As promised in my last post, Naples, Florida has recently had a visit by a Wall Street Journal reporter by the name of Brett Arends. As expected, he has made Naples sound more like a devastation spot instead of the destination spot that Naples is which by any measure is no great surprise.
The unfortunate part of course is that by not reporting all of the facts, he's portraying a false impression of the state of the Naples market and the motivation of many Naples homeowners which in turn will greatly disappoint those planning on coming down here and capturing the deal of the decade. There will be some decade deal makers but it isn't as widespread as maybe he or a portion of the Naples, Florida consumer base is hoping. Fortunately that group of people seems to be shrinking as time goes on.
Starting with the second sentence in the article:
"So if you are looking to buy a place, someone is going to make you a deal".
I don't know about you guys, but in my book that sounds like I could hop on a plane, come down here, make a selection and basically steal the owner blind. Right? After all, even the lady who checked him in just lost her home...of course it wasn't disclosed to the rest of us where that home was located but it must be in Naples...right? She works in Naples, she must have owned real estate here too...right? Never mind the fact that just a few minutes up the road is a place called Fort Myers which was already disclosed by the Wall Street Journal earlier this year as the foreclosure capital of the universe....or something like that. Let's face it, I'm sure everyone who works in Beverly Hills owns property there too! Oh heck aren't we all living just three minutes from work?
Please keep in mind, the person writing this post is just a real estate broker. I'm in this real estate market doing something with this real estate market everyday...so I may be trying to fool you like some other brokers of which he wrote about as well. More specifically he wrote:
"When I called around before flying down, a remarkable number told me, "Gosh, I'm just the busiest I've ever been! The market's really picking up."...as if stating a case that there are no successful brokers in this town and that we are all a bunch of liars. Momma always said, CLASS WILL TELL!
I'm sure it's nothing more than luck or coincidence that I have nearly doubled my sales volume this year compared to last and I'm quite certain the agent in our market who's already closed $26,000,000 so far this year has just happened to be in the right place at the right time....every time. Should I call and see how many foreclosures or short sales are in his inventory of closed deals? Shall we see how many of them he has listed? Sigh...I don't think so.
In the day or so that Bret spent in town earning his masters degree in Naples, Florida real estate (as I've witnessed a few others who believe they too can learn an entire market in the same timeframe)...I'm curious to know if he learned the following:
- In area NA07 (better known as the Port Royal/Aqualane Shores area or the most exclusive area of Naples) there are 101 listings with an average list price of a measly $6,884,773 and that "only" 49 have sold in the last year and were sold at 90% of list price? So I guess if we were to take real numbers....a property listed for $6,884,773 would be selling on average for $6,196,295...those homeowners are just giving those homes away...don't you think? We're talking true fire sale...you better check the airlines and pack the bags...boy are you gonna have some fun when you get down here!
After all, Bret was so fast to make note by stating, "But you also see deep discounting in the snazzier parts of town"...I guess 10% really is a DEEP DISCOUNT! Hurry Hurry...folks, step right up!
Not only are the "snazzier parts of town" offering deep discounts but so are the other areas...
- In area NA47 (better known as Golden Gate Estates or lovingly referred to by Bret as "alligator swampland") there are 178 listings with an average list price of $265,953 and that 51 homes have sold there in the last year at 95% of full list price.
5% discounts???? OMG...the line of buyers will reach all the way around the world if he keeps writing reports like that which he has promised to do since he will be blessing all of us with a "series of columns" over the next few days. I know all of my REALTOR friends across the country are so jealous of me right now. I just hope I don't get a burn from all of this limelight!
As for you reading all of the newspapers over the last "oh, about three years" Bret, may I suggest hanging out in the airport. See, you're not the only one reading the papers or watching whatever news on tv. There are already people coming to town and writing offers that aren't being accepted and as they hang their heads in defeat while boarding their planes empty handed and quite put out by all of this one sided reporting, there's another group of people called Naples, Florida property owners who some of which all though they are attempting to sell...are in fact holding out for their price.
But just to be fair I will say that there are deals to be made and there are homes to be had at fair prices, less than fair prices and more than fair prices.
Here are some true examples:
This property was listed for $7,995,000 and recently sold for $6,250,000 that's only 78% of the list price. It closed in 2003 for $7,450,000 That one looks like a pretty good deal on the surface...of course it sold unfurnished this go around and was fully turnkey ready when purchased the last go around, it certainly doesn't make up the difference but it's something. So proof, this deal was in fact a deal!
This particular property is a high-rise on the beach just sold for full list price at $2,999,000. It went pending in February, 15 days after it was listed. The same unit sold in June of 1999 for $1,895,000...not quite the type of discount being reported.
This was listed for $2,750,000 sold for $2,575,000...93% of list price and it took nearly a year to sell it...a perfect example of an owner holding for their price. Incidentally it was purchased in 2000 for $1,850,000.
Now for the lower end of the market:
This unit was listed at $199,000 and sold for $190,000, 95% of the list price. It was purchased for $187,000 in 2004....not what I would consider a huge deal...or loss.
This unit was listed for $228,500 sold for $200,000, 87% of list price...but...It was purchased in '06 for 295,000 sounds like a pretty good deal to me.
So if you Bret, or by chance any of your readers are thinking about coming to town and shooting a bus load of low offer paper to sellers here are a few tips...
- You're not the first one with the idea.
- Be prepared to get your feelings hurt.
- Don't be surprised if you end up with nothing.
- Be ready to let your REALTOR do the dirty work for you...let them ask around before submitting paperwork. This is the best avenue for finding the best deals while spending the least amount of time and wasted energy.
In closing, I'd like to enlighten you Bret. People who buy real estate for sheer investment and business minded transactions may shy away from Naples today or might strike hoping that today is the day when they do in fact land the deal of the decade but more of my buyers this year are purchasing for the fact that they like it. They like having a place to come when it gets cold and gloomy up north or in other parts of the world. They like Naples because there is shopping, golf, rest and relaxation. They like it here because Naples and a majority of the people who share this town are absolutely beautiful. There's great food and Naples is in fact a place that can provide a fabulous lifestyle regardless of what that costs today or tomorrow. Some people just want it and are willing to spend the money to get it. Those people by the way are who you're competing with when you start shooting offers.
Best Regards,
Your Naples Smart Girl!
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