20 Tyler Rd, Lexington

Market Analysis for:

Diane Souvaine & Richard Horn

Date Prepared: late May 2018

I've done a market analysis on your home at 20 Tyler Rd in Lexington and have prepared this document to help explain how I've arrived at a price for your home. I perform a market analysis and calculate a price taking into consideration a home’s location, size, configuration, number of bedrooms and baths, lot size and general condition. I also scrutinize the home for issues that, in my experience, will impact the price of a home making it more or less valuable. Then, I look at your current competition - the other homes that buyers in your price range will be viewing, to help determine your price. I will also include in this report an analysis of what a builder would pay for your home as a teardown as part of the 'Buyer or Builder' program.

Contents

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

Description of home

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

The home is a mid-century modern built in 1955 and located on a quiet street in the popular Sun Valley neighborhood. It has 4 bedrooms, 3 full bathrooms, and a carport large enough for 2 cars. The home is 2,667 square feet in size, including the lower level, and is set on a large lot of 0.69 acres. Heating is oil fueled hot water baseboards and the home is cooled by wall A/C units.
The front foyer is welcoming with lovely white ceramic tiles. A staircase from the foyer offers a split level feel and allows the option of going up or down. (The carpeted stair runners will be removed). The formal living room is at the top of the stairs featuring hardwood floors and a large picture window overlooking the front yard. The window is newer (3-4 years) and fills the room with lots of natural light. A wood-burning fireplace creates a focal point with a marble hearth/surround and stylish white mantel. A large opening from the living room transitions to the formal dining room with a large bay window, chair rail, and hardwood floors. The formal dining room has wallpaper above the chair rail which will be removed. The wallpaper below the chair rail will stay.
A large cased opening from the dining room leads to the family room. The carpeted family room is large and full of natural light with a huge picture window and a sliding glass door to the deck surrounded by tranquil views of the private backyard and beyond. The family room has wood paneling and built in shelving which will be painted. The family room opens to the large kitchen with a cast iron stove, ceramic tile floor, large windows, a stainless steel refrigerator (other appliances are older), an informal dining area, and a large center island with a cooktop. The counters will be replaced with granite and the cabinetry/backsplash will be painted. The kitchen offers a half cathedral ceiling with a skylight for an added feeling of expansiveness. Exterior access from the kitchen through a glass paneled door offers another great connection to the deck. The kitchen opens further to an office, which also has potential as an alternate informal dining area. The laundry is located in this area as well.
The bedroom wing of the home flows from the left of the living room with the master suite, two family bedrooms, and a family bathroom. The bedrooms are large with hardwood floors and double closets. The bedrooms will be painted and any wallpaper removed. The family bathroom has been nicely renovated with ceramic floor tiles, a skylight, Corian counters, and a large, tiled walk-in shower. There is a large closet in the hallway outside the bathroom and bedrooms for additional storage. The master bedroom is large with hardwood floors and two large double closets. The master bathroom will be painted (walls, trim, cabinetry, and tiles). The master bathroom offers dual vanities, ceramic tiled floor, a tiled shower stall, and a separate tub.
The lower level continues with another family bedroom offering a large double closet, large windows for abundant natural light, and vinyl flooring. Another full bathroom, with a tiled tub/shower will be painted and freshened up. The lower level continues with a bonus room that was recently painted and is in decent shape with a vinyl floor. More finished space awaits with another large room which will be painted and the floor freshened up. This large room leads further into a sunny room surrounded by windows and perfect for use as an office. A small mudroom area offers walkout access to the carport and backyard. The vinyl flooring in the lower level is in rough shape and stained/dirty. Once an attempt to clean has been made, if it doesnt clean up well enough then I would recommend either laying sheet vinyl or carpet to have a fresh floor. A walk-in cedar closet on the lower level provides additional storage. The unfinished utility room offers abundant storage with additional walk-out access to the backyard.

This market analysis is assuming the improvements we discussed to the home have been completed.



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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 homes 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 $900K price range is around $400 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 1950’s the average price per sq. ft. is $418.

