112 Reed St, Lexington

Market Analysis for:

David & Ann Harris

Prepared: 3/30/2018

I've done a market analysis on your home at 112 Reed St in Lexington and have prepared this document to help explain how I've arrived at a price for your home. I perform a market analysis and calculate a price taking into consideration a home’s location, size, configuration, number of bedrooms and baths, lot size and general condition. I also scrutinize the home for issues that, in my experience, will impact the price of a home making it more or less valuable. Then, I look at your current competition - the other homes that buyers in your price range will be viewing, to help determine your price.

Contents

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

Description of home

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

Your home is located in the Reed Street neighborhood of Lexington. This area appeals to buyers because of its proximity to Lexington Center and the Minuteman bikeway. The home sits on a 0.38 acre rectangular lot. Your home was built in 2012. On the first floor there is 1 half bathroom. On the second floor there are 4 bedrooms and 3 full bathrooms. On the third floor there is 1 bedroom and 1 full bathroom. The lower level is unfinished. This gives 5 bedrooms, 4 full bathrooms and 1 half bathroom.

According to public records there is 1,784 sqft on the first floor, 2,056 sqft on the second floor, 486 sqft on the finished third floor, 432 sq ft in the finished area over the garage, and the lower level is unfinished and is not included. Public record has the finished area in third floor incorrect I believe and it is more like 988 sq ft. When we get the floor plan done we will be able to verify the actual square footage, but until then I will use 4828 sq ft as the living area sq footage in this analysis.  This is made up of 1784 (first floor), 1624 (second floor), 432 (over garage), 988 (finished third floor). Update on 3/30/2018 - floorplans show two basic blocks of 13*22 and 25*22 (adding in additional inches to get our 'walls in' calculations - this comes to 836 sq ft, so we will use this figure for the third floor instead. This means your living area = 1784 (first floor), 1624 (second floor), 432 (over garage), 836 (finished third floor) = 4676 sq ft in total.

Your home has beautiful curb appeal and is an appealing style for buyers.  A center entrance colonial with a columned portico framing the entry. As you enter the front door into the foyer you have stairs and a hallway into the kitchen in front , an office on the right and the living room on the left. The living room has dual columns logically defining the living room and dining room. Both rooms have wainscoting and crown molding and are full of natural light. There is a cased opening into the kitchen area. The kitchen is open plan with an informal dining area and the family room. The kitchen is modern and stylish with off white cabinetry extending to the ceiling, ceramic tile backsplash, granite counters, breakfast bar island, pantry, stainless steel appliances, desk area. The informal dining area is in a rectangular offset with french door leading outside, lots of windows providing lots of natural light. There are half height walls with columns separating the kitchen area from the family room. The family room has a marble faced gas fireplace with built in cabinetry on either side. Off from the kitchen is a mudroom with high wainscoting, ceramic tile floor, cubbies and the garage entrance. A half bathroom is on this level with ceramic floor tiles. 

Marcus mentioned that you would like the name of a granite company to come and tidy up your granite. We use Cumar who are based in Everett. We find them very responsive. 

Their details are:

Stephanie O'Brien
Care & Maintenance Manager
Stephanie O'Brien
69 Norman Street, Everett, MA 02149
Office | 617-389-7818
Fax | 617-389-1755

The second floor has three good sized bedrooms and the master suite. The master suite has a large walk in closet and large bathroom with tub, shower with frameless glass, and dual sink vanity. Two of the family bedrooms have a Jack-and-Jill bathroom with modern white cabinetry, dual sink vanity with granite(?) counters. The other family bedroom on this level has an attached bathroom with ceramic wall and floor tiles, granite topped vanity. There is a laundry on this level with a granite topped sink unit. Flooring on this level is hardwood. 

The third floor was finished after the house was purchased by you. It’s a classic teen-suite with large bedroom, full bathroom and large family room area. The flooring on this level is carpet.

Downstairs is an unfinished basement. Heating is natural gas/forced air. There is central A/C. The home has a radon mitigation system installed.

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

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Market Dynamics

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

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

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

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

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

Reviewing the price per sq. foot charts for single family homes shows us that the average price per sq. ft. in Lexington around the $1.5M-$2M price range is around $391 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 2010’s the average price per sq. ft. is $374.

