The same listing in two different zip codes can mean entirely different things. A house sitting 60 days on market is desperate in one neighborhood and normal in another. Before you make an offer, learn how to read the local market's temperature — a 15-minute exercise that protects you from over- or under-paying.
Comparable Sales (Comps)
A comp is a recently-sold home (within the last 3–6 months) that's similar to the one you're looking at: similar neighborhood, square footage within ~15%, similar bed/bath count, similar condition. You want 3–5 comps to anchor your sense of fair value.
Active listings tell you what sellers are *asking* — irrelevant to value. Sold prices tell you what buyers actually *paid* — that's the real data.
Days on Market (DOM)
| DOM Range | What It Suggests | Buyer Strategy |
|---|---|---|
| < 7 days | Hot market, multiple offers likely | Be ready to offer over asking |
| 7–21 days | Healthy demand | Reasonable offer near asking |
| 21–45 days | Cooling or overpriced | Offer 3–5% under asking |
| 45–90 days | Stale; something's wrong | Investigate, offer well below |
| 90+ days | Major issue or deeply overpriced | Make a low-ball; seller is motivated |
Months of Inventory
Months of inventory = (current active listings) ÷ (homes sold per month). It's the single best market-temperature metric.
City-level metrics hide neighborhood-level realities. The same metro can have neighborhoods at 1.5 months inventory and others at 8 months at the same time. Always pull the metric for the specific zip code or school district, not the whole city.
- Under 3 months = seller's market (expect bidding wars)
- 3–6 months = balanced market (some negotiation room)
- Over 6 months = buyer's market (you have leverage)
Price-to-List Ratios
Recently-sold homes' final price divided by their original list price tells you whether buyers are paying over, under, or at asking. Ratios above 100% mean bidding wars are the norm; below 95% means sellers are accepting big haircuts. Your agent can pull this for any neighborhood in a few clicks.
Comps, DOM, and inventory — three numbers, fifteen minutes, and you'll know whether to lead with an aggressive offer or sit back and wait for a price drop.
