9 Harriett Ave, Burlington

Market Analysis for:

Colin & Ann Cormier

I've done a market analysis on your home at 9 Harriett Ave in Burlington 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 bungalow style home was built in the 1930’s and is conveniently located close to major commuting routes and nearby shopping.  The home as a total of 3 bedrooms and 1 full bathroom. It has a total of 1122 square feet of living space and is sited on a lot of 0.344 acres.
From the front door, you enter the home’s front living room. This room is nicely sized with engineered wood flooring and windows on 3 walls allowing for lots of natural light. From this front room there is a French door leading to the foyer/entry hall and a second doorway leading to the large dining room. The dining room has lovely wood trim, hardwood floors and a French door leading to the family room.  A cased opening from the family room leads to the kitchen which has an exterior half-French door leading to the back deck, white appliances with off-white cabinetry and laminate countertops. Through another cased opening is the hallway with a hardwood staircase to the 2nd floor and the French door leading back to the living room.
At the top of the staircase is a short hall area with hardwood floor and built in cabinet and drawers. The first bedroom is small while the 2nd bedroom is slightly larger. Both rooms are carpeted, have wood trim, sloped ceiling, closets with curtains and are unheated. The 3rd bedroom is the largest of the 3. This room also has the wood trim, hardwood floor, closet and sloped ceiling. In the full family bathroom there is a pink tub and pink tiled floor with white tiled walls.
The basement is unfinished and provides lots of storage space. Under the new part of the home – the front living room – some water comes in occasionally. To the back of the basement is the laundry area. The home has an oil-fueled steam boiler and the tank is in the far corner of the basement.  


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Market Dynamics

We have been experiencing shortages of housing inventory in Burlington over the last 5 years or so. There are always a number of buyers looking to buy in Burlington because of the the community dynamics, the popular restaurant and shopping scene and the vibrant downtown. The  conservation areas close by pull those who desire an outdoor lifestyle while still remaining within commuting distance to Boston.

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

Average prices in Burlington are well above average prices obtained in the peak of the market in 2005. Average single family home prices have been increasing steadily since 2011. The real estate market downturn that existed for the last few years is well and truly over and prices are continuing to increase each year.

Sales distribution statistics for single family homes show that the $500K price-range is the most active in Burlington. The next busiest price range in Burlington is the $400K price range.  

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

Reviewing the price per sq. foot charts for single family homes shows us that the average price per sq. ft. in Burlington around the $400K price range is around $309 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 1930’s the average price per sq ft shows no data showing that no homes built in 1930 were sold in the last 12 months. Given the 1920 and 1940 data being $314 and $312 we can assume the price per sq ft to be similar to these.

The chart below shows that single family homes in Burlington of similar size to your home in the 1,000 square foot range, have an average price per square foot of $314 but it increases to $454 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 $400K price range shows no available supply indicating 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 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This ranch style home was built in 1955. It is smaller than your home with 970 sq ft of approx living area. Your home has 1122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a smaller size 0.18 acre lot whereas your home sits on a 0.344 acre lot.
Upon entry to this home, one immediately has the living room with hardwood floors. The kitchen has rustic wood cabinets, ceramic tile backsplash, dated white appliances, and vinyl floors. The 3 bedrooms, which includes the master bedroom, have hardwood floors. This home has a partially finished basement with vinyl flooring and pine walls that can be used as a family room.
This home is being sold in an “as is condition”. It has paved 2 car off street parking, and has forced air heating. It was listed for $419,900 and is currently under agreement after 6 days so it will have sold for over the asking price.

Relevance: Less. Given the inferior condition of this home, its smaller living area and smaller lot size, but superior location in the heart of the town center I believe that once all factors are considered your home will sell for more than this home.

Your details: Living area 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This cape style home was built in 1920. It is larger than your home with 1,470 sq ft of approx living area. Your home has 1122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a smaller size 0.31 acre lot whereas your home sits on a 0.344 acre lot.
Upon entry to the foyer, the family room is on the right and it has bay windows, non-working fireplace, and hardwood floors. The living room is at the end of the entry hall and it has cedar closet, exterior access through sliders, and hardwood floors. The formal dining room has 2 china cabinets, chair rails, double windows, hardwood floors, and it is connected to the kitchen through an arched opening. The kitchen has older white cabinets, white appliances, picture window, laminate floors, an informal dining area, and has access to the sunroom through a cased opening. The sunroom has walls of windows, vaulted ceiling, and access to the deck through sliding glass doors. The 3 family bedrooms are on the 2nd floor and they all have low sloped ceilings, and wall to wall carpeting. 2 of the bedrooms are a similar size to your smaller bedrooms.
This home was sold in an “as is condition”. It has 4 car off street parking, and has hot water baseboard heating. It was listed for $399,900 and and sold for $408,000 after competing offers.

