What are the three Ps in real estate, and why do so many agents use this method? Is there a better way to sell your home?

The three Ps in real estate are:

1. Put a sign in the yard
2. Place it in MLS
3. Pray that another agent sells the home

Passive Marketing

We call this passive marketing. The reason so many agents employ this method is because agents are asking for a higher split from their broker. Brokers have given higher splits to compete for agents, but not all agents were ready for this. Traditional brokers took their split and did all the advertising. Agents questioned why the broker took so much without realizing how much it costs to advertise a property.

Many agents believe that placing a home in MLS is all it takes to sell a home, because after all, home buyers see the homes on the major portals, which get their data from MLS. Agents promise to advertise a seller’s home in the portals, but this is automatic. This is not additional advertising. Since it doesn’t cost the agent anything, many will take a listing at any price because it’s free. And hey, if they have a listing, they’ve got a chance. Even if a buyer doesn’t buy their listing because it’s overpriced, it still attracts buyers, and the agent wins either way. The overpriced listing is used as bait to attract buyers

A Better Way to Market

Instead of passive marketing, we’d like to introduce Progressive Marketing. The three ps in real estate marketing should be:

1. Price it Right
2. Progressive Marketing
3. Price Watch

With so many listings on the market in SW Florida, it pays to price it right up front, or risk chasing the market down, netting a lower price in the long term. Free marketing isn’t going to cut it. The Ellis Team at Keller Williams uses many advertising mediums to sell their listings, and they cost money. If you’re paying a commission, you’re entitled to know all the places where a home is marketed, and whether it’s free and automatic or paid placement.

The last item is the price watch. The Ellis Team has set up a system that actively scans your price and lets you know immediately if action is needed.

Grocery Store Checkout Line

Imagine shopping at the grocery store and your cart is full. Do you pick the longest line or shortest line at checkout? If you’re like most people, you pick the line that will get you out of there the fastest. You’ve got ice cream and milk in the cart, and you want to get home fast before it gets warm.

The same is true in real estate. When you finally put your home on the market and get it ready for showing, you want it to sell as quickly as possible, and for the best price. The longer a home sits on the market the less it sells for. And what a pain it is to keep it show ready for months on end. How would you feel if someone tried to cut in your line at the grocery store? You wouldn’t let them. So why would you price your home and forget it in real estate?

Price Watch

At the time of listing, sellers discuss all the homes on the market that are competition as well as the past sales. Many list their home just under a neighbor’s home to compete. What if a new home enters the market after you list? What if an existing home reduces their price to better compete because their home wasn’t selling? You’d like to know that. Now your home isn’t competitive, and you’re floundering in the market. Price watch completes the Thee Ps in real estate.

The Ellis Team can help you with this. In addition to progressive marketing, we’ll watch your price and let you know if anyone cuts in your line.

Always Call the Ellis Team at Keller Williams Realty 239-310-6500 or visit www.SWFLhomevalues.com for an instant online value. This is not the same price check tool we use once listed, but you will appreciate our instant value tool as well.

We’ll See You at the Edison Parade

 

The comeback of the Model A.  When we first met James Moss, Automotive Curator at the Edison Museum, we knew we wanted him behind the wheel. In past parades our beloved Model A stole the show, but at times not exactly how we planned. One time halfway through the parade it stalled and had to be towed to the finish. But every team has a story to tell, and this year we’re writing a new chapter. Will the Model A cross the finish line on its own power?  Keep an eye out and wave as we roll through. With James Moss at the wheel and Brett riding shotgun along with Ellis Team members Bobby Wiliams, Lincoln Van Meter and Jen Kenely riding in the rumble seat or walking along, we will be cheering the Model A on to victory! Our Model A was onced owned by Al capone and was stored at the prison along with another Model A. Not bad for a prisoner.

Lee County 2024 year end sale prices were down 3.6% for single family homes, and down 3.1% for condos.

A number of factors could have caused this, but first we’ll look at this like a math equation. More homes came to the market then sold causing inventory to rise. When there are more sellers than buyers, it puts downward pressure on prices.

