5 Things You Need To Know About The Naples Real Estate Market 3.5.20

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Here are the 5 things you need to know about the Naples real estate market whether you’re buying, selling or just want to keep up with the current market. I’ve had lots of conversations with both buyers and sellers who are trying to determine the most likely path of what may be to come for our market during the last few months of the season. I’ll share some insight into what’s happening and what can likely occur going forward.

March Madness

March marks the month Naples real estate really heats up during most years. An enormous influx of people come to enjoy our fabulous sunshine and getaway for Spring Break. Most are simply fed up with winter climates. March is also the month when we see sellers get aggressive to try to solidify a seasonal sale. Last March we saw 2,853 price reductions or 92 per day. We also know a good portion of the buyer’s market has figured out sometimes it’s most wise to wait for the end of season deals and offer activity picks up dramatically in March. It’s a fun time for sure! During the past several years end of season activity has been strong through June due to the huge influx of folks claiming Florida residency. It will be very curious to see how 2020 performs.
This year we haven’t had the same level of reductions as shrinking inventories and higher demand have brought an added strength to the market. The obvious turn of events is bringing some sweet relief to some buyers who have held out for end of season deals. Economic uncertainties always shine brighter lights on those sellers who are most interested in selling and opt to execute sizable reductions. By the way, some of the most successful agents in town are behind some of the most notable reductions.

This week we’ve seen 36 reductions at 7% and higher which should be AWESOME news for buyers! Most notably is the 11% discount on a home in Port Royal shaving 2 million dollars off their ask this week. Buyers, are you watching?

Buyers: Your negotiating talking points have gotten WAY more interesting during the past week. Work with a compassionate buyer’s agent who can help you reach your buying goals without pissing off the other side. Great buyers agents can keep doors open past your first offer allowing you to come back for another shot if you choose to take one.
Owners who have recently performed a sizable reduction are going to think one of two ways about a lower offer. 
1. I’m not doing anymore discounting.
2. Grrrr ok you have a deal.
It doesn’t take much to uncover what the seller is thinking and a great buyer’s agent knows how to find out.
Sellers: Accommodating agents get the deal done! Your agent must know how to intelligently pre-negotiate. 
The number of pre-negotiations I’ve experienced is beyond counting at this point. When a buyer is interested in more than one property and questions which seller is going to be the best accommodating, the best story almost ALWAYS wins and the best story isn’t always the deepest discount. Call me for details.

Building and Neighborhood Woes Are Affecting Performance

Are you noticing some too good to be true deals? Me too! Some buildings and neighborhoods are suffering the repercussions of poor business decisions, inability to Moraya Bayexecute timely improvements or those facing large assessments due to insurance issues, failure to collect appropriate reserves for needed improvements and legal matters.
TRUE STORY: I showed a property in Vanderbilt Beach a few weeks ago that looked like a smashing deal. The listing agent was there to explain there was a little “thing” but it was “no big deal.” Mmmm….what? It didn’t seem to disturb the buyer but it bothered me. I made a few calls and contacted my enthusiastic buyer to explain some hard facts. In this scenario, he chose to hold off. I was relieved.
Buyers beware! I received a message this week from a buyer watching the market in Colorado. He said something like…ooh based off this beachfront condo over here, it looks like the market is headed for trouble. He was unaware of the terrible battle going on in that one isolated building. This is why communication with a knowledgeable agent is key. It was easy for me to explain the situation and point him towards other data to help him more accurately assess the true market statistics and help him determine if it was wise to go after a deal or wait.
Buyers, It’s totally ok for you to call and email me long before you’re ready. I get calls and emails every day from apologetic buyers who may be buying 1- 5 years from now. Ask me your questions. Tell me about your thoughts. I will lead you in the right direction even if it means you delay or change direction. I want you to make an excellent purchasing decision.
TRUE STORY: A few years ago I was working with an amazing couple who had spent a good amount of time considering their options. All season long we looked at properties. Here’s how it went:
Me: What did you think of the property?
Them: We think it’s too high.
Me: I agree.
Closer to the end of the season 2 remarkably priced properties hit the market at the same time. We saw them both immediately. After the showings:
Me: What did you think?
Them: We think they’re too high.
Me: Not this time team. I think they’ll both sell within 48 hours so if you want to make a move, we need to do it fast.
Them: Ok, we’ll think about it.
Sometime during the 48th, 49th-hour mark past our conversation they reached out.
Them: I think we’re ready to make an offer on “x”
Me: Ohhhh….I don’t know if it’s still on the market, let me check.
Them: Well if that one sold we’ll get the other one.
I called the listing agent on the first one. Sorry. It sold.
I called the listing agent on the second one. Sorry. It sold.
I called them back with the news. It was a temporary disappointment and long term enlightenment at the same time. They did eventually find a fabulous property and are currently considering something even more fabulous since they are enjoying Naples more than they imagined.
The moral of the story: I’m a straight shooter. You may not always like what you hear but you never have to question my integrity.

