Hello Naples Fans,
There’s something going on in Naples right now you do not want to miss.
This epiphany hit me earlier this week. Here it is:
If you’ve been following the Naples luxury real estate market this season, you know things like:
- Increased market time
- Oversupply of inventory
- Price reductions
are all old news topics of discussion. While there is a new level of uncertainty, it is not unanimously understood.
In markets like this, buyers know to wait til the end of season to write offers because they think they will get a better deal. While this could easily be true this year, some Naples sellers are on to them and are changing the game a little.
There are SEVERAL Naples luxury neighborhoods and buildings where a true and evident deal can be readily identified. On paper, it is the obvious deal. In real life, it is the obvious deal.
The smartest buyers will stab right now instead of waiting 30 more days to try to acquire that deal. I know it sounds like salesman B.S. but in many cases there is only 1 of those deals. This is the seller/seller’s agent who is very on board with current trends and wants to sell this season more so than anybody else and has either taken aggressive price discounts or hit the market at below competitor pricing to attract that buyer.
There is absolutely no guarantee the next seller is going to respond as well as the best deal especially if the best deal goes under contract. Once the best deal goes under contract, the next guy likely sees new traffic success and their sense of confidence goes UP while their desire to accommodate goes down. This in turn could make the buyer who missed the first deal mad when they’re not accommodated.
Naples Buyers: If you have identified a deal and you are waiting til the end of season, you could easily miss it and not be accommodated in the same fashion on the next one. If you haven’t identified a deal and you want me to do it for you, I know several around town. You want to strike today to avoid buyer competition next month. Word on the street is several people are looking but a small percentage of those buyers are writing offers. You have a competitive advantage right now that will likely disappear when all of your competition decides to go on paper.
If the property you are after is not an amazing deal right now, you could still be at risk by waiting 30-60 days to write. Some sellers are currently contemplating making price reductions that are not visible. Once they’re presented an offer some (not all) are willing to negotiate unlike years past.
Take this as an example:
A high rise unit in Pelican Bay closed at the end of January with an 87% list price to sales price ratio. The buyer got a $471,250 discount on that property. There was no indication before that deal happened that the seller would take that price. Another buyer would have paid that price but missed it because they didn’t take the shot.
There are also locations where very few if any price reductions being made at certain price points.
I spoke with a builder’s representative yesterday in hopes he would shed new light on the builder’s desire to accommodate a buyer. The call went something like this:
Me: Hey, I was just getting ready to follow up with (Buyer) and took a peek to see if you had done anything different with the price since you’re still on the market but it looks like nothing has changed. So, what’s happening on your end?
Him: Yeah well we have a ton of people looking at it. We almost got an offer but they didn’t write.
Me: Oh, dang, I hate that…so I noticed that not much is going on in this price range and wondered why nobody was reducing their price since there’s like I don’t know, over two years of inventory in that segment.
Him: Yeah well that’s the (neighborhood) mentality. I’ve heard a couple of builders are getting ready to do some price reductions but this other guy sold his house which was kind of a surprise and well we’re probably not going to do that.
Me: Oh ok, well thanks for the update.
So, nothing new to report on that deal. Buyers want to be accommodated this year. I think locations like this will sit if sellers don’t get it figured out. As for the buyer, they’re having the time of their life right now and all the time in the world to wait.
Here’s what I find interesting. If you take a look at the price bracket in the example above, there are lots of deals getting done. They’re just not getting done in that neighborhood. You know why? Because that neighborhood is asleep at the wheel. Buyers are getting incredible discounts in other locations and because those locations don’t fall into the obvious competitive choices, those guys have no idea what they’re missing.
Naples Sellers: It’s more competitive for you today than it has been in the last 3+ years. While price isn’t everything it means more today than it has. If you’re thinking about going on the market where there are already several similar listings available and your goal is to sell this season, you need to be ready for a fight. That fight is likely going to be had with an attractive list price coupled with a “better than your competition” product. If your property doesn’t show as well as your competition, it will need to be fabulously priced. If you are in a high-rise and that unit needs to be remodeled, the timeline for your buyer to get plans together and into permitting so the project can be done in time for next season is all but over. That sale needs to happen now. Do not be afraid to price your property aggressively if you want to sell this year. Many sellers located in tight-knit communities are going to find they’re all losers this season because buyers today do not have to marry themselves to that one location especially when incredibly attractive pricing is happening elsewhere.
You know what else is critical at this time?
Understanding the quality of an excellent agent and what it means to your bottom line. That is who you want to list or buy with if you want success this season.
Agents who are sitting back not in touch with the market or talking daily with real buyers are often giving no or poor advice to their sellers. Those sellers will miss their sale this year which could likely cost them $1,000’s upon $1,000’s of dollars. You should be packing with a full arsenal of skill if you want to get it done. If you hire an agent who at least has the perception of being accommodating, large chances are you are going to fare better than the seller who chose an agent blanketed in 2015-2016 superior smugness. Even at the top of a seller’s market smugness is rarely embraced by a buyer. When a market is turning like this one, that behavior is downright repulsive and can easily cost the seller a deal.
As we approach the end of the season, please remember to schedule your appointment in advance so we can accommodate you. We will take excellent care of you and you deserve that.
As always, thank you for reading my post and visiting my site. If you have questions or want to schedule, simply reach out!
Shannon Lefevre, PA
Your Naples Smart Girl