2024 Year End Sale Prices

Closed sales for the year were down 1.1%. That’s not too bad. The zinger to home prices was that single family inventory rose 29.4%. Rising inventory combined with slower sales is not a recipe for higher prices.

The condo market is even worse. Closed sales were down 16.4% in 2024, while inventory grew 44.8%. We now have an 11-month supply of condos on the market in Lee County. Many factors have contributed to this, not the least of which is rising insurance costs. The other major factor influencing condo sales is the new rules taking effect January 1, 2025, regarding engineering and reserve studies and forcing certain condos to catch-up all at once on reserves.

2024 for a downright awful year for real estate. Was there any good news as we closed out the year?

Good News

Insurance reforms are working. In 2024, 10 new companies entered the Florida insurance market. Citizens Property Insurance saw a decrease in policies of 428,650. Because Citizens is an insurer of last resort, this means private companies picked up those policies and are coming back.

32 Florida companies filed for a zero percent increase in insurance rates, while 17 companies filed for a decrease in rates. That’s good news. There has been a decline in litigation, presumably because of the new laws put in place in recent years to combat insurance rates.

The election is over. People can now move forward. Whether their candidate won or lost, we now know the direction of the government and policy. There were huge unknowns throughout 2024.

Rates peaked on January 14^th but have come down about .25% since then as of writing this article. We track the 10-year treasury yield since mortgage rates are more closely tied to this rate than others. Most experts believe rates will decline a little in 2025, perhaps less than 1%.

Where are We Headed?

Nobody knows. We can say pending sales have begun picking up, but not yet at a rate we feel they should. Inventory is still growing. A few weeks ago, we wrote an article that gave clues. In our view, 2025 is shaping up to be a lot like the 2019 market. You can read more about that on our blog at https://Blog.topagent.com Home sales typically pick up in February and March. We’ll be watching these numbers like a hawk and report to you.

Selling?

If you’re thinking of selling, call Brett or Sande Ellis at Keller Williams Realty 239-310-6500. We can answer your questions and provide market direction and statistics to help you make better decisions. Or go to www.SWFLhomevalues.com to get an instant price for your home.

Buying

While we can’t say prices are at the bottom, this might be an opportunity. It’s impossible to predict the top or bottom. What we can say is there is optimism in 2025 that was not there in 2024. Phone calls are picking up, and showings are picking up. These things must happen first, and they are. We don’t go from a down market to up market and skip these steps. Pending sales may begin to rise in February, and if they do, closings may not be far behind. We believe now is an excellent time to buy before every other buyer decides to buy, becoming your competition.

To search the MLS like a pro, check out www.LeeCountyOnline.com, or call us at 239-489-4042 and we’ll be glad to help.  Good luck, and Happy House Hunting!

Check out Ellis Team Featured Listings

While riding the train in Ireland last year the recording would state at each stop, “neither here nor there, mind the gap”. It was a profound announcement, and held more meaning the more you heard it. Here is our Mind the Gap Alert.

Neither here nor there appropriately applies to train cars. Are you coming or going? And if you’re in the gap between cars, where are you really? And if you’re neither here nor there, perhaps you should pay attention, as a safety precaution.

Mind the Gap Alert

The gap is the no-man’s land between train cars, and other items in our life. For salespeople, the difference between their goals and their sales are considered the gap. The difference between what you set out to do today, and what you accomplish is a gap. Perhaps you got sidetracked with life. An unexpected event draws your attention away from your task. Most people get drawn away easily because they do not want to focus on the gap. Rather, it’s easier, and sometimes more enjoyable, to work on an emergency than the task you’ve been dreading.

Real estate agents that prioritize their most important tasks get more done and have more sales because they do the important things first. Successful people do not let emergencies dictate their calendar. Most emergencies are not really emergencies, but we like to give them importance as to justify doing something that “Needs our attention” versus the thing that will create the results we want.

How does the mind the gap alert pertain to the local real estate market? The gap we are looking at is the distance between listing inventory and pending sales. If that number is growing, it means inventory is rising. When inventory is rising, it means there were more sellers than buyers the past week.

