Preparing for the Summer Real Estate Market

Preparing for the Summer Real Estate Market

As you've no doubt heard, Rhode Islands real estate market is sizzling, with buyers feeling pressure as low inventory constrains choices and bidding wars are commonplace. Here's how I predict the market will play out this summer--and how you can prepare as a buyer or seller.

What if you're looking to sell?

Because demand is outpacing supply in some areas an price ranges, asking prices are often increasing.

Most sellers can expect strong demand, and usually don't need to be concerned about whether their home will sell if priced appropriately. There are exceptions like odd homes or stigmatized locations.

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I am encouraging sellers to be "flexible" when it comes to holding open houses and to have as many as possible to accommodate summer and weekend vacation schedules. 

An potential important turning point--which may come within the next few months--will be if prices begin leveling off, which could encourage more sellers decide to list their homes and increase supply.

How to prepare as a buyer

Get pre-approved before you look.. Don't loose the home of your dreams because you are not prepared. Cash will almost always win, but a strong letter from a lender will be the next best thing.

Hire a local, knowledgable Realtor to protect you. Looks for an agent that does a volume of business in your location of choice and in your price range.

And if you are a buyer battling it out in a bidding war...

Thanks to the strong sellers' market, more and more buyers may find themselves embroiled in bidding wars. Here are some tips for coming out on top:

• Make an all cash offer if you can. If you can’t, and you feel comfortable that you’ll be approved for a mortgage, waive any financing contingencies. Always consult a Real Estate Attorney before waiving contingencies.
• Don't be afraid to show interest. Sellers will often think favorably about someone who's passionate about their home. Playing it too cool may be a turn off for a seller.
• Stay in touch with the listings broker to find out things like how long it'll take the seller to accept an offer, how many rounds of bidding there will be and whether anyone's offered all cash.
• Try to accommodate the seller. If they want to close quickly, let them. If they need to stay longer.. try to accommodate...
• Put a clear deadline on your offer.The seller may be more compelled to take your offer, and at least you'll know the status sooner rather than later.
• Apply a personal touch. Some sellers are swayed by a personal letter explaining their situation. Tell them how much you love their home and why!

Finally, move through the paperwork as quickly as you can, and don't get hung up on any issues that are trivial in the grand scheme of things. I always advise my clients that the deal is not done until both parties have signed and consideration has been given. (deposit) If you suspect you're in a race against other buyers, make sure your Agent knows that time is of the essence, and come up with ways to improve your offer. These may include increasing your bid, increasing your downpayment (to show you're serious), waiving a mortgage contingency, or accepting the seller's demand for a specific closing date.