Posted on Monday, October 01, 2012
360 homes for sale. That’s how I count them. When I look at single family homes in the entire Naples, Florida area selling for more than $1,500,000 I find 360 in the Sunshine MLS. Considering there are 4,871 properties of all types for sale this morning these homes are a select part of the market indeed representing just over 7% of the market.
So is the luxury property market back yet? Not yet, not yet. In the last twelve months we have seen 267 sales giving an inventory of sixteen + months. We would like to see inventories far less than this, say six months to establish a solid market. In further review we see a number of “expired” and “withdrawn” listings – essentially a fail to sell situation – and our county tax assessor seems to be dropping assessed home values of late. It feels like a better market when compared to a few years ago but we are still backing up a bit.
What are luxury property prices doing? Down slightly. Although one big sale can move the averages of a small market the Naples luxury home one year trend is down slightly with an average prices of just under $2,500,000. I have to say these results are better than a couple of years ago but we are still drifting downwards.
What ideas do we have for sellers in this market? Traditionally personal networks – both yours and your Realtor’s network – were the best way to sell these properties. A great deal of trust may be involved in purchasing a high valued luxury property and a trusted relationship is important. We are still a big believer in personal networks but there are few other things to consider.
Condition. I don’t care what your personal network looks like your place better be an eye-popper or expect to discount heavily to high value buyers in this market. Why? There is a lot of inventory so put your place in the best condition and appearance possible. We like staging key rooms and the front entrance especially for the luxury market. You may find a fixer-up’r buyer here and there but you may be unintentionally excluding a big market if your place is in bad shape.
Market and Market Hard. You and your realtor should work your personal networks but quickly move to new prospects in the online and international world. Why? 80% of all buyers start online today and 20%+ of all Florida buyers are international. So what? Well you better be out there in the virtual world as these online buyers run their search, eyeball your property and pretty quickly decide to see it or move on to someone else’s property.
All online marketing is not alike. Your Realtor’s website may seem appealing but beware. If you are new to online real estate marketing there is a lot more to this than a website. Think of the website as a billboard only. What goes on behind the scenes on the website AND across the entire spectrum of social networking is important to get right. Remember the 80%. At NaplesBestAddresses.com we have custom-built a unique approach for the online world for this very reason. Contact us about it.
What about the International buyers – what do they want? Like all visitors to a new area they may want a trusted brand – do they know your Realtor’s Brokerage when they come to town? If the trust is not there will they go to someone else’s Realtor?
Don’t Chase The Market Down. Price your place well within the ranges of recent comparable sales. You may be surprised at the actual market worth of your home. Price it to sell or don’t start. With prices still decreasing albeit at a slow rate you want to sell and get out. If you get cute on pricing and wait for that one perfect buyer for a while you may find the market has turned one notch lower again leaving you high and dry.
Speed, Speed, Speed. If in four weeks of marketing you have no offers or repeat visits it may be time to re-evaluate condition and/or price. Why? In the online world it is likely the current population of online buyers running their online searches over the past few weeks passed you buy already clicking, selecting, and visiting somebody else’s property. You need to change it up – price or condition or both – and find a way to attract the current buyers.
You can do this. Properties are selling. More questions or ideas? Please give us a call or contact us by email for more thoughts and ideas on how to move luxury properties in this market.
All the best,
Mark Goebel, PA.
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 Mobile: 239.595.3921 NaplesBestAddresses.com Facebook: NaplesBestAddresses Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main