Naples Florida Third Quarter 2012 Real Estate Market Update

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Everyone knows that in Florida, the real estate selling season never stops. In fact, as we approach the winter months things are picking up with all the vacation traffic heading down to Florida. With that, here is a snapshot of our latest market statistics to give you an idea of how our marketplace is faring these days.

Pending Sales Up 12 Percent in the 3^RD Quarter of 2012

Not only is this fantastic news, considering our relatively level market during the past several years, but also the fact that this increase applies to both single-family homes and the high-end market is promising. A twelve percent jump in the third quarter this year is a great push upward and one that indicates a strong market ahead as we move into the winter months. When comparing September this year to the same time last year, there is a 22% increase in the number of pending sales.

Inventory Beginning to Slide Downward in Single Family Homes

After a long while of fairly high inventory levels, despite a steady decline over the past several years, once again we are seeing a sizable drop in the number of homes available on the market. Looking at the 3^rd quarter of 2011 there were 7,069 homes in inventory versus the same time last year at 6,195.

More Sellers Jumping Off the Fence This Season

With reduced inventory levels, many sellers are starting to list their homes again with the holiday season around the corner hoping to capture vacationing buyers in the area. Regardless of speculation that the election year brings temporary spikes in consumer confidence, we expect strong sales to continue – particularly given the jump in the number of pendings we have had recently.

For additional statistics, please click here. 

If you have been on the fence about selling your home, now is definitely the time to consider it. We expect an influx of about 1,000 additional properties to hit the market come January so you want to avoid that extra competition by listing your home sooner rather than later. Keep in mind that many buyers are out there right now, eager to purchase and settle in before the winter months hit the rest of our nation.

We invite you to contact us today for all your real estate needs at 239-595-8500 or email yasmin@thesaadteam.com. We look forward to hearing from you soon!

The Saad Team Now with Premier Sotheby's International Realty

The Saad Team is proud to announce to you, our NEW partnership with Premier Sotheby's International Realty!! And today, we want to share with you why we are so excited for this new partnership. But first, we want to share with you a little back story on Sotheby's International Realty.

Sotheby's History

Since the founding of the Sotheby's Auction House in 1744 as an auction bookseller, the Sotheby's name has earned renown as a marketer of the world's most valuable and fine possessions. This reputation is built as much on exceptional service to clients as it is on the notable art, antiques, jewelry and other holdings that pass through Sotheby's offices around the world. It was out of this rich heritage that the Sotheby's International Realty® brand was born.

Founded on the same commitment to exceptional service that characterized the Sotheby's Auction House for more than two centuries, the Sotheby's International Realty® brand is launched and becomes known around the world for the distinctive properties it represents.

Sotheby's enters into a long-term strategic alliance with Realogy Corporation, the world's leading real estate brokerage franchisor. The agreement provides for the licensing of the Sotheby's International Realty® name. The brand begins offering membership in its franchise system to select real estate brokerage companies.

The Sotheby's International Realty network currently has more than 12,000 sales associates located in approximately 600 offices in more than 45 countries and territories worldwide, and places over 7,500 referrals every year.

What This Means For You, Our Clients

The location of our new office is conveniently located for all of our customers right on Park Shore and US 41. Come stop in to visit our new office. Click here to visit our NEW office location >> . We'd love to see you!

The new marketing tools that are now available for us to use in the promotion of your listings, and the world wide reach that is available for our buyers, is unparalleled here at Premier Sotheby's International Realty. That means more exposure of your home, and our ability to find more buyers, worldwide. The referral business of Premier Sotheby's International Realty will allow our buyers to find more homes that will fit their exact needs.

There is another fantastic video that Sotheby's International Realty has provided that will show you all the benefits of working with a Sotheby's Agent. We have included that video for you below.

You can reach us at our new office number: 239-659-5145, or you can always reach us on our cell: 239-595-8500. Come visit us at the Gallery Office, and we'll give you an up to date analysis on the current local market!

(Article content provided by Sotheby's International Realty)

July 2012 Real Estate Market Update – Naples and Surrounding Areas

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Noteworthy news: inventory drop over the past several years, sales on the rise and prices steadily trending upward.

