My experience tells me Naples buyers will be encountering considerably more competing for 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 a lot 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 directly 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 the 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 are 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 directly: shannon(at)shannonlefevre.com
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