The chart below shows that single family homes in Lexington of similar size to your home in the 4,000 square foot range, have an average price per square foot of $379 but it increases to $386 per sq. ft. when you decrease to the 3,000 square foot range. It is common across municipalities to see an increase in the price per square foot for smaller sized homes, as it reflects the minimum cost of a home in a town irrespective of the property size.

The chart below shows how many months’ supply of inventory there is in a given price range. It uses the assumption that given the same rate of sales over the prior 12 months, and considering current inventory available for sale, how many months it should take to sell the available inventory. This is referred to “Absorption” in the real estate world. 

Any price range where there is more than 7 months’ supply, we consider there to be an oversupply of inventory, also known as a ‘buyer’s market’. Anything between 4 – 6 months is considered a balanced market. Anything less than 3 months’ supply is considered a shortage of inventory on the market at this price range, also known as a ‘sellers’ market’. As can be seen, currently, absorption rates for all homes in the $1.5M - $2M price range are less than 1 month’s supply showing a severe shortage.

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Analysis of Relevant Properties

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

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2006.  It is larger than your home with 5,122 sq ft of approx living area including a finished lower level. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) that we will use for this market analysis.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a smaller size 0.18 acre lot whereas your home sits on a 0.38 acre lot.
Entry to the foyer is through a farmer’s porch and the living room is on the left. The living room has an open floor plan with the dining room having half height walls and columns defining the two, bay windows, crown molding, and hardwood floors. The formal dining room has tray ceilings, crown moldings, wainscoting, and hardwood floors. The kitchen is partially open from the dining room through a cased opening. It has a breakfast bar island, granite countertops, ceramic tile backsplash, cherry cabinets with some glass panels, crown molding, hardwood floors, high end stainless steel appliances, pantry, and an exterior access to the deck through glass sliders on the informal dining area. The family room has a fireplace with stone facade to the cathedral ceiling, skylight, exterior access to the deck through glass sliders, and hardwood floors. There are 4 bedrooms on the upper level including the master suite. The master bedroom has walk in closets, a dressing room, an attached bathroom, and hardwood floors. The master bathroom has double sink vanity with granite countertop, a shower stall with frameless glass door, and a jacuzzi. The shared family bathroom also has double sink vanity with granite countertop. The 5th bedroom is on the 3rd level and it has a cathedral ceiling with skylight, walk in closets, an attached bathroom, and has wall to wall carpeting. The finished lower level is a media room and has a fireplace with brick facing and white mantel, a wet bar with granite countertop and wine rack, has walk in closet, bathroom, and wall to wall carpeting.
This home has an attached 2 car garage and paved 4 car off street parking, and has hydro air, forced air heating and central air cooling. It was listed for $1,400,000 and was sold higher than the listing price due to competition and sold at $1,450,000.

Relevance: Relevant, but less. Given the smaller lot size, inferior build quality of this home I believe it is relevant to your home but your home should sell for more.

Your details: Living area 4676sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2006.  It is smaller than your home with 4,400 sq ft of approx living area including a finished lower level. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first  floor), 1,624 (second floor), 432 (over garage), 836 (finished third  floor) that we will use for this market analysis.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a larger size 0.58 acre lot around the corner from your home whereas your home sits on a 0.38 acre lot.

Upon entry from the farmer’s porch to the foyer, the living room is on the left and straight ahead is the kitchen. The living room has crown molding and hardwood floors. The formal dining room has crown molding, picture windows, wainscoting, and hardwood floors. The kitchen has a breakfast bar island, granite countertops, cherry cabinets, stainless steel appliances, an office nook, pantry, hardwood floors, and exterior access to the deck through sliding glass doors. The family room has a cathedral ceiling with skylights, a fireplace with brick facing and white mantel, picture windows, and hardwood floors. The master bedroom has hardwood floors, an attached bathroom, and walk in closet.  The master bathroom has a double sink vanity, granite countertop, custom built cabinets, a shower stall, and a jacuzzi. The finished lower level includes a bedroom, and a recreation room which has a fireplace with brick facing and white mantel, a wet bar, wall to wall carpeting, and exterior access through sliding glass doors.
This home has an attached 2 car garage and paved 4 car off street parking, and has central heating and central air cooling. It was listed for $1,599,000 and was sold lower than the listing price. Sold at $1,490,000.

