Category Archives: Fort Myers Beach

Builders Changing Sales Tactics to Mimic Home Sellers Success

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Just when you thought you had seen everything, along comes another change in the real estate market.  We are seeing SW Florida home builders changing sales tactics again, and it’s not good news for the buyer.

Builders Changing Sales TacticsTo mimic the success home sellers are having through their Realtor, several home builders have instituted a highest and best offer format on their homes.  Basically, it works like this. The buyer makes a binding offer on a lot.  There is typically a stated priced however the buyer can offer highest and best.  The winning bidder chooses the home they want built and they go to contract.

Buyer Pays the Difference

If the home does not appraise, buyer agrees to pay the difference.  Once you bid up the price, you’re buying it regardless of whether you pay cash or finance it.  If the buyer is financing it, they will have already been pre-approved to bid on the property and shown financial ability to pay what they are biding.

Previously, home builders have been limiting sales contracts so they could keep up with price increases and maximize profit.  Home sellers may have shown builders the way as builders want in on the fun as well.  All of this puts additional pressure on buyers because they do not know what it’s going to take to win the bid.

I spoke with a homebuilder who used this in another city in Florida.  The lot had a $25,000 stated lot premium and was offered out for highest and best.  The winning bidder bid it up to $170,000 and won the bid.  They then went to contract with the house on tip of that plus options.

The builders argue that it is not fair to sell to whoever shows up first.  They are getting as many as 100 people per day through their model homes.  That is 700 per week.  If a builder releases 2 lots and calls for highest and best, they now have 700 from this week, and thousands from previous weeks who have seen the property.  Builders love this because not only are they raising prices on the house as costs rise, but they are also maximizing value on the total package.

New Construction Prices Will Pull Resale Prices Higher

Rising new construction prices can help pull resale prices even higher when you have such limited supply and strong demand.  It used to be when building prices got too high people would switch over to resale and vice versa.  Now there is no switching.  Buyers must jump on the first home that meets their needs and come with their best offer.

Buyers are not competing with the seller, or the builder.  They are competing with other buyers.  We have great tools on how to win bids when you are not holding all the cards.  These tools help, but they are not an automatic win for buyers in every circumstance.  You’ve got to play the cards you are dealt, and a great Realtor can help you play them as best as possible.  If you are a buyer, call the Ellis Team at Keller Williams Realty 239-489-4042 or visit www.LeeCountyOnline.com

If you are a seller, you need an experienced Realtor.  Buyer agents are trying all kinds of tricks and shenanigans trying to win deals.  Some are legit, and some are not.  An experienced agent can keep you from going down the wrong path with the wrong buyer.  If something doesn’t seem right, you need an agent with experience to sort that out.

Getting Top Dollar For Your Home

With builders changing sales tactics, so too must home sellers. There are additional ways to maximize your sale price.  Brett and Sande Ellis know how to do this as well.  If you are looking for Top Dollar, call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevalues.com to see what your home is worth.

Do you know what your home is worth?  If you haven’t checked in the last week, then you really don’t know.

We have many happy home sellers that are glad they called the Ellis Team at Keller Williams Realty.  Let’s talk and see if we can help you too!

Ellis Team Open House

Cape Coral Waterfront Pool Home Sat 12-3 PM

Took My Own Advice

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For the past year or more we have been telling readers now may be a good time to sell.  The market statistics prove that, and yet not everyone is doing it, including Realtors.  This year I took my own advice and decided to make a move.

Took My Own Advice

It’s not that we were unhappy where we lived.  It was a great neighborhood and a great house.  Our needs changed, and this market provided an opportunity that was too good to pass up.  If you love your home and your needs have not changed, you don’t need to sell just because there is an opportunity.  But if you have been thinking about what a move would look like to better your situation, the opportunity is there.

Took My Own Advice

For us we had 4 children, and the last is graduating high school this year and moving on to college.  My wife and I do not need a 5-bedroom 2 story home for just the two of us.  We were torn because we loved the community so much.

We put in a contract at a new home community.  That home is schedule to be built this year.  Later we listed the home we lived in and it sold within 9 days.  The buyers are thrilled with the home and we were able to jump into a rental that opened while ours is being built.

Not only did we get a good price for our existing home, but our future home has also already gone up $27,000 in price since we signed the contract, and they haven’t even broke ground yet.  This market is a win/win market for buyers and sellers.

