Is pricing low a smart strategy for selling your home faster and for more in today’s Rhode Island market? Here's what local sellers need to know.

What Does It Mean to Underprice a Home?

Underpricing means listing your home below its estimated market value to attract more buyers, create urgency, and (hopefully) spark a bidding war. The goal is not to sell low but to drive up competition that can push the final sale price well above asking.

This tactic has gained traction in competitive real estate markets like Warwick, East Greenwich, and North Kingstown, especially when inventory is increasing and buyer demand is still strong

When Underpricing Works in Rhode Island

In Central Rhode Island, especially Warwick and Cranston, underpricing can be effective if market conditions support it. According to the latest MLS data, Warwick's average single-family sales price is up 8.5% year-over-year in 2025 (Q1 2025 vs Q1 2024), with days on market remaining low (30). That means demand is strong—a key ingredient for a successful bidding war.

Here’s when underpricing can be a winning move:

• You're in a hot neighborhood (like Greenwood, Cowesett, or Buttonwoods).

• Your home is move-in ready and shows well in photos and in person.

• There’s low inventory in your price range or area.

• You and your agent have a solid pricing and marketing strategy.

The Risks of Underpricing

While the strategy can work, it’s not a silver bullet. Here’s what to watch out for:

• Lowball offers: If the market isn't hot enough or the property doesn’t show well, you could receive offers below your list price with no competing bids.

• Buyer skepticism: Some buyers may assume something is wrong with the home.

• Appraisal issues: If the bidding pushes the price too high, the buyer’s lender may not agree with the final price, risking delays or failed deals.

That’s why it's critical to partner with an experienced real estate agent who knows the Warwick and wider Rhode Island market. Nick Slocum or one of The Slocum Home Team's top agents can help you understand the true value of your home and what strategy will net you the most.

Case Study: From Underpriced to Over-Ask in Warwick

Earlier this year, we listed a 3-bedroom raised ranch in Warwick for $439,000 when a comparable home in the neighborhood sold for $460,000. We decided to list at the comp’s list price ($439K) instead of what it sold at. With a coordinated launch strategy including high-end photography, targeted digital marketing including Zillow’s Listing Showcase, and scheduled showings, the home received 27 offers and ultimately sold for $515,000—nearly $76,000 over ask.

Not every home is a candidate for this strategy, but when the data aligns, it can be powerful.

When to Avoid Underpricing

You should steer clear of this tactic when:

• Your home has significant repair needs or isn’t turnkey.

• You’re in a slower-moving market (higher months of inventory).

• You need a specific minimum price to move forward with your plans.

• You wouldn’t consider a full price offer if that’s the only offer on the table.

In these cases, a well-priced home supported by a strong marketing plan often outperforms risky pricing strategies.

How to Know If It’s Right for You

Ask yourself:

• How competitive is the market in your neighborhood?

• How quickly are similar homes selling?

• Are buyers waiving contingencies and going over asking?

At The Slocum Home Team, we run detailed market analyses using MLS data and years of hyper-local experience to help you answer these questions confidently.

The Bottom Line: Underpricing Can Work, But Only If It's Strategic

In Warwick and other parts of Central Rhode Island, underpricing can generate buzz and boost your sale price—but it needs to be part of a comprehensive pricing and marketing strategy. Done wrong, it can backfire. Done right, it can outperform expectations.

If you’re thinking about selling your home in Rhode Island and want to know whether underpricing is the right move, reach out to Nick Slocum or one of The Slocum Home Team’s top agents today for a custom pricing strategy.