Property Valuation Analysis
Prepared for Trisha Sweeney
Hi Trisha!
It was great to see you, and thank you for the opportunity to speak with you about pricing, and potentially marketing and selling your property.
Property valuation and appraisal is a mixture of analysis and intuition. We sift through the numbers and apply as much objectivity as possible, leavened with experience and intuition.
The analysis part was learned when I was doing bank appraisals some years ago. Basically, it consists of comparing roughly similar properties (or as close as we can get) that have sold relatively recently, and making adjustments in order to come out with a number that reflects the possible value of your property. The adjustments are as objective as possible although they are mainly based upon my experience and intuition.
- Appraisal-style analysis and adjustment table, below.
- You can see the details of the comparables by clicking on the addresses in the analysis table as well as the property discussions below that.
- Click here for the latest South End market data. You can see that the largest number of properties go under agreement in the spring, and that median prices are generally higher then as well.
- Click here for all available and under-agreement South End listings between $700k and $850k (My website may ask you to sign in for listing details, but you can just hit "esc."). You can see that there is not a lot out there comparable to yours. Also, the properties that are out there right now have been on the market for quite some time, which speaks to pricing and timing
See pricing discussion and conclusion immediately below the following table.
YOUR PROPERTY
Your property has several strengths with respect to the market. First of all is the location, on the cusp of both the South End and Back Bay. Next is the fact that it's a parlor unit. Everybody loves a parlor with its nice high ceilings. It's got great storage. The living roomparticularly has great light. Tons of storage, well-maintained
The downside is...well, not much. It's an attractive and rare parlor unit in a great location. Yeah, you could have a sexier kitchen, but I don't think yours will detract. It's perfectly fine, and if someone wants to upgrade, won't cost them much. You could have hardwood floors throughout, but not a big deal. Which is all to say like all properties, that we just have to position this property correctly with respect to price and marketing.
See my suggested listing price below the discussion here.
COMMENTS ON REPORT AND COMPARABLE PROPERTIES:
As you see in the data analysis sheet above, I've laid out the most comparable one bedroom units I could find that have sold recently.
My search criteria included listings in buildings of a similar nature. I wanted to see the context of our pricing. The individual dollar adjustments are conservative, and once again, can certainly be debated. But in the end, I think they give a fairly accurate picture of valuation.
In the last 10 months, there were really only two units that were really comparable to yours. This is one of them. The other two comps were somewhat comparable, so just to be complete as possible, I used those as well.
Your unit's comparative positives:
- Your unit is 77 SF larger.
- I thought that your location is incrementally better, being right near Copley.
- I also like your parlor level better, and your storage is superior.
Your unit's comparative negatives:
- This unit has hardwood throughout,
- Better sun and views
- Small bonus room that can be used as an office. You can see how I adjusted for all that on the chart.
Listed on 7/13/23 at $779k, it went under agreement at that price 5 days later at asking. Mid-July is not a fabulous time to list property, so although they got asking, it would've done better in the spring, like the next one. My analysis of this property suggests a selling price for yours TODAY of about $815K+-. If sold in the spring it has a chance of getting more.
This is the other closest comp to yours. Big success story.
Your unit's comparative positives:
- Your unit is 90 SF bigger and has significantly better finishes in the kitchen and bath.
- Yours also has a better location, although Concord Sq is no slouch.
- Although 2nd floor isn't a bad haul, parlor is still more marketable, and your unit has better storage.
Your unit's comparative negatives:
- This unit has a rear deck and AC. One other thing is that it has forced hot air heating, which has a perception advantage (if nothing else...)
The big deal about this unit is that it was an attractive brownstone unit, which was/is kind of rare in the market and it was listed in the spring at a time of max demand. This unit was listed on 5/12/23 at $699k and went under agreement in 5 daysat $775! Someone overpaid for it due to competition, and if we play our cards right, yours will too. My analysis suggests a selling price for your unit TODAY of approximately $843+-. But the timing has to be right on.
This unit is a little bit weird.
Your unit's comparative positives:
- In its previous life, tgis comp was a store. Meaning that all those windows are on the sidewalk, which detracts significantly from its value.
- Needless to say, the location is inferior to yours, as are the "views."
- Also you have better storage.
Your unit's comparative negatives:
- Really nice contemmporary finishes.
- The floors are hardwood throughout.
- It has AC.
This unit was listed on 2/28/23 at $724,900 and went under agreement in 9 days at $740k. Maybe could've done better later in March or April. My analysis suggests a selling price for your unit of approximately $790k+-. Not the most fabulous comp, but it provides some context.
So we're going a little afield here, even though it's basically on the next block from you.
Your unit's comparative positives:
- This is a 40+- unit building with a lot of rentals, although it's not a bad building,it's not as desireable as a brownstone. It's only here for context.
- Slighltly smaller than yours at about 646 SF.
- Laundry is common, and once again, the building...
- The only thing I can say in its favor is that it has hardwood throughout.
This unit was listed at $799,000 on 10/2/23, and was reduced to $775k on 10/23. it went under agreement on 11/6/3. They overshot on the price and were up against the wall as you come into November. My analysis suggests a selling price for your unit of approximately $783k+-. Once again, not the best comp, and their timing and pricing was not the best.
CONCLUSION
PROBABLE SELLING RANGE: $790k to $843k
The way many folks put together this report is to take a bunch of roughly similar properties and average out the selling price, or the $/SF price. I do not. The value of your property is not an "average." The value is based upon specific attributes, and I do my best to nail down the most important.
As an aside, Redfin estimates about $742k ($705-$839k range...How's that for hedging your bets?) and Zillow says $777,600 with a range of...$700k-$863...:)
I think we nudge it into the low-maybe mid- $800's based upon a late March-April market date, and making sure we market it and price it to sell. The buyer for 42 Concord Square was reacting to springtime competition, so he/she did what they had to do to get the property. The only question is how much do we list it for. Well, no! The other questions are, how do we market it, and how do we prepare it for showing? I think that if you look at these listings, you will see that they are de-cluttered and painted in light colors. If you do not want to repaint, that's OK, but we will maximize your chances of getting the price you want if you do. As far as marketing, please take a look at the other sections in the email I sent to you.
Getting the best price depends upon getting the highest number of motivated buyers into your property. These days, serious buyers who are in the market are very familiar with the properties that are out there and will "rule in/rule out" very quickly. It's important to price accurately before you need to do a price drop.
My M.O. in listing prices has been to list reasonably based on already sold comparable properties (rather than hanging it out at an overly high price and hoping someone will make an offer). The goal is to collect competitive bids bids at the end of a relatively short, predetermined marketing period( i.e list on Tuesday, broker open Wednesday, commuter open house Thursday, open houses Friday and Saturday, and review offers Monday evening).
In this way, we create demand for your property, and potentially a competitive situation for buyers. This gives you the best possible selling price and the most highly motivated buyer. The greatest number of highly motivated buyers are out there the first week that your property is on the market. After that, motivation diminishes as more people who are in the market have seen your property. Time is not your friend in this case.
Letting your property sit due to incorrect pricing is the kiss of death.? If your unit is really worth more to the market, we will get a higher price. If not, we won’t.
Let's see how the market developes over the next few months so we can figure out an asking price. Let me know what you think!
Best regards,
Joe
