67 Newport St, Unit 67, Arlington
Market Analysis for:
Jennifer and Ralph Firneno
We've done a market analysis on your home at 67 Newport St, Unit 67 in Arlington and have prepared this document to help explain how we've arrived at a price for your home. We 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. We also take into account your reported condition and how, in our experience, that will impact the price of a home making it more or less valuable.
Contents
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, a first floor condo in a two-family home, was built in 1917. It is located on Newport St, between Gray St and Spring St, in Arlington Heights on a block with other two-family homes, some of which have also been converted into condos. It is an excellent, centrally located property in the highly desirable Brackett Elementary School district and is within walking distance of Ottoson Middle School and Arlington High School. It is conveniently located near Robbins Farm Park, Menotomy Park, the Minuteman Bike Trail, as well as restaurants, shopping and public transportation. Bus line 77 to Harvard Square and bus line 79 to Alewife T station (Red Line) stop nearby on Mass Ave, and bus line 78 to Harvard Square and bus line 84 to the Alewife T station (Red Line) stop nearby on the Route 2 service road, providing quick access to both Cambridge and Boston.
Public Record has your home listed as having 1,145 sq ft with 6 rooms total including 2 bedrooms and 1 bath. The unit features ample natural light, hardwood floors throughout, period detail including original gum wood throughout the home, chair rails and crown molding. The gum wood is unpainted in the front hallway, living and dining rooms and the sunroom.
Your home has great curb appeal with wooden shingles and a beautiful broad portico with columns leading to the front door. From the sidewalk, a concrete walkway leads up to your condo’s private front entrance and into a short hallway with a coat closet. The hallway opens into the sunny, expansive living room through a set of french doors. There is a large bay window with a window ledge/seat along the front wall of the living room and french doors on the far side leading to a heated sunroom. A wide casement door connects the living room to a spacious sun-drenched dining room featuring a wall of windows to the right.
The dining room has a built in hutch flanked by two doorways. The door on the right leads through a butlers pantry into the kitchen. The door on the left leads into a small foyer with 2 sunny equally sized bedrooms and a bath to the left.
The kitchen has two windows to the right, and a door to the back porch in the far right corner with an alcove to hang coats, etc. There are stairs leading down to the basement in the back corner of the kitchen, and the stair wall is a half wall creating a spacious and open feeling to the kitchen.
The eat-in-kitchen has a wooden floor and original metal lower cabinets with a built in sink to the right and a single top cabinet to the left of the windows which was added at later date and will be painted to match the lower cabinets. The stainless steel and black gas range is freestanding, as is the white side-by-side refrigerator. There is a door circling back to the foyer by the bedrooms and bath, and the foyer has a conveniently located linen closet.
The bedrooms, one on each side of the bathroom, are equal in size. The one closer to the front door has a second door leading back out to the living room. Both sun-drenched rooms have sizable closets and two windows.
The cheery bathroom has a claw foot bathtub, an older pedestal sink, a built in medicine cabinet and a classic b/w tile floor.
The wooden back porch is closed on the lower half and open on the upper half, and aside from the far end where the upstairs owners have a door to access the garden, the porch is solely for the enjoyment of the first floor owners. One takes a few steps down to the yard which is partially fenced in and very private in feel. There are a few tall pine trees to the far left corner, and a lovely flagstone patio beneath the trees large enough for a dining table. The two car garage is to the right, and the garage space on the left is deeded to your unit. The single width driveway is shared with the upstairs residents.
Your condo’s unfinished basement has lots of room for storage and will feature a new gas furnace, a new hot water heater, and washer and dryer hook-ups.
The HOA fee is $200/month and includes $94 for master insurance, $62 for water and $46 for general fund.
Market Dynamics
We have been experiencing shortages of housing inventory in Arlington over the last 5 years or so. There are always a number of buyers looking to buy in Arlington 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 Arlington market has seen increasing prices over the last few years given the limited inventory. The demand for homes in Arlington far outweighs the supply and each month a snapshot of available homes for sale shows the declining inventory levels.
Average prices in Arlington are well above average prices obtained in the peak of the market in 2010. Average condo prices have been increasing steadily since 2011. 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 condos show that the $500K price-range is the most active in Arlington. The next busiest price range in Arlington is the $400K price range.
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 condos shows us that the average price per sq. ft. in Arlington around the $500K price range is around $485 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 1910’s the average price per sq. ft. is $479.
The chart below shows that condos in Arlington of similar size to your home in the 1,000 square foot range, have an average price per square foot of $449 but it increases to $486 per sq. ft. when you decrease to the under 1,000 square foot range. It is common across municipalities to see an increase in the price per square foot for smaller sized homes, as it reflects the minimum cost of a home in a town irrespective of the property size.
The chart below shows how many months’ supply of inventory there is in a given price range. It uses the assumption that given the same rate of sales over the prior 12 months, and considering current inventory available for sale, how many months it should take to sell the available inventory. This is referred to “Absorption” in the real estate world.
