January 2019 - Fort Myers Real Estate and Homes For Sale

We don’t want to alarm you as 2018 turned in some impressive stats in the SW Florida real estate market. Closings were up for the year, as were prices and dollar volume. You would think with increased closings and prices, Realtors would be reporting the market is fantastic. 4^th quarter numbers suggest there may be some chinks in the armor. Early signs point to a Southwest Florida market shift.

Closed home sales fell 15% in December over last year. We can attribute some of that to increased closings last year in December due to Hurricane Irma. However, we’re seeing new pending sales down 10.9% in December, which will lead to lower closings in January and February of this year.

The median sale price rose 3.1% for the year and ended at a year-end average of $251,000. The average sales price rose 5.6% to $351,200 year-end average. So, if prices are rising, why are we sounding the alarm?

Inventory rose 8.8% for the year. However, inventory shot up 19.8% over last December and the month’s supply of inventory was up 11.8% in December. While sales for the year may be up, we’re seeing declining sales in the 4^th quarter, rising inventory, and a decrease in new pending sales.

Not Time to Worry

All this leads to worry amongst real estate agents that we may be in the middle of a shift. This isn’t a time to worry though. Experienced agents know how to handle a shift. If you’ll remember, our article back in October warned of a possible upcoming shifting market, and we recommended sellers put their home on the market before January to beat the predicted rush of listings.

People listened, and the rush began sooner than January. We talked about how selecting the correct listing agent is critical when the market shifts in our December 1^st article. To read past articles, visit http://blog.topagent.com

When the market shifts, it’s critical you select an agent with experience. For instance, lower priced homes are still receiving multiple offers. Other homes take more marketing and experience to sell properly. Of course, you not only must select an experienced agent, you must listen to them.

Sellers do not like to hear that the market has shifted, and they hold onto what their home used to be worth. Markets move up and down, and just as a seller expects a buyer to get over it when the market moves up, buyers expect sellers to get over it when it moves down.

Sellers point to the fact prices went up 3.1% in 2018. Yes, but not in all sub-markets, and not all year. Prices may have gone up slightly in first 3 quarters of the year and pulled back in last quarter.

What’s Causing a Shift?

Some say it’s rising interest rates. Interest rates peaked in October around 5%. They’ve since slid back a bit. Rising rates rob home buyers of purchasing power. As this occurs, there are fewer home buyers available in each price range.

Keep this in mind. Inventory levels stand at a 5.7-month supply of homes. A balanced market is 5.5-month supply. So, we’ve barley crossed the threshold, and it varies by price range.

We’re seeing buyer activity picking up right now. We usually do after January 15^th. Buyers have more choices today, but the best homes are flying off the shelves. The challenge to sellers is, you must be the best home, so buyers pick you. An experienced agent can guide you. Buyers see lots of homes, and it becomes apparent which is the best value for them. Sellers must learn to think like a buyer.

Thinking of Selling?

If you’re thinking of selling your home, always call the Ellis Team. Ask for Brett or Sande Ellis 239-489-4042 Ext 4. Put our decades of experience to work for you, along with the most aggressive marketing in Lee County. There is a reason our homes sell faster and for more money. If you’d like to learn more about the shift, call us for a confidential interview. Experience matters! To get an idea of what your home is worth for Free online, visit www.SWFLhomevalues.com

Good luck and Happy Selling!

Ellis Team Weekend Open Houses

Open Houses Saturday 1-3 PM

Parker Lakes

15212 Palm Isle Dr

14551 Daffodil Dr Unit 1808

Central Park South

9291 Central park Dr Unit 104

Open Houses Sunday 1-3 PM

Cape Coral

1004 SE 5th Terrace Cape Coral

2008 Bolado Pkwy

Naples

13 High Point Cir N Unit 302

The Ellis Team was supposed to have a closing December 31. We represented the seller. The buyer selected a lender from CA who gave a pre-approval letter. It turns out, the buyer had no chance of closing with that lender. They said they were just waiting on IRS tax transcripts, and since the government was shutdown, they had to put the loan on hold. So, even with IRS transcripts, the loan would never have closed under the program they selected. Has government shutdown affected mortgages and closings?

Upon missing the closing date, we decided to get a lender we use regularly involved. The buyer agreed, as they wanted to buy the home. Our lender looked at the file and said they would not qualify, even if they added a co-borrower. However, if we switched them to an FHA loan, we’d have a chance as they are more forgiving on loan ratios.

