8 Stimson Ave, Lexington

Market Analysis for:

Bob & Rita Chen

I've done a market analysis on your home at 8 Stimson Ave 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 has lovely curb appeal in a popular area of Lexington, walking distance to Hastings Elementary school.

As you walk up the front steps and enter the foyer area you have the living room off to the left, stairs to the second floor and a hallway in front, and behind a glass partition a sitting room with an office adjacent to it. The living room has a wood burning fireplace with a granite(?) facing and mantel. A bay window in this room provides lots of natural light. A sitting room/den (currently used as an office) is behind a glass partition to logically separate it from the foyer area. Through a glass paneled door you have an home office with access to the side yard, perfect for accepting clients into the home without them having to access the remainder of the home. From this office is a cased entry into the kitchen area and also access to the hallway which has a half bathroom with ceramic floor and wall tiles, solid surface white vanity. A bedroom with 2 double closets is at the end of the hall. The kitchen area is lovely. Ceramic floor tiles and backsplash, granite counter, center island which is having the granite replaced and will be a breakfast bar island, white appliances, cabinets which should be painted to minimize the impact of the mismatching cabinet doors. Double french doors lead into the dining room from the kitchen area. The kitchen is open to a cathedral ceiling family room which has lots of natural light and access to the deck.  There is access to the finished basement under this portion of the home from the family room. This area has 1 large finished room approx 15*20 in size, and access to an unfinished area of the basement that connects to the single car garage.

Upstairs to the second floor we have a bedroom with 2 double closets and a mirror door closet, a full bathroom with a dual sink white vanity, ceramic floor and wall tiles, separate toilet, tub/shower with vinyl surround. Another family bedroom with a large walk in closet and along a hallway to the master bedroom. The master bedroom has an alcove with an arched decorative window with cabinetry below, walk in closet, and full bathroom. The bathroom has corian counters with a single sink, ceramic wall and floor tiles, corner jacuzzi, and corner shower.

Upstairs to the third floor there is a large finished room with skylights, and another bedroom with a skylight, mini kitchenette, double closets and a full bathroom with ceramic floor tiles and a vinyl surround shower.

Downstairs to the lower level under the main portion of the home you have carpet and vinyl flooring, an open area, a bedroom with egress(? - if not, we cannot include it as a bedroom but I recall an exterior door?), another finished room, a utility room with an oil fueled furnace. a laundry and a full bathroom with ceramic floor tiles and vinyl surround shower. There is access to the single car garage from this area also which also provides access to the finished room under the other side of the home.

In total your home has 5 bedrooms (if the basement one has direct egress outside), 4.5 bathrooms (which are all a little dated), a 1 car garage, is on 0.21 acres and was built in 1955. Public record has your home as 1624 sq ft on the first floor, 1254 on the second floor only.  By my estimates I believe there is approx 850 sq ft in the finished third floor (approx 75% of the gross area taking into consideration the sloping ceilings), and approx 784 on one side of the home and approx 300 in the other side of the basement. The basement calculation is approximating the unfinished areas and deducting them from the basement public record figures. In total this comes to an approx living area of 4812 sq ft of living area - this will all need to be verified once the floor plan has been done.

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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 $1M - $1.5M price range is around $393 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 is in the 1950’s the average price per sq. ft. is $413.

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 $380 but it increases to $387 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 is less than 1 months 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 4812 sq ft (including the 3rd floor & basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built 1955 | 1 car garage

This contemporary colonial style home was built in 1930.  It is smaller than your home at 3,986 sq  ft of all above ground living area. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates. This home has the same number of bedrooms as your home does, both having 5 bedrooms. It has 1.5 less bathrooms than your home does, having 3 full bathrooms, yours has 4.5 bathrooms.  It sits on a larger 0.75 acre lot, whereas your home sits on a 0.21 acre lot.
The foyer has skylight and leads to the living room. The living room has a fireplace and hardwood floors. The dining room has custom built ins, bay windows, and hardwood floors. The family room has a stove fireplace, hardwood floors, and exterior access to the backyard. The kitchen has pantry and ceramic tile floors and has an informal dining area with hardwood floors. The bedrooms are on the upper level including the master bedroom. The master bedroom has a cathedral ceiling, an attached bathroom, walk in closet, and has wall to wall carpeting. The master bathroom has shower stall and Jacuzzi. 2 of the 3 bedrooms have hardwood floors and all 3 bedrooms share a family bathroom which has a double vanity sink.
It has an attached 2 car garage and 4 car off street parking, central air cooling and central heat. It was initially listed for $925,000 but price was dropped to $859,950 before it went under agreement and sold for $925,000.

Relevance:  Less. Given the smaller size of the home, less bathrooms, larger lot, inferior condition I believe your home will sell for more than this home.

