Changing Real Estate Market = Changing Strategies: Buyers, Sellers, Shift Your Approach – Emilio DiSpirito

A Changing Real Estate Market Means Changing Strategies: Why Buyers and Sellers Must Shift Their Approach Now

By Emilio DiSpirito, License Partner & Private Office Advisor with Engel & Völkers, contributing writer

The Rhode Island real estate market is undergoing a significant transformation, and both buyers and sellers must adapt if they want to stay ahead. Just a year ago, the state had around 900 active listings across single-family homes, condos, and multi-family properties. Today, that number has swelled to nearly 2,000—more than double the available inventory. Yet interest rates remain high, hovering around 7%, and the buyer pool has shrunk due to tighter economic conditions, such as mounting credit card debt and general uncertainty.

The Problem: Misinformation and Misunderstanding

Too many consumers are still operating with outdated information. Rhode Island isn’t one homogenous market—it’s made up of 39 municipalities, each with distinct neighborhoods and micro-markets. Waterfront property in Barrington is nothing like a single-family home in Woonsocket, and what works in one location may fail miserably in another. While we can speak in general terms, it’s critical to consult a local real estate advisor who understands the nuances of your specific area.

This article focuses on broader statewide trends and does not apply to waterfront or specialty markets, which behave very differently.

Buyers: The Window of Opportunity Is Open

Right now, buyers have a rare advantage—less competition. Homes that have been on the market for 30+ days, especially those needing cosmetic updates or priced above market value, are prime targets for negotiation. Many buyers are securing properties at $10,000 to $70,000 below asking price with favorable terms, including inspection contingencies, closing cost credits, and even post-inspection repairs.

In other words, buyers are gaining leverage again.

Although interest rates are still elevated, buying now offers strategic benefits. Should rates fall—as many anticipate they will under potential policy shifts and economic pressure—the refinancing option remains. According to BlackRock, every 1% drop in mortgage rates brings approximately 5 million buyers back into the market. That means if you wait, you’ll likely be competing again—driving prices higher and losing the negotiation edge.

Sellers: Reality Has Shifted, Strategy Must Too

For sellers who want to maximize their sale price and minimize contingencies, it’s critical to trust your real estate advisor’s pricing strategy. Many sellers are still clinging to memories of homes selling $50,000 to $100,000 over asking with dozens of offers. For most properties, those days are gone—at least for now.

The market has changed because the environment has changed. At one point, we had record-low inventory and historically low interest rates fueling a buyer frenzy. Now, with more inventory and fewer buyers, sellers must compete again.

The best strategy for most listings—especially those around the median price point—is to price slightly under market value. While it may sound counterintuitive, this approach can generate strong interest and create a bidding environment that pushes the price higher. Time and again, this has proven more effective than pricing high and hoping for one perfect buyer.

For example:

• A home in South Kingstown listed at $895,000 sold for $1.1 million after drawing six offers and waiving inspections. Listing it at $950,000 or higher would’ve likely resulted in less competition and a lower final sale price.
• A $625,000 home listed at $595,000 ended up selling at full market value, with waived inspections and stronger terms. Had we listed at $625,000, we may have ended up at $590,000—plus full contingencies, costing the seller time and money.

These are not exceptions—they’re examples of how smart strategy wins in today’s market.

Once sellers create competition, they often find themselves in a position of strength—able to negotiate better terms, minimize repairs, and close faster. Another added benefit? Sellers may gain leverage in discussions around agent compensation.

In a multiple-offer scenario, some sellers have successfully negotiated reduced buyer agent commissions or structured deals where the buyer contributes to that cost—ultimately increasing the seller’s net proceeds. For example, adjusting compensation from 3% to 2% on a $625,000 sale could save approximately $6,000.

Disclaimer: Agent compensation is fully negotiable and must be discussed with a licensed real estate professional. This is not a guaranteed or fixed standard of practice.

The Takeaway

The Rhode Island real estate market has shifted. Buyers must recognize the current opportunities, and sellers must embrace pricing strategies that reflect today’s conditions—not yesterday’s headlines. The most important move you can make in either situation?

Trust the real estate professional you’ve hired.

They have their boots on the ground, real-time data at their fingertips, and the experience needed to guide you through a market that’s no longer “hot”—but still full of opportunity, if you know how to navigate it.

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To read more articles in RINewsToday by Emilio, go to: https://2×8.ea2.myftpupload.com/emilio-dispirito/

Emilio DiSpirito, Realtor and License Partner, Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay, 401-359-2338 – [email protected] – Instagram: @EVRhodeIsland – Website: EastGreenwich.EVRealEstate.com

Emilio DiSpirito
License Partner & Real Estate Advisor, Engel & Völkers East Greenwich & Engel & Völkers Barrington East Bay
Recognized as Rhode Island’s top real estate advisor specializing in luxury properties, multifamily units, and investment strategies.
Host of The Wealth Architect Podcast
Follow me on Instagram: @wealtharchitectpodcast
Contact: [email protected] | 401-359-2338