The chart below shows that single family homes in Lexington of similar size to your home in the 2,000 square foot range, have an average price per square foot of $406 but it increases to $483 per sq. ft. when you decrease to the 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 $900K price range are under 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 analyze

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This contemporary style home was built in 1951. It is of similar size as your home at 2,670 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has less bathrooms than your home, having 2.5 bathrooms. It sits on a smaller size 0.33 acre lot which is very steep, whereas your home sits on a 0.69 acre lot.
The living room has  wall of windows, custom built ins, hardwood floors, and has access to the sunroom and has exterior access to the patio through glass sliders. The formal dining room has picture windows and hardwood floors. The kitchen has vinyl flooring, pantry, and a peninsula open to the living room. The family room has wall to wall carpeting and picture window/s. The sunroom has walls and ceiling of glass, ceramic tile floors, and has exterior access through sliders. The 2nd level includes 3 family bedrooms which have hardwood floors and picture windows, the master suite, a family bathroom, the media room, and a bonus room. The media room has a fireplace, picture windows, and hardwood floors. The master bedroom has walk in closet, picture windows, hardwood floors, and an attached bathroom.
This home is located in the Woodhaven neighborhood and abuts conservation land. It has no car garage but has 3 car off street parking. It has forced air heating and central air cooling. It was initially listed for $869,000 but was dropped to $838,000 and then to $799,000 before it went under agreement and was sold for $750,000.

Relevance: Less. Given the similar location, inferior condition, lack of parking, no yard, I believe your home will sell for more than this home.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This garrison colonial home was built in 1954. It is larger than your home at 3,277 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has more bathrooms than your home, having 3.5 bathrooms. It sits on a smaller size 0.52 acre lot whereas your home sits on a 0.69 acre lot.
The living room has a fireplace with white mantel, crown molding, picture windows, and hardwood floors. The formal dining room and the family room also have crown molding, picture windows, and hardwood floors. The kitchen has mismatched appliances, hardwood floors, and has an informal dining area which has a cathedral ceiling with skylight, and has exterior access to the deck through glass sliders and another exterior access to a front porch. This level also includes a bedroom with picture windows, hardwood floors, and an adjacent full bathroom. The 2nd floor includes 2 more family bedroom with hardwood floors, a family bathroom, and the master suite. The master bedroom has a walk in closet, hardwood floors, picture windows, and has an attached bathroom. The finished lower level has wall to wall carpeting, wood veneer walls, and has a half bathroom. The layout of the home is not optimal with lots of small rooms. The family room is a converted bedroom on the first floor apart from the main living areas.
This home is located in the The Manor neighborhood. It has an attached single car garage and paved 3 car off street parking. It has hot water baseboard heating. It was initially listed for $949,000 but price was dropped to $899,999 and then to $899,000 before it went under agreement and was sold for $865,000.

Relevance: Relevant, but less. Given the inferior location, inferior condition, superior size (but poor finishes), I believe this home is relevant to your home but yours will sell for more.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This contemporary,mid-century modern style home was built in 1969. It is smaller than your home with 2,172 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has more bedrooms than your home, having 5 bedrooms whereas your home has 4 bedrooms. It has less bathrooms than your home, having 2 full bathrooms. It sits on a smaller size 0.46 acre lot in a popular neighborhood whereas your home sits on a 0.69 acre lot.
Upon entry to the foyer, a staircase on the right leads to the living room on the main level which is on the 2nd floor. The living room has a fireplace on bricks to the beamed vaulted ceiling, wood paneled walls, large picture windows to the ceiling, and hardwood floors, and has an open floor plan with the dining room. The dining room also has a beamed vaulted ceiling, picture windows, and hardwood floors, and has access to the heated porch or sunroom which has an exterior access. The kitchen has a vaulted ceiling, picture windows, ceramic tile backsplash, laminate floors and is pretty basic. The family bedrooms have vaulted ceilings, picture windows, and hardwood floors including the master bedroom which has direct access to the family bathroom. The ground floor includes the family room and 2 more small bedrooms. The family room has a kitchenette and has an attached full bathroom with double sink vanity.
This home is located in the Pleasant Brook neighborhood. It has no car garage but has 4 car off street parking. It has oil fueled hot water baseboard heating. It was listed for $899,000 and was sold for $908,000.

