Good Morning Naples Friends!
It’s been 2+ weeks and it’s time for a current 5 things you want to know about Naples real estate. Snuggle in…it’s getting good!
A Resurgence Of The Emotional Buyer
While the Naples real estate market has been mostly plagued with business-minded buyers this year, I’m seeing an increase in emotionally charged buyers. Those are the people who fall in love with the area, a particular property, the idea of being way away from their cold primary places. It happens almost every March when the brunt of winter is just too much to handle for some of our favorite fans. This spurs buying traffic and makes it really hard for those wanting to understand our market or negotiate heavily off prices.
If You’re Buying With Your Brain
Understand you may be competing with those who are buying with their heart. Your low offers, special concessions and other wishy-washy demands may not be received well by the seller and if you find yourself in a competition, you may lose. The good news is, many of you will decide, “it wasn’t meant to be”. Many of these types of buyers have the time and energy to be patient. Many of these people are missing properties they liked which is ok because they weren’t in love in the first place. There’s plenty of fish in the sea for these people and when there isn’t they sign up for new property notifications, wait and watch.
Price reductions are getting more interesting too. We are going to see a big play within the next 6 weeks or so. If your goal is to buy this year, get on point. Many of these buyers are going to get a better deal as they watch for those price reductions or identify amicable sellers. Head over to your favorite neighborhoods or buildings and sign up for new property alerts if you haven’t done so already and call me so you can get on my secret list of unpublished opportunities.
Brain Heart Combo Buyer
Some of you will come to the realization that your heart is more involved than you expected and you’ll want to change course. That’s ok but make sure you’re working with an agent who can help you transition swiftly. Some agents are not that agile and will not be able to get you your deal which will cause angst and disappointment.
I had a couple this year who specifically said, “We buy real estate ALL THE TIME. We know how it works, we will never buy with our hearts”. Brain buyers right? It took them at least 13 minutes to show me otherwise. Fortunately, I knew well in advance and 45 days later I pulled a miracle with the help of the best handful of people in Naples to help those people get the house they loved.
Fortunately, my experience has given me an enormous amount of insight so even when you tell me things, you could easily be showing me something else. I’ll be ready for you and able to respond if you shift. It will likely be more of a surprise for you than me.
If You’re Buying With Your Heart
I’ve been involved with a couple of these transactions this year. The great news is I have the ability to tell you what you’re doing so at least you know what’s in store for you later and how you can minimize risk when you sell. I’ll walk swiftly down all roads so you can make the best decision you can. I will also point out factors that may not even be on your radar to help you better assess your situation.
A Resurgence Of The Unrealistic Seller
Whoo, I’ve been involved in a few scenarios where sellers are wildly oblivious to how their properties are going to be valued on the open market. Some of this is because they’re still viewing their property as the new property they purchased 20 years ago. Others think they knocked it out of the park on the remodel they did 10 years ago and just haven’t come to grips with the idea that decor has changed and their aesthetic value is no longer first choice. It’s tough.
As this next wave of Naples properties hits the market they are going to be more readily identifiable as priced all the way out of the market. Some of these folks will ultimately lose some big money depending on the time it takes for them to realize they’re out of line. Others will exit the market after it’s clearly determined they’re the only ones interested in holding the property.
Brain buyers take note! Some of these properties priced entirely too high can drop big and fast depending on the seller’s timeline. Others can sit and rot for several years as no moving sellers and agents do nothing to enter the competitive market place. That can be lucrative for a seller in an appreciating market but by nearly all accounts, we’re trending down.
As I blow over these listings 1,000 times in a season, I watch. From time to time I’ll see the beginning of the shift and know the alarm clock has gone off in the mind of the seller. These can be GREAT buying opportunities. I also have conversations with agents who sometimes give me really great insight into what a seller will do even though they aren’t broadcasting it with a big price decrease.
This is sometimes where my value is greatest to you. I will reach out to all of my personal clientele and tell them what I know. If I don’t know what you’re looking for, you’re not getting this top-secret intelligence.
People Are Out Of Control
I’m hearing from tons of people right now, buyers, sellers (some listed with other people…why are you calling me when you didn’t hire me?) and agents….(why are you asking me these questions when you and I do the same thing?) It’s ok. I’m always happy to banter with everybody, I’ll offer my opinion when asked and will always ask yours.
This is happening way more these days and it’s because we’re shifting. Is it just a pucker or is this a bigger thing? What should I do? What are you seeing? Just yesterday I was strategizing with an amazing agent from one of the best companies in town to figure out how we can get my guy in his listing. The agent is concerned about what he’s seeing. While he’s an exceptional agent he’s not sure exactly how the rest of the season is going to go and neither are a ton of BIG listing agents.
That is going to pose a big problem for those who have a ton of listing inventory but no valuable insight for their sellers who can offer negotiation advice or price point advice. That’s why it pays most to not just list with a “big listing agent” but why it pays to list with a “really smart listing agent”.
Condo Buyers Take Note
Lots of Naples condo buildings are holding their annual meetings this month and discussing the need/desire to do costly improvements. You will want to make sure you’re getting the latest information on whether they’ve recently formally voted to do an assessment or if they’re getting ready to vote. Keep in mind if they’re “just talking about it” they don’t have to disclose it which could mean that assessment might end up in your newly purchased lap. Assessments are up for grabs if they have been formally announced and many sellers are willing to take it on the chin during negotiations.
A very basic rule of thumb is to see if the common areas have been recently redone. Always ask what’s coming down the pike. Many of these buildings have sold several properties over the past few years which will likely change the behavior and desires of the building.
I’d stay far away from a building that has failed to do any improvements over the course of several decades. In some cases diminishing property values are already identifiable. Those buildings could be a prime target for large assessments in the very near future. In a worst-case scenario, the building can’t get the vote and the property continues to age and progressively depreciate as new buyers opt for something better. If they haven’t been saving that money in reserves, watch out.
I would also be leery of buildings that aren’t taking their aesthetic value improvements all the way. I’ve seen a few scenarios where a building made a decision to remodel but tried to short cut on something big. It’s either a current miss or they later did what was necessary but that was at the additional cost and inconvenience of the residents in the building.
Brain buyers take note! The inconvenience of near construction can make for a good negotiating tool to help you get a better price.
Four Season’s Gets Approval- What Happens To The Beach?
The Four Season’s got their approval to move forward with a plan to build new condominiums on the beach which will mark the first new beachfront construction opportunity since 2009 when Moraya Bay opened in Vanderbilt Beach.
Based on the preliminary photos I’ve been able to see, there will be as many as 3 mid-rise buildings between 5 and 6 floors high with no more than 94 beachfront units. One building will be positioned closer to the beach while the other two will sit back and be sandwiched between the first condominium building and the hotel offering straight views of the Gulf of Mexico.
Timing is still up in the air but I believe it will take at least 3 maybe even 4 years before something is going to be ready.
We know the level of pent up demand is extraordinary. Unless they do something horrifically wrong, they’re going to sell like wildfire. This may cause a ripple effect on values in other beachfront buildings. Just yesterday I was speaking with somebody who is currently purchasing a beachfront condo. As we talked about what we thought would happen over the course of the next 10 years, the Four Seasons project was brought up. In this case scenario, that buyer is shielded for a few reasons but not everybody will be.
Do you know how your Naples beachfront building will be affected? Call me for additional insight.
Ok friends, I hope you enjoyed my latest addition of the 5 things you need to know about Naples real estate. If you want to list or buy, get on my calendar asap!
Shannon Lefevre, PA