Monday, January 3, 2011

Biltmore at Bay Colony Update. 1-3-11

Biltmore at Bay Colony Naples, Florida did not lead the Bay Colony community in production or stabilization during the past 12 months.  In fact this is one Bay Colony high-rise that on paper isn't performing as well as some of her sister buildings and some heavier negotiations might be possible for this reason.  At least there's an intelligent, argument we can discuss when presenting an offer.  During the last 12 months only 3 Biltmore at Bay Colony units sold with 6 presently on the market. The average list price to selling price is only 85% which reflects the concept that sellers are maybe a little more optimistic about the value of their unit than maybe they should be.  That number is down compared to the overall Pelican Bay average which sits at 91% right now.
Biltmore at Bay Colony

While we're on the topic of list price let's discuss negotiation strategy for a moment.  Naples Florida attracts people from all over the globe who have already pretty much learned negotiation strategy from their experiences in other locations.  Because of that Naples doesn't have a universal way of thinking when it comes to pricing or purchase negotiations which can be aggravating for people who think it should be done the way they've "always done it back home".  For reasons like that, it's always best to take a look at the numbers and have an intelligent explanation as to why you as a buyer or seller are doing something but unfortunately, I've been involved in a great number of transactions here when I ask the listing agent how they determined their price they just shrug their shoulders or if I ask the buyer's agent how they decided to offer the amount on paper they just look at me with a blank look on their face. 

Have a detailed plan when negotiating no matter what side you're on.  I can help you come up with a plan whether you're a buyer or seller that will make your number make sense to anybody who will listen.  Of course, I can't guarantee the other side will listen but I can help your success rate overall. :) 

  • Buyers: it takes more than cash/quick close to get special concessions in Naples.  Over half of our transactions are typically cash...so while that's unusual in your market, it's mostly expected in ours.  Especially when it comes to Naples luxury real estate. 
  • Sellers, it takes more than a new roof, water heater and air conditioner to bump the price up past fair market value.  Despite what your agent thinks, most people expect those things to be in good working condition when they purchase and if you end up footing the bill on those sometimes expensive maintenance issues, it's never considered an upgrade you'll make money on.

In a "normal" market, the listing agent educates the seller about the average spread between list and sales price and for that reason the seller has priced their unit accordingly.  Typically, they won't be insulted when a motivated buyer comes in close to or just under that difference on the initial offer. This IS Naples though and it's not out of the question that you'll come across a bullheaded seller who thinks their property is worth way more than the numbers prove even if they haven't done anything special to their unit.  I know of two units in Bay Colony right now where the seller believes their property is worth considerably more than the rest of the world does.  Market time, multiple lower offers and everything else hasn't been enough to sway the seller's opinion and because the seller has the ability to hold....so it sits. 

Every once in awhile sellers and seller's agents are not most interested in holding on to every penny on the deal.  This is largely due to the fact that the seller has a definite plan and they're not going to let something like a few dollars prevent them for accomplishing their plan.  I know a few of those kind of sellers in Bay Colony as well...these are the reasons why you work with an agent who has some inside intelligence.

There is a 2 year supply of inventory in Biltmore right now and while there are some units that are obviously priced better than others there is no clear "if I don't write an offer on this today it will disappear" deal. That's ok.  Let just take a peek at all of them, you pick your favorite and we'll see where it goes.  Don't have the time?  That's ok too.  I can run over, shoot video and you can determine the unit you want to take a stab at from the comfort of your own chair.  It's all part of my drive to make buying in Bay Colony really easy!

For more information about Biltmore at Bay Colony, contact me direct!

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl!

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