Relevance: Less. Given the smaller size, superior location, inferior condition I believe your home will sell for more than this home.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This ranch style home was built in 1956. It is larger than your home at 2,990 sq  ft of approx. living area which includes half of the living area being in the basement. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has the same number of bathrooms as your home, both having 3 full bathrooms. It sits on a smaller size 0.30 acre lot whereas your home sits on a 0.69 acre lot.
The living room has an open floor plan with the formal dining room. The living room has a fireplace, a large bay window and hardwood floor. The formal dining room has bay window and an exterior access to a deck through glass doors. The sunroom is off the kitchen and has a cathedral ceiling, multiple picture windows that allows lots of natural light, and an exterior access to a patio and another one to the deck. The kitchen has all white appliances and white cabinets to the ceiling. It has an open floor plan with the sunroom but partially separated through a 2 tier peninsula bar. The master bedroom is on the same level and has an attached bathroom, and hardwood floors. The master bathroom has double vanity sink with white cabinets, and Jacuzzi. There are 2 more bedrooms and an office on the main level and they all have hardwood floors including a full bathroom. The lower level was a live-in help quarters and it includes a bedroom, a full bathroom, an office, a workshop, a wine cellar, an exercise room, a bonus room and another family room with its own kitchenette. This home has mostly hardwood floors including the finished lower level. There are a number of rooms in the home that are all quite a small size.
This home has an attached single car garage and paved 4 car off street parking. It has hot water baseboard heating and central air cooling. It was listed for $925,000 and went under agreement and was sold for $910,000.

Relevance: Relevant, but less.  Given the smaller above ground living area of this home, smaller lot size, similar location, similar condition I believe this home is relevant to your home but yours should sell for more.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This antique colonial style home was built in 1820. It is larger than your home at 2,919 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has the same number of bathrooms as your home, both having 3 full bathrooms. It sits on a larger size 0.75 acre lot whereas your home sits on a 0.69 acre lot.
Upon entry from the covered wrap around porch, the living room has an open floor plan with the family room. The living room has a fireplace, custom built ins, wainscoting, tall windows, and wall to wall carpeting and has exterior access to the enclosed porch that leads to the other side of the wrap around porch. The family room also has a fireplace, wainscoting, tall windows, and wall to wall carpeting and has exterior access to another side of the wrap around porch. The formal dining room has a fireplace, wainscoting, floor to ceiling bay windows, and wall to wall carpeting and also has access to the enclosed porch. The kitchen has a pot belly stove, a breakfast bar island, older wood cabinets, wainscoting, picture windows and floor to ceiling windows, a wet bar, hardwood floors, has an informal dining area, and exterior access to the pergola patio and to the heated workshop room. The 2nd level includes a study with custom built ins, a family bathroom, 3 bedrooms, and the master bedroom. Two of the family bedrooms have fireplaces and one of these bedrooms is connected to the 3rd bedroom. This bedroom has jack and jill access to the bathroom with the master bedroom. The master bedroom also has floor to ceiling bay windows and separate staircase from the kitchen. All bedrooms have wall to wall carpeting.
This home is located across the road from the Willards Woods Conservation. It has no garage but has 5 car off street parking. It has oil fueled forced air, and active solar electric and central air cooling. It was initially listed for $1,150,000 but price was dropped to $1,050,000 and then to $998,000 before it went under agreement and sold for $920,000.