Relevance: Relevant, but less. Given the much larger size of this home, inferior condition, similar lot size, but inferior location I believe that this home is relevant to yours but yours should sell for more.

Your details: Living area 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This ranch style home was built in 1959. It is smaller than your home with 924 sq ft of approx living area. Your home has 1122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a larger size 0.49 acre lot whereas your home sits on a 0.344 acre lot.
The living room has a fireplace with brick facing on paneled board wall, picture window, wall to wall carpeting over hardwood floors, and it has a pass through to the kitchen. The kitchen has wood panel wainscoting, older wood cabinets, white appliances, vinyl floors, an informal dining area, and exterior access to the deck. The family bedrooms have wall to wall carpeting over hardwood floors.
This home was sold in an “as is” condition. It has paved 5 car off street parking, and has hot water baseboard heating. It was listed and sold for $419,900.

Relevance: Relevant, but less. Given the smaller size of this home, ranch style with not much living area, larger lot I believe that this home is relevant to your home but your home should sell for more.

Your details: Living area 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This ranch style home was built in 1955. It is smaller than your home with 936 sq ft of approx living area. Your home has 1122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a smaller size 0.24 acre lot whereas your home sits on a 0.344 acre lot.
The living room has a bay window, and hardwood floors. The kitchen has modern wood cabinets, bay window, white appliances, ceramic tile backsplash vinyl flooring, an informal dining area, and exterior access to the deck. The family bedrooms have hardwood floors and all are a similar size. This home has a fireplace in its living room but is not functional. The lower level is finished but not included in the living area of the home. The outside was stunningly done with immaculate gardens, paved patio, trellis gardens, pergola, firepit and stunning gardens.
This home was sold in “as is” condition. It has 6 car off street parking, and has hot water baseboard heating, central air cooling and ducted vacuum system. It was listed for $419,000 and was sold for $440,000 after competition.

Relevance: Relevant, but higher. Given the smaller size, smaller lot size, stunning outdoor living areas, central air conditioning, three good sized bedrooms I believe that this home is relevant to your home but it will sell for more than your home.

Your details: Living area 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This ranch style home was built in 1960. It is of similar size as your home with 1,140 sq ft of approx living area. Your home has 1,122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a smaller size 0.25 acre lot whereas your home sits on a 0.344 acre lot. The home has a living room which is open to the kitchen and sunroom. The 3 bedrooms are all a similar size.
This home was sold in an “as is” condition. It has paved 4 car off street parking, and has forced air heating and central air cooling. It was listed for $$459,900 and was sold for $460,000.

Relevance: Relevant, but higher.  This ranch style home is a similar size to your home, smaller lot, central air conditioning, similar sized bedrooms I believe this home is relevant to your home but it should sell for more.

Your details: Living area 1122 sq ft | 3 beds | 1 full bath | Lot size 0.344 acres | Built 1930 | 3 car off-street

This ranch style home was built in 1958. It is larger than your home with 1,560 sq ft of approx living area. Your home has 1,122 sq ft of above ground living area.  This home the same number of bedrooms as your home, both having 3 bedrooms. It has the same number of bathrooms as your home, having 1 full bathroom. It sits on a larger size 0.49 acre lot whereas your home sits on a 0.344 acre lot.
Upon entry through the glass paned front door, the living room is on the right and it has a fireplace, bay window, and hardwood floors. It has a partially open floor plan with the dining area and the kitchen defined by a half height wall with columns. The dining area has glass paneled china cabinets and shelves with granite countertop, picture windows, and hardwood floors. The kitchen is stunning with a breakfast bar peninsula, granite countertops, ceramic tile backsplash, stainless steel appliances, white wrap around cabinets some with glass uppers, ceramic tile floors, and exterior access to the carport leading to the patio. The family bedrooms are a great size with hardwood floors. This home has a finished lower level with ceramic tile floors where the family room and a playroom are located. The outside has a paved patio, a firepit and immaculate gardens.
This home has a carport and paved 6 car off street parking, and has water baseboard heating. It was listed for $$469,000 and was sold for $512,000 after competing offers.

Relevance: Higher. Given the larger size, superior condition, larger bedrooms, larger lot, nicely finished basement, superior outdoor living area 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 $420,000-$450,000.   

Given the current market dynamics in Burlington, I would suggest  listing  your home at the lower end of this price range estimated 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 that when  we get multiple offers.  You can see many examples in  the above  mentioned properties that came on the market for a lot less  and  competition pushed them up to a higher final sale price. The  challenge  in estimating a price for a home is ‘would this home have  sold for this  price if they had priced it for higher’ or was  competition the driving  factor that got to this price.  Experience  tells us that competition is  why they sold for what they did, so we  have to be careful with pricing.   Every home reported above had  competing offers which pushed the price higher apart from 2 homes. 

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.  

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.

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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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