Posted on Sunday, September 30, 2012
We know fall is coming to Naples. Not by the turning of the leaves or the frost on the ground, but by the return of our friends and the decreasing frequency of our afternoon rains. Seasonal events are starting up and Naples is about to get going.
We have talked for a while now about the strength of our Naples market.
August monthly statistics show median prices up 10%. Both the price increase and a lower property supply (inventory of 6.8 months) are very positive signs for the coming season.
All of this follows a strong summer where we see less seasonality as more and more buyers look year round.
According to the Naples Board of Realtors:
The overall median closed price increased 10 percent, from $176,000 to $194,000, for the 12-month period ending August 2012.
Overall pending sales increased 16 percent in the $500,000 to $1 million category, from 939 units to 1,091 units, for the 12-month period ending August 2012. Overall pending sales increased 10 percent in the $1 million to $2 million category, from 424 units to 466 units, for the 12-month period ending August 2012.
Overall inventory decreased by 13 percent, from 6,930 in August 2011 compared to 6,043 in August 2012. Pending sales with contingent contracts are included in the overall inventory number.
The average DOM (Days on the Market) decreased by six percent, from 178 days on the market in August 2011 to 167 days on the market in August 2012.
Overall pending sales in the Naples coastal area increased 10 percent from 1,779 units to 1,950 units, and closed sales increased 9 percent, from 1,586 units to 1,732 units, for the 12-month period ending August 2012.
A Recent Article From The Naples Best Addresses Blog … Why isn’t my my property selling?
The toughest discussion we have with sellers is this one – why isn’t my property selling? When reviewing this predicament with a seller we think there are a few principles worth reviewing for our Naples, Florida market (as well as anywhere else!).
We like to start with the traditional factors of location, condition, marketing and price and add some side effects from the online world and the international world.
Location we all know. If your property is not selling there is not a lot you can do here. You cannot move your property. However you might take some time to understand any new activities in your location. For example after you listed your home did new construction start up nearby? Location is the toughest one to change but look around and see what is going on in your area. You might come up with some ideas.
Condition. No seller likes to hear their house is ugly. Surprisingly buyers may overly discount a property in poor condition and the reasons vary. Buyers may not want to do the work to improve it. Buyers may assume if the things you can see look bad then maybe the things you cannot see must be bad too. Buyers may not understand how straight forward some improvements may be. Check your viewing feedback and see what the buyers are telling you. Maybe some paint and carpeting. Maybe something more. Maybe some staging to “de-clutter” and make those key rooms pop. Be careful, maybe condition is not the reason your property is not selling. Look at the feedback, look at the competing properties and consider condition improvements as all or part of the answer.
Marketing. Make sure your realtor is marketing your property to your satisfaction. In this online world where it is estimated 80% + of Florida buyers start online you better make sure your property is out there in the online world. Pictures are nice, videos are even better and do not forget all channels in the social network – linked-in, twitter, Facebook, blogs, proprietary websites, and more. Does your realtor show you the online inquiry results for your property?
International buyers are an estimated 20% + of the market in Naples, Florida. Make sure your brand is recognized, your realtor is reaching out overseas, and those international buyers are comfortable with your approach.
Ok, ok, price. We mention this one last because you really should challenge location, condition and marketing first. Do not let your realtor start off with a price reduction without considering the other factors first. But if you have accounted for location, condition and marketing, let’s talk price. Re-run the comparative market assessment (CMA) again for starters. This is an automated process in our Sunshine MLS but any good realtor can do this for you. Make sure you understand the assumptions in the assessment. Also we like to consider only homes sold in the last year and make your adjustments from there. This tends to take out the go-go days of higher priced homes. In addition we are finding a big premium for new construction. So if you have an older home you might discount further (we like older homes but buyers are buyers!). The result? You may want to drop your price.
A final thought which may prove useful. Given the large number of buyers starting online these days Coldwell Banker research shows you should have a good probability of repeat visits and/or an offer in about four weeks. Why so fast? The online buyer tends to run their search, view your property and decide to go see it or set it aside fairly quickly. If you do not see real interest in four weeks you may need to make some changes. Another online pattern we see is a stable number of online views with no visits – a probable sign your marketing is working, but price. location or condition need attention. We would be glad to talk about how we could help you.
Keewaydin Island Thoughts Now on YouTube!
If you would like to add to your lifestyle or just change it up a bit you might consider more time in Naples, Florida. Chill out on the beach or liven things up with year round outdoor sports, wonderful restaurants, and life long learning opportunities. Give back by working and supporting a variety of non-profits including one of the largest Habitat for Humanity affiliates in the world.
The beauty of the surrounding area is remarkable. One place in Naples we never grow tired of is Keewaydin Island. A seven mile barrier island immediately south of town. See the film we made on the Naples Best Addresses Youtube channel by clicking the link above). Wildlife, plant life, and spectacular ocean views all on an island with very few humans. We shot this video on labor day weekend and you will be surprised how few people are on the island.
Imagine running your boat down to the island with your friends – even in the dead of winter – anchoring off and swimming in. Enjoy a day at the beach in solitude. Then pack it up and back into Naples for some wonderful dining in this tropical paradise.
We hope everyone is having a great Fall. Come on down and see us this season!
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.
Some of the data relating to 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.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South