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This contemporary gambrel style home was built in 1930.  It is smaller than your home at 3,600 sq  ft of approx living area which includes a finished lower level. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates. This home has the same number of bedrooms as your home does, both having 5 bedrooms. It has 1 less full bathroom than your home does, having 3 full and 1 half bathrooms.  It sits on a smaller 0.16 acre lot on a busy street, whereas your home sits on a 0.21 acre lot.
The living room has a fireplace, hardwood floors, and exterior access to the deck. It has an open floor plan with the sunroom and the library defined by cased openings. The dining room has bay windows, chair rails, crown molding, and hardwood floors and has an open floor plan with the kitchen defined by columns. The kitchen is stunning and has a tray ceiling, a kitchen island, granite countertops, white cabinets with glass panels on the cabinets overhead, china cabinet, stainless steel appliances, pantry, and double windows. The master suite and a family bedroom are also on the main level. The master bedroom has a dressing room, hardwood floors, and an attached bathroom which is stunning and has double sink vanity with marble countertops, a separately enclosed toilet with bidet, and a shower stall with frameless glass door. The upper level includes a large bedroom with an attached bathroom, and 2 bedrooms with cedar closet and share a family bathroom. The finished lower level includes the family room which has wall to wall carpeting and custom built ins. The home was a little disjointed with a non-traditional layout as is yours.
This home has an attached 2 car garage and 4 car off street parking, hydro air heating and central air cooling. It was listed for $1,025,000 but was sold at a lower price of $990,000.

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

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This contemporary mid-century style home was built in 1974.  It is smaller than your home with 3,648 sq  ft of approx living area which includes a finished walkout lower level. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates. This home has the same number of bedrooms as your home does, both having 5 bedrooms. It has 2 less full bathrooms than your home does, having 2 full and 1 half bathrooms.  It sits on a larger 1.31 acre lot on a busy street corner, whereas your home sits on a 0.21 acre lot.
The main level has an open floor plan with a fireplace in a brick chimney in the middle, has cathedral ceiling, and walls of windows. The living room has the fireplace, floor to ceiling windows, hardwood floors, and exterior access to the deck and access to the sunroom. The dining room has picture windows, and ceramic tile floors. The kitchen has cherry cabinets, picture windows, stainless steel appliances, a peninsula, and ceramic tile floors. The sunroom has large skylights on cathedral ceiling, partly hardwood and ceramic tile floors, and an exterior access to the deck. The master bedroom and 2 more family bedrooms are also on this level. The master bedroom has hardwood floors, and an attached bathroom. The family room is on the lower level and it also has a fireplace on a wall of bricks, floor to ceiling glass sliders, and ceramic tile floors. Another family room has floor to ceiling glass sliders, and ceramic tile floors and is just below the sunroom through a spiral staircase. There are 2 more family bedrooms on this level and an office. The game room is also on this level which has a wet bar, cellar, and ceramic tile floors. The bathrooms were a little dated.
This home is located in the Five Fields neighborhood but on a busy street corner. It has an attached 2 car garage and paved 6 car off street parking. It has electric baseboard heating. It was initially listed for a high  $1,149,000 but was dropped to $1,098,000 before it went under agreement. It was placed back on the market at  a lower price of $1,049,000 which was also dropped to $999,000 before it went under agreement and finally sold for $1,000,000.

Relevance: Less. Given the smaller size, less bathrooms, larger lot size but on a very busy street corner I believe your home will sell for more than this home.

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This is our listing. This contemporary cape style home was built in 1972.  It is smaller than your home with 3,298 sq ft of approx living area which includes 224 sq ft of partially finished lower level.  Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates. This home has the same number of bedrooms as your home does, both having 5 bedrooms.  It has 1.5 bathrooms less than your home, having 3 full bathrooms. It sits on a larger size 0.33 acre lot whereas your home sits on a 0.21 acre lot.
The home has lovely curb appeal, and as one passes through the foyer to the hallway, the living room is on the left and it has a fireplace with marble facing, white mantel, and on bricks to the ceiling. It has arched windows framing the fireplace, crown molding, hardwood floors, and exterior accesses to the deck through double sliding doors. The formal dining area has an open floor plan with the kitchen. It has chair rails, crown molding, hardwood floors, and exterior accesses to the deck through french doors. The kitchen is lovely and has a breakfast bar island with a food prep sink, granite countertops and backsplash, dark wood cabinets, glass fronted cabinets, pendant light fixtures, stainless steel appliances, bay window where the informal dining area is situated, and hardwood floors. This level also includes 2 family bedrooms and a full bathroom. The family bedrooms are on the upper level including the master suite. The master bedroom has a fireplace on bricks to the cathedral ceiling which has skylight, a totally renovated attached bathroom, and wall to wall carpeting. The family room is also on this level which has a cathedral ceiling with skylights, and wall to wall carpeting. There are 2 family bedrooms, an office, and a full bathroom with double vanity sink, granite countertop, jacuzzi, and transom window on this level. The partially finished lower level includes a bonus room and a playroom.
This home has an attached 2 car garage and paved 4 car off street parking, and forced air heat and central air cooling. It was listed for $1,029,000 and we had 8 offers on the home and it is selling for $1,130,000.

