The real estate market in Naples and Bonita Springs remains in favor of the buyers. There are excellent opportunities for investors, second home buyers and future full-time residents. That being said, the inventory of available homes on the market for sale is shrinking. As our local real estate market has stabilized, the buyers who thought they would take advantage of market conditions to “steal” the home of their choice are having to wake up to today’s situation.
Even more so than other real estate markets in the country, our market is very localized to the point where neighborhoods near each other geographically can vary significantly in home values. One of the major contributing factors can be understood immediately with a quick glance at a local map. The area between the beach and Tamiami Trail (Route 41) is a relatively narrow strip of land which has historically held its value better than other areas. You’ll hear the phrase “West of 41” in any discussion having to do with real estate in Naples.
The type of home that suits your needs will have some bearing on the ability to negotiate the best deal, too. The inventory of single-family homes is going to be far less than the inventory of condominiums and the laws of supply and demand can come into play. Not to be overlooked, every seller is in a different situation and differs in motivation to sell, too.
To negotiate the best deal for you, it starts with defining your goals.
- Will your home purchase be a single-family home for retirement?
- Are you still working and want a home as your primary residence?
- Is this property going to be occupied only a few months per year?
- Do you prefer the “lock it and leave it” benefit of a high-rise condo?
- Is golf or tennis important to you?
- Do you want a gated community?
- Does appreciation matter?
- What are the priorities?
Give consideration to the goals well in advance. Also, don’t fall in love with one house and become emotionally tied to just one property. It’s best to have a list of three preferred homes so that if the first negotiation doesn’t go in your favor, you can move your attentions to the second pick on the list. You need a seller who is as serious about selling a home as you are about buying a home.
Be prepared and know your timetable. Allow for an educational period so your knowledge base is sufficient to make a quick but sound decision when you see the right home. The best homes are recognized by other buyers and may or may not be available when you are ready to “pull the trigger.” If you have a comfort zone of market knowledge when you identify a great home for you, there won’t be regrets later on that you missed out on an opportunity.
Also, it is the nature of our seasonal Naples area that there are better times of the year to negotiate the best deal. You should align yourself with a professional Realtor® for guidance, advice and education about our market and the best time to strike. For up to the minute information on the local real estate market in Naples and Bonita Springs and expert negotiation, call Ellie Penaranda at (239) 776-5077 or email her at Ellie@StepsToTheBeach.com (Broker Associate with Downing-Frye Realty, Inc.).
If you’re making this purchase with financing, then start the loan process with your lender of choice early in the game. Be ready. It may be tomorrow that you see the perfect home. Your real estate agent can make recommendations based on a lenders attention to detail, knowledge of local issues and experience with smooth transactions, if you have not already aligned yourself with a mortgage lender.
The well-negotiated properties are usually purchased with cash and a very quick settlement date. A cash transaction bypasses a lengthy financing contingency period and appeals to the seller. Although a “low ball” offer may not get a warm reception from the seller initially, after sleeping on it overnight the prospect of a guaranteed settlement in just a few weeks time looks better every minute. To negotiate the best price with the best terms for you, then dangle the carrot of cash along with a quick closing. Get advice from your real estate professional on the price, the amount of the earnest money deposits, terms and approach going into the first offer.
It is a great time to be a buyer!
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