Sellers get to take advantage of Top Dollar.  Buyers also win, because home prices are rising, and about a week after they move in the home is worth more than what they paid for it.  In fact, many times it is worth more before they close.

Values Are Changing by the Week

Our home for example appraised for $20,000 more than what we sold it for.  You might say how did you sell it for Top Dollar but below appraised value? After we signed the sales contract with new buyers several comparables closed which pulled the value higher.  It is a fluid market and values are changing by the week.

Do you know what your home is worth in today’s market?  If you have not had a thorough market evaluation and tested the market, then you really don’t know.  In the absence of sales data, we have been forced to put homes on the market at prices higher than any recent sales.  Then along comes several buyers we attracted through our marketing, and it sells for even higher than list price.

The market is setting new valuations right before our eyes, and the only way to get top dollar is to put the property on the market and market it.  We may set a price higher than the last sale and the market may scoop it up anyway, and then some.  They key is attracting multiple buyers.

Best Way to Determine Market Value

May times a seller has a tenant or family member that wants to buy their home.  They get an appraisal to find out the value.  But is that really the value?  An appraiser is looking at yesterday’s value because all they can work with is what has happened in the past.  They do not consider what is happening today, and what will happen next week when we place a home on the market.

If you own a home and want to explore your options, call Sande or Brett Ellis at 239-310-6500  Our marketing is different, and we can show you how to maximize the sale of your home.  You’re going to need it where you’re going, so why not get it?

We can even help you with your next home.  Or visit www.SWFLhomevalues.com to get an idea of what your home is worth.  Our website will even email you your new price every month so you can keep track.

Good luck and Happy Home Selling!  Always call the Ellis Team at Keller Williams Realty for Top Dollar!

SW Florida Home Appreciation Rate Ratchets Up Since September 2020

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According to william pitt sotheby’s SW Florida home appreciation rate intensified beginning in September of 2020.  The official average single family home price in SW Florida was $391,168 and by February 2021 it rose to $486,406. That is a 24.35% gain in just 5 months.  It was slightly higher in January.

SW Florida Home Appreciation Rate

The median home sales price was $295,000 in September and rose to $329,950.  That is a 11.85% price gain in just 5 months.  For the year, average home price gains were 32.3% while the median was up 22.2%. The SW Florida home appreciation rate is very high.

As you can see, the average was up 32.3% but 24.35% of that all happened since September.  Median prices were up 22.2% in the past 12 months, with 11.85% of that being in the last 5 months.

We have been talking a lot about falling inventory levels, and at last check inventory has fallen yet again to the lowest level we have seen in decades.  Demand is strong which is causing prices to rise.  As prices rise, affordability shrinks. Back in early March we were reporting how home affordability was near an all-time high nationally.  That story is available on our blog https://blog.topagent.com In fact, all our articles are available on the blog dating back years.  The blog is a great way to keep up with how our market is doing over time.

Today home affordability is shrinking for two reasons.  Prices have continued to climb, and interest rates have risen.  Rates earlier this year were around 2.75%. Today they are about a half percentage point higher.  Rising rates are like a hidden tax borrowers must pay.  It raises the cost of buying a home, and you do not really get anything for it.  When you purchase an upgrade for a home you at least get something for it.  Not so with rising rates.

Will rising rates be the headwind that stops the real estate market in its tracks? We don’t think so, at least not in Florida.  It does take some fuel from the fire though. Affordability caps a market, so it can only appreciate so far unless you have a secondary home market where wages don’t enter into the equation as much.

Florida is blessed in that all kinds of people want to live here.  We have primary workers, remote workers, secondary homes, retirement homes, investment homes, etc. Demand is strong from all segments, and people are flocking to the area and escaping other areas.

We see demand remaining strong in Florida, but rising prices and rising rates do put pressure on home buyers.  Many buyers will be forced to settle for a home they do not love, but happy to be in a location they prefer over where they came from.  This may be a case where a buyer buys what they can afford now and rides the wave, propelling them to their dream home later.

In an instant gratification world people like to get what they want now. Historically people bought what they can afford and work their way up the ladder to what they liked later.  We may be returning to that model.

Many people are stunned to find out what their home is worth today.  If you have been contemplating a sale, you should call Brett or Sande Ellis 239-310-6500.  For those of you that have not thought about selling, let me ask you a question?