Relevance: Relevant, but less. Given the smaller size of the home, less bathrooms, 2 car garage vs your 1 car garage, I believe this home is relevant to your home but your home will sell for more.

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This contemporary style home was built in 2001.  It is smaller than your home with 4,000 sq ft of all above ground approx living area. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates.  This home has 1 less bedroom than your home,having 4 bedrooms. It has the same number of bathrooms at 4 full and 1 half bathrooms. It sits on a larger size 0.49 acre lot on a busy street whereas your home sits on a 0.21 acre lot.
The home has great curb appeal that the buyers love. Its 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, is lovely and has a breakfast bar island, granite countertops, stainless steel appliances 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 is more recently updated and 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 overpriced at $1,436,000 and dropped price to $1,150,000 and was sold for $1,150,008 after a total of 137 days on the market.

Relevance: Relevant. Given the smaller size of the home, larger lot, inferior location, superior condition, 3 car garage I believe that once all factors are considered it is relevant to your home.

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This contemporary colonial style home was built in 1955.  It is smaller than your home with 3,915 sq ft of approx living area including a finished lower level. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates.  This home has 1 less number of bedrooms than your home having 4 bedrooms. It has 4 full bathrooms, yours has 4.5 bathrooms. It sits on a larger size 0.69 acre lot in popular Sun Valley whereas your home sits on a 0.21 acre lot.
The living room has picture windows, hardwood floors, and has an open floor plan with the formal dining room. The dining room is a step higher than the living room and has picture windows, hardwood floors, and has an open floor plan with the eat-in kitchen, and has access to the sunroom. The kitchen has cherry cabinets, granite countertops, ceramic tile backsplash, stainless steel appliances, hardwood floors, and has an exterior access by the informal dining area. The family room has bay windows, hardwood floors, and an attached bathroom. A bedroom is also on this level which has hardwood floors and is adjacent to the main level bathroom. The master suite and 2 more bedrooms are on the upper level. The master bedroom has cathedral ceiling, picture windows, hardwood floors, walk in closet, and an attached bathroom. The master bathroom has a cathedral ceiling, whirlpool tub, and shower stall. The family bathroom on this level has a double sink vanity. The finished lower level has wall to wall carpeting, cedar closets, and has a fireplace. This home has a heated inground pool.
This home is located in the Sun Valley neighborhood. It has an attached single car garage and 3 car off street parking. It has hot water baseboard heating, and central air cooling. It was listed for $1,099,000 and was sold over the listing price due to competition for $1,153,000.

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

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This was our listing. This colonial style home was built in 1920.  It is smaller than your home at 3,480 sq  ft of approx. living area which includes a finished lower level and front porch. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates.  This home has less  bedrooms than your home does, having 4 bedrooms. It also has 1.5 less bathrooms than your home, having 3 full bathrooms. It sits on a larger 0.41 acre lot, whereas your home sits on a 0.21 acre lot.
Upon entry from the portico through a screened porch with arched windows, the living room has a fireplace with brick facing, coffered ceilings, gumwood trim, triple windows, and hardwood floors. It has access to both the formal dining room and the family room through french doors. The formal dining has wainscoting, crown molding, and hardwood floors. The family room has triple windows, and hardwood floors. The kitchen is stunning with a breakfast bar island with a second prep sink, granite countertops, bay windows, white cabinetry, an office nook, white appliances, and hardwood floors and has an informal dining area defined by an arched opening with columns. The master suite, an adjacent office, and 3 family bedrooms are on the upper level. The master bedroom has a walk in closet, hardwood floors, and an attached bathroom. The master bathroom has double sink vanity with white cabinets, a separately enclosed toilet, a shower stall, and a jacuzzi. The rest of the family bedrooms have hardwood floors and share the family bathroom. An office is also on this level and it has arched triple window. The finished lower level has custom built ins, a wet bar, and ceramic tile flooring.
This home has a detached 2 car garage and 5 car off street parking. It has forced air heating, and central air cooling. It was listed for $1,199,000 and was sold for $1,250,000 after 5 days on the market, which is higher than the listing price due to competition.