New Condo Developments May StallMystique Pelican Bay

We’ve already seen it happening with new construction single-family in locations like Port Royal, Old Naples, Moorings, Park Shore and Coquina Sands. Naples is no stranger to new construction slow down when the economy weakens. Here’s the latest:
Mystique at Pelican Bay

The developer has only 7 available units left in their inventory. They haven’t launched the second building and nobody is making claims on a launch anytime soon. Very curious!

Kalea Bay

The developer at Kalea Bay didn’t wiggle when they launched their 3rd building back in October with 20 reservations already. There are 14 still available in the second building. They are CRUSHING IT!

One Naples
The developer is charging forward on a massive political push to garner acceptance from resisting neighbors by holding neighborhood meetings and re-launching their website with a bright and shiny stronger message touting community preservation and excellent reputation. When Stock made their first attempt to accomplish resident approval, enthusiasm fell a little short. I made a few bets with colleagues on whether they would accomplish their objectives. I won and Stock went back to the drawing board.
Over the course of the past 2 years, they’ve planned hand in hand with the County to put together a development they can push through permitting. The dog and pony shows began again over the past couple of weeks. Residents are quickly getting more aggressive in trying to prevent the project from coming to fruition. Despite the hostility, I feel more confident Stock is eventually going to get their approval but time tells all tales.
Naples Beach Club
Athen’s Group should be starting soon with first availability in 2023 but I couldn’t find any permits yet….??????

Money Is Cheaper If You Can Get A Good Appraisal!

Banks have certainly gotten looser over the past couple of years by allowing a more streamlined process and opening money streams to those with more questionable credit but we’re seeing appraisal troubles again. 3 agents have complained about low appraisals this week with some buyers opting out. Other agents are preparing buyers and sellers about the idea of a potential re-negotiation if the appraisal comes in too low. Now isn’t the time to accept offers with loans when the dollars don’t make sense!
For the past several years, cash has been perceived as a good bonus but not necessarily king since so many of our transactions are closed with cash. I see cash offers becoming more valuable and lender required deals less interesting unless the appraisal process gets better.
Nobody can complain about interest rates though especially after the cut this week!

Last But Not Least

There have been 554 price reductions taken during the past 7 days. 9 of those are already under contract. It’s time for buyers to react quicker as the best deals have a Vanderbilt Beach tendency to move faster during this time of year. Stay diligent buyers! 
Can you expect a mass amount of more reductions in the near future? A large majority of sellers tend to behave the same way James Bond prefers his martinis…Shaken but not stirred. You’ll see more reductions but I don’t think there’s any evidence right now we’ll see a new record.
Be on the lookout for some amazing offerings! Like this one in Vanderbilt Beach. So many of my clients beg me for tons of space for their adult children and grand-children and it is ALWAYS a challenge to find it especially when it comes to Naples Beachfront properties.
Call me with your questions and when you’re ready to buy and sell Naples real estate! We’ll lead you with sound real estate advice and have some fun along the way!
Best Regards,
Shannon Lefevre, PA
Your Naples Smart Girl!
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