Real Estate Wars In Naples Florida

My experience tells me Naples buyers will be encountering considerably more competing offers this year compared to the last several but the rules on the contracts have changed...I want to hear your thoughts and opinions about it!

With Naples real estate inventories shrinking considerably, Naples buyers are going to find themselves amidst some serious competition this season especially on properties of magnificent appeal and Naples listings that are priced to sell.

...and just in time for the battle there's an interesting change on our Naples listing contracts.

Here's the Naples Listing Contract Change:

Paragraph H (lines 48-50) of the NABOR Listing Contract now requires the Seller to choose  (1) shall or (2) shall not  disclose the existence of offers on the Property to buyers and/or cooperating Brokers.  If disclosure is authorized and if asked, Broker shall disclose whether the offers were obtained by the listing licensee, another licensee of Broker, or by a Cooperating Broker.

So what this basically means is the listing agent isn't necessarily going to offer the information that there is another offer on the property.  When they're asked if there's another offer, they will be required to follow the terms of the listing agreement...either tell you there's an offer or tell you something like, I'm sorry I can't disclose that.

I've had several buyers throughout the years fall into a competing position. The majority of my clients have chosen to compete.  This is what I personally would do.  I wouldn't let some maybe other party take what I like without at least putting up a fight. Of those buyers who competed, a HUGE majority (probably 95% or more) have won the competition.  In fact the only time someone has lost a competition I was involved with is because they chose not to follow my advice and the other party's terms won.

Every once in a blue moon somebody doesn't want to compete and will either take a stab at something else or go away without purchasing.  That's a sad day when someone leaves the Naples real estate market because they're not getting their way but it happens...it will happen alot more in the next upcoming years if the market continues to strengthen because there is always a certain group of people who want to feel like a buyer.  Other times people take off because they price themselves completely out of the market...sigh.

I've also had considerable experience with Naples listing agents who have told me there's an offer working on a property and has given me the option to show the property anyway. Sometimes the offer comes in while we're at the showing appointment.  Some are leery about telling me because there's never a guarantee the first offer is going to work out and they don't want to scare off my buyer. It can be a really uncomfortable situation.

My competing experience as a Naples listing agent is vast as well. While negotiations can sometimes get out of hand, for the most part it's a positive experience.  I look forward to competition because it usually means the seller's getting their absolute best price and terms.  It definitely helps when I'm working with experienced professionals who know how to communicate effectively with me and their customers, while there may be heartache, the losing part ultimately knows the competition was fair.

Do you know why it's vital you work with a proven professional? The mistakes rookie or simply unintelligent agents make during competition can make negotiations really sad and difficult for almost everybody involved. I remember the first time an agent handed me my butt during a "surprise" competition. I think I cried the entire night because I knew I had lost the deal for my client.  Calling my client to tell them they had lost their house and why was one of the hardest calls I ever had to make.  That happened sometime around 15 years ago and it was through the agony of that defeat that gives me just some of the intelligence you get today when you choose me to be your Naples real estate agent.  If you'd like to hear the rest of that story, email me direct and I'll send it to you...it's a good one. :)

If you are working with an intelligent agent they are going to know how to meet your objective.  Based on that knowledge they are going to formulate the terms of your offer accordingly to give you your best shot at your desired results. Dummies don't know how to do that.

Ok, that's all I have for you today.  You want to be diligent on your Naples searches (or allow me to do that for you) AND you want to act swiftly...now through season. 

About 9.9 out of 10 of you never leave your comments here :( but I really would like your feedback on this one.

Here's the questions: 

If you are a buyer and told there's another offer on the property (or one coming in) do you:
A. Choose to compete.
B. Choose to punt.

If you are a seller and are asked to choose to allow or deny your listing agent to disclose other offers do you:
A. Allow your agent to disclose other offers.
B. Deny your agent to disclose other offers.

I'm really looking forward to your comments which you can leave here in the commenting section of my post or you can email me direct at: shannon(at)shannonlefevre.com

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl

Hello Naples Fans!  I'm here to announce I have completed my first full circle of experience in Naples real estate and it only took me 9 years and 10.5 months.  There's something to be said about experience and fortunately for those who put in the time and effort, there's a real payoff.  It's still the one thing that can't bought or acquired through gaming a system in fact....it can't even be gained through just showing up.  You have to be in it to get it. So that's why the few agents who "can" include on their business card, "selling Naples real estate since 200BC".

I used to see all sorts of lingo like that in the old newspaper advertising and used to think, so what! Just because you've been here for that long doesn't make you a great Naples real estate agent.  I must admit I was jealous of all that inside intelligence those agents had and sort of I guess maybe bitter because in my defense, I would've gladly gotten here sooner had I known Naples existed before I did...But, now that I have that full real estate cycle successfully under my belt, I get it and now, I'm one of "them".

How do I know I have the full circle in my pocket?  I'll tell you exactly how the market was when I started selling here in 2002.  We had just dealt with that whole 9-11 tragedy and many of the other agents around town were very detailed about their stories about how miserable the market was for Naples after all that happened.  By the time I got rolling here, the market had somewhat recovered and after awhile the large tone of the buyer prospect base was if I had to sum it up in one word, regretful. They were regretful that they did not purchase when pricing was low.  I met several people who felt like that. They all streamed into town as they often do at the beginning of season and describe in detail that deal they had seen the year before and didn't pull the trigger.  Many went back to where they came from only to be largely disappointed when they came back down.  Some bit the bullet and paid more for similar Naples homes and condos they found of interest. Some lost their window of opportunity all together.