Relevance:  Relevant.  Given the smaller size, superior condition, superior layout, 2 car garage, less bathrooms, larger lot but busier street I believe once all factors are considered it is relevant to your home. A consideration that needs to be taken into account is that we only had one offer on this home and we were just really lucky that they went over the asking price. :-)

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This gambrel colonial style home was built in 1968.  It is smaller than your home at 3,800 sq  ft of approx. living area which includes a finished lower level. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates.  This home has 1 less  bedroom than your home does, having 4 bedrooms. It has 3 full and 3 half bathrooms, yours has 4.5 bathrooms. It sits on a larger 0.69 acre lot on a busier street, whereas your home sits on a 0.21 acre lot.
From the entry hall, the living room is on the left and it has a fireplace with brick facing and white mantel on beadboard wall, custom built ins, picture windows, crown molding, and hardwood floors. The formal dining room has chair rails, crown molding, hardwood floors, and access to the kitchen. The kitchen is stunning and has 2 tier breakfast bar peninsula, granite countertops, marble tile backsplash, lots of cabinetry, stainless steel appliances, hardwood floors, beamed ceiling, and has an open floor plan with the great room. The great room is huge and has beamed cathedral ceiling with skylights, a fireplace on wall of bricks, custom built ins, picture windows, has exterior access to the great porch and access to the covered porch. The master bedroom is also on this level, adjacent to the great room, and it has picture window, wall to wall carpeting, and an attached fully renovated bathroom with marble tile walls and floor. The rest of the family bedrooms are on the upper level and they have hardwood floors, each one has an attached bathroom each of which have been nicely renovated with marble. The finished lower level includes the family room which has a fireplace in a brick chimney, picture window, and ceramic tile flooring. This level also includes an office with its own pot belly stove fireplace in a brick chimney, ceramic tile floors, an adjacent half bathroom, and has an exterior access.

This home has an attached 2 car garage and 8 car off street parking. It has hot water baseboard heating, and central air cooling. It was initially listed for $1,320,000 but was dropped to $1,298,000 before it went under agreement and was sold at an even lower price of $1,265,000.

Relevance: Higher. Given the smaller size, far superior condition, larger lot, traditional layout home, 2 car garage I believe that once all factors are considered it will sell for more than your home.

Your details: Living area 4812 sq ft (including the 3rd floor &  basement estimates) | 5 beds | 4.5 baths | Lot size 0.21 acres | Built  1955 | 1 car garage

This colonial style home was built in 1997.  It is smaller than your home with 4,073 sq ft of approx living area which includes the finished basement and gazebo. Your home has 4,812 sq ft of above ground living area (including approx 850 sq ft in the 3rd floor and 1,084 sq ft basement estimates. This home has 1 less bedroom than your home,having 4 bedrooms. It has 4 full bathrooms, yours 4.5 bathrooms. It sits on a larger size 0.76 acre lot in a desirable area whereas your home sits on a 0.21 acre lot.
The curb appeal of this home is stunning. As you enter this home from the farmers porch, 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 very grand feeling. The dining room has an accented ceiling, triple picture windows, and hardwood floors. The kitchen is stunning and 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 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/bedroom (making it 5) with crown molding, bay window with seat, hardwood floors, and built in white cabinetry with desk and shelving.  There is an adjacent renovated full bathroom. 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 sink vanity, marble 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 smaller size, more traditional layout, superior curb appeal, larger lot size, superior condition, I believe once all factors are considered it 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 $1,150,000-$1,200,000.  

Given the current market dynamics in Lexington, I would suggest listing your home at the lower end of this price range to attract more interest and potentially multiple offers.  If the market deems your home to be worth more than the list price, then the price will be pushed over the market value of your home, and sometimes well over when we get multiple offers. You can see many examples above that came on the market for a lot less, and competition pushed them up to the price they sold for. The challenge in estimating a price for a home is ‘would this home have sold for this price if they had priced it higher?’ or was competition the driving factor that got to this price.  Experience tells me that competition is why they sold for what they did, so we have to be careful with pricing. A couple of good examples of competition pushing a price higher than market value is our listing at 60 Ivan St which came on the market for $1,029,000 and will sell for $1,130,000,  7 Fiske Road which came on the market for $1,099,000 and sold for $1,153,000 and our listing at 845 Emerson Gardens Rd which came on the market for $1,299,000 and sold for $1,400,000. 

When homes are overpriced they end up sitting on the market and ultimately selling for less than market value, whereas homes priced realistically can often sell for well over market value. Competition is what will get us the highest sales price. As we see time and time again, if the buyers consider the market value of your home to be realistic in relation to the asking price, then competition will push the price up higher and often over the market value of the home. The challenge with overpricing is that the buyers are very educated – they go week after week to see homes in their price range so they KNOW what the prices are and what ‘feels’ right.

I have to stress that these are recommendations.  If you decided to sell your home, then we would bring your home on the market at whatever price you deem to be appropriate.  

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

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

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

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

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

The MA Properties Online team takes a 'data driven approach' to real estate . ...

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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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