Relevance: Relevant, but less. Given the similar location, antique age which worries buyers, similar size, lack of parking I believe it is relevant to your home but yours should sell for more.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This contemporary style home was built in 1963. It is smaller than your home at 1,989 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has the same number of bathrooms as your home, both having 3 full bathrooms. It sits on a larger size 0.83 acre lot whereas your home sits on a 0.69 acre lot.
Upon entry from the closed porch through the foyer, the main living area is on the 2nd level. The living room has a fireplace on bricks to the beamed and vaulted ceiling, custom built ins, hardwood floors, picture windows, and has an open floor plan with the dining room. The dining room has beamed and vaulted ceiling, picture windows, and exterior access to the screened porch to the deck through french doors. The kitchen has cathedral ceiling, lots of white cabinets and storage, white appliances, and ceramic tile floors. There are 2 bedrooms and the master bedroom on the 3rd level and they share an adjacent family bathroom, have vaulted ceiling, picture windows, and hardwood floors. The entry/ground level includes the family room which has custom built ins, picture windows, and wall to wall carpeting. It has access to the home office which is also on this level and it has a separate exterior access too. The home office has an attached bathroom, cathedral ceiling, and hardwood floors.
This home has a detached 2 car garage and paved 5 car off street parking. It has hot water baseboard fueled by oil heating. It was listed for $899,000 and was sold for $930,000 in an “as is” condition.

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

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This contemporary mid-century modern style home was built in 1960. It is a similar size to your home with 2,476 sq  ft of approx. living area including the lower level. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has more bedrooms than your home, having 5 bedrooms whereas your home has 4 bedrooms. It has less bathrooms than your home, having 2.5 bathrooms. It sits on a similar size 0.71 acre lot whereas your home sits on a 0.69 acre lot.
This home has been freshly painted throughout and the kitchen has been significantly upgraded. The main living area is on the 2nd level and it has an open floor plan with beamed cathedral ceiling. The living room has a fireplace on bricks to the ceiling, wall of windows and picture windows, skylights, and hardwood floors. The formal dining area has access to the family room. The family room has walls of glass, cathedral ceiling, wall to wall carpeting, and exterior access through a french door. The kitchen has a breakfast bar peninsula, quartz countertops, ceramic tile backsplash, white cabinets, stainless steel appliances, vinyl floors, picture windows, and exterior access via the informal dining area through a sliding glass door. The master bedroom is also on this level and has a cathedral ceiling, picture windows, hardwood floors, and has an attached bathroom which has a double sink vanity. The 4 other family bedrooms also have cathedral ceiling, hardwood floors, and picture windows. The home office and the playroom is on the lower level and has a fireplace on bricks to the ceiling, crown molding, beadboard walls, picture windows, and vinyl floors.
This home is located in the Turning Mill neighborhood. It has an attached 2 car garage and 6 car off street parking. It has forced air, oil heating and central air cooling. It was listed for $795,000 and was sold for $952,000.

Relevance: Relevant, but higher. Given the similar size, superior condition, 2 car garage I believe this home is relevant to your home but it should sell for more.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This contemporary,mid-century modern style home was built in 1968. It is smaller than your home with 1,957 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has more bedrooms than your home, having 5 bedrooms whereas your home has 4 bedrooms. It has less bathrooms than your home, having 2 full bathrooms. It sits on a smaller size 0.5 acre lot whereas your home sits on a 0.69 acre lot.
Upon entry to the foyer, a staircase on the right leads to the living room on the main level which is on the 2nd floor. The living room has a fireplace on bricks to the beamed vaulted ceiling, large picture windows to the ceiling, and hardwood floors, and has an open floor plan with the dining room. The dining room also has a beamed vaulted ceiling, picture windows, and hardwood floors, and has an exterior access through a glass door. The kitchen has high vaulted ceiling, picture windows, and vinyl floors. The family bedrooms have beamed, vaulted ceilings, picture windows, and hardwood floors including the master bedroom which has direct access to the family bathroom. The lower level includes the family room and 2 more bedrooms. The lower level has a full bathroom.
This home is located in the Pleasant Brook neighborhood. It has no garage but has 2 car off street parking. It has hot water baseboard, oil heating. It was listed for $850,000 and was sold for $960,000.

