Prepared for Dorina Mihail
Hi Dorina,
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.
- Appraisal-style analysis and adjustment table, below.
- You can see the details of the comparables by clicking on the addresses in the analysis table. including detail sheets of the more relevant properties. Note that my website will ask you to sign in in order to view the listing details. Just hit ESC. Or create an account!
- Click here for the latest South End market data.
See pricing discussion and conclusion immediately below the following table.
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YOUR PROPERTY
Your property has several strengths with respect to the market. First is that it is in a relatively recently constructed elevator building which is pet-friendly and well managed. The location is very attractive to medical personnel as well as to many different types of people due to its location close to the silver line for downtown access, as well as to the SOWA area, Whole Foods, and the restaurants and attractions of the South End. It's attractive to first-time buyers as well. The parking is obviously a very important attraction, and the balcony is a great addition.
Downsides with respect to the competition: First and most importantly is the fact that there is not a built-out bedroom. It might be difficult for some couples, especially if they work from home. While many potential buyers will like enjoy the loft-like layout, some will not. Also, some of the competition has more polished, higher-end finishes.
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 aboveI've laid out the most comparable loft or 1 bed units I could find that have sold in the last 12 months. My search criteria included listings in buildings of a similar nature, and of similar size. 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.
As with all of these, it’s a case of pluses and minuses. The first thing about this is the location. Obviously very close to yours, in a similar style of building.
The size, as with all of these, was very close. I’ve adjusted $/per SF conservatively at $400/SF. This is because the square footage is so similar that I think a little more or less square footage is not worth as much as the overall dollars per square foot (most of these sold for $850-$1,000 ish per square foot). I value your balcony for this purpose at about $20k
The obvious advantage this unit has with regard to the market in general is the built-out bedroom. Garage spaces in this area of Harrison have been selling recently for $65k-ish for a single and $110-$120k for a double. So I adjusted for a single space at $45k. I value your balcony for this purpose at about $20k. Since this sold last sprig, I adjusted the appreciation at 2%.
I had this unit on the market almost exactly a year ago (my listing). Sadly, the owner wanted me to price it in the $760's, so it took a while before I could convince him to lower the price. We finally lowered it to $740,000 on 6/18 and it went under agreement for $735,000 on 6/24. I believe that if I had been able to list it for that price at the poutset, I could've gotten more. Using this as a model, my analysis of this property suggests a selling price for yours of about $769,000+/-.
Located in the Gateway Terrace association, this unit had a bedroom and a slightly higher level of fit and finish. And it had a bedroom. It did not, however, have parking or a balcony.
Listed on 1/19 at $630k, it sold at $640k after 8 days on market. My analysis of this property suggests a selling price for yours of $732,000+-.
This unit had sort of a quasi-bedroom, built out, but not all the way to the ceiling. It was a 6th floor corner, which did afford it a bit more appeal, as well as the same level of finish as the previous comp.
Again, no parking and no outdoor space.
This unit was listed in February of this year andwent under agreement 2 days on the market. Because opf the abbreviated time on-market, my assumption is that it went either for asking or above. I assumed asking price. My analysis suggests selling price for your unit of approximately $740,000+-.
This one was a loft unit with no built-out bedroom. Slightly inferior finish, i garage parking space and no balcony.
This unit was listed at $699,000 on 5/7 and was lowered to $685,000 on 6/7. Went under agreement on 7/15 at $675. My analysis suggests selling price for your unit of approximately $761,500+-.
This unit is a loft unit with no bedroom.. It had a nicer level of fit and finish, and it also had a direct Back Bay skyline view. The building does have a concierge.
Located at Wilkes Passage on Washington Street and Waltham Street, the location is slightly superior
This unit was listed at $699,000 on 5/12/21, it went under agreement on 5/26 at asking price. I did adjust for the fact that it sold a year ago. My analysis suggests selling price for your unit of approximately $723,900+-.
This unit is a one bedroom plus a small den located at the brand-new 88W project. The fit and finish of this is at a higher levet. It does have one garage parking space but no private outdoor space. It does have a very nice common landscaped rooftop terrace.
This unit was listed at $759,000 on 12/1/21, it went under agreement on 1/21/22 at $752,000. My analysis suggests selling price for your unit of approximately $704,000+-.
CONCLUSION
If you were putting your home on the market at this time, my analysis tells me that the correct asking price would be $739,000+-. Which does not rule out the possibility that that a highly motivated cash buyer would put in a higher offer. The market is *extremely* busy right now, and properly priced properties have been bid up.
Getting asking price or above depends upon getting multiple offers. The question is, what is the best price to list at in order to get to that highest price?
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 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 listing price as of *right now* is $739,000.
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