Relevance: Relevant but less. Given the smaller size of the home, older build quality and style I believe it is relevant to your home but your home should sell for more.

Your details: Living area 4676sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2011, yours 2012.  It is larger than your home with 5,130 sq ft of approx living area including a finished lower level. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first  floor), 1,624 (second floor), 432 (over garage), 836 (finished third  floor) so yours is all above ground living area.  This home has less bedrooms than your home, having 4 bedrooms. It has less bathrooms than your home, having 3 full and 1 half bathrooms. It sits on a larger size 0.70 acre lot whereas your home sits on a 0.38 acre lot.
As one enters the foyer from the portico, the living room is on the right and the kitchen on the left. It has a fireplace with marble facing, white mantel, and transom windows. It also has crown molding, picture windows, hardwood floors, and an open floor plan with the formal dining room with half height walls with columns defining the two. The formal dining room has crown molding, wainscoting, and hardwood floors. The kitchen has a 2-tier breakfast bar island with wood cabinetry vs the white cabinetry of the rest of the kitchen, granite countertops, white cabinets, built in china cabinet, stainless steel appliances, pantry, bay windows, hardwood floors, and an exterior access by the informal dining area. The negative of this layout is that the family room is accessed via french doors so it is not as open as your homes. The family room has picture windows, crown molding, hardwood floors. An office is also on the same level and it has chair rails, crown molding, hardwood floors, and is adjacent to the half bathroom. The bedrooms including the master suite are on the second floor. The master bedroom has walk in closets, sitting room, an attached bathroom, wall to wall carpeting, and crown molding. The master bathroom has a double sink vanity, granite countertop, custom built cabinets, and a shower stall. The shared family bathroom also has double sink vanity with granite countertop. The finished lower level has custom built ins, wall to wall carpeting, chair rails, and crown molding.
This home has an attached 2 car garage and paved 4 car off street parking, and forced air heating and central air cooling. It was listed for $1,578,000 but was sold lower than the listing price. Sold at $1,495,000.

Relevance: Relevant but less.  Given your larger above ground living area, superior floorplan, superior location, extra bedroom and bathroom I believe this home is relevant to your home but yours will sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2011.  It is a similar size to your home with 4,541 sq ft of all above ground approx living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) that we will use for this market analysis.  This home has 1 less bedroom than your home, having 4 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a similar size 0.42 acre lot in the same neighborhood, your home sits on a 0.38 acre lot.
Upon entry from the portico is the 2 story entry hall. The living room has custom built in for a library, bay windows, and hardwood floors. The formal dining room has crown molding, and hardwood floors. The family room has a fireplace with stone facade, bay window, crown molding, and hardwood floors. It has an open floor plan with the kitchen defined by an arched entry with columns. The kitchen has a breakfast bar island, granite countertops, cherry cabinets with built in china cabinets, pantry, high end stainless steel appliances, hardwood floors, and an exterior access to the deck through sliding glass doors.  Having the cherry cabinets has dated the home quite a bit as the current style is the white cabinetry that your home has. The family bedrooms, including the master suite, are on the second floor. The master bedroom has bay window,  walk in closet, an attached bathroom, and hardwood floors. The master bathroom has double sink vanity with granite countertop, a shower stall with frameless glass door and wall, a jacuzzi, and a steam sauna. This is not something that appeals to buyers. It is quite ugly and takes up a lot of space. One of the family bedrooms also has an attached bathroom while all bedrooms have hardwood floors. This home has a connected in-law apartment with its own entry, kitchen, bathroom, and second floor staged as media room and sitting room. Its kitchen has cherry cabinets, stainless steel appliances, and hardwood floors. This also is not as desirable to buyers.
This home has an attached 2 car garage and 4 car off street parking, and forced air heating and central air cooling.
It was initially listed for $1,799,000 but was dropped to $1,699,000 after 2 months on the market. It was on the market for 201 days until it cancelled off the market. It was re-listed for $1,699,000 before it went under agreement after 47 days and finally was sold lower than the last listing price at $1,532,900 after a total of 255 days on the market.

