What makes Naples, Florida different when it comes to negotiating a home purchase? There are several things that make our “resort town” different from the northern states regarding real estate transactions. Here are some key points that factor into negotiating a deal for you when you are buying a home or a condo in Naples:
1) The motivation of the seller may be less than your motivation as a buyer.
- Many homeowners in Naples own several pieces of real estate. Often times, several of those properties are all in the Naples area. If the properties for sale are west of Route 41 (the coastal section), meaning they are rented seasonally (the owner’s expense in carrying the property would usually be nill) – so the seller can afford to wait on the market to improve their way.
- Now that our market is coming back strong and the conditions are much more favorable for the sellers – many are pricing their homes at tomorrow’s prices. The only way of finding out just how motivated a seller is on any given day is to present a written offer. No amount of talk or verbal offers will determine if there will actually be a meeting of the minds in real estate. One of our jobs as professional Realtors® is match you, the serious buyer, with a serious seller.
2) The other terms in an offer may be just as important as the price. Naturally, the dollar amount of an offer is important and it will always be the first thing that a seller will see. However, there are other considerations in making a contract offer which may be critical to attracting the attention of the homeowner.
- First of all, “cash is king” in the Naples area with more than half of our transactions being cash across all price ranges. The financing contingency is eliminated and typically, there would be no appraisal.
- Another factor is timing – sometimes a quick closing is appealing to the seller but there are often situations in which the seller would rather postpone settlement or have the opportunity to rent back the property after closing. These are things that your agent should be addressing from an informed position.
3) Know the true value of the property. Forget about the list price of homes or condos currently on the market for sale in the neighborhood. In our area, many times the asking price does not reflect the actual current value of a piece of property. Only the educated consumer will pay the right price. As a buyer in Naples, you need to know the closed sale prices for similiar homes that have sold nearby in the last couple of months. You need to know the market trends.
4) Mistakes Buyers are making In Negotiating a Home in Naples in Today’s market:
- Comparing the asking price to what a similar home sold last year or even 6 months ago.
- Not realizing that the bottom is gone.
- That the Buyer’s market was the last 3 years and that with the continuing low inventory it has become a seller’s market.
- Making low ball offers that only result in the seller making a high counter offer.
- Finding the right home and instead of immediately making an offer, try to wait to see if seller will drop the price.
- Constantly thinking of what a home sold for last year and ignoring what this home, available to you now, will be selling for in another year or two if you decide to wait.
(Can you identify which one of these homes for sale is overpriced by $300,000?
(Test your market knowledge – do you know which one of these homes for sale is underpriced by $50,000?
We know of properties on the market that have grossly exaggerated list prices, there are some others which are actually underpriced (sometimes a strategy to attract multiple offers) and other homes which are absolutely, positively worth every penny of full price. You can’t do this part alone – this kind of knowledge comes only through a committed relationship with a professional agent who is representing your best interests. Call us today 239-776-5077 to help you find the right home at the right price.