Are You Overpaying for a Home?

A comparable sale, or comp, is a recently closed home sale used as evidence of what a property is worth. The most useful comps are close in location, similar in size and type, and recent, then adjusted for differences in updates, condition, lot, view, and garage. On the North Shore, that is how we turn an asking price into a price you can defend.

Ideally the last three to six months. North Shore markets move seasonally and town by town, so an older sale can paint a stale picture. When inventory is thin, we widen the window carefully, but recent closed sales always carry the most weight.

Automated values are a starting point, not a final number. They work from public records and broad averages, and they cannot see a home’s condition, updates, views, or this week’s buyer demand. Two homes a block apart can sell for very different prices. Use the online number as a conversation starter, then compare it with actual closed sales in the neighborhood.

Your lender lends against the appraised value, not the contract price. If the appraisal comes in below your offer, you can negotiate the price down, bring extra cash to cover the gap, or meet the seller in the middle. An appraisal gap can also be negotiated up front. That is one reason strong buyers review comparable sales before they make an offer.

Not automatically. Your offer should follow the evidence of recent closed sales, what you are comfortable paying, and how much competition the home has. In a multiple-offer market, a serious first offer usually counts for more than holding something back. Just make sure the price can be supported by the market, so you are not overpaying or putting the deal at risk with the appraisal.