Relevance: Relevant, but less. Given the similar vintage, similar location, smaller size and a few less than desirable components I believe it is relevant to your home but yours will sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This was bought by our buyers. This home was newly built in 2017.  It is smaller than your home with 3,800 sq ft of approx living area including a finished lower level. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) of all above ground living area.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a smaller size 0.18 acre lot whereas your home sits on a 0.38 acre lot.
The main living area has an open floor plan with 9 foot ceiling and includes the living room, the dining area, the kitchen, and the family room and has hardwood floors, and picture windows. The kitchen has a breakfast bar island, granite countertops, stylish white cabinets with some glass panels, high end stainless steel appliances, decorative backsplash and vent hood, and exterior access to the deck through a glass door. The family bedrooms are on  the second floor including the master suite. The master bedroom has a sloped ceiling, a walk in closet, hardwood floors, and an attached bathroom. The master bathroom has a double sink vanity, granite countertop, custom built cabinets, and a shower stall with frameless glass door. The shared family bathroom also has double sink vanity with granite countertop. The finished lower level has a fireplace with white mantel and custom built ins on either sides, wall to wall carpeting, and a kitchenette with beverage fridge. This home has a purchased solar system. The build quality of the home is very good.
This home is located in the Manor neighborhood. It has an attached 2 car garage and paved 6 car off street parking, and has forced air, solar, forced hot air heating and central air cooling. It was initially listed for $1,730,000 but price was dropped several times from $1,650,000, to $1,590,000, and to $1,550,000 before it went under agreement and finally sold for $1,550,000.

Relevance: Relevant but less.  Given the smaller size, smaller lot size, but superior finishes in some areas, solar system I believe it is relevant but your home will sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

You will see this home above. It was bought back in May 2017 for $1,450,000.  We bought it on the market last weekend for $1,499,000 and had 6 offers on the home. It is now under agreement for $1,590,000.
This colonial style home was built in 2006.  It is larger than your home  with 5,122 sq ft of approx living area including a finished lower  level. Your home has 4676 sq ft of approx  living area  made up of 1,784  (first floor), 1,624 (second floor), 432 (over garage), 836 (finished  third floor) that we will use for this market analysis.  This home has  the same number of bedrooms as your home, both having 5 bedrooms. It has  the same number of bathrooms as your home, having 4 full and 1 half  bathrooms. It sits on a smaller size 0.18 acre lot whereas your home  sits on a 0.38 acre lot.
Entry to the foyer is through a farmer’s  porch and the living room is on the left. The living room has an open  floor plan with the dining room having half height walls and columns  defining the two, bay windows, crown molding, and hardwood floors. The  formal dining room has tray ceilings, crown moldings, wainscoting, and  hardwood floors. The kitchen is partially open from the dining room  through a cased opening. It has a breakfast bar island, granite  countertops, ceramic tile backsplash, cherry cabinets with some glass  panels, crown molding, hardwood floors, high end stainless steel  appliances, pantry, and an exterior access to the deck through glass  sliders on the informal dining area. The family room has a fireplace  with stone facade to the cathedral ceiling, skylight, exterior access to  the deck through glass sliders, and hardwood floors. There are 4  bedrooms on the upper level including the master suite. The master  bedroom has walk in closets, a dressing room, an attached bathroom, and  hardwood floors. The master bathroom has double sink vanity with granite  countertop, a shower stall with frameless glass door, and a jacuzzi.  The shared family bathroom also has double sink vanity with granite  countertop. The 5th bedroom is on the 3rd level and it has a cathedral  ceiling with skylight, walk in closets, an attached bathroom, and has  wall to wall carpeting. The finished lower level is a media room and has  a fireplace with brick facing and white mantel, a wet bar with granite  countertop and wine rack, has walk in closet, bathroom, and wall to wall  carpeting.
This home has an attached 2 car garage and paved 4 car  off street parking, and has hydro air, forced air heating and central  air cooling. It is now under agreement after 6 offers on the home for $1,590,000