Any price range where there is more than 7 months’ supply, we consider there to be an oversupply of inventory, also known as a ‘buyer’s market’. Anything between 4 – 6 months is considered a balanced market. Anything less than 3 months’ supply is considered a shortage of inventory on the market at this price range, also known as a ‘sellers’ market’. As can be seen, currently, absorption rates for all condos in the $500K price range shows there is under a month’s supply showing a severe shortage.
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 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Relevant, but higher. We would expect their condo to sell for more than yours despite not having a garage because their unit is updated throughout, has attic storage and because of their large deck and private yard. Their condo sold for $ 407/sq ft with a sale to list price ratio of 101%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Relevant. We consider their condo to be comparable to yours - though their extra room is somewhat more useful than your sunroom, it is offset by their location on a main street. Their condo sold for $ 436/sq ft with a sale to list price ratio of 112%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Relevant, but higher. We would expect their condo to sell for a bit more than yours because of the more recent updates including central AC, but because of their location on a main street, less than a unit on a more quiet street. Their condo sold for $ 414/sq ft with a sale to list price ratio of 101%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Higher. We would expect their condo to sell for more than yours because of their updated kitchen and bath, though they do not have a private back porch and back yard like yours, and they are on a main street. Their condo sold for $ 480/sq ft with a sale to list price ratio of 113%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Higher. We would expect their condo to sell for more than yours because of the partial updates, the highly desirable location, in addition to the curb appeal created by their gardening. Their condo sold for $ 486/sq ft with a sale to list price ratio of 108%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Higher. We would expect their condo to sell for more than yours because of the fireplace and the updates. Also, having seen the unit, I believe it was newly painted from top to bottom and the floors were refinished. Their condo sold for $ 581/sq ft with a sale to list price ratio of 120%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Higher. We would expect their condo to sell for more than yours, despite their not having a garage, because of their updated kitchen and bath, the laundry in-unit, the enclosed back porch and the location convenient to North Cambridge and Alewife. Their condo sold for $ 516/sq ft with a sale to list price ratio of 126%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space It is located on a corner lot on tree lined street with other 2 family homes in East Arlington and is just a block from the shops and restaurants at Lake St. It has 1,134 square feet and is slightly larger than your unit. Like your condo, it has 6 rooms in-cluding 2 BRs,1 bath and an enclosed porch out back. It has a garage and plenty of storage in the basement. This home has original period details throughout including an archway and columns in the living room. The kitchen and dining room are open concept - newly renovated with high end cabinets, stone surfaces, stainless steel appliances and a center island. Relevance: Higher. We would expect their condo to sell for more than yours because of the myriad high end upgrades and renovations, plus their prime location in East Arlington and it’s easy access to shops,restaurants and public transportation. Their condo sold for $ 575/sq ft with a sale to list price ratio of 119%. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Not relevant. We would expect their condo to sell for slightly more than yours because of it is a bit larger than yours and completely updated with open concept. We will look to see what it sold for if it sells before you list your home. |
Your details: Living area 1145 sq ft | 2 beds | 1 bath | Built 1917 | detached 1 car garage, 2 offstreet parking space Relevance: Not relevant. Given that this condo sold over a year ago and knowing that condo prices have appreciated since then, we predict that this same unit sold today, it would sell for at least 5% more than the 510K it sold for. Their condo sold for $ 444/sq ft with a sale to list price ratio of 106%. |
Pricing Recommendation
Our analysis of the relevant properties suggest a market value of $ 490,000–530,000.
Given the current market dynamics in Arlington, we suggest listing your home at the lower end of this price range estimate to attract more interest and potentially multiple offers.
If the market deems your home to be worth more than the list price, then the sale price will be pushed over the market value of your home, and sometimes well over that when we get multiple offers. You can see many examples in the above mentioned properties that came on the market for a lot less and competition pushed them up to a higher final sale price. The challenge in estimating a price for a home is ‘would this home have sold for this price if they had priced it for higher’ or was competition the driving factor that got to this price. Experience tells us that competition is why they sold for what they did, so we have to be careful with pricing.
A few recent examples of competition pushing a price higher than market value is 19 Silk St which came on the market for $489,000 and sold for $620,000, 36 Churchill Ave which came on the market for $ 479,000 and sold for $ 581,000, and 47 Everett St which came on the market for $ 549,000 and sold for $653,000. 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 your 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.
A final note - most condos of this square footage and Arlington classic 2 family layout list for under $ 500,000 irregardless of the condition and upgrades present to make sure the property appears in buyers’ searches. Many buyers use $ 500,000 as a cut off point, so it’s good to price below that. Notice that many of these condos listed for $ 479,000, $ 489,000 or $ 499,000…
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. We are excellent negotiators and know how to push a price up if we have the market activity. We 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.
WE DO NOT DETERMINE THE PRICE - the market dictates the value - what a buyer is willing to pay. Our job is to make sure that you have the best market exposure and that your home is positioned well in the market. We do not believe in projecting more money than we think your home will sell for just to get your business.
Our team and I know how to stage and market your home, and we understand its value, but we can only sell it for what the market or a buyer will pay. We 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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