20 Charles St, Lexington

Market Analysis for:

Heather Multhaupt-Riley

I've done a market analysis on your home at 20 Charles 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 on a quiet street in East Lexington. This area is very appealing to buyers because your home is within walking distance to the Minuteman bike path, public transportation, Trader Joes and other amenities.  Your home was built in 1910 and sits on 5400 sq. ft (.12 acres) on a corner lot.

According to public records, your home has 1,686 sq. ft. of above ground living area.  This includes a family room added on by the prior homeowners. You remodeled the kitchen in 2015. Your home has 3 bedrooms and 2 full bathrooms.  One full bathroom is on the first floor and the other one is the master bedroom on the second level along with 2 other bedrooms. The lower level is unfinished. For the purpose of this CMA, we will assume painting and smartening up that we suggested have been completed.

The home is a Gambrel Colonial. When you enter the home, the informal living room is on your left. Stairs leading to the second level are on your right.  A hallway straight ahead leads into the kitchen and family room. The full bath is on your right.  There is carpeting in the living room and family room and hardwood floors in the hallway and kitchen. The kitchen is spacious and bright with lots of windows, recessed lighting, white cabinetry and stainless steel appliances; except for the microwave. There is a large island with a granite countertop that easily seats 3+ people.  There is direct access from the kitchen to a small backyard and a paved driveway for 2 cars. There is no garage

The master bedroom is at the top of the stairs leading to the second level.  It has hardwood flooring, ample closet space and a full bathroom.  

There is an office off the hallway with a large skylight a generous sized closet. The two additional bedrooms are located off the office at the back of the home. One of them has carpeting and the third bedroom has laminate wood flooring.

The basement is unfinished and offers a great deal of storage space. The washer and dryer are located in the basement and there is also a sump pump. Heating is natural gas/forced air with radiators.  The home has wall a/c units.


Return to Top

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 $700K price range is around $446 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 $411.

The chart below shows that single family homes in Lexington of similar size to your home in the 1,000 square foot range, have an average price per square foot of $478 but it increases to $595 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 homes in the $700K price range is less than 1 month supply showing a severe shortage.

Return to Top


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 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This bungalow is smaller than your home. It offers 1,551 sq. ft. of living space; including a partially finished basement compared to your home with 1,686 sq. ft. on two levels. This home sits on a larger lot size of  .17 acres (7,450 sq. ft.) compared to your home on .12 acres (5400 sq. ft.)  It has 2 bedrooms which is one less than your home with 3 bedrooms. Both homes have 2 full baths. Your home has a master bathroom; this one does not. The bathrooms in this home have been freshly painted and are updated looking. This home was built in 1928 compared to your home built in 1910. Your home had an addition made to it in the early 2000’s and the kitchen was remodeled in 2015. There are hardwood floors throughout the home. Your home has hardwood floors and carpet in the living room and family room.  The kitchen has vinyl flooring and white cabinets compared to your kitchen with hardwood floors, granite counter tops and stainless steel appliances. Your kitchen is also more spacious with a large island that can seat 3+ people. This home has a partially finished walkout basement. Your basement is unfinished. The home went on the market during the summer, was priced very competitively; received numerous offers and sold for over a $100,000 above asking.

Relevance:  Less.  Given that this home has a superior location; but its’ smaller living area; condition and dated kitchen; it would sell for less than your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This colonial offers 1759 sq. ft. of living area including 139 sq. ft. for an unheated 3 season porch. Considering your home offers 1,686 sq. ft. of living area, your home is actually larger than this home when you don’t count the unheated porch.  This home sits on .4 acres (17,242 sq. ft.), a much larger lot than your home on .12 acres. This home has 4 bedrooms which is one more bedroom than your home. It has 1.5 bathrooms; and the half bath was recently added in 2016. Your home has 2 full bathrooms.  This home has hardwood floors throughout and a bright kitchen with granite countertops and a stainless steel range. The home has an antique charm; which may not appeal to all buyers and is located at the corner of a very busy intersection that will be a turnoff to many buyers. It was over priced; had 2 price reductions and sat on the market for 45 days. It ultimately sold for below asking.