Relevance: Relevant, but less. Given the smaller lot size, inferior build quality  of this home I believe it is relevant to your home but your home should  sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2004 and has lots of curb appeal as does your home.  It is smaller than your home with 3,814 sq ft of all above ground living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) of all above ground living area.  This home has less bedrooms than your home, having 4 bedrooms. It has less bathrooms than your home, having 3 full and 1 half bathrooms. It sits on a similar size but still smaller 0.30 acre lot in a desirable area of similar size homes, whereas your home sits on a 0.38 acre lot.
Upon entry to the foyer from the farmer’s porch, the living room is immediately on the right and the formal dining room on the left. The living room has wainscoting, crown molding, and hardwood floors. The formal dining room also has wainscoting, crown molding, and hardwood floors. The family room has a fireplace with marble facing, white mantel and built ins on either sides, crown molding, picture windows, decorative columns, hardwood floors, and is open to the kitchen through a cased archway. The kitchen has a breakfast bar island, granite countertops, cherry cabinets, stainless steel appliances, hardwood floors, and exterior access to the deck through sliding doors. The home office has built ins, and hardwood floors, and access  through french doors. The master bedroom has ceiling details, hardwood floors, an attached bathroom, and walk in closet.  The master bathroom has a double sink vanity, granite countertop, custom built cabinets, a shower stall with frameless glass door, and a jacuzzi.
The shared family bathroom also has double sink vanity with granite countertop.
This home has an attached 2 car garage and paved 10 car off street parking, and forced air heating and central air cooling. It was listed for $1,599,000 and was sold higher than the listing price with competition for $1,640,000.

Relevance: Relevant, but less. Given the smaller size, superior location, 1 less bedroom and bathroom I believe once you consider all of the factors it is relevant to your home, but yours will sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This is new construction colonial style home in your neighborhood.  It is of similar size as your home with 4,466 sq ft of all above ground approx living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) of above ground living area.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a smaller size 0.28 acre lot that abuts the golf club in your neighborhood, whereas your home sits on a 0.38 acre lot.
The home is stunning throughout with lots of millwork and nice finishes. The front foyer has a 2 story ceiling with a bridal staircase and is very grand. The dining room has crown molding, picture windows, and hardwood floors. There is a formal butlers pantry connecting the dining room with the kitchen with glass uppers, beverage fridge, sink and quartz counters. The kitchen has high end stainless steel appliances (Wolf, Subzero), stylish white cabinetry, a breakfast bar island, quartz countertops, and ceramic tile backsplash and is huge and is open to the informal dining and family room.  The family room has a gas fireplace, coffered ceiling, crown molding,  and a slider to the patio and backyard. A mudroom offers access to the garage. The master suite has a gas fireplace, walk in closet, full bathroom with dual vanities, marble floor and wall tiles and a huge shower stall with frameless glass door and wall. There are 3 more family bedrooms on the 2nd level and the 5th bedroom is on the finished third level along with a full bathroom with a tiled shower stall. The 5th bedroom has a walk in closet and hardwood floors.
This home has an attached 2 car garage and paved 4 car off street parking, and has forced air heating and central air cooling. It was listed for $1,679,000 and was sold lower than the listing price. Sold at $1,675,000.

Relevance: Relevant, but higher. Given its almost similar size, but new construction and abutting the golf course I believe it is relevant to your home but it will sell for more.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This farmhouse style home was newly built in 2017 and is in your neighborhood.  It is larger than your home with 5,049 sq ft of all above ground approx living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 988 (finished third floor) of above ground living area.  This home has more bedrooms than your home, having 6 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a smaller size 0.26 acre lot in your neighborhood whereas your home sits on a 0.38 acre lot.
The curb appeal of the home is lovely with hardscaping entry path to the front door. The living room has an open floor plan with the formal dining room defined by built ins and both have cathedral ceiling, ceramic tile floors, and picture windows. The living room has a fireplace with stone facade to the ceiling, and an exterior access to the patio through sliding glass doors. The kitchen has a huge breakfast bar island with second prep sink and columns as accents on either side, granite countertops, decorative ceramic tile backsplash, lots of white cabinets,  high end stainless steel appliances, ceramic tile floors, crown molding, and a large informal dining area. The family room has coffered ceilings, tall wainscoting and banks of windows opening to the sunrooom. The main level also includes a home office, the mudroom, and a full bathroom with double sink vanity and shower stall. The family bedrooms, including the master bedroom, are on the second floor. The master bedroom has crown molding, walk in closets, an attached bathroom, and hardwood floors. The master bathroom has double sink vanity with granite countertop and lots of custom built white cabinets, and a huge shower stall with frameless glass door and wall. The third level has a bedroom, family room and have sloped high ceilings, and has a full bathroom.
This home has an attached 2 car garage and 4 car off street parking, and has radiant heating and central air cooling. It was initially listed for $1,899,000 but price was dropped to $1,869,000, then to $1,799,000, before it went under agreement and was finally sold for a lower price of  $1,700,000 after 87 days on the market.

