Posted on Thursday, November 13, 2014
The newspapers are full of stories right now about Naples home prices. Eye-popping accounts of asking prices in the tens of millions of dollars. Folks here are reminded of the glory days of the last boom when prices really started to rock.
But are people really buying homes at these prices? Yep. In fact volumes look like they are rising again, supplies are falling again and prices are going up as a result. More and more buyers seem to be joining in.
But how much are the buyer’s really paying? Anywhere near the asking price? Ah, here is the interesting part. We like to look behind the numbers a bit and see if these sellers are really getting away with these asking price. The so-called closed-to-ask ratio will tell us a lot.
Well are the sellers getting close to their asking price? Yep.
A look into the Matrix MLS system tell us the actual closing price of Naples properties is, on average, 4.2% of the asking price. Although this spread was even tighter a month ago the ratio is still pretty tight. What is this tight spread telling us? Well a number of things could be happening, like:
1) Seller’s may be doing a better job of pricing their property
2) Buyer’s realize they are in a seller’s market and are settling closer to the asking price
3) The slight dip from last month may mean buyer’s are shying away from the higher prices – but not much
4) People just want to dicker and will not pay full price!
What does all of this mean to a seller? You still need to know the market – in your neighborhood first. We like to suggest to our sellers is to complete a detailed comparative market assessment with us (most realtors do this) AND look at the inventory and volume trend in your neighborhood (not many realtors do this) AND go visit competing properties for sale in the neighborhood (not many realtors do this either) and estimate the price at which your property will sell. Then to give yourself some wiggle room and mark the price up by the close/ask ratio – now about 4% plus.
But maybe you heard the market is rising and as a seller you want to go for even more money? Well be careful there, it you need or want to move you do not want to have your home sit for 200, 300 or more days in the market when you could be moving on with your life. Well priced properties in good condition are selling right now sure, but over priced properties are still sitting.
If you are a buyer looking at this close-to-ask ratio just do everything in reverse. Work with us to complete the same comparative analysis work coupled with inventory and volume analysis with walk thru of other properties and make your offer accordingly. Figure the seller is going to come down on-average 4%+ right now and you can tell if you are likely to reach a deal. There is no need to over pay unless you really, really have to have it!
There are many real estate and lifestyle options here in Naples, Florida. If you would like to know more please pick up the phone and call the Naples Best Addresses team at 239.595.3920 (Nan), 239-595-3921 (Mark) or 239-285-2038 (Dave).
I would also encourage you to download our eBook “Understanding Naples Real Estate” https://www.naplesbestaddresses.com/offer/ to get you started. Visit us as well at NaplesBestAddresses.com.
Hope to meet and talk with you soon,
Mark, Nan and Dave Goebel PA’s
Co-Founders of the Naples Best Addresses Team
Coldwell Banker 5th Avenue South
No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients. We are pleased to announce a portion of our real estate earnings go to support the The Naples Botanical Garden, Habitat for Humanity Collier County, The Race For The Cure Citrus Ride, The Seacrest Country Day School and The Naples Winter Wine Festival. Some of the data relating to Naples homes for sale and Naples real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing. Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate. Contact us to learn more about Naples real estate trends, the florida rental market, Naples design ideas like coastal contemporary and transitional designs or just get a feel for the place like Naples Florida population trends.