You basically have four options & we will need to determine the best course of action for you:
1) Find a home that you like & try to get an offer accepted with a contingency to sell your home. This is extremely challenging as most offers that are getting accepted are those that have the LEAST number of contingencies. It's not impossible but it's definitely very challenging.
2) Get your home under contract & find a buyer that is willing to wait to close until you find a home. The challenge with this scenario is that as interest rates continue to go up buyers are only able to lock in rates for a limited amount of time & so the buyer will likely want to have a set amount of time in place rather than open ended. For example, they may say they will wait as long as 60-90 days but no longer than that. If you haven't found a house by then the buyer may decide to back out of the contract & then we have to start over. Also, even if you have a contract in place for a buyer you'll still have to have the contingency in place in order to buy a home---so just like option number 1, it's going to be challenging to get an offer accepted.
3) Close on your home as quickly as possible with a Leaseback Option so that you can stay in your house after the closing for a set amount of time to find a home. The challenge with this option is that while many buyers prefer this option they will give you a set amount of time to find suitable housing. Meaning you would close on your home in 30-45 days & the buyer would allow you to stay in the house 60-90 days max in order to find & close on another property. The bonus with this option is that you have a much higher likelihood of being able to get an offer accepted on your new home because you won't have to include a contingency to sell your current home in your offer. But it will mean that the clock is ticking to find your next home & with limited inventory that can be a challenge. It's going to come down to your budget, expectations, ability to move quickly, & the contingencies that you are willing to eliminate from your offer.
4) Close on your property as quickly as possible & find a short term rental like Air BnB or seasonal rental. The challenge with this is that rentals are also difficult to find & expensive! The average one bedroom apartment in Providence is now $1800, rents have gone up in some areas by 30-40% & it's expected that they will continue to rise.
Your new home awaits! This must see contemporary home is filled with the modern amenities that are desired by today's home buyers, has a fabulous layout with beautiful views from every room, and features upgrades to all the major systems.
Tucked away on a tree lined 1.8 acre lot with a picturesque pond and beautifully landscaped yard, this is a home that will appeal to nature lovers. Upon entering the home you will love the vaulted ceilings in the formal living room with a picture window facing the pond. The spacious dining room, overlooking the backyard, leads to an eat in kitchen with an open concept leading to the family room which features a wood burning fireplace, picture widow, and sliding doors onto the back porch. A half bath and laundry area are also located on the first floor.
The second floor features a large, sun-filled primary suite with a full bathroom and walk in closet as well as three additional bedrooms and full bathroom. The lower level has been finished into an epic media room and also has an office and full bathroom along with additional storage & utility room.
Enjoy the back yard from a large deck or from the vantage point of the hot tub. All major systems have been updated: roof replaced in 2018, heating system in 2015, whole house generator added 2013, new septic installed 2011, Central AC 2010. The finished basement is a DRYZONE basement complete with French Drains and sump pump. This warm and inviting home is ready for its new owner!
Thank you to my wonderful clients! We were able to raise $500 which will be enough for Haus of Codec to purchase the bed & mattress needed. xoxo
About Haus of Codec:
Haus of Codec provides safe and accessible spaces for our local Queer and BIPOC Communities by providing a safe shelter space for youth ages 18 - 24 to call home and help them find their own, more permanent housing solutions and workforce development opportunities. The shelter space is complete with a food and clothing pantry, self-service kitchen, access to essential services through partner providers, and a sense of community.
If you prefer a direct donation or purchase off of their Amazon Wish List see below:
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There are very few listings available in Middletown (well, anywhere tbh). And this one is going to fly off the market! Amazing location--walk to the beaches, walk to the elementary school, big field and playground behind the house, five minute drive to Newport's hot spots.... And it's been beautifully remodeled--gorgeous layout with open concept & amazing light from front to back, oversized living room ideal for entertaining, office/bedroom on the first floor plus a generously sized full bathroom--and that's just the first floor! The second floor features three additional bedrooms. I love that the primary bedroom has vaulted ceilings & a new sliding glass door---it's just waiting for the new owner to complete with a second floor deck for those gorgeous water views!
Here's my full listing description, click on the link below for the listing details:
Look forward to beautiful summer days in your new home or vacation rental at this coastal oasis located within walking/cycling distance of Newport's Easton's Beach or Middletown's Surfers End & Second Beach. Newly renovated, this beach house features a well thought out open concept floor plan featuring a large kitchen with new appliances, hardwood floors throughout, a living room that is ideal for entertaining & highlighted by an abundance of natural light from front to back. The first floor also features an office or bedroom located off of the kitchen and a large first floor full bathroom. There are three bedrooms on the second floor with a primary bedroom with vaulted ceiling and a spectacular Ocean views through the brand-new sliding doors. The full basement offers ample room for storage & would be ideal to refinish for bonus space. Additional renovations include a new roof and Central AC. The backyard is ready for summer parties with a beautiful stone patio & fire pit. The fully fenced yard has a gate which opens to a large field with access to the elementary school playground. Located on a quiet cul-de-sac with a one car garage and plenty of additional parking, this home is less than a 5 minute ride to Newport's acclaimed restaurants and shops. With so much great interior space and a yard built for entertaining, this would be a great vacation getaway, primary residence, or Air Bnb investment property.