Sold Listings Have Risen During Four-Year Period

Our 4-year average residential sold listings by month indicate the strongest period overall in the first quarter of 2012 with the number of sold properties in May of this year reaching a four-year high of 976. Though June slowed down a bit, it is expected with the warmer summer months.  Looking at the past 12 months, our strongest sales period has been from March through May this year, with sales figures in the 900s as compared to the 500s and low 600s as recent as through December 2011.

Prices Remain Steady; Heading Upward

Prices have remained stable over the past four years, with a slow but steady incline. As of the end of June 2012, the average sold price for residential properties was $353,179 with June’s average sold price coming in at $362,855. Once again, mirroring the busiest time for real estate in the second quarter of 2012 there was a spike in monthly average sold price to $440,023 in May of 2012.

Total Sales Continue to Rise in the Naples Area

Looking at the previous four years, our strongest sales period is evident leading to 2011 with figures almost doubled from 2007. This year in June, though sales remain closely in line with the previous year’s sales figures, we saw an upward trend. Total sales in June 2012 were 5,030 compared to 4,891 in June 2011. Considering that in 2011, 58.5% of the sales were in the first half of the year, we are on pace for 8,585 sales in 2012.

New and Expired Listings Remain Fairly Steady

As of the end of June, we are reporting 7,861 new listings this year as compared to 8,319 of the same in June 2011. Similarly, there were 2,419 expired listings as of June 30, 2012 versus 3,368 reported at the same time in 2011.

Dramatic Reduction in Inventory Continues

Known nationally for a tremendous number of distressed sales, Florida continues to recover from the aftermath of 2007’s housing market crash. Our current pending inventory is 2,056 – about half of these properties being short sales. At the present time, there are 5,077 available homes on the market, 313 of which are short sales and 203 foreclosures – amounting to about 10% of inventory being distressed properties.

2nd Quarter 2012 Snapshot

PENDING SALES
Looking at the 2nd quarter of 2012 compared to the same time the previous year, we are reporting an even average in terms of percent change overall for all price ranges. However, there was a significant increase of 9% in the $300k-$500k price range. The most significant change was reported in Naples Beach with a 6% increase in pending sales in the 2nd quarter this year versus last year.

CLOSED SALES
We are reporting a 4% increase in sales this year versus in the second quarter of 2011, with the most change taking place in both the $500k-$1M and $1M-$2M price ranges respectively at a 16% increase in each bracket. Naples Beach reported the most increase in closed sales among all markets – with a 13% increase over last year at the same time.

MEDIAN CLOSED PRICE
With an average increase of 11% in the second quarter of 2012, median prices were most significantly changed in the $0-$300k and $2M+ price ranges with an increase of 7% and 5% respectively. An unprecedented change was reported in the Immokalee/Ave Maria market at a 190% higher median closed price. Also noteworthy is the North Naples area with a 10% rise in median closed price as compared to the same time last year.

INVENTORY
We saw a 12% decrease in inventory in the second quarter of 2012 versus the same time in the prior year. Last year there were 7,208 available properties on the market whereas this year as of the 2nd quarter the figure is 6,310. The two most significantly impacted areas in terms of lower inventory on hand are Naples Beach at 17% less inventory and North Naples at 15% fewer available homes. Both figures represent a dip in the number of homes on the market at the end of 2nd quarter 2012 versus 2011.

AVERAGE DAYS ON MARKET
With a 2% drop in the number of days a property remains on the market before sale, the number is stable. Our current DOM remains a relatively high 185 days as reported at the end of 2012’s second quarter. We are seeing a 20% lower DOM average in East Naples, indicating increased interest in the area.
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For a detailed analysis of an area that you may be considering – or for any other of your real estate needs, we invite you to contact us today or take a look at the graphs below.

Home Inspector to the Rescue!

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You Better Give Sherlock Holmes a Ring!

No, you don't need the fictional detective inspector. However, you do need a home inspector! Think of this as a "pre-emptive strike" to maintain or increase your home's value before you put it on the market. Here are the benefits an inspector provides you:

Benefit 1: The inspector can uncover any problems that need fixing, and you can correct them before any potential buyers enter your home. Such an inspection can prevent your sale from falling through!

