Open House Archives - Page 2 of 12 - Fort Myers Real Estate and Homes For Sale

According to a report by Up For Growth, the US housing production deficit increased to 3.79 million units in 2019, up from 1.65 million units in 2012. This means that we as a nation are not building enough housing to keep up with demand.

This is not good news for renters, or home buyers. Prices are rising due to lack of supply at the same time interest rates are rising to quell demand. How do you quell housing demand? People need a place to live in. Rising rates makes it harder for builders to build and sell at a profit, so they slow down or stop building, which exacerbates the problem.

Housing Production Deficit Increased

We have a map put out by Up For growth which shows state by state the amount of underproduction in 2019. Reasons vary by locale why. For instance, in Detroit, many homes are uninhabitable according to the report and they need new homes to replace them. Florida is a different story, as more and more people are moving to Florida and supply isn’t keeping up with demand.

Housing is a complex issue, and their report is 76 pages long addressing the issue. Suffice it to say, we need more housing, but the situation is only getting worse.

Should I Wait For Prices to Drop?

Many potential home buyers do not like their choices. Some will decide to rent another year in hopes home prices will come down. This may not benefit them the way they think. Even if home prices declined 5-10%, their payment would still rise more than the price savings due to higher interest rates that may be coming. Waiting in this scenario can cost them.

Secondly, a year from now they may be worse off. While faced with the same decision next year, rents may be higher, because people need a place to live in while supply is not keeping up with demand. Never mind if everyone can afford it, enough people can which drives up the rents.

Additionally, while rents may go up, the potential risks don’t end there. The landlord may decide to sell the home before your lease is up, or simply not renew your lease. Remember, it is a lease. You do not own it. He or she that owns the property gets to make all the decisions, not the tenant.

Inflation Raises Future Costs to Build

Lastly, as inflation lingers, the cost to build a home in the future only goes up. Future supply will cost more. Home buyers can get on the equity train now even though the home costs more than it did a few years ago. Yes, interest rates are higher too, but you can’t go back and change time. You can refinance later if rates go down in the future, but the cost of the home probably isn’t going down. In real estate you marry the house and date the rate. Inflation is one of the reasons.

Inflation compounds as well. Each year the cost to construct new homes builds on the previous year’s costs. Over time, a $500,000 home today may cost substantially more to build later. Renters might be well served to get on the equity train sooner. Most tenants do not purchase because they are worried about their job, home prices, interest rates, down payment, repair costs, etc. The truth is all these same worries will be there in 1 year, 2 years, etc. The sooner you act, the sooner you get on the train. If you lose your job, it will not matter if you are a renter or homeowner. The landlord will still kick you out if you do not pay rent.

You can search the MLS like a pro at www.LeeCountyOnline.com, or call one of our buyer specialists at 239-489-4042. Don’t forget about our Hurricane Party Prize Package. Deadline to enter is midnight July 25^th. Simply go to www.Topagent.com to register to win this package.

Good luck, and Happy House Hunting!

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New Ellis Team Featured Listings

11530 Timberline Cir

12157 Lucca St Fort Myers FL

Open House Sat 12-3 PM

Currently we have two types of sellers in today’s real estate market. We will go in depth on both and explain how each outlook can impact both the buyers’ and sellers’ future.

Fearful of Market

These buyers respect the market and analyze facts. They tend to be motivated to get top dollar and do not want to miss this market. They realize the best may be behind us and they get that. Sellers in this category don’t want to be left holding the bag if the market drops further. They have watched inventory more than double since February and on its way to tripling by July at the current pace. These sellers know it is more fun to sell when there are fewer listings to compete with and they do not like that more competition is coming.

Interest rates have risen which has priced many buyers out of their current price range. Suddenly the homes in their new lower price range do not look as attractive as what they looked at before and they lose motivation. Many buyers have checked out and given up on the market at these prices. If they were on the fence with pricing, as many were, rising rates through them over the top.

Want the Price From 3 Months Ago

The second type of buyer wants the prices from 3 months ago, and some say throw in another $30,000 for good measure because those prices back then weren’t quite enough. These sellers lack motivation and want what they want without regard to market conditions. A few of these sellers still might get their price if their home is unique or offers something of value not readily available. Certain waterfront homes, or newer or updated homes might fetch top dollar plus simply because we still have a decent market, and no like kind inventory is competing with them. As time goes on this will become more difficult once the market catches on and headlines change.

Headlines still compare year over year pricing, but we believe that will change in the coming months. We study both the year over year and the month over month statistics. It is possible we will see the month over month sales start to level off with the rising rates, and later it will show up in the year over year sales.

Because prices went up so much year over year late in 2021 and early 2022, we may not see the trend until many months from now, but the trend can still be there. Therefore, we will be studying the month over month numbers to get a quick blink on what the market is doing in real-time.

