The Naples Real Estate Market – Seller’s Edition
The Naples real estate market is on the move with lots of new talking points many people aren’t talking about at all. That’s why it’s time for the Seller’s edition of what you need to know. This is a compilation of everything we’re seeing and hearing on the streets when we talk to other agents, buyers, and sellers. Let’s get started!
Fast Naples Real Estate Market Facts
- There are 1,630 Active listings in Collier County.
- Inventory is up 18% compared to April 28th.
- For the first 17 days of May, price reductions are up nearly 311% compared to the same time last year.
- The average list price to sales price ratio last 7 days was 98.9%.
- 118 Properties sold below ask. 37.7%
- 87 Properties sold at ask. 27.5%
- 109 Properties sold above ask. 34.8%
1. Nimble Agents Are The New Must-Haves
There is a huge group of agents who are wildly overconfident with our real estate market. You can hear them regurgitating the same elevator speeches of their friends with this whole “the Naples market won’t crash, it’s different this time, we’re a cash market, inventories are low, real estate doesn’t depreciate, Naples has a new, bigger prospect base”. Seldom are they doing their own research even if they know how to do it. This oblivious behavior seems to be worse at the top of the market. While you want a confident agent pushing your property, you don’t want somebody who is out of touch with what’s happening. You’re paying them to market your property and advise you. If your Naples agent started real estate anytime within the past 11 years, they haven’t experienced a downturn. They likely don’t know how it goes but more importantly how fast it can go.
- 1. Good offers will be dismissed and lower offers will surface. Sing it with me, “Don’t know what you got, til it’s gone.” LOL In all seriousness inexperienced agents haven’t been through this trend yet and if you’re taking advice from them, it will be the price on your property taking the fall.
- Lack of responsiveness will lose deals. I’m already getting calls from agents outside of Naples looking for a responsive agent to take their referrals because they’ve had to fire agents who don’t handle their business. I received a call this week from a buyer who couldn’t get their agent to write a contract. We are your “go-to” if you’re looking for a responsive agent.
- Failure to adjust pricing or beef up marketing could cost sellers enormous money. I’m already seeing whole subdivisions react downward. When there’s a whole neighborhood of non-reactive sellers and listing agents, the whole neighborhood stalls. Different neighborhoods across Naples have fallen victim to this in large part because many agents don’t look outside the subject neighborhood to determine the lack of selling traffic. I’ve seen various golf courses and boating communities over the years make these devastating mistakes. If your agent doesn’t have the big picture across the Naples landscape, it can cost you!
2. Effective Marketing Matters
If the latest boom Naples real estate market exposed anything, it exposed how truly lazy and careless agents could be with their marketing and still get properties sold. iPhone photos and sloppy photography are at an all-time high. Lazy property descriptions and an over-dependence on MLS cooperation are also culprits. You want an agent who is going to expose your property in the best light to capture the highest price. I stage/review/enhance my listing photography like a high fashion magazine editor. It drives my partner crazy but that’s a huge reason why we’re successful.
3. Hire A Go-Getter!
In stalling markets, lazy and inexperienced agents have no idea how to “go get” your buyer. They’ll let every “once interested” party disappear into the sunset because they do not have the wherewithal to pick up the phone and call buyers and buyer’s agents to coax their buyers to the table. There are so many techniques to rekindle interest but if your agent won’t initiate, you’ll never know what could have been.
4. Those Vacays Will Be More Expensive This Year
I’m not talking about inflation. I’m talking about the number of agents who are going out of town without having a summer selling plan in place. You want to list with an agent who has both your marketing coverage and showing coverage in control. Those missed opportunities could end up costing sellers in the form of missed opportunities and needed reductions. Ask your potential agent if they’re going out of town and if they say yes, ask how your listing will continue to thrive in their absence and ask for examples of how that plan has worked in the past!
5. Unsolicited Offers Aren’t Necessarily The Best
We’re seeing a good increase in sales where neighbors are identifying condo owners who are preparing to put their condo on the market and approaching them directly to cut a deal. One statistic from the National Association of REALTOR suggests sellers make around 18% less than they would if they listed. That’s like paying 3 real estate commissions and you get to do all the work. Would you pay 18% more to build your own house, pull your own tooth, and fight your own legal battle?