Relevance: Relevant. Given the smaller size of the home, superior location, no garage, I believe this home is relevant to your home.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This multi-level style home was built in 1960. It is of similar size as your home at 2,594 sq  ft of approx. living area which includes the lower level. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has less bathrooms than your home, having 2 full bathrooms. It sits on a smaller size 0.19 acre lot walking distance to the town center, whereas your home sits on a 0.69 acre lot.
The home has been renovated throughout and freshly painted and staged. The main living area is on the 2nd level has an open floor plan which includes the living room, the dining area, and the kitchen. The living room has a fireplace with granite facing and white mantel, crown molding, picture windows, and hardwood floors. The dining area has double windows, crown molding, and hardwood floors. The kitchen has cherry cabinets, ceramic tile backsplash, stainless steel appliances, breakfast bar peninsula, granite countertops, and hardwood floors. It is connected to the family room through a cased opening and a pass through window. The family room has a cathedral ceiling with skylights, picture windows, and exterior access to the screened porch. The master bedroom and 2 family bedrooms are on the 3rd level and they all have hardwood floors and share a family bathroom. One bedroom is on the first level. The finished basement includes an office with a fireplace and laminate flooring, a full bathroom with tub and shower stall, and a playroom with laminate flooring.
This home has an attached single car garage and 4 car off street parking. It has hot water baseboard, oil heating and central air cooling. It was listed for $898,000 and sold for $990,000.

Relevance: Relevant, but higher.  Given the similar size, superior condition, 1 car garage I believe that this home is relevant to your home but I beleive it will sell for more.

Your details: Living area 2667 sq ft | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This was our listing. This contemporary cape style home was built in 1972. It is larger than your home with 3,298 sq ft of approx. living area which is all above ground living area except for a small room counted in the basement. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has more bedrooms than your home, having 5 bedrooms. It has the same number of bathrooms as your home, both having 3 full bathrooms. It sits on a smaller size 0.33 acre lot whereas your home sits on a 0.69 acre lot.
The home has been freshly painted, has a newer renovated kitchen, newly renovated master bathroom. From the foyer, 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 access 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 access to the deck through french doors. The kitchen 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 rest of the bedrooms are on the second floor including the master suite. The master bedroom has a fireplace on bricks to the cathedral ceiling which has skylight, an attached new 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 4 car off street parking. It has forced air, oil heating and central air cooling. It was listed for $1,029,000 and was sold for $1,130,000.

Relevance: Higher. Given the larger size of the home, superior condition, 2 car garage, extra bedroom and office I believe this home will sell for more than your home.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This cape style home was built in 1952. It is smaller than your home at 2,177 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has the same number of bedrooms as your home, both having 4 bedrooms. It has the same number of bathrooms than your home, both having 3 full bathrooms. It sits on a smaller size 0.27 acre lot walking distance to the town center whereas your home sits on a 0.69 acre lot.
This home has been beautifully renovated. Upon entry from the farmer’s porch, the living room is on the right and has an open floor plan with the formal dining room. It has a fireplace with white mantel, picture windows, hardwood floors, and exterior access to the deck through 2 sliding glass doors. The kitchen has been beautifully renovated and has custom built ins, china cabinets, wine racks, and white cabinets to the ceiling, some with glass paneled doors, granite countertops, stainless steel appliances, bay windows, and ceramic tile floors. The main level also includes an office/ bedroom which has hardwood floors, and a renovated attached full bathroom. The 2nd level includes 2 family bedrooms which have hardwood floors, and the master suite. The master bedroom has a sitting area, walk in closet, hardwood floors, and a renovated attached full bathroom. This master bathroom has granite countertops, clawfoot bathtub, and a shower stall with frameless glass door. The family room is on the partially finished lower level which has wall to wall carpeting, and custom built ins.
This home has an attached 2 car garage and paved 6 car off street parking. It has hot water baseboard heating and central air cooling. It was listed for $1,050,000 and is currently under agreement with competing offers to one of our buyers.