We already see inventory rising, less offers per property, and less cash offers. The financial markets are in turmoil, and it has worked its way into the real estate market. Consumers are not confident in the economy, and it is impacting buying decisions.

Thinking of Selling?

If you are thinking of selling, ask yourself which type of seller are you. Do you want to sell sooner before other sellers enter the market, or do you believe the market is still on fire like back in March? Marketing becomes more important in a changing market. When we meet, we can discuss the latest Ellis Team Current Market Index and what that means going forward. Remember, we developed this index that accurately predicts the forward direction of the market before it shows up in the numbers.

We are happy to share this with each of our clients. Call Sande or Brett Ellis 239-310-6500 and we can discuss your options or visit www.SWFLhomevalues.com to get an instant value of your property with a confidence score. The higher the confidence score, the more accurate the valuation. If your property receives 85 or better, the system is confident in your number. You can watch your value change each month.

Good luck and Happy Home Selling! And please, vote for us as Best Real Estate Team in the Fort Myers and Cape Coral News Press polls.

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

3951 Spotted Eagle Way

Open House Sunday 12-3 PM

2007 SW 30th Ter

Two Types of Sellers

Today we’d like to give you an inflation home affordability perspective you may not have thought about. These days everyone is talking about how expensive housing is. But is it really? Yes, home prices have gone up, but that doesn’t tell the whole story.

We are including a graph, and there is a lot going on in this graph. Let’s break it down. In 1989 the Keller Williams research team took the national average price of a car, a home, wages, and the cost of a mortgage for that average home. They then went back and adjusted each for inflation. Here is what we found.

Of course, all four went up in price. But after adjusting for inflation, the cost of a mortgage, even at today’s prices, went down 24.02% You might ask, how can this be?

The answer is mortgage rates are lower than 1989 which is making housing affordable. We have other graphs that show in 2021 16% of the average home buyer income went to paying their mortgage. Back in 1989 it was 24%, so home affordability is better than it was back in 1989. This suggests there is more room for price appreciation if rates do not rise.

What if Rates Rise?

What happens if rates do rise? That eats into home buyer affordability and can damper price increases. If they rise enough, it could put negative pressure on home pricing. In the coming weeks we will post another graph that shows where home prices are today compared to where they should be on the curve.

The forecast we pay attention to suggest home prices could rise nationwide about 9% this year. However, home prices are out over their skis and could ultimately bounce back if they expand too much from here. A lot will depend on interest rates. Expect the Fed to raise their rates a qtr. point to half point in March. Most experts now see a qtr. point hike, but I would not be surprised to see the half point rise. Many financial analysts are expecting the economy to pull back the 2^nd half of the year. One way or the other, inflation will be pulled back whether through a slowing economy or continued interest rate hikes. Therefore, I believe the Fed may want to act faster now than having to continuously raise rates later.

Nobody knows what the Fed will do. They should have moved sooner and had they we might not have need to raise as much in 2022. Of course, many mistakes have been made not just by the Federal Reserve. A lot of people are responsible for this drastic inflation.

We are not here to assign blame. We are simply here to look at how we got here, how we think they may address it going forward, and what that means for the local real estate market.

Call Us Before Prices Peak

If you are a homeowner and your home is not working for you, you might want to call us 239-310-6500. Do not wait for prices to peak. If timing the market is your goal, you have a 99% chance of not getting that right. You will only know months afterward if you timed it perfectly. Even if you miss it by a few percent, you are still doing well. Remember this, when word gets out that prices topped and are heading down, buyers turn off.

No buyer wants to buy in a declining market, just like nobody wants to catch a falling knife. Some people must buy, but the ones that don’t will continue to rent and wait for prices to come back down. When this happens, they will have no mercy on sellers. Sellers did not care that they put in 20 offers on homes and got none while prices were going up. When the market reverses, buyers will have no sympathy.

If you’d like to check your value online without speaking to us, you can at www.SWFLhomevalues.com Not only will it give you your home’s value, you can also check to see your value each month and see if it is appreciating or declining.

Always call Sande or Brett Ellis at the Ellis Team at Keller Williams Realty. We look forward to helping you get Top Dollar for your home!

Ellis Team Weekend Open House

3914 NW 41st St Cape Coral

Cape Coral Pool Home

I think it is safe to assume nobody studies the numbers for the SW Florida real estate market like we do. Perhaps it is because I graduated with a degree in Finance that I study the cause and effects of the market. This week I want to share a leading indicator. The inverted yield curve predicts upcoming recession and stock market corrections.

Because of this we are better able to spot emerging trends that can affect our customers. We were one of the first to predict the market change back in 2005, and back then everyone said we were crazy. While we educate our customers first, I like to let readers in some metrics I will be watching going forward.

