Our real estate market in the Naples and Bonita Springs area has been “challenging” and many buyers are wondering how they can be successful in purchasing a home or condo. Buyers have questions about our current market, the future of our market and when/how the playing field might be more level between sellers and buyers.
Let’s hit some key points right away:
- There are many buyers who have succeeded in buying. They are happy with their decision.
- There are many buyers who did not overpay and got value with their real estate purchase.
- Some buyers have made mistakes – either through being misinformed, being over eager and caught up in the “frenzy” or because of bad advice from their real estate representation.
- There are good opportunities in our real estate market. Choose wisely!
- More listings will be coming on the market at this time of year.
- Sellers that come on the market in the months May through November are often more serious and motivated than the sellers that come on the market during “season” testing the market to “see if we get our number.”
What do I do as a buyer?
- Align yourself with an active, experienced Realtor who has local knowledge, listens well and communicates well.
- Be ready. Know what you want. Have your financing (cash or loan process) planned so you can pull the trigger when the right property comes on the market for sale.
- Become educated about the neighborhoods of interest and what makes one home or condo worth more than another.
- Talk about, think about and establish the priorities for a real estate purchase. The classic dilemma that demands that you establish the priorities is the “house versus location” decision. Is the house itself more important than the location near the beaches? As an example, the same money buys an older house needing some work and walking distance to Vanderbilt Beach / Delnor-Wiggins State Park or a sparkling new house located east of I-75. Beautiful home with high ceilings and all of the bells and whistles? Or older home but walk/bike to the beach and within minutes to restaurants, theater, and nightlife in Mercato? In what order is your “must-have” list? Is a pet friendly property essential? (This is important.)
- Know how real estate works in the Naples and Bonita Springs area. If you are coming from another state or another country, guaranteed it is different. Know the process, know the differences between the contract options, know your rights, know the protocol. Your agent is instrumental in offering the education you need.
- If there are multiple offers on a property and you have to compete, then your agent needs to be communicating with the listing agent to know what is important to the seller. Your agent needs to ask the right questions to position you for serious consideration. Streamline the contract offer and know what terms are important to the seller aside from price.
Overall, you will see the hot real estate market cool off a little bit. The sellers may still have some advantage as the inventory of properties on the market remains very low. However, our market has always been and will always be subject to neighborhood-by-neighborhood demand. Neighborhoods that attract strong investor interest are going to experience more demand than communities/condos that have tight restrictions on rentals for number and/or length of leases.
Properties on or near the water (west of Route 41 / Tamiami Trail) will always be in demand and receive premiums for location. We are feeling some pushback on prices in certain neighborhoods and seeing some price reductions. That being said, if you are a buyer for a particular community that has no current listings on the market then you need to be prepared to jump on Day One sight unseen and possibly compete. Again, it’s neighborhood-by-neighborhood. If you want something that lots of other people want, then be prepared.
Even at today’s prices, as a buyer, you will enjoy appreciation going forward. There is no end in sight of the demand letting up. Also, the supply is simply not going to meet the demand anytime soon. Existing homeowners wonder where they would go if they were to be tempted to sell and the builders are so far behind in new construction. The good news for real estate investors is that the rental rates have also escalated along with sales prices.
The summer and fall months are going to be a good time to buy in Naples and Bonita Springs. Less buyer competition here in town, more listings coming on the market and more motivated sellers. Call us, ask questions, get educated and be ready to pull the trigger with a short notice. If you are not in town, be prepared to come down if it’s important to see the property during a contingency period after executing a written contract.
Serious buyer? We listen well and will find your own “Piece of Paradise” at the best negotiated price and terms. We are full-time professional Realtors who depend on your referrals and take pride in our work. We have lived and worked through all real estate cycles. Take advantage of our skill and strategy to make you a successful buyer in a challenging market.
Serious seller? We will give you honest advice about current market conditions and pricing. We will aggressively market your home to local, national and international buyers for the best results and a smooth transaction. Our experience in handling multiple offers will result in the best terms for your own situation.
Tim Cranch at 239-272-4848 or Ellie Penaranda at 239-776-5077