When it All Changed

From January through August of 2024 the gap was stable. If anything, it was getting better. Then August came and the market seemed paralyzed. Listing inventory started growing and pending sales dipped.

What changed in August? Some agents felt like it was the NAR settlement and the news of how buyers had to hire an agent to show them property. Others felt like it was the cumulative effects of interest rates and job market uncertainty. Still others blamed the uncertainty of the election outcome.

Nobody knows the real reason, but there is no denying we must pay attention to the mind the gap alert. Consumers clearly were not confident about prospects in the 3^rd and 4^th quarter of last year, and it showed in the stats.

2025 is a new year. Will consumer confidence pick up? Where will interest rates go this year? Consumers must feel better about their future before they buy big ticket items. It feels like we are starting to see that, but it is just a feeling buyers are giving off. We do not see it with the data, and we didn’t expect to. It’s too early.

The next few months are the foundation to the rest of the year, and it starts with leadership in Washington. Can Congress work together to get things done? Will the president’s vision turn into reality. Has America bought in? Has the world bought in? Time will tell.

Thinking of Selling or Buying?

We do not control any of that stuff. What we do control is minding the gap.  Whether that be in our daily lives or studying the real estate market and taking appropriate action to get results, it is up to us.

If you have property to sell, there are things you can do. Check out your home’s value at www.SWFLhomevalues.com and track it’s value every month. Or, search the MLS and find your next home, or search your competition at www.LeeCountyOnline.com

Always Call the Ellis Team at Keller Williams Realty 239-489-4042. We are the hardest working team in real estate, and we’ll help you mind the gap with our experience and data research.

Good luck, and Happy House Hunting!

The Ellis Team is happy to report increasing open house attendance as we kick off season in SW Florida. In fact, we noticed this trend started in December which is not normally a big open house month.

Will increasing open house attendance lead to more sales in 2025? So far it has not, but you must begin somewhere. For people to go out and look at open houses means there is some level of interest in making a move. For some, it is changing their current home. For others, it might be adding a 2^nd home in a far warmer climate. Whatever their reasons, they have some interest we haven’t seen in a while.

Buyer Motivation

Buyers are taking a cautious approach. When buyers fear that another buyer will beat them out on a scarce property they want, they act quickly. Currently, buyers are not viewing inventory as scarce, and they are not worried about losing out on a specific home, in most cases. Buyers feel like if one property sells, another one is either currently on the market or will come to the market soon. Buyer motivation appears indifferent, and indifference is the death of sales.

This could all change, and it will someday. When buyers fear the market is stabilized and other buyers could beat them out to a hot new deal, motivation increases. The problem is most buyers want to see evidence first. Nobody wants to take the first leap, unless of course they need housing. If you own a home, you may not have to move. A buyer may wish to move, but they may not have to. Ironically, a buyer that needs to sell a home first is selling in the same market they are buying. If a buyer waits for their property value to rise, the property they wish to buy may also rise.

Real Winners

The real winners will be the renters that come off the fence and have nothing to sell. These buyers have excellent choices because we have inventory. They are not competing with thousands of buyers right now. A buyer can lock in today’s low prices, and perhaps someday lower the monthly cost if interest rates decline.

This reminds me of a graphic I saw on social media that hit home. Buyers today, because of the herd mentality, feel safe when everybody is buying, but somehow feel unsafe when few are buying. Logically we know it is better to buck the herd and buy when others are not and sell when everybody is buying, but that’s not what we as humans do.

Increasing Open House Attendance

Increasing open house attendance is the first stage of buyers exploring their options. They are curious, and beginning to wonder if the time might be now to dip their toes in. Should we get any bit of encouraging news, like lower interest rates, a major trade deal, or regional announcements like a major company moving here, this could give buyers the confidence they need to move forward.

Many people do not realize Amazon just made a major land purchase here in Fort Myers and plans on opening a new warehouse, in addition to their operations off Alico Rd. Announcements like this can be the catalyst for buyer confidence. Buyer confidence is momentum, and all it takes is a change of direction for it to move the needle.

