RI Real Estate Market Statistics For Single Family (March 1st 2017 - May 31st 2017)
What do we learn from this?
In RI, we are in a sellers market. Many of RI real estate single family properties that are priced right end up in a bidding war. That is obviously good news for sellers and seller's agents. Buyers and their agents on the other hand are getting frustrated and for a good reason. Many buyers who take the time/effort to write an offer, end up in a bidding war with a few other buyers and that is obviously frustrating. At the same time, most sellers are naturally also buyers, since they need to buy their next home. In that sense, sellers are also frustrated for the same reason, placing offers on homes that are priced well and ending up in a bidding war.
Tips for buyers:
If you find a home you like to buy, consider offering full price or $1,100 above asking. This will secure a good buying position for you. Now, in a case when your agent tells you there are multiple offers, at that particular situation you should consider offering a higher amount. For example: If they home you're trying to buy is listed for $359,900 and your agent tells you there are multiple offers, you should consider offering your highest and best (terms as well as price). Remember an offer is not only about price, its also the terms of your offer, the down payment, the mortgage amount (mortgage contingency amount), the inspection contingency, etc.
Tips for sellers:
Price your home at the right price and you'll have buyers fighting over it at a bidding war, which will end up in a higher selling price, is ALWAYS better than pricing higher and ending up having no offers. These days buyers who are looking to buy a home in RI are savvy, especially buyers represented by experienced RI real estate agents. The agents know when a home is priced too high and they advise their buyers to wait for the price to drop before looking at it. They assume a seller who over price their home, is not motivated (which is true in most cases) and therefore, they prefer showing their buyers a more realistic seller's listings. So pricing is and ALWAYS will be the most important piece in selling your home and maximizing the potential. Bottom line is, buyers determine the value of homes based on what they're willing to pay for it. If you price it to sell at a bidding war, you'll always know your maximum value is met and in case your deal doesn't go through for whatever reason, you'll end up with other interested buyers that are ready to jump on it.