At what price would you sell your home?  What number would make you move?  When you come up with that number, call Sande or Brett.  Perhaps we already have a buyer in our database looking for a home like yours.  We might be able to make that Make Me Move number work for you.  Call us 239-310-6500.

Good luck and Happy Easter and Happy Passover!

Check out 3 New Hot Listings This Week!

16613 Panther Paw Ct

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New Listing in the Forest

 

9854 Wildginger Dr

South Pointe South New Listing by the Ellis Team
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15820 Portofino Springs Blvd Unit 101

Villa Medici Townhome Full of Upgrades
New listing in Villa Medici full of upgrades by the Ellis Team at Keller Williams Realty

Top Real Estate Agent Mastermind Conclusions

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We are part of a Top real estate agent mastermind group from Lee and Collier county whereby several top agents come together to talk about current issues in the market.  At last week’s meeting we talked a lot about inventory levels and how top agents are handling offers as well as a variety of other things.

Top Conclusions

Here are some conclusions that came out of that top agent mastermind.  In other markets across the country where inventory levels approach the 2–3 week supply of homes, buyers are being forced to make offers with no contingencies to win the bid.  When we say no contingencies, we mean no financing contingency or inspection contingency.  In other words, when the buyer signs they are not backing out over financing, appraisal issues, or inspection issues.

Top Real Estate Agent Mastermind Conclusions

If a buyer is getting financing and the home does not appraise, it would require the buyer to pay the difference in appraisal price and purchase price plus their agreed upon down payment for the loan.  There is an exception to this whereby the buyer may qualify for a lesser down payment option, but in either event the buyer must be in financial position to put more down.  This weeds out some of the buyers, which is OK when you have multiple buyers bidding for homes like we do today.

This brings us to highest and best.  The definition of highest is bring your highest price.  Best means bring your best terms.  Buyers today are winning out on not only price, but maybe more importantly the terms.  Lastly, relationships matter most in this market.  Top real estate agents know who the other great agents are.  This is important because they know their buyer has been counseled appropriately.  While an agent cannot be judged on how their buyer will act, we do know that better agents do a better job counseling their clients.  Who you work with matters in this market, both on the buying and selling end.

Pricing Strategies

The mastermind group also talked about pricing strategies for sellers.  Many sellers do not realize that property values are changing by the week.  If sellers really knew what their property was worth, they might think again about how tied they are to the property they are living in.  Does your property fit your needs or are you settling because you have lived there so long?  With today’s prices, you may not have to settle.

Many sellers honestly don’t know where they would go if they sold their current home they don’t love.  There may be more solutions than you know.  Sales in the last year are rising even as inventory lowers.  While we may not have as much current inventory, we are getting enough to satisfy more buyers, it just goes quickly.  If we know in advance what would make you move, we can call you when we run across your next home even before it hits the market.

Creating Our Own Market

Imagine home buyers bidding on your property while you find an off-market home that hasn’t been listed yet.  This requires a massive database, and at the Ellis Team we have a database of people who might make a move if the right situation came up.

So, we ask you, is there a price at which you would sell your home with only one showing?  We might already have your buyer.  Is there a home that if it came on the market would make you want to move?  We might already have that seller.

We should talk!  Call Sande or Brett Ellis 239-310-6500 and we will see if we can make your dreams a reality.  This is the market to do it, so do not let this opportunity pass you by.  Or visit www.SWFLhomevalues.com to get a free instant price for your home.  It will even email you each month your new home value.

Good luck and happy home shopping!

Southwest Florida Market Snapshot January 2021Trends

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Interesting trends are developing in our Southwest Florida market snapshot for January 2021.  The first thing you will notice from the graph is new pending sales increased 25.6% over January 2020.  You might ask how this can be as we have been talking about declining inventory levels for months.

Southwest Florida Market Snapshot

Official numbers are in and indeed active listings are down 60.1% from a year ago. New listings entering the market in January of this year were down 10.4% from last January. The combination of fewer newer listings and increased pending sales have led to the 60.1% reduction in listings.

Pending Inventory is Up

Pending inventory in January increased 51.6% which means the situation will be worse when official February numbers are released.  Buyers who have attempted to purchase in this market are keenly aware of how tough it is to score a property.