Relevance: Relevant but less. Given the much larger lot size and overall condition of the home but that it is located on the corner of a well traveled intersection; this home is relevant but would sell for less than your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This home offers 1,502 sq. ft. of living area; not including a finished basement compared to your home; which offers 1,686 sq. of above ground living area.  Both homes sit on .12 acres  (5400 sq. ft.). Both homes have 3 bedrooms. This home has 3 full baths; which is one more than your home with 2 full baths. The baths in this home have been updated. Both homes have open kitchens with an island and stainless steel appliances. The kitchen in this home presents very nicely but is not as large as yours. This home has a large deck and spacious backyard. This home went on the market in June; was priced competitively and sold for well above asking. It received an offer 5 days after being on the market.  

Relevance: Less. This home presents very well with its’ updated baths and updated kitchen but its’ overall living area is much smaller than yours. It would sell for less than your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This home is much smaller than your home with 1,425 sq. ft. of living area including a finished basement compared to your home with 1,686 sq. ft. of above ground living area. This home sits on a much larger lot of .34 acres (14,988 sq. ft.) compared to your home on .12 acres (5400 sq. ft.) Both homes have 3 bedrooms and 2 full baths but this home is much more rustic and not in the same condition as your home. The kitchen is dated looking with vinyl flooring, wallpaper and wood cabinetry. This home was built in 1967. Your home was built in 1910 but has since had a family room addition in the early 2000’s and a kitchen remodel in 2015. The home went on the market in June and was priced very competitively for first time homebuyers in Lexington. It received an offer 5 days after being on the market and sold for way over asking.

Relevance: Less. The condition and overall appearance of your home is superior to this one. This home would sell for less than your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This home is smaller than your home with 1,561 sq. ft. of living area on a larger lot size of .25 acres.  Your home offers 1,686 sq. ft. of living area on .12 acres.  This home has 2 bedrooms which is one less than your home with 3 bedrooms. It has 2 full bathrooms which is the same as your home but your second bathroom is in the master bedroom. This home was built in 1922 vs. your home in 1910. The kitchen is bright with wood cabinetry and white appliances. Your kitchen was remodeled in 2015 and has white cabinets, granite counter tops, a large island and stainless steel appliances. This home has a nice patio and backyard. Both homes are very similar in that they do not have basements, garages and are located off of Mass. Ave near the bike path and Trader Joes.

Relevance: Relevant. The home was priced competitively and received an offer after 6 days on the market. It sold for well above asking. This home is relevant to yours.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This home is smaller than your home with 1,552 sq. ft. of living area compared to your home with 1,686 sq. ft. This home has 3 bedrooms; which is the same as your home and 1.5 bathrooms which; is less than your home with 2 full bathrooms. The home sits on .46 acres; which is much larger than your home on .12 acres.  The home was built in 1928 vs. your home; which was built in 1910. Your home, however, has had a family room addition and then the kitchen was updated in 2015 with granite counter tops, recessed lighting, stainless steel appliances and a large island. The kitchen in this home is bright and functional but it’s much more dated with blue countertops and mixed appliances. The home has a deck off the kitchen and a generous sized back yard with expansion possibilities.

Relevance: Relevant.  This home was competitively priced and appealed to first time homebuyers.  It received an offer after 5 days on the market. It sold for well over the asking price. This home is relevant to your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This garrison colonial is similar in size to your home. It offers 1,656 sq. ft. of above ground living area compared to your home with 1,686 sq. ft.  It sits on .14 acres vs. your home on .12 acres. The home has 4 bedrooms which is one more than your home with 3 bedrooms. It has 1.5 baths; which is less than your home with 2 full baths. This home was built in 1965 compared to your home in 1910. The kitchen and baths were updated in 2010.  The home has been maintained very well and the traditional floor plan is one many buyers prefer. The home has very nice curb appeal; it is set back off the street with an appealing front yard on a quiet street. This home had one price reduction and sat on the market for 41 days before negotiating an accepted offer. I believe this home was priced too high initially but that the condition and location of the home contributed to it still getting a strong asking price.

