Real estate broker Nick Ferrara joined Coldwell Banker Realty in Providence at the beginning of 2023, after getting his start at TF Jordan Realty LLC in Barrington in 2016, spending three years there before working at a small boutique firm called The Link Agency in the interim.
Ferrara first learned about the real estate industry through earlier work in the construction industry under his father’s company, N. Ferrara & Sons., he said. In addition to brokers’ licenses in Rhode Island and Massachusetts, Ferrara holds several National Association of Realtors certifications, including short sale/foreclosures, at home with diversity, accredited buyer’s representative, and senior real estate specialist.
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PBN: At this point, many people are well aware of what’s going on with this real estate market right now and how sellers are in a very advantageous position. But what options are you trying to inform buyers about in the face of persistently low inventory, bidding wars and high interest rates?
FERRARA: I try to emphasize to buyers to buy now and not wait on the sidelines until rates come down. By doing so, they will be able to secure themselves in a property and gain equity while values continue to rise.
I also believe that when rates do come down, that all the buyers on the sidelines that were trying to wait this out are going to find themselves in fierce competition due to bidding wars, unlike we’ve seen in previous years due to the ongoing decline in inventory.
PBN: From your experience and what you’ve learned from others, what are the ways that a sale can go sideways and how do you proactively try to address those issues before they can do irreparable harm?
FERRARA: There are many ways a deal could go sideways and fall through. Some examples include lack of financing, job loss, opening new lines of credit during the contract period, etc. I find the best way to be proactive is to constantly educate your clients and keep an open line of communication with all parties involved with the transaction to make sure everything is proceeding on track.
PBN: How long have you been in real estate, when did you decide to get your broker’s license, and what does that additional license do for you?
FERRARA: I’ve been in real estate since 2016 and decided to go full time in 2020 during the pandemic. Acquiring my broker’s license is something I wanted to do since day one of getting into the business because I have the dream of one day opening my own brokerage. During [the COVID-19] pandemic, I decided that there is no better way to spend the extra time I had on my hands than to start taking the extra training required to become a broker.
PBN: What’s your advice to Rhode Island property owners who are considering selling their home right now to relocate or downsize, and why?
FERRARA: This is a very simple question. Downsizing or relocation are the only two reasons I would advise a seller to sell. Even though it adds to the overall decline of inventory by not selling, it makes no sense for a seller to leave a lower interest rate and get into a higher interest rate when they can stay put and gain equity while riding out the current market.
PBN: What’s your advice to potential first-time homebuyers who want a small, modest single-family home but aren’t sure they’re able to afford it? How much should they have for a down payment and roughly what would they be looking at for a monthly mortgage payment?
FERRARA: This goes back to my previous answer in question 1, which is to buy now. For a first-time homebuyer, $20,000 is a good safety net to work with to help with a down payment and closing costs. I would highly suggest alleviating the burden of having to save that much money … [by exploring] all the available grants such as the R.I. Housing [and Mortgage Finance Corp.] first-time homebuyer grant programs. If you happen to be working with a lender who is not affiliated with R.I. Housing, then be sure to ask about their in-house programs for first-time homebuyers as well.
All in all, with the range of $300,000 to $350,000, a first-time homebuyer can expect to be paying $2,300 to $2,800 roughly a month depending on location and other variables such as taxes and insurance.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
