Good Morning Naples Fans!
Naples real estate is on full helter skelter alert! Here are a few things I’ve seen to help you sort out whether you should sell, buy or hold.
Buyers are ALL OVER THE ROAD right now! Many buyers have already identified the property they want, waited for a good time to negotiate and are doing it now. Expect the best properties listed at the best prices to already be under contract, currently negotiating contracts, rejecting low offers and more. If you are planning on waiting until the end of the season to make an offer you could be making an offer on 2nd and 3rd or even 4th best properties and deals.
- Buyers are hitting properties showing motivation in the form of price reductions. If you’re still waiting, get on it or risk losing it.
- In some cases, buyers are behaving unreasonably and completely pissing off sellers. They’re losing their chances of getting a great deal at the start. If you are planning on strong-arming a seller, you can do this without making them mad. Call me.
- In other cases, buyers are acting unreasonably during property condition negotiations and backing out. Keep your heads on people. At minimum knowing what is behind the next corner could be everything when salvaging a deal.
- Listing agents are showing huge signs of aggression to capture a contract. It is VERY easy to see who wants to deal and who doesn’t right now. If you don’t have your first, second and third choice in place, get on it. Buyers who are working with agents and actively looking are having very insightful conversations you are not privy to if you are not doing the same.
Buying activity is going to heat up exponentially this month and could spill into next month and well into the summer months. Keep in mind seller motivation happens in waves just like everything else. Blame it on FEMO (fear of missing out) or the agony of defeat. Many sellers are simply in denial about what is going on with the Naples real estate market. Some haven’t come to grips with how much the market has shifted this season and how far it can go.
A colleague and I reviewed the market history in a very specific neighborhood this morning to see what this area looks like during the entire trend. This micro-market was getting 64% more in 2018 than it did at the bottom in 2012. It took 5 years to reach the bottom during the last trend and 6 years to reach the top. THAT IS A LONG ROAD. Many sellers have NO idea how long the trend can be and how bad it can get.
The realization the market is turning is here and if you don’t know it, you could be one of the many sitting at #3 – Denial. The rest of you are likely in a state of anxiety and fear based on what we’re seeing and hearing all over town.
You owe to yourself to ask your agent about the entire trend in your *neighborhood.
Do you know:
- How high your market can go?
- How low it can go?
- How long trends last in your neighborhood?
- How fast it can change?
- The impact recent changes in your neighborhood will have on future sales?
- The impact on recent assessments or dues increases will have on your saleability?
If you learned it could take 6 to 11 years depending on where you live to reach past high values, would you be willing to wait that long to re-enter the market?
Most sellers don’t realize the timeline can last that long and think if they don’t sell their Naples property this year they can pop it back on next year when the market gets better. I wouldn’t bet on it.
Notice I said *neighborhood instead of “subdivision”. We’re seeing some owners with the problematic opinion of their property values based on only one tiny area. In an example like Pelican Bay, it might be reasonable to look further than just the location of where your home or condo is located. Research past just your building, villa or single family home community. Many sellers like to hang onto results from one or two sales and in some cases, there aren’t any recent sales. If you don’t know your sister subdivisions, call me.
If sellers are feeling gloomy, buyers are feeling hopeful, relieved and in some cases optimistic. Some have been flexing their muscles with cat and mouse games, disappearing magic tricks, low offers and crazy property condition improvement requests. We’ve heard of hilarious reasons why properties should sell for way less in an attempt to get sellers to say yes.
Your least educated agents and owners are in some cases falling for them but your educated agents have seen this circus act before. If you negotiate intelligently, you can win your deal and can likely negotiate better but if your strategies and communication come off as contrived and sensationalistic, the seller is going to react like your offer is fake news.
If you’re having trouble coming up with your strategy, call me.
Some Sellers Will Punt Completely Out Of The Market
Sellers can and will pick up all their marbles and stay home. Some sellers will say, “this isn’t fun anymore.” They’ll remove their listing from MLS and prepare to stay for the long haul. They redecorate or just use the home or condo until it heats back up in some cases 8 or 9 years. Some decide to stay for decades and decades.
Early in the trend like now some buyers and agents can entice them with a contract and get them to sell but later on, you can’t even do that unless the buyer offers more than current market value to sell. This especially happens with EXCEPTIONAL properties. Don’t expect exceptional properties to always be available. Those dry up really fast in this market.
Some Of The Best and Worst Agents Will Quit!
We have a pretty good amount of tenured agents who have cornered markets around town and are weary of the grind. Real estate in a depreciating market is an emotional grind and those teetering on the edge of retirement will have enough of the insults and wheel spinning. Rumors of 5 or more exceptional agents with exceptional track records have been circling for well over a year now. It shows in their marketing efforts, response time and attitude. A general lack of tolerance will continue until they pull the plug.
Naples also has a HUGE assortment or agents who entered their real estate career sometime since 2012. They have never seen this part of the trend and they have no real idea of how negotiations change, how the market turns and what to do. Many of them will choke out.
Your best bet is to find an agent with some good energy and tenure who isn’t quite ready to call it quits to reap the best service rewards.
Ok, that’s all for now. If you have questions or need help call me. March is booking up fast with buyers who are excited to start their next Naples, Florida chapter. If you haven’t done so already, get on my calendar!
Shannon Lefevre, PA
Your Naples Smart Girl!