Property Valuation Prepared For Nancy and Phil Marino
Hi Nancy and Phil,
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. I’ve used adjustments that are as objective as possible (although these values can be debated as well), as well as more subjective ones based on my experience and intuition, my knowledge of this building and the other buildings I used a comps.
- 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 South Boston market data comparing the last 5 years.
- Click here for all available and pending South Boston listings between $450,000 and $650,000 (My website may ask you to sign in for listing details, but you can just hit "esc.")
See pricing discussion and conclusion immediately below the following table. I've laid out the most recent comps in the building that I can (including the bigger one with parking) as well as the most comparable recently sold 1 beds in Southie that I could find. There are a couple of pending listings where I was told the sale price.
<
YOUR PROPERTY
Your property has several strengths with respect to the market. The location is convenient to transit as well as to the restaurants and other amenities on West Broadway.The building is well-run and secure. The unit is in beautiful condition and shows very well. Central AC and updates to the systems also add value as does the loft. On the other hand, it lacks parking,and some other amenities other amenities which exist in a few of our comps. Which is all to say like all properties, that we just have to position this property correctly with respect to price and marketing.
COMMENTS ON REPORT AND COMPARABLE PROPERTIES:
As you see in the data analysis sheet above, I've laid out the most comparable 1 bed units I could find that have sold recently. I've included the larger unit which is currently under agreement as a reference and compared it to a similar unit which closed in '21. I've also used similar one bed + lofts in the building that have closed from '21 on and adjusted for the market using the numbers from the linked market report
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.
Once again, you can click on the photos or addresses to see details of the comparables.
This unit is currently under agreement, but I've verified the sale price. Obviously, it's a good deal bigger than the subject unit. As with the others, I’ve adjusted $/per SF conservatively at $400/SF. (most of these sold for $$800-$900 and change ish per square foot). As they taught me in appraisal school, the square footage is only one component of the value.
They've made some nice improvements to the unit, including some contemporary upgrades to the bathroom, and the unit has better views and a garage parking space, so I've adjusted for those items
Listed on1/17/23 at $699,000, it sold at asking after 3 days on-market. My analysis of this property suggests a selling price for yours of about $502,000+-.
I used this because I wanted to cross-check the pricing on the previous comp.
It is a similar size, but it has a separate room that can be used as a den or office. It has an exterior parking space, worth a bit less than the covered one with 413.
This unit was listed on 10/27/21 at $649,000 and went under agreement at in 21 days at $645,000. The market report linked to in this analysis shows an approximate 4% difference in $ per square foot in favor of the present market, so I adjusted for that. My analysis suggests a selling price for your unit of approximately $515,000+-, and supports the value of the previous comp.
This unit is slightly smaller. The kitchen, although not bad is somewhat inferior. There are no photos of the bath, which I imagine is not a coincidence. I judged the unit appeal to be somewhat inferior.
This unit was listed at $465,000 9/29/21 and went under agreement on 1/30/22, interestingly, for asking price. Looks like the market had perked up somewhat at that point, beacuase I am only showing a market adjustment to the present of 0.6%. My analysis suggests selling price for your unit of approximately $498,000+-.
Once again, a slightly smaller unit. Seems to be a similar finish level, with the exception of the bath, which has been redone in marble tile with a walk-in shower. Another thing in this unit's favor is that it's a corner unit with somewhat better light. I judged the appeal of the unit finishes to be somewhat inferior to yours. It does have one exterior parking space.
This unit was listed at $525,000 on 4/23/21.The price was reduced on 5/14 to $525,000. it went under agreement after 59 days on-market at $485,000. I also adjusted upwards by 4% to compensate for a somewhat higher market. My analysis suggests selling price for your unit of approximately $496,400+-.
Stacked above the last comp, it has slightly nicer views and light. The unit is slightly smaller than yours and the finishes are somewhat inferior, although it does have the same corner view as the previous comp, but on a higher floor, with better views and light.
It has an exterior parkings space.
This unit was just listed at $558,000 on 6/1/21. The price was lowered to $550,000 on 6/22, and the unit went under agreement after 45 days at $545,000. I again adjusted upwards by 4% to compensate for a somewhat higher market. My analysis suggests selling price for your unit of approximately $512,600+-.
This unit is located on the East side in a location that is very desirable market-wise, near Castle Island and the beach. The unit is a recent renovation with lots of updates, of a similar level to yours. Lots of light and skylights. There is also, a private roofdeck. Your loft does provide some additional utility. There is in-unit laundry here.
This unit was just listed at $575,000 on 9/15/22. The price was lowered to $550,000 on 11/2, and the unit went under agreement after 113 days on 1/19/23 (surprisingly) over asking $555,000. My analysis suggests selling price for your unit of approximately $511,000+-.
Located on the west side, just across Broadway, the former Bigelow School is a similar-sized brick building. I do not think the appeal of the building is quite the same as the Foundry, which I adjusted for ( although the $20,000 might be a bit generous). This is a very similar unit to yours. High ceilings with a loft. Nicely renovated kitchen. There is no AC, but there is an exterior parking space.
This unit was just listed at $499,000 on 2/1/23 and went under agreement 5 days later "a teeny bit" over asking, according to the listing agent, I'll say $505,000. Not surprised. I think someone got a super deal on this, particularly with the parking. My analysis suggests selling price for your unit of approximately $480,000+-, the lowest adjusted price of all of my comps.
8. 59 P St. #2
This unit is located on the East side, a block away from Castle Island and Pleasure Bay. a location that has a different feel but a similar value.
It does not have a loft, which I again adjusted for, but it is of similar size and renovation level. That having been said, there is a small private deck (smaller than the one at 109n), dedicated storage in the basementt, and in-unit laundry.
This unit was just listed at $549,000 on 7/7/2022, and the price was lowered to$535,000 ON 8/8. iT went under agreement ON 8/23/22 after 47 days-on-market at $520,000. The market report linked to in this analysis shows an approximate 0.6% difference in $ per square foot in favor of the present market, so I adjusted for that. My analysis suggests selling price for your unit of approximately $518,000+-.
CONCLUSION
SUGGESTED INITIAL LISTING PRICE:
$519,000.
First, there is a ton of nuance that is *not* in this report, so we should speak, or possibly meet when you get to town.
If you were putting your property on the market in March (assuming consistent market conditions), my analysis (and my gut instinct) tells me that the correct asking price range would be about $519,000. Having said that, that price *may* be somewhat optimistic. We'd need to keep an eye on the number of showings, or if we were getting showings but no offers. The market has not been particularly friendly to aggressive asking prices lately.
For reference sake, the average $ per square foot for sold South Boston units right now is 1.8% over 2019, which would put you at $488,640.
Average sold prices have increased about 4%, which would put you at about $499,000.
All that having been said, supply is limited, so the $519k might very well result in mutiple offers, but we can't have confidence in that,
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. If your unit is really worth more to the market, we will get a higher price. If not, we won’t.
My suggested initial listing price as of *right now* is $519,000
I believe that that is the price that will attract the largest number of buyers and the most competition for your property.
Best regards,
Joe