6. Live MLS Listings Are The Only Way To Go
I was speaking with a lady today who mentioned she was going to try to sell her home during the next couple of weeks but didn’t want to put it on MLS. Wrong move. If you want to give your property the best shot of selling, go live and it expose it to as many people as possible. Agents and buyers will hunt around for pocket listings when there isn’t any inventory. They don’t if they have choices. Go big or stay home. What are you going to lose? The risk of being embarrassed if it doesn’t sell? Nobody cares doll.
7. Is Your Agent Too Busy To Sell Your Property?
I made an appointment request on a several-million-dollar property last week. I reached the agent, made my request, and was met with a myriad of disgust and excuses as to why he didn’t want to accommodate that time. Keep in mind, that this request was made several days in advance. He proclaimed, “I’m already showing it at this time and that time on that day, can’t you change your schedule?” He finally agreed after a long exercise and persuasive encouragement. What he doesn’t know is the fact that the neighborhood performs extremely poorly. He doesn’t know it is nearly unsellable during most of a real estate trend and that the average market time for that neighborhood throughout its entire history is over a year.
It was the buyer’s idea to see the property. In fact, I was already forming my case to encourage the buyer to reconsider. If you own a property like this, you need an agent who can capture every single showing willingly. You don’t need one who throws up roadblocks. We have a simple philosophy, “We took it, we book it.” When we take listings we do everything possible to accept every showing appointment without hesitation. We show that property to the best of our ability. You and your property deserve it and should expect that level of service. My client determined it didn’t fit his needs and we ended up canceling the showing. That property is still on the market.
8. Pricing Right Is More Important Today!
I’ve already talked about price reductions, and I’ve already seen my first price war. By the way, 100% of those sellers participating in that price war are still on the market. Agents who have gotten extremely confident about quoting super high prices because they knew the market was going to catch up to it are likely going to get caught with their pants down. I am already seeing evidence of sellers chasing a market downward. Will you take the bait or will you make more than your neighbors for pricing smart?
9. Buyers Expected To Search Value Over Convenience
It’s no mystery that buyers are willing to pay more for something new or renovated during peak market conditions but attitudes change as the market softens. Prices on everything are higher than many buyers are willing to go. That’s when motivated buyers start re-evaluating their position. They still want to buy but they don’t want to buy that high. If you own a perfect property and you want the highest price, the time to list is now.
10. Planning On Waiting Til Next Season?
Don’t wait! Many sellers wait until October and January to list their Naples property. That’s when the Naples real estate market is in peak performance. Why would you wait for up to 6 more rate increases before putting your property on the market? Don’t let that “We’re a cash market” chatter fool you. We cloak a ton of our deals as cash when in fact buyers are actually getting loans. If that money gets more expensive, this market will see less interest.
The other reason you don’t want to wait is that a ton of other Naples sellers are planning on listing next Fall too. Are you really waiting for more competition to sell your Naples property?
The excuses we’ve already heard
- We already left town and our property isn’t ready. We have people to handle everything from packing your stuff to servicing your A.C. It isn’t hard!
- We have to finish some projects before we list. Let us decide if we can market your property successfully. Those projects could end up costing you way more than the price of the project if you delay.
- We don’t know where we’d go. If you’re moving out of Naples, I can connect you with an agent. If you’re staying in Naples, you can search for your next property here or I’ll find it for you.
The bottom line is DO NOT DELAY!
Consider us your light at the end of your selling tunnel. We can orchestrate all of the details to help you accomplish your selling objective!
Do you want to know what your Naples property is really worth? Shoot me a text/email/call and let’s get started! Do you have other questions or want more information about other Naples real estate? Let me know!
If you have other questions about the Naples real estate market I didn’t answer here, you’re welcome to contact me via text for the quickest answer or call/email.
Shannon Lefevre, PA
Your Naples Smart Girl!
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