Benefit 2: With an inspection, you can show prospective buyers receipts to prove the work has been done. Buyers love proof! In reality and in their eyes, it underpins the value of your home and the asking price.

Benefit 3: You may be able to factor the cost of the inspection into the asking price for your home!

Benefit 4: When you have a pre-sale home inspection completed, you're able to estimate if the discount the prospective buyer is asking is reasonable. In other words, you can refuse unreasonably low offers if you know the value of your house, including the degree of its defects.

So, How Do I Find a Qualified Home Inspector?

I can recommend a certified home inspector who will do a great job for you. However, if you decide you want to do it on your own, make sure he or she is qualified!

Con artists sometimes pose as home inspectors, taking your money and giving you nothing but grief in return. Here's how to know if an inspector is the real deal:

Ask your friends for referrals. If they've had a good experience, go with that home inspector. I’d recommend you interview a minimum of two or three inspectors before choosing one. Make sure they’re full-time professionals conducting several inspections a year.

If possible, select a home inspector who’s a member of The American Society of Home Inspectors or the National Association of Home Inspectors.These association members follow a stated code of ethics. In addition, they’re prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They’re also forbidden from using their inspection business as a way to find customers for a handyman service that they “happen” to own. You may want to go on the Internet and use ASHI’s “Find a Home Inspector” link to identify potential candidates in our locality.

As part of the interview process, ask for samples of comprehensive reports (about 20-50 pages in length). The samples should be painstakingly done and backed up with complete details, including photos and diagrams. If an "inspector" refuses to give you a report or provides only a sloppily written 2-to-5 page sample, run the other way!

What Does a Home Inspector Cost?

Frankly, the rates vary. On a national level, the rates fall in the range of $200 to $400. As part of the interview process, I recommend you ask several inspectors for their rates so you can get an idea of the price range. In the end, keep in mind that while the cost of an inspection may seem high, it can actually add several thousand dollars to the value of your home! So, don't think of it as a cost; think of it as an investment!

What Exactly Does a Home Inspector Evaluate?

In general, he or she will look at the following areas:

- Electrical System Wiring, Service Panel and Service Capacity

- Energy Conservation/Safety Items

- Exterior Walls, Siding, Trim

- Floor, Wall, Ceiling, Roof Structures

- Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks

- Gutters, Downspouts

- Heating & Cooling Systems

- Insulation & Ventilation

- Interior Floors, Walls, Ceilings

- Moisture Intrusion/Mold

- Overall Structural Integrity

- Plumbing Systems

- Property Drainage/Landscaping

- Roof & Shingles, Chimneys, Attic

- Walks and Drives
 - Windows, Doors, Cabinets, Counters, etc. 

Should I Be Present During a Home Inspection?

You bet! A typical inspection takes three hours or more, so I recommend that you be present for at least the first 30 minutes to make sure the job is being done thoroughly. At the end of the inspection, the home inspector should give you a point-by-point summary of what needs to be corrected in order to add value to your home!

Hope you enjoyed this very useful information about home inspection! If you have more questions, please don't hesitate to contact me!

MAY PENDING SALES UP 10 PERCENT

Activity Remains Strong

Naples, FL (June 15, 2012) – Pending sales increased 10 percent overall in May 2012 compared to May 2011, according to a report by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). They increased by double-digit percentages in all price ranges, except in the under $300,000 category which increased a respectable 6 percent in May 2012 compared to May 2011.

"The market seems to be on track right now," said Cindy Carroll of Carroll & Carroll, Inc. "Current inventories in many market sectors mirror levels we saw in 2003/2004. This is further evidence that we are returning to a balanced and stable market."

Mike Hughes, General Manager of Downing-Frye Realty stated, “Inventory is down by almost 1,000 units over the last three months and we have experienced five straight months of positive momentum. Those are indicators of a potential strong summer for home sales.”

John Steinwand, President of Naples Realty Services stated, “With the reduced overall inventory of 9 percent, properties are selling at higher prices than a year ago.”

Coco Waldenmayer, Managing Broker at Engel & Voelkers, agreed, “Our current overall inventory of 6,679 hasn’t been this low since NABOR® began tracking the statistics in January of 2007 when inventory was 10,864.”