I do not believe sellers are truly aware how advantageous this market is for them right now.  After years of letdown some sellers just quit checking in on their home value.  Others are interested but unsure where they would go.  I think it is safe to assume there are many homeowners in SW Florida that do not love their current home.  They’re just not sure they want to jump through hoops to make a change right now.

The real question is this?  When will you be ready?  A year from now, two years from now?  What if this real estate market looks different than it does today?  Interest rates could be a few percentage pints higher which will increase cost of future buying.  Not only will it cost you to get a mortgage on your next home, but it will also cost your future buyer as well.  That may limit how many buyers can purchase your home in the future.

Right now, we sometimes have 20-30 buyers putting in offers for each home.  What happens if we only have 1 buyer for each home in a few years, or worse?  In a normal market there are more home sellers than actual sales.  This would mean less than 1 buyer for each home.

When is Best Time to Sell?

If you were selling an item at auction do you think it would be more fun to have 20 bidders or just one bidder?  If there was just one bidder, there would be just one bid, and if you wanted to sell you would have to take that price or decide not to sell.

Our marketing is creating buyers from all over the country.  I have seen some statistics that show more than half of the buyers are from out of state currently. To get top dollar you must advertise out of state.  Ellis Team advertising reaches far and wide to bring the greatest number of bidders (offers) for your home.

When homes increase in value like they are today human nature tells us to hold because values will be greater tomorrow than they are today.  This may be true, but history also shows us that many wait too long and decide to sell after they have seen the top.  They still want the top, but the top has since passed.  By then it is too late.  The top never tells us when it is coming, so most are surprised when it happens.  We are not calling for a top, so do not be alarmed.  But do not blame us either if it happens and we did not see it coming.

We Should Talk!

If you are thinking of selling now, or 1-2 years from now, we should probably talk.  We can come up with an exit strategy for you, and if we see a shift in the market you will be the first ones we call.  The last time the market shifted we told our sellers first and got them out quickly.

You do not want to be caught sitting on an appreciating asset only to find out it started depreciating and the market did not tell you.  We will tell you.  Simply call 239-310-6500 and we can provide a market checkup for you.  This will allow you to be notified if the market shifts.  Or you can visit www.SWFLhomevalues.com for a free instant analysis.

Good luck and keep an eye on the market!

Future of Florida Real Estate

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A few agents and I were sitting around talking about the future of Florida real estate.  One agent speculated that this market could not last forever and would one day have to come down.  His theory was that everything that goes up eventually comes back down and that cycles are inevitable.

Future of Florida Real Estate

Then we got to thinking.  What if this market doesn’t have to come back down?  Is it possible Florida has been undervalued compared to other nice areas of the country?

Why Are People Moving to Florida?

Let’s talk about why Florida looks so attractive, and what the future may hold.  Everyone knows Florida is famous for sunshine and beaches and almost perfect weather in the winter.  Florida is also attractive because we have no income tax, which is substantial compared to some states that have both state and local taxes.

Florida has also been business friendly without all the lockdowns other states have endured.  We are seeing businesses flock from lockdown states and moving to Florida, bringing employees with them.  The real question is, what will happen in a few months once the vaccine is widely distributed and lockdowns end?

Some business owners we have talked to have had it.  Their fed up with restrictive policies and high taxes and they are not moving back no matter what.  It is probably safe to assume that anyone who has moved away from high tax states is not moving back.  The real question is, what will the people who wanted to move but just couldn’t yet do?  Will they further their plans to make the move or just stay put?

It’s Hard to Just Pick up and Move

Some people have ties to an area. Some businesses have been in the family for generations and walking away isn’t as easy as it sounds.  It takes careful thought and planning, and there are pros and cons.  If these states continue to raise taxes and have high crime, it may chase the next wave of businesses and residents away as well.

People have learned through this pandemic that many jobs can work from anywhere.  Companies have learned they can save high lease rates on buildings if their employees work remotely or move to less costly locations.  This pandemic may have been the impetus for a transition that benefits the company and its workers, and that ship may have sailed.

Florida is the big winner in all of this, and if it continues, strong demand may not slow up when Covid comes under control.  In this scenario, prices could rise further as we are not building enough homes to meet the demand.

It is true that business tends to follow cycles, but that is premised on demand rising and falling.  What if demand does not fall?  Supply is limited, and if demand stays constant or rises, we have more appreciation to go.  We could see a lot more.

