The real estate market across the United States has been on fire lately. According to a recent CNBC article, the median home price increased over 17 percent year-over-year to over $329,000. Rhode Island is no exception. According to a recent analysis from the online real estate company, Redfin, the median list price for a Rhode Island is $389,000. And while historically, on average, houses sold for slightly less than the list price due to buyer negotiating, that isn’t necessarily the case in today’s hot market.
To be sure, high home prices add to the challenges buyers face when seeking to purchase a home. However, the increasing sales prices are actually a function of another factor: a decrease in supply. As fewer homes are put on the market—and those that are put up for sale are quickly sold—the existing inventory of homes dwindles. Basic economics tells us that as supply decreases, prices will increase.
All this to say, the Rhode Island real estate market is competitive and buyers who want to end up with the house or property of their dreams need to be prepared to make a deal. Sellers are less likely to haggle over price or make the type of concessions they did decades ago. That said, buyers shouldn’t compromise on the important things, but shouldn’t insist on every aspect of the deal going their way, either.
For example, in many real estate purchase and sale agreements, buyers build in several contingencies that allow them to back out of a sale for almost any reason. One option to be more competitive in today’s market is to take a second look at the contingencies you typically include with your offer. The most common contingencies related to financing, various home inspections, and the sale of your existing home. While these protect the buyer, they also give buyers a way out. This can cause sellers to view offers with too many contingencies with skepticism.
Of course, if you need the equity that’s locked up in your current primary residence to purchase your new home, a home-sale or financing contingency may be necessary. However, you can structure the terms of the contingency in a way that eases some of the seller’s fears that the deal may not go through. While real estate agents are a good resource when buying and selling real estate, those who are serious about purchasing a home and don’t have time to waste should reach out to a Rhode Island real estate lawyer for assistance.
Contact the Rhode Island Real Estate Lawyers at Bilodeau Capalbo
If you are in the process of buying a home and want to ensure you are protected but at the same time give the deal the best chance of making it through closing, give the Rhode Island real estate lawyers at Bilodeau Capalbo a call. We represent buyers and sellers in all types of real estate transactions and disputes, giving us valuable insight which we pass on to each of our clients. To learn more, and to schedule a free, no-obligation consultation, call 401-300-4055 today.