Buyer's Tool Box
Jason Pacheco • May 9, 2023
TOOL BOX
Enter the tool box, and grab what tools work for you and apply it to your next offer!
- Get your pre approval letter updated, and dated, and addressed to the property you’re placing an offer on. The reason being is, the seller wants to see the day they are reviewing offers that your file has recently been looked at, and that you’re pre approved to purchase their home specifically. Also, your pre approval letter will hold more weight if there's a local bank/lender on the letter.
- Make sure your deposit is at least 1.5% of the offer amount. The closer you can go toward 3%, the better… Keep in mind this amount will go toward the amount due at closing anyway.
- Type of financing carries weight too. The more % you are putting down as a downpayment, the stronger the offer looks to a seller. What this means is, the more money you have to borrow from the bank, the less your offer will compare when comparing your offer to multiple others. So, try and put a good chunk of money down if you can.. 5%+ *TIP, try and have the word “Conventional Loan” on your pre approval letter. IF YOU CAN, this is more preferred from the sellers point of view.
- Inspections Inspections Inspections… This one is tough. The way the traditional purchase and sales agreement in Rhode Island is written. If there is something as tiny as 1 light bulb found in the inspection report that is not working, then the buyer will be able to back out, or ask for price reductions, repairs, or credits. Now, put yourself in the seller's shoes. Again, it’s a sellers market. They have multiple offers to pick from. If the sellers receive an offer where the buyers choose to completely waive their rights to inspect entirely, this offer compared to someone having a traditional home inspection (at times) adds about 20K+ more value to the offer. That being said, sellers are going to accept an offer that is $20,000 less than yours, if the buyer is waiving their inspections. The reason is, they don't have to worry about the deal falling apart after they accept and take it off the market, or the buyers asking for big price reductions due to findings on the report. The 10 day home inspection period is the MAIN reason a house will go back on the market. If you were a seller, wouldn't you take a less offer and just be done with it and be over the hurdle? That ALL being said; truthfully, the home inspection period is way too easy for a buyer to be able to back out, or renegotiate. ALSO - its a sellers market! Sellers are getting multiple offers, we have to be DIFFERENT and stand out. Here is how….Agree to waive your rights to terminate the agreement, and the rights to your deposit back due to the inspection; UNLESS, there is 1/single item needing repairs that are greater than $____________. **This is NOT add up 5 items on the report to = the number in the ________ spot. Make sense? I mean you like the house and want to purchase the house, so why would you want to back out if there is a fix needed that would cost you $500.00 when you move in? You’re not purchasing a new construction home, every home needs some sort of work, that is part of homeownership.
FYI inspection reports on average are like 6-12 pages long worth of suggested repairs, no home in perfect! So, let's get creative in this competitive market and stand out! - Appraisals! This is a tricky one, the easiest way to explain this is with an example...
Example: List price: 200,000 /// Your offer gets accepted at 275,000!
The bank will hire an appraiser to go to the property to make sure the home is worth 275,000 before they lend you a mortgage to purchase. Lets say the appraiser goes to property and says the home is only worth 220,000.
In this case, you will only get a mortgage based on 220,000; BUT, we are telling the seller we will pay 275,000. How are you going to come up with an additional 55,000?!
You told the sellers you would? Didnt you?
Well - what happens here is the buyers will typically ask for a price reduction to the appraised value because they cannot afford to purchase the home any longer. The sellers DO NOT have to say yes, and they can put their house back on the market.
THAT BEING SAID, when you are offering way over list price on these homes trying to be competitive, sellers see right through these offers. They know at some point the house won't appraise and they won't get the full amount you first told them.
***HERE is how we can get creative to get our offer accepted…
If you said, “Buyers agree to cover the first $10,000 a potential appraisal gap that may come up, and the sellers will price reduce the rest in the event the property does not appraise”.
This way you’re standing out! The way the math typically works here basing it off our example above: 5% down on appraised value (220K) = 11,000 down + 10,000 gap = 21,000 to the table and seller price reduces the rest.. Make sense? - Do you need to sell anything to purchase? Do you need the funds from the home you’re living in to purchase the next home? Do you HAVE to put “subject to the buyers selling their home on 123, Main St?
*Try and see if you can borrow $$ from someone and pay them back after you sell your home… Can you add a Co-signer?
Can you place an offer on the house you want to purchase, and push the closing date out 60+ days to give yourself enough time to sell your current home without the other party finding out?
This market is bananas, I sympathize with all my buyer clients during these crazy times. Continue to stay patient, and persistent! Keep in mind, The more offers you make, the more of a chance that one of the homes you placed an offer on, the deal falls apart and you get the chance to get 2nd dibs on the house before it goes BACK on market.. Make sense?
Happy Hunting :) !
What’s My Home Worth in North Providence, Johnston, Cranston, West Warwick, Cumberland, or Lincoln?
