 3 full bathrooms vs your home with 3.5 bathrooms. It sits on a similar size 0.54 acre lot as yours sits on a 0.53 acre lot. This home was built in 1987 while your home was built in 1976. Like your home, it has an attached 2 car garage.
 From the covered porch, the living room is accessible from the foyer and it has a fireplace with white mantel and brick facing, large windows, and hardwood floors. It is connected to the formal dining room which has wainscoting, crown molding, bay windows, and hardwood floors. The family room has a fireplace and is open to the kitchen. The kitchen has floor to ceiling cabinets with some glass panels, a breakfast bar island with a prep sink and cooktop, granite countertops, ceramic tile floors and back splash, stainless steel appliances. The all glass sunroom also serves as the informal dining area and has exterior access to the deck. A bedroom / study is also on this level with an attached bathroom. The family bedrooms are on the upper level which includes 3 family bedrooms that share family bathroom and the master suite. The master bedroom has his and her walk in closets, an attached bathroom, and access to a balcony. The master bathroom has double vanity sink with granite countertop, a shower stall, and ceramic tile floors. The finished lower level has wall to wall carpet where a play room and exercise room is located.
 This home is located near Clarke Middle School and adjacent to Dunback Meadows conservation land. It was listed for $1,598,000 and was sold for a lower $1,585,000.

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

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home is smaller than your home having 4,092 sq ft of all above ground approx. living area whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has 1 extra bathroom than yours, having 4.5 bathrooms vs your home with 3.5 bathrooms. It sits on a smaller 0.42 acre lot while yours sits on a 0.53 acre lot. This home is relatively new, built in 2012 while your home was built in 1976. Like your home, it has an attached 2 car garage.
As one enters through the portico is the foyer which has wainscoting and crown molding detail. The living room has picture windows, crown molding, and a fireplace with white mantel. The formal dining room has wainscoting and crown molding. The kitchen has an oversized breakfast island bar, granite counters and backsplash, Viking stainless steel appliances, and opens to the dining area and family room. The kitchen also has a desk area with overhead shelving/cabinetry. It has exterior access to the backyard with a patio area. The family room is full of natural light with lots of large windows, a fireplace, and crown molding. There is also a walk in pantry, mudroom, and half bathroom on the 1st level. The master suite is huge with a vaulted ceiling, skylights, a walk in closet and an attached bathroom. The master bathroom has a shower stall, a separately enclosed toilet, a Jacuzzi, and double vanity sinks with granite countertops. The 2 other rooms have walk in closets and share a jack and jill bathroom with double vanity sink with granite countertop. Another bedroom with an attached bathroom is on the same level. The 5th bedroom is on the 3rd level along with another full bathroom. A playroom with skylights and attic storage are also on this level. The laundry room is on the 2nd level and has a sink with a granite countertop. Hardwood floors flow throughout with carpeting on the third floor and tile in the bathrooms.
 This home is located near Kinneen Park and Willard's Woods and is walking distance to the town center. It was listed for $1,699,000 but was sold at a lower price of $1,680,000 after just 4 days on the market.

Relevance: Relevant, but higher
Given the similar living area but this one being all above ground living area, newer construction, and walking distance to the town center I believe it is relevant to your home but it will sell for more than yours.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home has similar size with your home having 4,168 sq ft of all above ground approx. living area whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has 1 extra bathroom than yours, having 4.5 bathrooms vs your home with 3.5 bathrooms. It sits on a smaller 0.27 acre lot while yours sits on a 0.53 acre lot. This home is relatively new, built in 2001 while your home was built in 1976. Like your home, it has an attached 2 car garage.
The living room has wainscoting, crown molding, triple windows, and hardwood floors. The formal dining area also has wainscoting, crown molding, triple windows, and hardwood floors. The family room has an open floor plan to the kitchen. It has a cast iron inset fireplace and granite facing and white mantel, recessed built ins on each side of the fireplace, a cathedral ceiling with skylights, hardwood floors, and an exterior access to the deck through large glass sliders. The kitchen has crown molding, stylish white cabinets to the ceiling, 2 tier breakfast bar island, granite countertops, ceramic tile backsplash, stainless steel and in-lay appliances, and informal dining area. The informal dining area has a cathedral ceiling, and picture windows all around. A bedroom with an attached bathroom and walk in closet is also on the main level. A mudroom is at the end of a hall near the study. The upper level has 3 more family bedrooms and the master suite. One of the family bedrooms has a walk in closet and an attached bathroom with shower stall. Another bedroom also has a walk in closet but shares a bathroom with another family bedroom.  This family bathroom has double vanity sink and granite countertop, and separately enclosed toilet and tub. The master bedroom is huge and has an attached bathroom, a walk in closet, a dressing room, and a bay window. The master bathroom has cathedral ceiling, a separately enclosed shower with marble floors and walls, double vanity sink with granite countertop and cherry cabinets, and marble floors.
 This home is located steps to Lexington center in Munroe Hill. It was overpriced at $1,849,000 but was sold at a lower price of $1,750,200 after 35 days on the market.

