Some of you are starting to spend a fair amount of time looking over our Naples luxury beachfront condo inventory (5 million +). Now is a good time to catch you up to speed on the Naples luxury beachfront condominium market. Here’s what’s going on.
Looking at the basic numbers it appears the Naples luxury beachfront condo market is slowing down a bit but I see the cause of the slowdown and it’s pretty interesting.
The Naples luxury beachfront condo inventory is 18 months.
Don’t get too excited value buyers, this has a great deal to do with Moraya Bay. Currently, there are five active listings on the market with a 6th listing in somebody’s pocket. Only two sold during the past year. That’s three years of inventory and a good cause for alarm. Moraya Bay is our newest beachfront condominium in Collier County but a recent change is causing selling turmoil. Recently a $50,000 transfer fee has been imposed for those who want rights to the beach club. Naples has never seen a beach club membership fee outside of Port Royal that steep and I don’t think people know what to do with it. Do not make the same mistake others have made by not purchasing in a building that offers a beach club membership. Ask me for details and how you can avoid the $50,000 membership fee.
If I back out Moraya Bay’s numbers and look at the rest of the Naples luxury beachfront condo market, numbers look pretty good. We have 12 months of inventory with 10 active listings and choices in some really great buildings.
- Market time has increased 17% over those that sold the year before.
- I expect the most motivated sellers to accommodate buyers better at the negotiating table.
- On average the list prices are up 8% compared to those that sold last year.
- Price reductions without disturbing values too much will and already have started taking place.
What you can do to win your Naples luxury beachfront condo
To avoid buying competition the best thing do is present the seller with a well-documented offer proving your offer price even if it is sizably different than the list price. remember, sellers are more apt to take a lower price if you’re offering with cash and few to no contingencies. Quick closing time frames are best if residents are not living in the unit. If they are in residence or living there full-time it might be better to offer an extended closing. Considering we still have several weeks of high season, shortening the inspection period will also work in your favor.
If you prefer to wait for the reduction, understand there could easily be several people waiting with you. Beachfront condos that offer big discounts tend to go under contract very quickly. The Naples luxury Market attracts very smart people who think the same way.
Many of our luxury buildings have already undergone massive renovation projects. Some are preparing now and forecasting in the future. It is important to know what type of assessment you may be occurring in the near future. Make sure you ask for all pertinent information. Fortunately, many assessments have already been voted upon and published. Many have already been paid by the current owner.
The only thing worse than getting assessed to death is buying in a building where the majority of the people do not care about maintaining and improving their property. There is evidence of this in Park Shore and property values are affected. Eventually, these buildings are going to need to be improved and that is going to take time, money and inconvenience which should be factored into every negotiating price until then.
A handful of buildings have made thoughtful decisions and sizeable investments to improve the aesthetic value of their building and buyers are gravitating towards those gorgeous improvements. They are also shying away from buildings that require them. Sometimes when buildings undergo big improvements to the common areas they restrict owners from being able to handle their personal remodeling projects. You will want to make sure you will be able to accomplish all of your construction goals before purchasing.
If you are planning on purchasing a unit that needs to be remodeled, call me for all of the information you need to avoid disappointment in the process.
Okay, friends, I hope you enjoyed my Naples luxury beachfront condo market update. If you’re interested in seeing any of these fabulous units, give me a jingle.
Shannon Lefevre, PA
your Naples Smart Girl!