Many lenders cannot do a FHA loan with a government shutdown. Many lenders can’t do a loan without an IRS transcript. We were able to get an FHA loan in 13 days, bypass the transcript issue, and get flood insurance, all during the government shutdown. How did we do it, and in 13 days nonetheless?

It took some hard work on everyone’s part, especially the lender. We worked with a direct endorsement FHA lender who does not need an FHA underwriter to approve the loan. Secondly, they made this loan a priority for us. Lastly, we had the buyer assume the seller’s flood policy, so we were good to go, even amidst a government shutdown. Both buyer and seller were ecstatic. We could not have done it without the help of our lender, title company, and a buyer and seller working together to make it happen.

Has Government Shutdown Affected Mortgages and Closings

So, let’s give you an update on how the government shutdown is affecting other real estate closing throughout the country.

Flood Insurance – FEMA announced on December 28^th that they would resume selling new policies and issuing renewals again.

IRS Tax Transcripts- Many top lenders are waiving IRS (4506-T) tax transcript verifications to fulfill a loan as they are unavailable now.

Nationally Realtors say that 9% of transactions involve a federal employee and the transaction is on hold. 13% have been impacted by the transcript issue, although there are workarounds for this with certain lenders.

The bottom line is the government shutdown isn’t having a huge impact on closings yet. Any disruptions in closings can have a large impact on the overall economy as real estate generally impacts about 32% of GDP.

In uncertain times it pays to work with real estate professionals and lenders who have a track record of solving issues as they pop up. Good Realtors know who the good lenders are.

Rising Inventory

Inventory has been rising, so selecting a professional who will market your home and make it stand out is important today. Hopefully that same agent also knows how to get the home closed once they find a buyer, because in a rising inventory environment, you never want to have to sell the home twice. It pays to get the home closed the first time.

If you’re looking to buy a home, give our team a call. We can get you pre-approved and get your home closed. Just because a lender approves you doesn’t mean they can close you. Experienced agents know that a mortgage pre-approval does not mean you have a guaranteed closing. We can get you working with a lender with a track record of closing loans.

If you’d like to search for your dream home, check out www.LeeCountyOnline.com It has all the homes on the MLS, and it’s updated every 5 minutes. No more missing out on hot new properties because the site you’re using doesn’t have it.

If you’re thinking of selling your home, always call Sande or Brett Ellis 239-489-4042 Ext 4. Brett and Sande handle the listings on the team. Let us show you how our marketing will set you apart and get your home to the closing table.

Good luck and Happy Selling!

Ellis Team Weekend open Houses

Today’s home buyer loves to search online to find their dream home. It makes them feel part of the process and gives them a certain sense of control, which makes sense because they are half of the process. Without home buyers we wouldn’t have home sales. Home buyers demand 360 degree virtual tours and artificial intelligence.

Home Buyers Demand 360 Degree Virtual Tours and Artificial Intelligence

Most buyers realize they can’t complete the purchase alone, they need help. The one thing they can do though is search. And when they search, and search, and search the process can sometimes be overwhelming. We’ve seen buyers bring in a stack of listings or email us daily with homes they feel they might like to look at. Their frustration mounts when they see a few of these and realize they don’t match their criteria at all.

They’re also afraid they might be missing out on some listings because they can’t quite tell if the property meets their needs based on the photos. The technology is here today to show them so much more, and buyers love it.

Artificial Intelligence

The Ellis Team is employing two sets of technology we believe will really change how buyers look at property, and how Realtors market their listings. We’re introducing artificial intelligence that searches each photo in the MLS and keeps an eye on what a customer likes online. Let’s say a customer is searching for homes 1800-2100 Sq. Ft of living area, with a pool, 2 car garage, and at least 3 bedrooms. What the system notices is that they seem to be drawn to homes with wood floors, or white kitchen cabinets. They didn’t ask for it in the search, but it’s clear they spend more time looking at homes with the two features. We’ll be able to suggest homes that match what they’re looking for, even if they didn’t specifically ask for it.

Realtors, how many times has your buyer bought a home completely different than what they told you they were looking for? Exactly! Our artificial intelligence will be able to search neighborhoods for features like parks, recreation, proximity to shopping, restaurants, etc., in addition to photos. We have neighborhood insights that causes buyers spend over 4 times looking at homes with these insights versus ones that don’t.