You've heard the stories from your friends + relatives---"The seller loved us because we wrote a letter & they picked our offer even though we weren't the highest offer!!!"
Yes. I've had it happen. But letters to sellers walk a fine line when it comes to violating Fair Housing Laws. So here's the thing, you can count on me to be as creative as possible to get your offer accepted & that has included letters & videos & more! One offer I submitted included the offer to design, pro-bono, a website for a charity that the seller founded if the seller accepted my clients offer. They had a very basic website & my client is a skilled designer so we thought it might be a unique addition to the offer to tip in our favor.
Last year, I had two Buyer clients submit a short video to the seller---both offers were accepted! The videos definitely helped, but that's not the whole story. For one of the property's, we offered significantly above the list price, waived the inspections & the appraisal---we literally threw in every favorable contingency possible because my clients were in LOVE with the house--it was their dream house & they didn't want to miss it. The video helped to convince the seller to cancel the open house but, frankly, they really weren't likely to get a better offer.
The other client who submitted a video--that one really did make the difference in getting our offer accepted despite the fact that their purchase would be contingent upon them selling their condo.
So yes, letters or videos to sellers can make a difference. But again, we're skating on thin ice & there's also a very good chance that the Sellers agent isn't going to pass along letters. I make it a policy, when representing a seller, not to submit letters. I'll read them & if there's relevant info pertaining to their job security or financial stability, I may let them know. But often sellers are overwhelmed by the enormity of the process & adding in undue emotional stress isn't helpful---one house one buyer & it's difficult to make emotional connections on top of what really should be a business decision.
That said, some real estate Brokerages will not accept letters to sellers because there have been lawsuits in recent years--it can be a violation of Fair Housing Laws. Oregon actually passed a law banning them & I suspect others will follow. (Here's info to review). If a property is an investment property that has been "flipped" it's highly unlikely that a letter would make any difference---an investor is interested in the bottom line and getting to the closing table as quickly as possible.
Rather than submitting a "love letter" to the seller we need to understand what's important to the seller. Do they need a flexible closing date? Does the listing say 'Subject to Suitable Housing'? Would a screenshot of your credit report help to highlight that your finances are in order? Do you have a substantial amount in your bank account to show that you have proof of funds for your down payment? Have you been solidly employed by the same employer for several years? These are examples of important details that we can discover to craft an offer that gets selected. Some Realtors understand that there is an offer strategy but I can tell you that many don't & THAT is YOUR advantage of choosing to have me on your team!
When crafting an offer I can assure you that I will work to discover the reason the seller is selling, how quickly they want to sell, and what might make our offer stand out--this is what will make a difference! In this market it's going to come down to the offer that offers the most favorable terms for the seller: the best price, the fewest contingencies, & the most likely buyer who be able to get to the closing table without any hiccups. Having your financing in place, understanding the market that you're in & home sales in the areas that you're looking, & understanding the offer/contract process will allow you to be ready to decide what's right for you when working with me to craft an offer that will be accepted.
Remember, you’re driving the bus & I’m next to you as your navigator! My job as your agent is to provide you with the various routes that you can take but you’re the driver making the decisions that are best for you! Ideally you've been reading my posts, watching my videos (& others) and taking the time to learn the home buying steps so that when you're ready to submit an offer, you're able to make a decision that you feel confident about!
When multiple offers are expected on a property one of the tools that we can use is an Escalation Clause. This is a document that is submitted along with the offer package. It states your starting offer but gives you an opportunity to increase your offer, by a set amount (increments), up to a maximum amount (cap).
Here's an example:
List price is $279k and comparable properties lead us to believe that offers could go as high as 10% above the list price. You'll want to use your mortgage calculator or get help from your lender to make sure that you understand the difference between the total monthly mortgage payment at different amounts. What is the monthly payment at $285k vs $305k? This will help you to decide if you're ABLE to offer $305k. You'll also want to look at comparable prices in the neighborhood--keeping in mind what it might appraise for, what the future value & equity potential is, and how close on a scale between 1 & 10 does it land on your scale (you can't use 7---that's the indecisive number, it's either 8+ or 6-). This is how you will decide how much you're WILLING to offer.