The Naples real estate market moves very quickly here.  I'll never forget the day I was walking through the lobby of my office and overheard a young couple who were looking at a huge map of Collier County.  She said, I can't believe there isn't one house on this whole map we can afford.  I was in the parking lot of our office by the time I thought to myself...didn't you know that before you came here???  How did you not get on the internet to do some peeking around before you got on that plane, forgetting that not everybody shopped for real estate that way then.
Then the Naples market went into that crazy feeding frenzy where buyers bought everything even if it didn't make sense no matter what you said to try to talk them down.  The best example from that time is the argument I had with a lady who was planning her arrival the day before Hurricane Wilma was supposed to hit...do you know it took 4 separate conversations with her to get her to cancel her flight...shesh.  There's several other turns in the natural real estate cycle as many of you know already and I won't bore you with all the details here but I want you to know:

Where Naples Is Now ~ This Is Important.
Pricing has already started to go up in many Naples luxury neighborhoods and listing inventory in some locations is ALARMINGLY low meaning pricing is going up.

Here's a snapshot from Trulia last week:

While it is customary for new listings to slow down this time of year it sure as heck isn't customary for pricing to go up or for the number of price reductions to go down.

This is the time of year when sellers mourn the loss of their successful negotiation they were hoping for during high-season.  The average listing price went up over 1% in a week...the second week of May...WHAT?

Sales are up 16% for the month of May compared to the first 21 days of May last year. Up 19% compared to 2 years ago during the same time.

The reason why I think this is SO important is because I was completely bewildered by the amount of people who seemed to be so caught off guard about the price increases Naples recognized back then.  How do you find yourself priced out of a market?  I remember thinking to myself, had I been working with you last year, you would've bought because I would've told you it was going to go that way.  I guess I always assumed agent were giving potential buyers a heads up.

Just last week I showed 3 units in Pelican Bay with what should be considered a fabulous Gulf view under (a certain price range).  I only showed 3 because that was really all there was...I didn't even know that myself until I offered to find more product for my customer only to be equally blown away at the lack of inventory currently available.  It had been a month or so since I'd been nosing around in that exact product and now...not much was left.

Of the three available, one was a smelly dog (hard to believe), the second was an ok deal and the last, an outstanding deal. I do not expect this one to be around for too much longer. Contact me direct if you want more information about any of those 3 because after these I expect this to be it.

Earlier this year you could purchase beachfront in Bay Colony for $1,325,000.  Now it's $1,975,000 That prices some who were looking earlier this year completely out of the market unless something more affordable hits the market between now and next season.

I sadly have discovered that now there are probably 5 customers who will be among the group who will come back sometime within the next several years and say, "we should've bought that one...". It honestly makes me sad to come to this realization.  Was there something more I should've said or maybe did I say too much?  Maybe I'll just write a blog post to the rest of you in hopes of preventing more of this in the future.

So while it may not have been a first priority for you to come and see what's available right now, it might be best financially for you to make a plan and get down here. Of course you can always purchase site unseen as well and we'll make the process as easy as possible should you identify something you like.

If you want to come down and look for yourself, PLEASE let me know in advance so I can do my best to accommodate you. After all, I have that full Naples real estate cycle on my side along with a fabulous knowledge of the Naples real estate market and excellent negotiating skills.

For more questions on Naples real estate or to simply get the ball rolling give me a shout or shoot me an email direct.

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl!

Understanding Your Contract

There's been a weird Naples Florida real estate trend lately of crazy questions, concerns, demands and requests coming up during the escrow period of the contract. If you haven't seen me type it already, real estate always trends and it trends in every way possible. This too shall pass but while we're still riding this weird wave, let me clarify a few things that might come up while you are under contract.

The most prevalent weird thing I've seen lately are unusual requests and/or demands regarding repairs. For example, This year I was involved in a deal that had a radon issue. When the buyer responded with his requests for repairs there was a side note asking for a specific radon mitigation system. According to the contract, the buyer doesn't have the right to request which system is installed. The buyer has the right to ask for a mitigation system that will remove unhealthy levels of radon from the unit or a credit for the repairs...see below:

I also had another circumstance where the buyer wanted to "supervise" the repairs...but according to the contract, "Remedial Action shall be deemed to have been properly performed when (1) the Systems and Equipment are placed in Working Condition... It doesn't say anything about the right to watch repairs being made.

Why are there so many crazy things going on right now? The technical answer for that is, "because". Hey, if real estate was easy then there would be a million people selling real estate right now and although we've had as many as 1 million Realtors, you can guess there are considerably less than that right now.

Real estate isn't easy. It's easier when you have a competetent REALTOR who has an exceptional network of inspectors, attorneys and other vendors to help you get your deal done and if you're thinking of buying or selling in Naples, you should be calling a smart Naples Realtor!

Best Regards,

Your Naples Smart Girl!

*The information in this specific blog is in regards to the Naples Area Board of REALTORS residential sales contract. If by chance you have found this post and your contract is on a property in a different location and/or written on a contract other than the NABOR contract, please contact your REALTOR or your real estate attorney/title company for clarification on your specific deal.