“Value is what you get. Cheap is what you pay.” Remember that tried and true adage? Never has it applied more to real estate in Naples, Florida. With demand outpacing the supply as of late, our real estate estate market has reached an equilibrium now with the balance of power between the buyers and the sellers favoring the sellers in many neighborhoods.
For those folks who have not followed the Naples real estate market over the past few years, it may come as a surprise that our area experienced more real estate transactions in both 2011 and 2012 than either one of the “bubble years” back in 2004 and 2005 when there was a feeding frenzy fueled by speculation and very easily obtained financing. This year has been no different in setting records for real estate activity. For those of you who visit us seasonally with periodic interest in real estate, you have witnessed the difference over the past few years.
Remember when you came to town three or four years ago and visited lots of Open Houses, saw lots of real estate signs and it seemed as if you had all the time in the world to make a purchase decision? You came back the following year and you made note that things had improved some. There were articles in the news, the Wall Street Journal and other respected publications that reported positive signs. Another year and you are back again, noticing that the inventory had noticeably shrunk but it seemed as if prices were still reasonable. No reason for panic if you were a buyer, right? So this past season you come back and maybe now you are getting a little more serious about this purchase of your dream home in our beautiful Naples …….only to be told that there were only three or four homes on the market that met your criteria.
Back to “Value versus Cheap.” If you are a real estate purchaser, which one do you want? We have both here in the Naples area. Those two things do not come in the same package so you do have to make a conscious decision which one you want. You say “cheap”? No problem – just temper your expectations with the realities of the market. You say “value”? No problem – just temper your expectations with the realities of the market. Say what? Are we talking in circles here?
Allow me to explain. The market is dictated by whatever a ready and willing buyer is willing to pay for a home…….and a seller of that home who is willing to accept that number. This means that the value of a home is truly reflected in the most recent closed sales of similar homes. It is easy enough to find homes for sale on the internet but, when you become a serious buyer, this information is not enough to make an intelligent decision or to recognize “value.” Enter the professional real estate agent with local knowledge, a finger on the pulse of a changing market, the ability to negotiate on your behalf, and the critical data to tell you the details of the closed sales. Call us to help you navigate your way through our Naples real estate market and make the right purchase that has “value” with a capital “V.”
Our current market has experienced many full price deals and in situations in which the seller has been aggressive in pricing the house to sell right out of the gate, we’ve had multiple offer scenarios too. Do these deals represent good “value” if the buyer had to pay full price or had to compete against other buyers? Absolutely. You have to know the market, you have to be aware of the changes in the market and you have to do the homework regarding the closed sales to know value when you see it. Then you have to pull the trigger.
Getting to the good buys quickly, will require a local professional on your side.
Call us today 239-776-5077 and let’s get started.