If you’re curious about buying, check out www.LeeCountyOnline.com It has ways to search you cannot find on the major portals, so more ways to find that hot buy. If you’re thinking of selling, check out www.swflhomevalues.com This site will give you an instant estimate of your SW Florida’s home worth, and will help you track the value over time.

You can call us at 239-489-4042 and we can help you with your options.

Good luck, and Happy House Hunting!

Featured Home of the Week

5839 SW 1st Ct Cape Coral FL

Today we’d like to offer our 2025 home buyer insight predictions. These predictions are based upon decades of working with buyers and studying human behavior.

Phase 1

Buyers have been reading about the Fed cutting interest rates.  This news will spark interest in buyers, but it won’t make them act. The psyche of buyers is to wait for rates to come down, then act. So far rates have gone up since the Fed began cutting rates. In buyer’s minds, they will want that 1% back plus the rate cuts to justify taking action.

Phase 2

The Fed has stated that rates may have to remain higher for longer to combat inflation. They intended to cut rates four times in 2025 but have backed off to possibly two. Some argue they shouldn’t have cut rates in December, or at all until inflation was under control. The bond market has been telling us the Fed got this wrong, and they are betting on higher rates.

Home prices are down. Buyers want their cake and eat it too. They wish for lower home prices simultaneously with declining interest rates. Once buyers realize they can have one but not the other, they may begin to act. The disconnect will be the time it takes for buyers to realize they have maximum negotiating advantage with sellers today, and rates are not going down substantially soon. During this period, we may see muted home buyer activity.

Epiphany

We call this the light bulb moment. Home buyers at some point will realize this is the best time to buy. They have maximum negotiating leverage. Buyers can lock in today’s low prices with a historically average interest rate. Sure, rates seem high compared to the free money days of years ago, but those days are gone and may never come back. And if rates do go down, buyers can refinance to a lower rate, all the while looking into the low prices today’s market has afforded them.

Buyers tend to shop in herds. When everyone is buying, it makes sense to buy and outbid the next person. When it’s a buyer’s market, why not hold off and wait for prices to come down even more? And while we’re at it, let’s wait for interest rates to come down too! It’s this herd mentality that leads buyers to buy with emotion rather than facts, because they feel there is safety in numbers. If everybody is doing it, it must be safe.

Buck the Herd

The opportunity comes when humans buck the herd. This is true in the stock market and real estate market; Humans try to time the market and buy at its absolute low and sell at its tip top high. The reality is most sellers miss the tip top because it’s over before they realize we hit a top. Most buyers miss the low because it too is over before they realize we hit the low.

2025 Home Buyer Insight Predictions

We believe at some point buyers will realize the opportunity they have and begin home buying. You can only hold off major purchases for so long. When you need housing, you need housing. Affordability has come into play as home prices have come down, and insurance costs are leveling out. More insurance carriers are coming into Florida, and we see that market stabilizing. Good things are on the horizon for home buyers that choose to see opportunity. Home buyers in 2026 and 2027 will still be OK, but they may miss that golden opportunity they dream about if they sleep through 2025.

If you’re looking to buy in SW Florida, check out www.LeeCountyOnline.com We have all the listings, and you can do things on this website you won’t find anywhere else. Check it out. Or call our team at 239-489-4042 We’ll talk you through your options and see if 2025 is your year to build family wealth.

Good luck, and Happy New Year!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd Fort Myers FL 33913

 

 

 

 

 

 

 

 

Open House Saturday 12-3 PM

5839 SW 1st Ct Cape Coral FL 33914

 

 

 

 

 

 

 

 

 

Open House Saturday 12-3 PM

2513 SE 1st Ave Cape Coral FL 33904

 

 

 

 

 

 

 

 

Open House Sunday 12-3 PM

6935 Old Whiskey Creek Dr Fort Myers FL 33919

 

 

 

 

 

 

 

 

Open House Sunday 12-3 PM

3356 N Key Dr Unit 7 North Fort Myers FL 33903