Port Royal Naples, Florida Update
Hello Naples Friends,
It’s been a little over 3 months since my last Port Royal review which means it’s time to catch you up to speed on what happened, what didn’t and what’s about to go down.
Let’s get started:
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Port Royal burned off a little inventory this season and when I mean little I mean 12 Port Royal homes sold since January 1st! Some of the best inventory disappeared.
Let’s take a peek at the most notable Port Royal Sales this season:
3750 Rum Row. Closing at $17,700,000. Probably the home I held my breath on the most and watched in amazement. It started out as nearly a $23,000,000 spec home. For this market, that’s high stakes gambling and takes an enormous amount of……courage to undertake and purchase. Kudos to both the developer and buyer for stepping up to the plate! That whole, “if you build it they will come” mantra rang true in Port Royal this season at least for some happy buyers and sellers.
The secret weapon here was exceptional design and construction coupled with market responsiveness. The beginning of the season was light and uncertain. The owner made no mistake to mask their enthusiasm to sell by responding to slow traffic with a $1,455,000 reduction at the beginning of January followed by another $1,545,000 reduction by Valentine’s Day. After all, nothing says, “I love you” more than letting the ones you care about know you’re listening to them and you’ll take good care of them, right? In this scenario taking great care of the buyer was exactly what transpired with another $2,250,000 discount at the negotiating table.
Of the biggest homes in Port Royal selling this season, 3750 Rum Row still captured more per foot than none other equaling $1,860.
1770 Galleon Drive Closing at $15,750,000. One of my most favorite properties to hit the market during the past couple of years. Offering slightly over an acre of land with exceptional water and costing over $1,000 bucks a foot to build, this home challenged Naples greatest contractors and designers to team together and build something truly unique and special. While it was more contemporary than some prefer, I thought it showed a vibrant and authentic originality. Listed January of ’16, 1770 Galleon went through a trying year undergoing 2 sizeable price reductions last year only to attract a buyer who ended up exiting. Those types of near misses can do some emotional havoc on a motivated seller which may have been the result of another $1,000,000 price reduction. It didn’t take long after that though and was under contract 3 weeks later. It took 3 sizeable price reductions to get that deal done and was one of the most gleaming examples this season of “this seller wants to sell”. Original list was $24,900,000.
1650 Galleon Drive Closing at $15,400,000 was another amazing spec home originally listed in March of ’13 for $15,999,999. This is an example of one of those deals where they rode the market up and partially back down just out of reach of a ready and willing buyer to strike. Pricing on this one hit as high as $185,000,000…just kidding, that was a typo but it did sit on the market for nearly 3 months at $20,950,000. They saw an offer for right around that price only to wait another year before landing less than $500,000 of where it all started. 1650 Galleon Drive was an exceptional property many believed would sell right away. I thought it was amazing. I wasn’t the only one who gasped in amazement when my client had critical thoughts about the floor plan and interior selections but that’s all water under the bridge now.
So what is the common thread to the top 3 sales in Port Royal so far this year? They’re all new or almost new! It’s hard to resist that new home smell especially when the world is being turned on to new interior design details or building trends. There’s still 14 newer or to be built homes on the market not all of them are offering the latest styles of “wow” factors. In fact, some of them are downright traditional so if you’re not a big fan of the contemporary movement, there’s something here for you.
What’s more interesting are the discounts! Let’s look at the 12 closed sales in Port Royal:
- Average original list price was $11,764,583
- Adjusted list price was $10,477,083
- Closed price was $9,316,667
Does a 21% discount give you cause to smile? That’s what Port Royal buyers got this season if you look at average original price to sales price ratios! If you bumped into the guy who bought at 63% of original ask well you’d almost have to give him a double high five right there on the sand at the Port Royal Club if you knew who he was! 5 of the 12 negotiations that took place this season happened in the 79% and under original ask to sell ratio.
Only 55% of the current Port Royal inventory is still marketing at their original price. 3 owners are now between 73% and 76% of original ask. 2 owners are in the $800-$900/sq.ft. price range. That means something. They want to sell! That’s just the readily identifiable deals to be had. The current market has dropped 4% from original list…n
Of the 12 Port Royal homes sold this year:
There’s still a handful of Port Royal beachfront homes to choose from as well! 3 of these beachfront homes will probably come with a special designation and will likely break a record for the most expensive single family home to sell in Naples history. Nothing has ever been offered of this magnitude so if you have the coin and the inclination to live in a castle on the sand, you should probably check them out.
Here are the reasons why this summer is the best time to buy in Port Royal:
I suppose some people think it goes on forever…but my smart buyers know better.
Mortgage rates are on the rise! Oh, I know most people pay cash but if you think you want to do a loan…it’s going to be more expensive next Fall…in fact, it will be more expensive next week. You better lock it up!
Sales were down 25% compared to the same time last year in Port Royal and while some owners have found confidence in the recent flurry, other owners will be happy to see you coming. Your window of opportunity is now through August. Approaching the middle to the end of September you can expect sellers and selling agents to get more rigid with the approaching season where heavy discounting will be a thing of the past. Book your flight and let me know when you’re coming!
Shannon Lefevre, PA
Your Naples Smart Girl!