5 Things To Know About Naples Real Estate 11.21.24

Hello Naples Friends! Happy post-election. How many of you are happy the election text messages asking for money are almost over? We have a bunch of Naples real estate items to cover today. Let’s get started.

In This Post:

Inventory Changes
Negotiation Strategies
Notable Reductions
Buyer Broker Agreements
Where’s Waldo?

Inventory Changes

The inventory of homes for sale is increasing. Many properties that didn’t sell last season were removed from the market over the summer and are now being re-listed, putting downward pressure on prices in some areas of Naples. Luxury communities, particularly waterfront properties or those in close proximity to the coast, have been hit the hardest. Interestingly, some neighborhoods like Tiburon and Mediterra are exceptions, as luxury golf communities have continued to perform well since Hurricane Ian. Between November 1st and 20th last year, 1,492 homes were listed, compared to 1,620 this year. During this same timeframe, there were 1,428 price reductions, a jump from 1,336 the year prior. November sales were down by 31% year-over-year, indicating significant shifts in the market. These changes are likely to spark some lively discussions at the negotiation table.

Negotiation Strategies

With market dynamics evolving, so must negotiation strategies. There was a period when properties sold for full asking price—or even higher. Now, the average discount is 6.6% off the list price. That said, 8% of homes sold at full price last week, proving that a well-priced property can still attract eager buyers. Most sales now fall within 10% of the list price, but a few sellers are accepting lower offers to close deals quickly. The largest discount seen recently was 16.5%.

Some sellers are facing financial challenges, realizing they can’t afford to sell because they owe more than their property is worth. Others are willing to take a smaller profit to move on. Buyers should make thoughtful offers if they hope to achieve their goals. Unrealistic bids not only fail but can offend sellers, who might see them as exploitative. Top listing agents won’t entertain such offers, and neither will most sellers. The key to getting a good deal is avoiding tactics like lowballing that make the property appear undervalued.

Sellers are also dealing with inaccurate price expectations. Some agents inflate property values to secure listings, leaving sellers disappointed when those numbers prove unrealistic. Many sellers eventually adjust their expectations, either lowering prices or withdrawing from the market. Others stubbornly hold out, remaining listed indefinitely. For buyers, it’s often smarter to be the second or third to make an offer on such properties, rather than the first to challenge a seller’s expectations.

Repair negotiations are easier now as sellers accept that the market has cooled. At the peak, buyers had little leverage to demand repairs. Now, sellers risk losing buyers if they refuse to address issues. This November, 65 deals fell apart, likely due to disputes over repairs—a decrease from 83 failed deals in the same period last year. Sellers understand the stakes and are more likely to meet buyers halfway to keep deals intact.

Notable Reductions

After a year of modest price reductions, more significant adjustments are becoming common. Last week, 415 listings saw price reductions, with nine of those over 10% and one as high as 20%. Homes that were once overpriced are now being perceived as deals, and buyers are taking notice. Properties with substantial reductions still sell quickly, so staying informed is key. Sign up for notifications in your target neighborhoods to catch these opportunities early and stay ahead of the competition.

Buyer Broker Agreements

Many people are unaware of the recent requirement from the National Association of REALTORS: buyers must now sign a Buyer Broker Agreement to view listings. This change has frustrated both buyers and agents. Real estate has always been a relationship-driven business, and most agents prefer to demonstrate their value before presenting contracts. While this step might feel formal, it rarely affects a buyer’s finances, as sellers still typically cover the agent’s commission. If your agent isn’t presenting the agreement, they’re violating policy and risking fines. This raises concerns about how they handle other aspects of the transaction. Choose an agent who follows the rules and communicates openly to build trust.

Where’s Waldo?

The current sales trend is exposing a significant gap in agent expertise. Naples hasn’t seen a depreciating market like this in over 15 years. Many agents who entered the industry more recently lack experience navigating these conditions. Even seasoned agents who have been through past downturns may struggle to remember how to operate successfully in such an environment. This has led to a wave of poor decisions, such as taking overpriced listings or advising buyers to overpay for properties.

For buyers, this inexperience could mean being pushed into regrettable deals. For sellers, choosing the wrong agent might prevent them from achieving the best possible outcome. Some listing agents are surprised by the lack of showings on their properties, which reflects poorly on their ability to analyze market trends. The most successful agents are prepared for these challenges and know how to adapt their strategies.

In a market like this, hiring an experienced agent is crucial. Buying or selling with a rookie could cost you money, opportunities, and peace of mind. Choose wisely.

Best Regards,

Shannon Lefevre, PA
239-595-6223

5 Things To Know About Naples Real Estate 11.21.24