Relevance: Higher. Given the larger size, new construction, same neighborhood, lovely finishes I believe your home won't sell for as much as this home.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This home was bought by our buyers. The  home new construction and is a similar size to your home at 4590 sq ft above ground living area which doesnt include the lower level.  Your home is 4676 sq ft of all above ground living area. It has the same number of bedrooms at 5 bedrooms, but has 1 more full bathroom than yours at 5.5 bathrooms. It is on a 0.2 acre lot on a busier street than yours at 0.38 acres. The home is of lovely quality with wainscoting in all the formal areas, lots of additional millwork, deep crown in the living and dining rooms. There are halfheight bookshelves with columns logically separating the dining room with the living room. Th kitchen is lovely with white cabinetry to the ceiling, glass fronted uppers, breakfast bar central island, informal dining area and is open to the family room. The family room has coffered ceilings, gas fireplace with built ins on either side and above. The family bedrooms are on the second floor, apart from one in the lower level. The master has a walk in closet, attached bathroom, hardwoods. The master bathroom is stunning with marble floor and wall tiles, marble counter dual sink vanity with white cabinetry, shower with frameless door, jacuzzi. Each bedroom on the second floor has its own attached bathroom. In the lower level the finished basement has wall to wall carpets, an additional bedroom and bathroom and a play room.

Relevance: Higher. Given the larger size, new construction, 1 more bathroom but inferior location I believe it will sell for higher than your home.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This home is down the road from your home. It came on the market a few weeks ago and went under agreement immediately with one of our buyers. The buyer ended up backing out after the inspection. I believe it was more to do with the home being in the direct flight path of Hanscom. It was built in 2016 so it is newer than your home. It is larger than your home at 4851 sq ft, yours is 4676 which includes your third floor.  The home has lovely curb appeal as does your home.  It is on a similar size lot as yours at 0.40 acres.  It has 1 more bedroom than your home and has 5 full bathrooms versus your 4.5 bathrooms. Finishes are typical to new construction. It is now under agreement again but I believe it will now sell for less than the asking price given the days on the market.

Relevance: Higher. Given the larger size, newer construction, 1 more bedroom and 1 more full bathroom but slightly inferior location I believe it will sell for higher than your home.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home is new construction.  It is smaller than your home with 4,376 sq ft of all above ground  approx living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 988 (finished third floor) of above ground living area.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a larger size 0.69 acre lot whereas your home sits on a 0.38 acre lot.
From the foyer, the living room is on the left which has an open floor plan with the formal dining room defined by half height walls with columns. The living room has coffered ceiling, bay window, and hardwood floor. The formal dining room has crown molding, picture windows, wainscoting, and hardwood floors. The family room has a fireplace with white mantel and custom built ins on either sides, accent windows, crown molding, picture windows, hardwood floors, and has an open floor plan with the kitchen. The kitchen is stunning and has a breakfast bar island with a second prep sink, quartz countertops and granite backsplash, a pot filler faucet, high end stainless steel appliances, white cabinetry with built in china cabinets, pantry, hardwood floors, crown molding, and exterior access to the deck through sliding glass doors. This level also includes a study which has crown molding, box window, panelled wall, hardwood floor, and is adjacent to a half bathroom and the mudroom with cubbies. The builder has used extensive millwork throughout the home to give a very grand feel to the home. The family bedrooms, including the master suite, are on the second floor. The master bedroom has a cathedral ceiling, a fireplace with granite facing and white mantel, picture windows,  double walk in closets, an attached bathroom, and hardwood floors. The master bathroom is huge and has double sink vanity with marble countertop and white cabinets, marble floor and wall tiles, a shower stall with frameless glass door, a jacuzzi, and crown molding. Two of the family bedrooms have access to jack and jill bathroom which has double sink vanity, shower stall and separately enclosed toilet. The other bedroom is adjacent to a family bathroom. The third level has 2 connecting bonus rooms with skylights on cathedral ceiling, and an attached bathroom. The lower level is a full walkout and is ready to be finished.
This home has an attached 2 car garage and 6 car off street parking, and has radiant and hot air heating and central air cooling. It was initially listed for $1,729,000 but was increased to $1,795,000 after more than 4 months. It finally went under agreement and was finally sold for $1,740,000 after 225 days on the market.