Relevance: Relevant, but Higher
Given the similar size but this home having all above ground living area, along with a superior location in Munroe Hill I believe it will sell for more than your home.

Your details: Living area 4218 sq ft | 5 beds | 3.5 baths | Lot size 0.53 acres | Built 1976 | 2 car garage

This colonial style home has similar size with your home having 4,296 sq ft of approx. living area all above ground whereas your home has 4,218 sq ft of approx. living area including the finished lower level, minus an adjustment of approx. 100 sq ft of unfinished area in the lower level. It has the same number of bedrooms as your home does, both having 5 bedrooms. This home has 1 extra bathroom than yours, having 4.5 bathrooms vs your home with 3.5 bathrooms. It sits on a smaller 0.31 acre lot while yours sits on a 0.53 acre lot. This home is relatively new, built in 2001 while your home was built in 1976. Like your home, it has an attached 2 car garage.
The main level includes the living room which has coffered ceiling, wainscoting, large windows, and hardwood floors. The formal dining area has bay window and ceiling detail work, wainscoting, and hardwood floors. The family room has a fireplace, a cathedral ceiling with skylights, and has an open floor plan to the informal dining area and the kitchen. The kitchen has floor to ceiling cabinets, a breakfast bar island where the stove is located, granite countertops, decorative backsplash to the ceiling, ceramic tile floors, and an informal dining area. This area has an exterior access to the deck through sliding glass doors. The master suite is on the upper level with 3 more family bedrooms and 2 family bathrooms. The master bedroom is huge with a bay window, an attached bathroom, walk in closet and hardwood floors. The attached master bathroom has double vanity sink with granite countertop and white cabinets. The 3rd level includes another bedroom with hardwood floors, a bonus room with cathedral ceiling and wall to wall carpet, and a full bathroom.
 This home is located in the popular Follen Hill neighborhood and is walking distance to Bowman School and Wilson's Farm. It was listed for $1,799,000 and was sold at a lower price of $1,755,000.

Relevance: Relevant, but Higher
Given the similar size but this home having all its living area above ground, extra bathroom, open plan kitchen/dining/family room, superior detail work with coffered ceilings, and popular cathedral ceilings I believe this home is relevant to your home but will sell for higher.

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Pricing Recommendation

My analysis of the relevant homes outlined above suggests a final market value for your home of $1,525,000-$1,575,000.  

Given the current market dynamics in Lexington, I would suggest listing your home at the lower end of this price range to attract more interest and potentially multiple offers.  If the market deems your home to be worth more than the list price, then the price will be pushed over the market value of your home, and sometimes well over when we get multiple offers. You can see many examples above that came on the market for a lot less, and competition pushed them up to the price they sold for. The challenge in estimating a price for a home is ‘would this home have sold for this price if they had priced it higher?’ or was competition the driving factor that got to this price.  Experience tells me that competition is why they sold for what they did, so we have to be careful with pricing. A couple of good examples of competition pushing a price higher are at 2 Whitman Circle which came on the market for $1,399,000 and sold for $1,460,000, the listing at 2 Currier which came on the market for $1,495,000 and sold for $1,585,500 and the home at 9 Minola Rd which came on the market for $1,499,000 and sold for $1,540,000.  

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. 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.  If you decided to sell your home, then 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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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...

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

Marketing our Luxury homes

Additional marketing occurs when the home is a Collections listing.   RE/MAX Collecti...

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Who We Are | MA Properties Online | RE/MAX Leading Edge

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Testimonials | MA Properties Online | RE/MAX Leading Edge

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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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