The Growing Disconnect Between Naples Buyers and Sellers

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Good morning Naples Friends!
Today I’m going over what I’m seeing and hearing in the Naples real estate market and how you can guard yourself against some of the disappointment others feel during their transactions this pre-season. There seems to be a growing disconnect between Naples buyers and sellers this year.  Many buyers don’t realize how hot our market is and are being caught off guard on how negotiations and pre-negotiations are going.

Here’s what I’m Covering

  • Timing
  • Market Time
  • Other Interested Parties
  • Competing Offers
  • Property Condition Negotiation
  • Incoming Inventory
  • Post Season

Timing

Deal Hunting? Your timing could not be worse. January 1st is the prime season kick-off, and buying traffic has been off the charts since this past Buy Naples Todaysummer. Inventories are low, interest is high, and very few sellers want to hear about how you are looking for a deal. I am seeing some buyers making offers from afar with minimal market intelligence who think their online investigations will shed true light on the value of properties in Naples. It doesn’t.
Most luxury agents in Naples are intimately familiar with recent comparable sales. You could find yourself in a slightly embarrassing situation by offering too low. Even if you see properties first hand, “armchair analytics,” as I like to call it, is not going to give you enough intelligence. Do yourself a favor and ask questions regarding property condition, location, etc., on recent comps so you can give yourself the best shot at getting your deal accepted.
The Naples real estate market is plagued with intelligent buyers, but sometimes that can lead to disastrous results if they fail to understand or consult. Why? Because we also have our fair share of Naples enthusiasts who are not looking to capitalize on capturing a deal and are perfectly sound on purchasing a fair market value property. We even have a group of buyers who don’t mind offering a few bucks more to get what they want. Our “bargain buyers” are competing with “Naples lovers” and not fairing well.
If you want a bargain, your best shot is to wait until June unless you’re willing to buy something truly unattractive that’s already priced well.
Find Something You Like? Please do not hesitate! If something hits the market, go for it right now! This is not the year to see it, run a few errands, chat about it with your friends, book a flight, and expect it to be here for you. Call me the moment you see it and be prepared to strike. Ask me how I can protect you even if you are far away. If you are in town, book your appointment immediately, especially if it’s in a location where there is no door #2.
Can’t Find Anything You Like? Time to reach out! While many of us prefer to watch incognito, it’s worth reaching out to me before something hits the market. We often hear about new properties before it goes on the market, and if we have somebody looking for it, we can greatly limit anybody else’s chances of ever seeing it before it sells. My client, who recently purchased in Remington at Bay Colony, did precisely that. After making a few calls, I uncovered the unit she purchased before it hit the market, giving her the first chance to get in and strike.
Side Note: I abhor signing up for things online and getting blasted by never-ending calls and emails from salespeople. Sign up for new property notifications here, and all you’re getting from me is new property notifications on the properties you requested. You reach out when you’re ready. Please give me advanced notice so I can expertly serve your objective.

Market Time

Multiple Offers

Do not let the illusion of long market times give you the impression you are the only one considering a property or that you can get it for substantially less. As fewer properties exist, more people are becoming growingly interested in properties like these. There is no greater confidence builder for a seller or seller’s agent when stagnant properties gain buyer activity traction. It is common for some properties to become popular during different times of the year, and we are approaching a major shift right now where slow markets are entering peak selling times. Naples beachfront homes and condos are a prime example of a market that explodes during high season.
Talking about Naples beachfront. I just showed everything worth showing in the $5,000,000 plus beachfront condo market. There is one truly exceptional property available today. If you’re in the market, reach out to me now!

Other Interested Parties

This is no time to feel alone in your Naples real estate search. If you hear there are other interested parties, we’re not faking it. LOL. Approximately 50% of our market turns off when they think they’re going to have to compete. The other 50% will fight. Because of this, not all agents will alert you if there’s another buyer close to making an offer. That means we’re going to see several circumstances this year where buyers lost and didn’t even know anybody else there. Agents who alert buyers about other interested parties are being as competing offersprofessional as possible and often get chastised or punished for being honest. It takes courage that not every agent possesses, which means some buyers are going to miss out.

Competing Offers

If you haven’t already, please read “What To Expect If You’re Competing For Naples Real Estate.”  We are seeing a ton of competitions this year, so if you’re one of those who don’t want to compete, you might find yourself backing your interest off more than one property. If you don’t mind competing but insist on winning, call me. The only one who hates to lose more than you is me. So, I don’t lose. Hahaha!

Property Condition Negotiations

Some buyers are finding out the deal isn’t done until it closes. Because the Naples real estate market is so competitive, some buyers are writing solid backup offers. If this happens, sellers may not be willing to fix or replace every tiny thing the first buyer finds on their inspection reports. The first buyer has the choice of backing out or accepting what the seller is willing to accomplish. Don’t be surprised if the seller doesn’t accept your list of repairs. It could be their way of trying to get you to back out so they can accept a better offer from a different buyer.
I’ve been in situations where the first buyer asked for more than was fair, backed out, and my buyer could slip into the first position successfully. After the first buyer cooled off and decided to accept the seller’s list of repairs, it was too late. They had already backed out of the contract and, by doing so, moved my buyer into the first position, and the first buyer lost the house.

Incoming InventoryPent up demand

Everybody’s asking about how much new inventory we can expect over the next few months. I’m expecting less than normal years and most everything to come on at higher pricing in the neighborhoods I’m watching closely. We are also going to see some overzealous sellers overprice and miss. Of those, a fraction really does want to sell even though it won’t appear so on paper. You’ll want to keep your eyes on those because they will reappear closer to the end of the season in the form of price reductions. There will also be a fraction of properties that will miss entirely due to their lack of response.

Post Season

Postseason once started the Monday after Easter.   Over the past 4 or so years, our high season has been driving through May and even into June due to the six-month occupancy rule mandated by the state of Florida to claim residency. This is important for one of our driving forces of new prospect base from folks who are desperate to escape high taxes from States like NY, MA, NJ, CT, IL, and CA. For this reason, people are coming earlier and/or staying later to avoid their state taxes. They’re also buying Naples real estate earlier and later in the year.

Here’s what user statistics look like on Shannon.com this year compared to last year:

Illinois: Up 73%Sellers Market
New York: Up 34%
Massachusetts: Up 55%
New Jersey: Up 41%
California: Up 23%
Connetticut: Up 48%
But we also see some crazy increases in these states as well:
Texas: Up 78%
Pennsylvania: Up 55%
Michigan: Up 54%
Ohio: Up 69%
Virginia: Up 71%
Wisconsin: Up 71%
Indiana: Up 82%
This is causing a major shift when sellers reduce prices and feel less confident about selling, which means the days of big reductions at the end of March and April may be over for the foreseeable future. Check out what the Naples Daily News wrote last month.
We have a few things to keep our eyes on that can always shift our current state of the market like:
  • a new administration
  • stupid covid
  • the economy etc.

I’ll keep you posted from my end! In the meantime, please send me your questions, objectives, friends, and family! Stay safe, and cheers to a fabulous New Year!

Shannon Lefevre, PA
Your Naples Smart Girl
239-595-6223
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