Relevance: Relevant but higher. Given the superior lot on a quiet street and the overall condition of this home, it is relevant to your home but would sell for more.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This ranch is larger than your home with 1900 sq. ft. of living area; including a finished basement. Your home has 1,686 sq. ft. of above ground living area.  The home has 4 bedrooms; which is one more than your home and 2 full bathrooms; which is the same as your home. It sits on a much larger lot than your home; .37 acres (15,936 sq. ft.) vs. your home which sits on .12 acres (5400 sq. ft.).  The home was built in 1954 compared to your home; which was built in 1910. The kitchen has cherry wood cabinetry and stainless steel appliances. This home has hardwood floors throughout and an open floor plan with cathedral ceilings. There is a bedroom and a second kitchen in the lower level.  This home has a generous backyard; which is advantageous given that the home is located on a well-traveled road right off Rt. 2.2; a turn off for many buyers. This home was priced too high and had one priced reduction.  It sat on the market for 80 days before getting an accepted offer just above asking price.

Relevance: Higher. Given its greater sq. footage and lot size even though it is very close to the highway, this home is relevant but would sell for more than your home.

Your details: Living area 1,686 sq ft | 3 beds | 2 baths | Lot size 0.12 acres | Built 1910 

This home is much larger than your home with 2,208 sq. ft. of living space including a finished basement compared to your home with 1,686 of above ground living space. This home has 3 bedrooms which is the same number as your home. It has 1.5 baths; which is less than your home with 2 full bathrooms. It sits on a little larger lot than your home; .16 acres (6,987 sq. ft.) compared to your home on .12 acres (5400 sq. ft.). The home was built in 1970 vs. your home built in 1910. There is hardwood in the living room, dining room and in the three bedrooms and carpeting in the family room. Similarly, you have hardwood in your living room and one of your bedrooms. The kitchen is dated looking with dark wood cabinetry, wallpaper and white appliances. Your kitchen has white cabinets, granite counter tops, stainless steel appliances recessed lighting and a large and inviting center island for informal eating. It is located in the highly desirable Follen Hill neighborhood. The home received an offer after 6 days on the market and sold for just below asking.

Relevance: Higher. Given the desirable location of this home, its more traditional floor plan and overall greater square footage while also considering that the home is very dated looking, it would still sell for more than your home.

Return to Top

Pricing Recommendation

My analysis of the comparable properties suggests a market value for your home of $725,000 to $750,000. 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, the price will be pushed over the market value of your home and sometimes, well over when we get multiple offers.  My recommendation of pricing at the lower end of this range also factors in the fact that a number of the homes that are relevant to your home achieved their prices by getting competition to occur within the buyer groups:  42 Fletcher Ave. came on the market for $589,000 and sold for $710,000; 11 Freemont came on for $689.000 and sold for $ 740,000; 216 Lincoln came on for $649,000 and sold for $745,000 and 30 Middle St. came on for $675,000 and sold for $745,000.  The question is ‘would they have obtained those prices if they had priced their home at the final sale price originally?’  Or, was it because of the competition that they ended up at a particular sale price?

Competing offers occur when homes are priced realistically and the ‘Buyer community’ pushes the prices up over the market value because of completion. Conversely, homes that the market deems priced too high often sit on the market and ultimately sell below the initial asking price. 162 Maple St. came on at $820,000 and sold for $740,000; 43 Harding Rd. came on at $798,000 and sold for $765,000.

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.

 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.

Return to Top

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...

Read More


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

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

Read More

 


 

Testimonials | MA Properties Online | RE/MAX Leading Edge

Read Reviews about MA Properties Online | RE/MAX Leading Edge...

Read More


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! 

Return to Top