Relevance: Higher. Given the superior condition, superior location, 2 car garage, smaller living area I believe this home will sell for more than your home.

Your details: Living area 2667 sq ft  | 4 beds | 3 baths | Lot size 0.69 acres | Built 1955 | 2 car carport

This is our listing. This contemporary, multi-level style home was built in 1956. It is larger than your home at 3,499 sq  ft of approx. living area. Your home has 2,667 sq ft of approx living area which includes the finished basement. This home has more bedrooms than your home, having 6 bedrooms whereas your home has 4 bedrooms. It has the same number of bathrooms than your home, both having 3 full bathrooms. It sits on a larger size 1.05 acre lot in the same neighborhood as your home whereas your home sits on a 0.69 acre lot.
This home is a legal two family set within a single family home. The home had been freshly painted inside, new carpets, updates to the kitchen and bathrooms prior to coming on the market. The 1st or ground level has the in-law apartment and which includes a living room and a dining room in an open floor plan with the kitchen. The living area has double windows, hardwood floors, a full bathroom, and has an exterior access aside from the access to the main level. The kitchen has a breakfast bar peninsula, ceramic tile backsplash, and skylight. This area also has 2 bedrooms which have hardwood floors, and one of them has an exterior access through sliding glass doors. From the foyer,  the main level is up through a staircase to the 2nd floor.  The main living room has a fireplace on arranged stones to the cathedral ceiling, floor to ceiling windows, hardwood floors, and has an open floor plan with the formal dining room. The dining room has picture windows, and has access to the kitchen and the family room. The family room has triple windows, walnut walls, custom built ins, wall to wall carpeting, and has an exterior access. The kitchen has white cabinets, granite countertops, picture window/s, hardwood floors, and an informal dining area. This level also includes 3 family bedrooms which have hardwood floors, a family bathroom, and the master suite. The master bedroom has wall to wall carpeting, cedar closet, and an attached bathroom. The finished lower level is a playroom with wall to wall carpeting and has an exterior access.
This home is located in the Sun Valley neighborhood. It has no car garage but has 8 car off street parking. It has hot water baseboard heating. It was listed for $1,150,000 and we had competing offers on the home and it is currently under agreement for $1,261,000.

Relevance: Higher. Given the much larger size of this home, the 2 family status, extra bedrooms, superior condition, similar location but larger lot size, I believe this home 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 $950,000-$1,000,000 when selling to a buyer.  

If you were to sell to a buyer, then 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 4 Blueberry whcih came on the market for $1,150,000 and will sell for $1,261,000, and our listing at 60 Ivan St which came on the market for $1,029,000 and sold for $1,130,000. 

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

Buyer or Builder

As part of our Buyer or Builder initiative I have asked a builder to propose a tear down value for your home.  The builder who visited with you last week proposes a price of $800,000 - $850,000.  If you were to choose this option we would get a few more builders in to offer on your home.

If you were to sell to a builder, there are a couple of differences in selling to a builder vs that of a buyer: 

  1. you don't need to do any work to the home to prepare it, you take what you want from the home when you leave and the builder will dispose of your belongings that you don't want. 
  2. A builders offer will not have an inspection contingency, nor a mortgage contingency.  It's worth mentioning that if selling to a buyer and we have multiple offers we are seeing approximately 50% of the offers coming in with no inspection contingency, although some of those buyers will have done 'pre-inspections' prior to making an offer.
  3. Most builders will also work with you with regard to closing date, and potentially allowing you to stay a little longer in your home after closing. Each sale is different and the builders are quite flexible when compared to a buyer because a buyer needs to have somewhere to move to, to live in, so there is less flexibility.
  4. When selling to a buyer there is a 5% selling fee. This selling fee is split equally between the listing agent's company and the buyers agent's company.  So your net when selling to a buyer is the market value - 5%. When selling to a builder there is no fee, as the builder pays the agent when the subsequent new construction is sold. So your net when selling to a builder is the price offered minus attorney fees, and typical closing costs.

If selling to buyers, 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.

 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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