Here's what the escalation looks like:
List price is $279k; we're willing to increase our offer amount by $xxxx ($1k, $3k, $5k, $10k) over the highest offer up to $x amount.
Starting offer $279k
Increments of $3k
If the highest offer is $300k then your offer becomes $303k. However, if another buyer is willing to pay $309k then your offer is maxxed out at your cap of $308k. If the highest price is the determining factor then the Seller will go with the buyer that pays $309k.
WHY WOULD WE WANT TO SUBMIT AN ESCALATION?
Because we are in a very strong sellers market where most houses, in good condition, will have at least 3 or more offers (my listing at 15 Coes St North Providence had 12 offers!).
Here are some strong reasons to consider an escalation clause with your offer:
1) When there are multiple offers the sellers agent will call for "Highest & Best Offers"--you get one shot & we don't have access to see what the other offers are. You hear about "Bidding Wars" but that's not really how it works.--there isn't usually back and forth.
2) The Escalation Clause is a written document that you will sign. Part of this clause states that the Sellers agent must provide written proof of the "Bona fide offer" that kicks in your escalation. This is so that we don't just have to take the agents word for it that your escalation has been kicked in. So if the highest competing offer, per the example above, is $299k then your offer becomes $302k and they are supposed to provide us with proof of that offer---info will be redacted for the privacy of the competing buyer but again, this is an attempt at transparency.
3) It's a drag to miss out on a house that your really like by a few thousand dollars so this allows you to cover your bases. Have I had people submit escalation clauses who haven't had to go to their maximum amount? YES!! Many times!
Do we have to put in a cap/max amount: No. But I have had this strategy backfire before on a client. We hadn't signed a contract so they weren't in a position where they had to move forward--another buyer put in an escalation that went way over what we anticipated! I've also had it work as a strategy. We have to talk about all of the options to make sure we're using the strategy that works best for you!
Should you start with the list price: yes but I do recommend that you set your increments at $2k or more (meaning that you would be $2k higher than the other most competitive buyer). Why higher increments? It depends on the house & the price point but you may be able to entice a seller to choose you over a similar buyer who perhaps has another more favorable contingency--maybe they've waived the inspection but you're willing to pay $5k more than that buyer so they may be willing to move forward with you even though you have included an inspection contingency.
What else should do you need to know when submitting an offer? I have a video that cover this here. Watch it but here's also an overview:
To make an offer I need to know:
escalation & if so starting offer & maximum/cap & increments
will you include the inspection contingency
will you include the mortgage contingency
will you include the appraisal contingency & if so are you able/willing to offer an appraisal gap
See also: What Are Contingencies blog post
Now that you've read through this let me know if you have any questions! It's a lot to take in but it's my hope that if you have the opportunity to read posts & watch videos you'll be bette equipped to know what else I can do to ensure you understand your options & the process. I'm always here to help!
You will be charmed by 271 Atlantic Ave the minute you step foot through the brightly colored front door! This two bedroom Bungalow features many updates including a five year old roof, young heating system (gas), and updated plumbing and wiring. A warm and inviting layout with hardwood floors throughout, the living room and dining room receive an abundance of light. Off of the dining room are two bedrooms, full bathroom, and kitchen. The kitchen has been updated and leads to a large deck for outdoor entertaining and a spacious, fenced in backyard. There is a walk up attic which adds additional storage space or potential renovation. The basement is partially finished, ideal for an office, music practice studio, or playroom. The backyard features an oversized deck that overlooks the yard which has a fire-pit and ample room for kiddos &/or fur-babies. The property is complete with a one car garage. Great location---fifteen minute walk to Pawtuxet Village with restaurants, bars, and coffee shops along with the convenient amenities of Post Road nearby.
Welcome home to 15 Coes St, a well cared for and maintained home in the heart of North Providence. Step inside to a spacious living room which features an oversized picture window and newly refinished hardwood floors. Entering the kitchen you'll see a built in vintage hutch with the original mid-Century modern starburst hardware. Originally built with the family table as the center of the kitchen, the cooking area is relegated to a galley kitchen--everything close at hand yet plenty of cabinets. Off of the kitchen, you will find three bedrooms with ample closets and hardwood floors. The bedrooms are spacious and all receive an abundance of natural light throughout the day. The full basement is partially finished with laminate flooring, offering ample room for a media room, office, or any number of configurations to meet your needs. There is also additional room for storage and laundry. The roof is ten years old and the gas heating system has been well maintained and is in great condition; an added bonus--this home has Central AC! A charming yard, ideal for kids or fur-babies, it is the perfect City size and has a working sprinkler system. Easy access to all major highways and all that Mineral Springs has to offer yet tucked away in a quiet neighborhood. This is a perfect home for someone looking to downsize or for first time home buyers who want to be in a great neighborhood.
Buying or Selling? Here's some useful advice!