Future Warning Signs

It is also true that nobody knows the future of Florida real estate, or the economy for that matter.  Rising oil prices and inflation could slow the economy and kill jobs.  Florida still has a lot going for it, and that might offset whatever happens to the economy.  Realtors do not know what will happen in the future.  We believe more sellers will decide to cash out in a month or two as Covid becomes safer, but will it be enough to meet demand?

The bottom line is the market is good, and we expect the future of Florida real estate to be good for a while.  There are a lot of wildcards in play that could affect things a few years down the road, like immigration, cost of building, oil, taxes, interest rates, inflation, etc. We are starting to see people cash out of Wall St and put it into main street.  Some people thought the Dow was overpriced at 18,000.  Now it is over 31,000.

Prices in Florida have risen, and we still might be a bargain.  Just not the bargain we were in the past.  To find out what your SW Florida home is worth, visit www.SWFLhomevalues.com It’s fast and Free.  Or call Sande and Brett Ellis 239-310-6500 

Good luck, and Happy Selling!

Home Affordability Index Nears All-Time Highs

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You would think rising home prices would decrease home affordability.  This simply is not the case as the home affordability index nears all-time highs.

Home Affordability Index Nears All-Time Highs

If you look at the chart, home affordability was greatest back in 2012.  Median home prices averaged $131,000 for the year compared to $289,000 in 2020.  Today home prices are higher, so we took the yearly average.

So, what would cause affordability to rise if home prices are also rising?  Interest rates.  Lower rates equate to a lower mortgage payment, and it offsets the rising cost of the home.  Therefore, we are saying there is more room for further price increases.

Home Affordability Index Nears All-Time High

The home affordability index currently stands at 16.  It went as low as 13 in 2012 and hovered below 16 for 5 years.  The other thing that is different today is that we have end users for every home and rental.  Back in 2005 we had speculators bidding up prices to flip with no real end user in sight.  It was a house of cards. Today’s market is no house of cards.  We have legitimate demand.  In fact, we have more demand than supply.

Even if rates rise, we have room for that in the index.  As you can see, traditionally the index stands between 19 and 22.  At 16, we have some room if rates rise.  If interest rates do not rise much, we have room for further price growth.

Furthermore, we believe Florida has been undervalued for years relative to what it brings to the table.  Sunshine, low taxes, and freedom to work are just a few, and people are taking notice.  With the transition to work from home jobs, Florida is on the radar.  We just might see affordability numbers rise above their traditional numbers of 19-22.  That makes sense to us.

Of course, nobody knows what exactly will happen.  We do not know how much the price of oil will increase, what interest rates will do, and how the economy will react.  We do not know if northern states will continue to increase taxes, and we do not know what Covid-19 will do.  What we do know and are observing all looks favorable to Florida.

Our best advice for buyers would be to purchase as soon as you can.  As prices rise, and interest rates rise, your next home will inevitably cost you more than it does today.  If you have a home to sell, think about doing it now.  Waiting to get more money down the road will only cost you on the buying end.  It may cost you more in higher rates than you will receive with a higher price.

Our best advice to sellers would also be, do it now.  You are in the driver’s seat, and that’s a fun seat to be in.  While the market looks on the up and up, we never really know how long these markets will continue like this.  While we can make the case for increased prices, the price gains may not continue to rise at the same rate we have just witnessed.

History shows us the market never gives advanced warning when it is going to turn.  Sometimes we see signs, and we report those.  We are not seeing those signs, but someday we will and there will be those that miss out.  It always happens and will until the end of time.  It is true in the real estate market and the stock market.  You can never time the top perfectly, just as you cannot predict a bottom perfectly.  It is only after it occurs that we can tell you with certainty.

If you are thinking of selling, call Sande or Brett Ellis at 239-310-6500 or visit www.SWFLhomevalues.com for an instant home valuation.

See last week’s article “National Housing Supply Shortage Predicted Years Ago”

Good luck, and happy selling!  Don’t miss this market!

New Opportunity in Whiskey Creek

Lee County Home Sales Outpace Available Listing Inventory Year to Date

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Lee County home sales outpace available listing inventory in Cape Coral year to date and it is only February 10 as we write this article.  The numbers in Fort Myers and all of Lee County tell a similar story.

Lee County Home Sales Outpace Available Listing Inventory

Is it possible to reach zero inventory?  We believe the answer is no, just like we will never see zero unemployment, for a variety of reasons.  Some sellers will never sell no matter how hot the market is, and some people will never get a job no matter how good the job market gets.

