Good Morning Naples Friends,
Today I’m catching you up on the 5 Naples real estate things you want to know. Needless to say, there has been quite a dramatic turn of events. As many of you are experiencing, the weather has taken a bitter turn, and nothing makes Naples buyers more motivated than cold, ice, and snow. Record-breaking temperatures are causing record-breaking buying traffic in Naples, Florida, on top of what was already a stellar real estate year. This means buying is going to get harder, and prices are cranking north.
Here’s what I’ll be talking about today:
- Acceptable Contract Terms Have Changed
- Sketchy Advice From Afar
- The Best Vendors May Not Have Time For You
- After Season Buyers Are Already Stacking Up
- Information For New Prospects
Acceptable Contract Terms Have Changed
Due Diligence Periods
15 day due diligence periods help a buyer perform inspections and buy protected time to come to Naples to inspect properties visually. In many cases, sellers are no longer permitting them across the Naples landscape. Sellers don’t want to allow them because it leaves a question on whether they have a real sale. At this point, there is too much pent-up demand and buyers in town ready to purchase, giving them the best opportunity to write acceptable contracts with confidence.
This could pose a big problem for “sight unseen” buyers who thought they could get some protection and time to truly decide if they want to move forward on a deal. For those buyers who really need to see what they bought, they’re going to have to high tail it down in a short period of time or be comfortable moving forward without that protection.
Buyers who aren’t comfortable purchasing without the due diligence period are losing their purchase competition to those who don’t need one. Call me about how to protect yourself best while still winning the property.
When the real estate market in Naples gets this hot, Sellers get less interested in performing repairs. Many of the negotiations I’ve experienced over the course of the last 3 weeks have been very stiff. Selling agents aren’t having any trouble stating the seller will not do any repairs. This won’t prevent a buyer from performing inspections, so they know what they’re buying. Requesting the seller to fix items is a problem. Keep in mind, buyers can ask, sellers can refuse. Buyers are tasked with whether or not they want to go forward with the contract or back out. Some buyers are opting to back out with nowhere else to purchase. Many buyers are accepting less than perfect properties knowing they’re on the hook for repairs.
We see this behavior during the hottest and highest Seller’s market. It’s hard to rattle a seller when they know there are more buyers behind the current one. Many sellers will take a failed contract as an opportunity to re-enter the market at a higher price. I already see evidence of this around town.
In less aggressive markets, a seller who refuses to perform repairs has a better chance of losing their deal. In ultra hot markets like this, more buyers understand there may not be a viable alternative to purchase and will be more likely to move forward. There are still some backouts occurring, so it may not be a terrible idea to write a backup offer just in case that first buyer punts out.
A backup offer could be a good way to go if the property is in less than perfect condition and you are willing to take on repairs the seller won’t pay for. This concept is case-specific, though. If a property appears to be well cared for and the odds of repairs are minimal, the original buyer is more likely to move forward. Don’t lose time by going under a back-up contract if the property is in impeccable shape. Call me to find out why.
Closing dates are another term buyers don’t always get to choose right now. There have been several scenarios where a quick closing was not possible. This happens for several reasons. Sellers want to stay in their places until the end of the season. Many are building (especially at Moorings Park), and their properties are not finished yet. They don’t want to move twice, and with (what seems to be) a never-ending supply of anxious buyers, they can reject the closing date you want without fear you will walk away because somebody else is right behind you.
This is especially tough for high-rise buyers who want possession so they can get work done this summer during construction periods. This is also a bummer for folks who wanted to spend some time this season in their new place before winter is over. Also, many of the best attorneys tell their clients they can’t close properties as fast as they normally do because of their workloads. This brings me to my next topic.
Sketchy Advice From Afar
I’m hearing from several clients who are getting advice from trusted sources from outside the Naples market area. I can’t express to you enough how disconnected, and inaccurate some of this guidance has been this year. This is causing grave problems for my clients who are acting on the knowledge from people they know, like, and trust but do not have accurate data and resources to give sound advice. Information provided is anywhere from 6 months old and older compared to what is happening today. If you seek advice from somebody other than a reputable Neapolitan, please ask how they came about their knowledge. Better yet, ask a knowledgeable and reputable local real estate source.
The Best Vendors May Not Have Time For You
Don’t be offended when you find out your favorite attorney you’ve closed multiple properties with does not have time to take on your next endeavor. Finding condo contractors at this point will be extremely difficult as well unless you have already started at least a fact-finding stage with these contractors.