If you're a homeowner in Cumberland , Cranston , North Providence , or West Warwick thinking about selling, now is a smart time to start planning. Whether you're looking to upgrade, downsize, or move out of state, the Rhode Island real estate market offers strong opportunities in 2025 — if you know how to take advantage of them. As a local real estate expert, I help homeowners like you sell quickly, profitably, and with less stress . Here’s what you should know if you’re thinking about putting your house on the market soon: Why Homeowners Are Selling Right Now Strong Buyer Demand: Despite some fluctuations in mortgage rates, buyer demand in towns like Cumberland and Cranston remains strong. Well-priced homes in North Providence and West Warwick are seeing multiple offers, sometimes within days. Limited Inventory = Less Competition: Many homeowners are holding off on selling, which means there are fewer homes available — making your property stand out even more . If you're thinking about selling, you're not just listing a home — you're listing an opportunity. Relocation, Retirement, and Upsizing: Life changes are one of the biggest reasons homeowners in Rhode Island are choosing to sell this year. Whether you’re chasing a new job, retiring, or simply need more space, it’s smart to work with an agent who understands the nuances of these local markets. What Makes Selling in Cumberland, Cranston, North Providence, and West Warwick Unique? Each town has its own strengths, and knowing how to market your home properly matters: Cumberland: Buyers are drawn to Cumberland for its suburban feel, highly rated schools, and proximity to both Providence and Massachusetts. Homes with updated kitchens, finished basements, and large yards are especially attractive. Cranston: Cranston offers a mix of quiet neighborhoods and vibrant shopping districts. If your home is near Garden City or in desirable areas like Western Cranston, it's in very high demand . North Providence: First-time buyers love North Providence for its affordability and convenience. Updated properties, especially ranches and capes, are moving fast when they’re priced right. West Warwick: West Warwick is one of the most affordable towns in the state and a hotspot for buyers looking for value. If you’ve made updates like a new roof, kitchen remodel, or finished basement, buyers are ready to pay for it. How I Help Sellers Stand Out Selling your home isn’t just about throwing a “For Sale” sign in the yard. Here’s how I make sure my clients stand out in today’s market: Custom Pricing Strategy: Based on hyper-local data for Cumberland, Cranston, North Providence, and West Warwick, I price your home strategically to attract serious offers — not just window shoppers. Professional Marketing: Every home gets professional photography, virtual tours, targeted social media ads, and exposure to a network of ready buyers. Negotiation Expertise: When the offers come in, you want someone who can maximize your profit while protecting your bottom line. That’s where years of negotiation experience make a difference. Stress-Free Coordination: I handle all the showings, paperwork, deadlines, and communications, so you can focus on your move — not the stress of selling. Thinking About Selling? Let’s Talk If you're even considering selling your home in Cumberland, Cranston, North Providence, or West Warwick , let's have a quick conversation. There’s no pressure — just straightforward advice based on real market trends. A smart plan today can mean a bigger profit tomorrow. 📞 Call/text me anytime at [YOUR PHONE NUMBER] 📧 Email me at [YOUR EMAIL] Or click here [Insert Contact Link] to schedule a free, no-obligation home evaluation. SEO Notes for you: ✅ I worked in natural phrases like: sell your home in Cumberland, selling your house in Cranston, homes in North Providence, and West Warwick real estate market to help your ranking. ✅ This blog encourages direct action (call, text, evaluation form). ✅ It uses local targeting, low competition keywords, and buyer behavior notes for authenticity and search traffic. Would you like me to also create a shorter Instagram caption or a Facebook post promoting this blog to drive even more clicks? 📈
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First-Time Home Buyer FAQs
A question that frequently comes my way is, " When do you anticipate prices will come down ?" It's a valid concern, especially considering historical data. Since 1960, prices have only experienced a significant decline once, largely attributable to poor lending practices. Over the past 60 years, we've seen prices decrease noticeably only on that one occasion. Given this historical trajectory, with roughly 16 years having passed since the last substantial price reduction, it's pertinent to question the likelihood of it occurring again in such a short timeframe. In my view, the odds of prices dropping significantly within the next 2-3 years seem slim (b arring any unforeseen economic events). Factors such as the persistently low inventory and the relentless demand for housing paint a picture of a market resistant to price decreases. To put it simply, housing has become a necessity akin to toilet paper. Just as a shortage of toilet paper on store shelves leads to competitive purchasing behavior and even higher prices, the real estate market faces a similar scenario. With a surplus of buyers and a scarcity of available properties, competition naturally drives prices up. Furthermore, any decrease in interest rates is likely to exacerbate the situation, drawing even more prospective buyers into the market without a corresponding increase in housing supply. This influx of buyers only intensifies the competition for limited inventory, potentially leading to further price escalation. In essence, the dynamics of supply and demand, coupled with the influence of interest rates, create a scenario where significant price reductions in the housing market appear unlikely in the foreseeable future . Jason Pacheco, Jason.Pachecohomes@gmail.com