Lee County Home Sales Outpace Available Listing Inventory

We are at or near 1 month supply of inventory in several price ranges.  In my 31+ years of selling real estate in Lee County I have never seen this before.  To make matters worse, builders are turning on and off the building spigot.  We covered that extensively in last week’s article.

Where will inventory come from?  Buyers are still moving to Florida in droves from New York, Illinois, California, and other states.  Demand is not going away.  We have pressure on the market.  Not every buyer is going to get a home.  Only the buyers willing to step up and win the game are securing homes.

Many Realtors are asking, how low can inventory go?  We have been watching inventory draw down for the better part of two years, and now it is getting critical.  We have a message for both buyers and sellers.

Sellers

Sellers now is your time.  You are in the driver’s seat.  It has never been more fun to sel a home than right now.  If you are priced and marketed correctly you will have multiple offers to choose from.  The agent you hire to represent you will make all the difference.  Choosing the wrong offer can cost you, just like choosing the wrong agent.  If you have questions about how that is possible, talk to Brett or Sande Ellis before you list, and we will talk about that.

Choosing the wrong offer is just as bad.  If today you knew the offer in hand would not close, would you take the offer?  Of course, you wouldn’t.  This is another reason why hiring the right Realtor with experience matters.  Experience is the ability to see the future because the agent has been there before.  The Ellis Team has closed over 5,000 homes, so we have seen some things.  We have that Spidey sense because of experience.

Buyers

Buyers, you are in competition with all the other buyers.  Forget about trying to out negotiate the seller.  You will out negotiate yourself right out of the deal.  In a balanced market where you are on equal footing, it is a different story.  This is not a balanced market.  You must play the game to win, or you are going to lose.  This may not matter if you do not really need to buy and you are comfortable in your current housing situation.  If you need to buy, get comfortable being uncomfortable. You need an agent that knows how to win.

Back to Sellers

Do you know what your home is really worth today?  Is there a number at which you would sell?  What if your home is at that number and you did not realize it?

Call Brett or Sande Ellis 239-310-6500 or visit www.SWFLHOMEVALUES.com to get an instant value.  The best part is the system will email you your home’s value every month as it changes.  You will know when your home finally hits your number.

Good luck and let us know how we can help you in this market.  Experience wins.  We can help you with that.

Zillow buys ShowingTime and what that means for the industry.

Home Builders Halt New Construction Sales to Catch Up

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We have seen several home builders halt new construction sales for several reasons.  The two major reason are costs and quality control.

Home Builders Halt New Construction Sales

Costs are rising rapidly.  For instance, lumber costs have skyrocketed recently.  I found an article online that said the lumber price spike has added about $16,000 to the typical home nationwide.  Lumber is just one component in a home.  Home builders are literally outselling what they can build in SW Florida, and they must be careful.

If you outsell what you can build, it adds to the build times.  As you add to the build time, there is more chance for increased costs.  In a hot market you would hate to contract for a home and lose money on it by the time you get it built.  Even if they do not lose money, they want to maximize profit.

Homebuilders Selling Too Fast

One homebuilder said they were selling a home every 50 minutes.  We know of several builders locally that have limited what their sales agents can sell.  These limits can change daily.  Overselling is bad for two reasons.  You do not want to set the expectation it will take 6-9 months and deliver the home in 18 months.  Customers will not like that. Secondly, they do not know what costs 18 months from now will be.  Costs are going up, so they need to raise the home prices to cover those costs.

When shopping for a new home it pays to work with a Realtor that knows who can build and where the inventory is.  Occasionally new home sales fall out and the buyer cannot close.  If you work with an experienced Realtor with connections, you may find out about these homes first.  If you’re late, you’re last.

Resale Market Hot

The resale market is still a place to keep an eye on too.  New resales enter the market daily, but not enough to satisfy demand.  Speed is the name of the game when it comes to securing a new or resale home.  Make sure you are pre-approved for a mortgage.  If it takes you a day or two to get pre-approved, you have already lost.  Do that first before you go home shopping.

Remember, you are not negotiating against the home seller.  Your competition is all the other buyers shopping to get the same home you are looking at.  Structuring your offer to win is the key.  This is where an experienced agent can help.  What seems like good terms to you may not be the best offer to the seller.  An experienced agent knows how to make your offer look stronger.  Price is just one factor, and you can only bid so high.  There are plenty of other factors along with price that can make or break your offer.