Relevance: Higher. Given the new construction, larger lot I believe it will sell for more than your home.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2013 in a small subdivision close to the town center.  It is smaller than your home with 4,228 sq ft of all above ground  approx living area. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 836 (finished third floor) of above ground living area.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a larger size 0.75 acre lot whereas your home sits on a 0.38 acre lot.
The home is typical to new construction finishes, but also has a stunning bluestone patio out the back with lots of hardscaping and a built in outdoor kitchen along with landscaped gardens.
This home has an attached 2 car garage and 5 car off street parking, and forced air heating and central air cooling. It was listed for $1,750,000 and went under agreement in 6 days so it will have sold close to the asking price or more.

Relevance: Relevant, but Higher. Given the similar age, superior location, larger lot, superior outdoor living spaces I believe it is relevant to you home but will sell for more than your home.

Your details: Living area 4676 sq ft | 5 beds | 4.5 baths | Lot size 0.38 acres | Built 2012 | 2 car garage

This colonial style home was built in 2001.  It is smaller than your home with 4,296 sq ft of approx living area including a finished lower level. Your home has 4676 sq ft of approx  living area  made up of 1,784 (first floor), 1,624 (second floor), 432 (over garage), 988 (finished third floor) of above ground living area.  This home has the same number of bedrooms as your home, both having 5 bedrooms. It has the same number of bathrooms as your home, having 4 full and 1 half bathrooms. It sits on a similar size but still smaller 0.31 acre lot in desirable Follen Hill, whereas your home sits on a 0.38 acre lot.
The home had been recently renovated inside. The main level includes the living room which has a coffered ceiling, wainscoting, picture windows, and hardwood floors and is connected to the formal dining area via a large cased opening and has bay windows, tray ceiling, wainscoting, and hardwood floors. The family room has lots of natural light and has a fireplace, vaulted ceiling with skylights, picture windows, hardwood floors, and has an open floor plan to the informal dining area and the kitchen. The kitchen is large and has floor to ceiling cabinets, a breakfast bar island where the stove is located, quartz countertops, decorative backsplash to the ceiling, ceramic tile floors, stainless steel appliances, and a huge informal dining area with 4 sets of wall to ceiling glass. This area has an exterior access to the deck through sliding glass doors. Jack and jill and main staircase lead to the second floor. The master suite is on the second floor with 3 more family bedrooms and 2 family bathrooms. The master bedroom has bay windows, an attached bathroom, walk in closet and hardwood floors. The attached master bathroom has double vanity sink with quartz countertops and white cabinets. The 3rd level includes another bedroom with hardwood floors, and custom built ins, a bonus room with cathedral ceiling, custom built ins, and wall to wall carpet, and a full bathroom. The deck had a huge patio off it, with lots of hardscaping and the backyard was full of green grass, private and fully fenced.
This home is located in the Follen Hill neighborhood. It has an attached 2 car garage and paved 6 car off street parking, and has hot water baseboard heating and central air cooling. It was listed for $1,799,000 and was sold at a lower price of $1,755,000.

Relevance: Relevant, but higher. I'm actually surprised at how much this home sold for as I believe it sold over market value, but the high ceilings and lots and lots of windows and skylights would have appealed to the buyers. Given the superior location and custom mods to the home I believe its 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 $1,620,000-$1,660,000.  

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 a few 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 19 Freemont St which came on the market for $1,400,000 and sold for $1,450,000, and our subsequent marketing of the home last weekend coming on at $1,499,000 and with 6 offers selling for $1,590,000, the home at 18 Normandy Rd which came on the market for $1,599,000 and sold for $1,640,000.  

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. We would bring your home on the market at whatever price you deem to be appropriate.  

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

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

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

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

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

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

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

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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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