360 Degree Virtual Tours

The Ellis Team is adding 360 degree virtual tours on our listings. www.SWFL360hometours.com By doing this the buyer gets a greater sense of the home in proximity to the neighborhood, and a sense of how each room looks and feels in the home. A static photo can be shot in such a way as to make the room look different than it really is, and buyers don’t like that. They feel like they’ve wasted their time when there aren’t enough photos of a home, or they feel deceived. A 360 degree virtual tour puts the buyer in control of how they want to view the home, and they are much more likely to schedule a live showing because of that.

We had a home listed with static photos. It wasn’t selling. As soon as we loaded a 360 virtual tour, a buyer called us to schedule a showing. They had a better sense of how they could use the property. They bought it, and both buyer and seller are happy. The static photos weren’t bad, they just couldn’t tell the buyer the whole story on how they could use the property.

This is all part of a greater marketing strategy. Giving the buyer the tools to be more engaged in the buying process makes a Realtor’s listings stand out. In an age of increasing listing inventory, Realtors need to do more and more to make their listings stand out.

The 360 virtual tours are live now and growing as we list properties. Artificial intelligence searches are set to go live in SW Florida by March. If you’re thinking of selling and would like to see how all this works for you, give Brett or Sande Ellis a call. 239-489-4042 Ext 4 We’ll be happy to show you how the Ellis Team can make your home stand out, and how the new technology that will absolutely change how Realtors sell certain homes faster and for top dollar.

Ellis Team Weekend Open Houses

Open Saturday 1-3 PM

1742 Ardmore Rd

9291 Central park Dr #104

3703 SE 10th Ave Unit 7

Did you know that January 1^st is the biggest expired listing day of the year? It is, and this year we had 246 residential listings expire on January 1 in Lee County. If you made your 2019 New Year Resolution to sell your home, we’ve got some tips for you to make that happen.

Listings fail to sell for two primary reasons. They are priced incorrectly, or they aren’t marketed correctly. Sometimes it’s both, but it’s definitely one of those. These are both easy fixes, if you’re serious about selling.

The seller sets the price, and the market determines the value. If your price is over the market, the market will tell you. You may not like the market, it just is what it is. The good news is, if you don’t like the market, it may be a buying opportunity on the back-end. Most sellers sell one home and purchase another. If you wait to sell your home until the market goes up, chances are the next home you are buying goes up too. Add in rising rates, and waiting could cost you much more than trying to hit a certain number.

We all want as much money as possible out of our home. You might need a certain amount to make the move. The market never cares what a seller needs, it only cares about today’s value. And it could go up or down from today.

Enough on price. Let’s focus on marketing. One reason sellers don’t want to reduce their price is because they think it might be the marketing. Why reduce price when it could just be a matter of reaching the right people?

To get Top Dollar you must reach the right people, at the right time. Putting a home online and in all the big listing websites won’t do it. This assumes your buyer is searching on one of those sites and can find your home in the clutter of all the other homes listed online. It becomes a rush to the best price per square foot. We know your home is worth more because it has a better location, ~~better~~ kitchen, a pool, and several other things some of the other homes don’t have. Of course, your home will have a higher dollar per square foot than those homes. And it should!

Listing your homes on these websites is the Lowest form of marketing there is. Any agent can do that, and that may be all they do. What if you could stick ads onto web pages that match exactly what a buyer is interested in? You can’t, but we can.

If you have a waterfront home, we have the ability to advertise to waterfront buyers. The same with golf course properties. Whatever your home has, we have the ability to market straight to buyers with those kinds of interests. This is in addition to the print marketing and all the other marketing the Ellis Team does. You see, it really does make a difference who you list your home with. All Realtors are not the same!

Therefore, we say either of these two reasons are an easy fix. We’ll help you determine if your price is correct. The Ellis Team will show you how we reach buyers specifically for your home. Yes, we still do signs and newspaper ads, and that too might sell your home. But that’s not all we do, and there is a difference. Our marketing really works, and nobody else does everything we do. We’re sure of that.

If you’ve made your 2019 New Year Resolution to sell your Home, you should call the Ellis Team at Keller Williams Realty. We make your 2019 resolutions to sell your home come true. Let’s make 2019 your year.

Check out www.SWFLhomevalues.com if you’d like to get an idea online for free of what your home is worth, or call Sande or Brett Ellis 239-489-4042 Ext 4 to get your home sold fast!

Fort Myers Real Estate and Homes For Sale

SW Florida Real Estate Market Updates & News

Monthly Archives: January 2019

Early Signs Point to Southwest Florida Real Estate Market Shift

Not Time to Worry

What’s Causing a Shift?

Thinking of Selling?