Good Day Naples Friends,
Shift, Shuffle and Sh!! There are lots of things going on with the Naples real estate landscape right now. I’ll go over what I’m seeing and some of what I’m talking about with past, present and future clients here.
I’m seeing some hand-wringing on the Naples real estate landscape from more sellers who are concerned about what is going on. Folks who are thinking about selling coupled with others who listed with other agents are reaching out for second opinions. Hey, thank you for considering me a reliable and trustful resource!
Look fans, avoid depending on blanket statements about Naples real estate at all costs this year. It’s too easy to say something about Port Royal that doesn’t match what’s going on in Park Shore etc. If you want to know what your favorite neighborhood is doing, ask me about it specifically or talk to your favorite real estate agent, preferably somebody you like and trust.
Anytime the market starts to shift, you have to remember a good half of the world isn’t paying attention or doesn’t know how to look for telling signs about what’s going on. Then there’s a good portion just regurgitating what some other clown said a year ago. It always weirds me out when I bump into somebody who should know market details react with shock when I bring up a new trend as if they have no idea what I’m talking about.
One point causing uncertainty was the election. It’s over. Besides the actual turn out, nothing big happened here. It wasn’t the turn out that had everybody running to the negotiating table but it also wasn’t the turn out where everybody slashed their property prices in half either so there’s that. If you are a seller who wants to remain ahead of the curve, content is king. Stay on point because we are definitely going to see some shifting this season.
If you don’t care about deals move on to the next topic. The 2018 pre-season started out somewhat confident with only 5 listings dropping more than 10% during the month of October. Sure, we had some new listings hit the market at lower values and we saw some old listings re-enter the market at lower values but we did not see a huge re-adjustment with current listings counter-attacking their competition. Confident?
The average price reduction for properties over 1 million in October was 5%. That figure includes all the clueless out there who barely reduced their price so they could say “reduced price”. The average price reductions for properties priced over 1 million for November is now at 6%. Good things come from those who wait but don’t completely miss the party.
Long market times are not necessarily a sign of opportunities here in Naples. Some sellers have several years of stamina. You’re better off hitting up properties where failed contracts have taken place and signs of price reductions are evident.
There will be deals at the negotiating table too but that takes making your presence known and typically calls for more than a basic conversation about the property. If you want to capitalize on bloated markets there are some areas where you should take a closer look. If you don’t know what they are, hit me up.
I fear we’re going to see some waiting games this year in many of our luxury markets. Oh pssh…we’re already playing waiting games. I know some buyers are checking my site often for new properties and some who are barely interested in daily updates.
The snow has just started to blow in some corners of the country which causes angst and a higher desire to purchase in Naples but most buyers don’t lose their mind on the first snowfall. The snow photos from clients and friends up north have started (thank you real estate fam!) which means the weather driven activity is coming soon.
This traffic is likely going to startle some of our buyers this year. Large chances are they’ve been watching with one eye open and most properties are just sitting there all cozied up like a bug in a rug but buyers, if you’re not on top of your game, we could get hit with a flurry of unsuspected traffic and your greatest deal or most amazing property might sell out from under your nose.
Take for example that best-priced Pelican Bay high-rise condo we have listed. We saw HUGE open house success this past weekend and we’re seeing some serious interest on the showing side of our marketing efforts. It’s a ridiculous deal compared to the next listing up and while we have two buyers seriously considering it, nobody has presented us with an offer. At least one couple is going to be seriously bummed and that’s just counting the people who have stepped into the unit.
If you hear an agent say the stock market doesn’t change the landscape of Naples real estate, find the nearest exit. Naples buyers do get skittish. The number of million dollar plus contract back-outs doubled in the course of two weeks immediately following the first signs of stock market troubles.
Sellers, There are several ways you can guard yourself against a squirrel. If you don’t know what they are, hit me up.
Buyers, So many of you do such a stellar job of getting your ducks in a row before throwing paperwork around. Even in this market, many sellers frown upon loan contingencies. Not that they won’t be more lenient with you this year but make sure you’ve got your loan arrangements together before you submit. It saves you and everybody else enormous time. For those of you paying cash, you’re going to be treated better than your loan getting competition!
Did you know many buyers take several years to purchase? Sure there are those folks who stumble into an open house after a 3 day holiday and walk out with the title to a new property. There is also a HUGE group who start their real estate investigations really early. They learn to understand how this Naples real estate wild animal behaves.
Just this week I received a call from a gentleman who I’ve been sending new listing alerts to for 3 years or more. He’s been watching this whole time and noticed prices are starting to soften in his area of interest. Sounds like he’s getting ready to strike! Smart Man!
Some people are really sensitive to signing up for listing intelligence because they’re afraid they’re going to get the hard sell. LOL! Even if I have the time (which I don’t) I respect your privacy. I understand you already have a preconceived timeline. My patience parallels that of some of our longest running sellers. Take your time team. I’m here for you when you need me. One of my most favorite clients on the planet took six years.
The property condition negotiating table is getting funky. Sellers who negotiate more than they wanted are showing that stiff upper lip when it’s time to negotiate additional concessions to close. If sellers feel abused, they sometimes reject what they deem unreasonable repair requests. Some buyers buy anyway. Others tell the seller to pound sand.
Sellers often go back on the market with new disclosures or fix the items the original buyer requested. Other sellers punt out of the market to lick their wounds. It’s wiser to take a look at the dollars it will take to fix the requests. Sometimes “principle” gets in the way of forward motion. Cheer up, fam. It only gets more interesting from here.
Ok, that’s all for today. If you have questions or need to schedule some time with me, please do so! I’m happy to assist!
Shannon Lefevre, PA