Phil Wood, President of John R. Wood Realtors said, “Things are improving. We are starting to see homes sell within three days, and there has been an increase in the sale of teardowns. During March, April and May traditional sales have increased, and the condominium market is especially strong as shown by May condominium sales in the $300,000 to $2 million range up 28 percent.”

The May report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary.

The May sales statistics are presented in chart format, together with these overall (single-family and condominium units) specifics:

• The overall median closed price increased 8 percent from $175,000 to $189,000 for the 12¬month period ending May 2012.

• Overall pending sales increased 11 percent in the $300,000 to $500,000 category, and 20 percent in the $500,000 to $1 million category for the 12-month period ending May 2012.

• Overall inventory dropped by 13 percent, from 7,705 in May 2011 to 6,679 in May 2012.

• Overall closed sales increased 15 percent in the $500,000 to $ 1 million category, from 781 units to 901 units, and rose 15 percent in the $1 million to $2 million category from 349 units to 403 units for the 12-month period ending May 2012.

• The average days on the market decreased 11 percent in the $300,000 to $500,000 category, from 208 days on the market in May 2011 compared to185 in May 2012.

• Overall pending sales in the Naples Beach area increased 15 percent from 1,690 to 1,943 and closed sales increased 16 percent from 1,493 to 1,727 for the 12-month period ending May 2012.

“Single family home sales remain strong,” remarked Jo Carter, President of Jo Carter & Associates. “Pending sales activity in the $2 million plus category is up 50 percent, from 18 units in May 2011 compared to 27 units in May 2012. In the single family $1 million to $2 million category in closed sales there was a 100 percent increase from 19 units in May 2011 compared to 38 units in May 2012.”

Phil Wood reflected, “Now that the market is improving we have seen local residents make the decision to sell their current homes and move into their dream home. With saleable houses, interest rates at historic lows, and affordable prices, it is the ideal time for many to finally buy their dream home.”

Check out the May Stats here. >>

10 Helpful Tips for an (Almost) Stress-Free Moving Day!

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Oh, moving day is exciting, isn’t it? And, sometimes, it’s too darned exciting! After all, you have so many things to remember…worry that the mover will show up on time…fret that things may be lost or get broken…and on and on. But, really, that day doesn’t need to be so stressful!

If you follow the tips below, you can make the day as painless and as enjoyable as possible. The key underlying each of these tips is, of course, proper planning!

Tip 1: Start early!

There are two reasons for starting early. One is psychological. When you start early, you can break the moving task down into smaller steps; that is, you can pack a little at a time. Psychologically, this gives you a great boost because you’re not overwhelming yourself by trying to do everything at once. The second reason relates to the first: packing is harder and more difficult than you think! So, by starting early, you have time to think things through and pack logically and economically!


Tip 2: Weed Out the Unused or Useless!

As I’m sure you know, you’ll be amazed at how much stuff you’ve accumulated that’s either never used or seldom used. So, why take it with you? Sort through everything and get rid of any item you haven’t used for a year or so. Donate it to a charity organization or, if appropriate, throw it into the trash or recycling. Remember, long distance movers charge by weight! So, the equation is simple: less weight = less money out of your bank account! Local movers charge by time! So, less time = less money! Plan on making a couple of passes through your belongings. If possible, take a break of a day or more between passes. That allows you to take a more objective look at everything.

Tip 3: Label Everything in Sight!

This is a real time-saver and stress-reducer. On each box, write down the contents as specifically as possible. At the same time, avoid overdoing the “Miscellaneous” label. If you end up with several boxes with that same label, you won’t have a clue as to what they contain!

Tip 4: Do One Room at a Time!

There’s always the temptation to take items from several rooms and put them in one box. This is a good way to end up with too many “miscellaneous” boxes. Instead, pack one room fully at a time and then move to the next room.

Tip 5: Consolidate!

Since it’s easy for small boxes to get lost or damaged, place smaller items in small boxes and then put those put small boxes into a bigger box.

Tip 6: Take Important Documents with You!

Never pack any personal financial information and important papers and put them on a moving truck. Identify theft is possible, but, equally important, if those documents are lost, it could take you many, many hours to replace such important items as bank statements, passports.

Tip 7: Take Your Valuables with You!