Large sales volume means the time and energy of our best people disappear fast. Our best people are more accustomed to turning business down instead of providing a terrible experience. It’s not personal. It’s professional. Hey, we’re doing the utmost best we can.
After Season Buyers Are Already Stacking Up
I’m already hearing conversations from several buyers who expect to come down after the season and capture better deals. Based on the number of people already talking about this strategy, I fear it may not reap the reward many are expecting. I believe new listings will be hitting the market at higher prices than they are today. Higher than normal buying traffic could easily continue throughout the rest of the year, much like it did last year, largely due to the droves of people who are escaping high-taxed areas.
Information for new prospects
Some of you are venturing into Naples for the very first time. Many of you have long-range plans to purchase or simply determining if Naples is the place for you. During normal times, agents have the luxury of carting you through areas with lots of properties to see so you can check out developments and properties. There are usually hundreds of open houses to stumble into this time of year. There aren’t today. Just now, I received an email from an agent trying to find a gate code so she could drive her curious customers through an area without any listings. She may find a solution to her problem because that is a coded gate, but if it’s a staffed gate and that agent has no reason to access it, they may not get in at all.
Don’t be surprised if accessibility into these locations without listings becomes impossible to venture through. This makes it exceptionally difficult if you’re coming to Naples to bird dog potential locations you would consider when properties hit the market. While unfortunate, this is happening. Here are some other tips that will help you accomplish your objective.
- Plan ahead! The most successful agents in town are not handling the front desk at hotels and real estate companies. If you want expert service, you need to talk with an expert, and we are booking well in advance. Please call us in advance so we can offer the highest delivery of expert advice.
- Prepare to act very fast. If you find something you like, be prepared to act very quickly. Countless properties are hitting the market with multiple offers on the first day.
- Cash is king. Loan contingencies in many cases are not being accepted.
- If you see something you like today, call me. Listings could easily sell faster than expected. Please do not expect listings to be available two weeks down the road when you are in town.
- Low offers on new listings are not being entertained at this time. Please wait until the market cools off substantially and inventory increases by an enormous amount before you consider deal hunting.
Other Things I’ve Seen This Year
In a low market trend, a buyer can:
- The buyer makes an offer.
- Seller counters at a higher price.
- The buyer walks away.
- The buyer comes back later makes a lower offer.
- The seller accepts a lower offer, and the deal gets done.
In a high market trend, a buyer can:
- Make an offer.
- Seller counters at a higher price.
- The buyer walks away.
- The buyer comes back later makes a higher offer.
- Seller counters with maybe the same number as before, or counter with a higher number.
- Sometimes the buyer buys, sometimes somebody else comes in and pays the higher price the Seller would’ve taken on the first original counter.
The pendulum really does swing both ways, and in deep peaks and deep valleys, those swings can be significant.
Bottom line: There is WAY TOO MUCH activity and WAY TOO LITTLE inventory to play some of our favorite negotiating games. Work with an agent who understands your objective completely and can help you navigate towards your objective. Lots of people are making bad decisions because of emotions. A great agent will help prevent you from doing the same.
Ok, Naples friends, that’s all I have for you today. Keep in mind we are entering the biggest Naples beachfront market now through April. If you’re thinking beachfront, call me now!
Please let me know your questions, book your appointments in advance and remember if you reach out to me personally, I can help you get the deepest inside knowledge nobody will ever find on the internet.
Shannon Lefevre, PA
Your Naples Smart Girl!
I recognize much of what I wrote today is bad (yet truthful) news for buyers. I’m not too fond of any market where it’s heavily tilted to one side or the other. Today, I’m posting beautiful photos of what we are all here for to soften the blow and remind you why you come to this site, to begin with. Thank you for catching up with me!
- Aqualane Shores
- Audubon Real Estate
- Bay Colony Real Estate
- Collier’s Reserve
- Coquina Sands
- Grey Oaks
- Gulf Shore Boulevard
- Kalea Bay
- Naples Cay
- Old Naples Real Estate
- Park Shore Real Estate
- Pelican Bay Real Estate
- Pelican Marsh
- Pine Ridge
- Port Royal
- Quail West
- Royal Harbor
- Talis Park
- The Dunes
- Twin Eagles
- Vanderbilt Beach