Sellers Pay Attention

Sellers, it is time to pay attention!  There has never been a better time to sell your home.  I just put my own home on the market.  I am taking my own advice.  There is more demand than there is supply.  Buyers are forced to offer full price or more in many cases to win a home.

As builders raise their prices it will help pull resale home prices up with it.  We have seen home builders increase their prices over $100,000 in some neighborhoods in the past few months.

Interest rates are low. Demand is high.  If you are thinking of selling, call Brett or Sande Ellis 239-310-6500.  For a free instant value of your home check out www.SWFLhomevalues.com.  Not only will you get an instant price, our system will also email you each month your home’s value change in value.  That is a handy tool in this market.

If you are buying, go to www.LeeCountyOnline.com  It is updated in real-time which means you will have the best data.  Remember, speed wins in this market.

Good luck, and Always Call the Ellis Team at Keller Williams Realty with your real estate needs!

You’re Not Going to Believe This

New Listing in Reflection Lakes

13855 Bald Cypress Cir

Lakefront Home in Reflection Lakes

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Real Estate Sales Price Increased 20.2% in Last Year

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Official Lee County real estate sales price statistics are out, and it reveals a 20.2% increase in the last year.  Median sales price rose from $262,000 December 2019 to $315,000 December 2020.  Average sales prices show an even greater gain.  December 2019 average sales price was $346,857 compared to $455,685.  That is over $100,000 gain and a 31.4% increase.

real Estate Sales Price Increased 20.2%

The rate of gain is not sustainable.  Do not expect prices to rise 30% year after year.  There is room for further price gains, but not at that rate.  Low interest rates are helping buyers afford more home.  High interest from out of state buyers is also fueling demand.  This trend picked up 4 years ago and we expect that to continue.

Florida a Work From Home State

Covid-19 has taught us much of America can work from anywhere.  With that being said, many are choosing to exit big cities and work in less crowded areas with better climate and lower taxes.  Florida stands out as an excellent choice.  I read an article yesterday that showed Florida is now the most attractive state for net migration from other states.

Fort Myers was also named the fasted growing city in America by Business Insider.  The Fort Myers/Cape Coral area has been undervalued for years.  If you go back and read our past articles, we talked a lot about Florida having 67 counties, and two saw price gains below the state average.  Those two counties were Lee and Martin counties.  Eventually this equalizes, and the world has taken notice.  If you are an out of state buyer looking for sunshine and a nice place to live, you are not necessarily tied to one area.

Naples and Bonita have always been expensive compared to rest of Lee County.  I remember the day when Bonita was not expensive, but recently it has been as growth filled in.  Growth is marching right up the coast and now Fort Myers is the bullseye.  Therefore, we are seeing price increases greater than some areas and it will continue.

Excellent Buys if You Know Where to Look

There are still some excellent buys out there, both in resale and new construction. We need more new construction to help with demand.  We are seeing builders raise prices dramatically on lots, home construction, and pool costs.  Some of that is demand, and some is increased costs for lumber and supplies.

New construction prices rising dramatically will help pull resale prices even higher.  When new homes go up $100,000, resales follow.  We expect 2021 to be another great year, but some buyers are getting priced out of the market.  The market does not care who buys the home.  An out of state buyer with more money may be able to pay more than a local buyer.

We are seeing buyers having to adjust where they want to live as some are getting priced out of their desired neighborhood due to real estate sales price increases.

Getting Top Dollar Not Easy For Everyone

We are also seeing For Sale By Owners giving up and hiring Realtors.  Getting top dollar is not easy if you do not know how to reach today’s buyers and you do not know how to close the transaction.  Anybody can find a buyer, but can you find many?  Today there is typically more than one buyer for every property, you just have to find them.  When you have more buyers to choose from, you will get a better price.

An experienced agent also knows how to select the best offer.  It’s not always price.  We are looking for the buyer most likely to close.  If you have questions on that, reach out to Sande and Brett Ellis at 239-310-6500

Some people like our Free Instant Home Price Evaluator. If you are thinking about selling, we can validate the price and make sure it is accurate.  Prices are changing by the week, so do not leave money on the table.  Always call the Ellis Team at Keller Williams Realty!