Use common sense and take jewelry, artwork, rare book collections, etc. with you. You don’t want it on a moving truck, and, to be blunt, most moving companies don’t want to ship it for obvious liability reasons. If you absolutely have to ship valuables, get expanded moving insurance through the carrier or a third party.

Tip 8: Plan for Essentials!

Keep a box separate for all the essentials you’ll need in your new home and make sure it’s loaded last onto the truck so you can get at it easily upon arrival. Depending on your needs, “essentials” could include: soap, towels, toilet paper, sheets, coffee maker, drinking cups, paper plates, eating utensils, pencils and paper, etc.

Tip 9: Inventory Everything That Goes on the Van!

List every box or item that goes on the moving van and take the list with you. Once you arrive at your new home, have a family member tick off the boxes and items as they come off the truck. This is vitally important if your belongings are transferred from the truck to storage before being delivered. If a box is missing, lost or left behind, it could be months before you realize it’s gone.

Tip 10: Save Money!

Packing boxes can be expensive. If there are items that will go into plastic storage bins and/or large trash bags (stuffed animals, towels, etc.), then buy the inexpensive bins or bags. This will also save you the time and trouble of unpacking the boxes in your new home.

If you are looking for a local mover, call us because we have recommendations!

How to Be a Wise House-Shopper in a Great Buyer’s Market!

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There’s no doubt about it – there are a great many bargains in the real estate market today if you’re a person looking for a new home. However, we highly recommend that you don’t get dazzled by all the opportunities and make a potentially expensive and poor decision. To that end, I’d like to offer you some common-sense guidelines to follow.

Guideline 1: Pay Attention to Your Budget
Before beginning your search for that new home, sit down and come up with a monthly payment you can handle with ease and then look for the house that fits that budget.

Guideline 2: Save Up for a Down Payment
Due to the “mortgage meltdown,” lenders are currently much more cautious about giving out money. Depending on the situation, they may insist on a minimum down payment of 10% or one that’s all the way up to 25%. So, start saving!

Guideline 3: Improve Your Credit Score
A good credit score is a great way to make the whole process easier when you apply for a loan. Today’s lenders scrutinize such scores more closely today than in the past. If you don’t have a good score, work hard to get it up into an acceptable range. It’ll save you money on interest charges and down payments in the long run!

Guideline 4: Get a Pre-Approved Mortgage Loan
If you’re a first-time home buyer or simply a buyer who wants to make sure you stay within your means, it’s a wise idea to get a pre-approved mortgage.This is simply the process of applying for a mortgage and getting approval for the loan prior to buying a home.

A “pre-approval” is an indication that the lender is ready to extend a mortgage to you once you’ve located the right property.  And it has several benefits. First of all, it saves time and energy. Once you have a pre-approved loan amount, you’re required to stay within the limits of that loan in terms of the price you’ll pay for a house.

First, when working with a realtor, ask him or her to limit the choices to those stated in the loan. This prevents the agent from showing you properties which are out of your range. By the way, they’ll really appreciate those parameters because it’ll help them zero in on properties with the best chance of sale! 

Second, you can spend more time looking at homes you really like and, simultaneously, not wasting time on houses that aren’t within your budget. This allows you to focus on the details of the homes you do like in order to make sure you select the right one; for example, kitchens, baths, garages, etc.

Third, you can bargain more effectively with sellers once they know you’re pre-approved. In the current market, that’s a great relief for many sellers because they realize they have a reasonable certainty of selling their property when working with a pre-approved buyer.

Fourth, you can close faster with a pre-approved loan because there’s no time lost in the usual processing period for loans. For example, an appraisal can be ordered right away, and you have the potential to cut a 30-day closing to two or three weeks.

Finally, the seller will prefer to deal with you, particularly if he or she needs to move quickly.

Now, you have some common-sense guidelines to follow when seeking a new home in today’s market! You can learn even more by contacting us today.

What Determines the Value of Your Home?

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Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following: 

External Factors 

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors  

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc. 

Supply and Demand 

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc. 

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood  

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties. 

Where Do I Find Sales Comparison Information? 

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office  

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service. 

2.) Online Private Companies  

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information. 

3.) Your Local Newspaper 

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home 

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!