A lot of sellers are asking us if the market is going to crash. My answer would be which market, the US market, or the local market? For the record, I am not saying either is going to crash as the setup for this market is nothing like it was back in 2005. If it were to crash, or even suffer subtle setbacks it would surely mean that interest rates are rising, and the economy is faltering. We know interest rates are already rising and predicted to go higher as soon as March.

Let’s look at the economy. There is one leading indicator among others that predicts the economy, and that is the inverted yield curve. Technically the inverted yield curve refers to the 10-year to 2-year spread. Right now, the spread stands at .62% It has been falling since March 2021 when it stood at 1.58% difference. You can see it is declining, but it does that. We will be watching to see if it reaches 0.

Did you know that the inverted yield curve has accurately predicted every single recession in the United States since the Fed has been publishing data on this back in 1976? It has, and that is a scary accurate leading indicator.

This is why the Fed’s hands may be tied. We have handled inflation all wrong heading into 2022 and it leaves the Fed with few choices. They need to stop borrowing money and taper the bond buybacks. They are doing this, and this program will take trillions out of the economy by end of March. This will lead to higher rates. Secondly, they must raise interest rates. Some say look for 3-6 hikes this year. But doing so could cause the economy to stall and lead to recession. Recession is not good especially with such high inflation.

The working men and women in America are being hit the hardest. Wages cannot keep up with rising cost of living and people are getting further behind. If recession hits, some could lose their jobs.

Some people say the economy is on fire. January numbers show 467,000 jobs were created. Were they really? We have 10.9 million unfilled jobs in the United States, and they report 467,000 jobs were created. Perhaps 467,000 people decided to go back to work because they had to. Be careful which headlines you read. Track your own numbers.

We cannot say what will happen. There are too many wildcards and too many decisions to be made by others. We can report on what we look at to evaluate. The inverted yield curve predicts recession before it happens. It may or may not happen, but it will be fun to know ahead of time if you look at the right tools.

We hope you enjoy reading about how we analyze the market. It may be kind of geeky, but if you are buying or selling, it pays to know a geek.

If you are thinking of selling your home, call Brett or Sande Ellis 239-310-6500. We might be geeks, but we’re easy to talk to and we know our stuff. Or visit www.SWFLhomevalues.com for an instant and Free home valuation on your home.

Good luck and happy selling!

Open House Saturday 12-3 PM

12790 Meadow Hawk Dr $450,000

SW Florida August home prices stabilize ending a three month decline in average home prices. Median home prices peaked in May and only slightly declined in July. Median home prices held steady for August.

We are watching daily inventory counts to see if there is any movement. If anything, inventory has declined since August numbers. We do not see building inventory and many properties are still receiving multiple offers.

Interest Rates

Today as I write this article the 10-year note stands at 1.529% That number will fluctuate throughout the day. It has trended up the past month. For instance, it was about 1.289% a little over a month ago. The reason we track this financial instrument is because 30-year mortgages are pegged to the 10-year note. My unofficial formula is adding about 1.6% to whatever the 10-year note is, and it will get you close to current mortgage rates.

That would put us close to 3.125% to 3.25% interest rate, which is about where rates are at with no points. Rising rates can motivate buyers to buy now, but it also cuts into purchasing power. Rising rates may not make a difference now as we have more buyers than sellers, but someday it could if the market slows down.

Inflation

We are also watching the price of oil. Rising oil is a clue to rising inflation and a barometer of pressures on bond yields which influence interest rates. As of today, West Texas intermediate crude oil is at $79. This is up significantly and could lead to more inflation.

If congress passes more unfunded spending in the wake of rising inflation, it could spark interest rates rising faster. If that happens, all eyes will be on stock markets and real estate markets. The United States is at a precarious time with our debt to GDP ratio, and any moves could trigger interest rate swings.

If financial markets do swing, the next question is what effect will that have on consumer behavior? Where will people want to live if they leave their job? We are also at a critical time with jobs and vaccinations. The federal government is mandating all health care employees be vaccinated or health care providers will lose their Medicare funding. No hospital or large provider can afford to do that. The question is. How many people will quit or be let go from their jobs in health care?

It is not just healthcare either. Many teachers are facing the same dilemma. In New York alone, we have heard reports of 150,000 teachers at risk of losing their job.

Vaccine Mandates Effect on Real Estate

If the mandates stick, will these people stay where they are or make a move? Florida has been a popular destination. With so much uncertainty, it will be fascinating to watch how these factors play out. In any such transitions, there are always winners and losers. What effect this will have on Florida and our real estate market remains to be seen.

Rising rates tend to temper the market. Changing demographics can further exacerbate a declining situation or moderate losses, depending on where you live.

For anyone to tell you they can predict the future right now would be absurd. All we can do is open a window into our thinking and show you some of the factors we are looking at. We have a list of 7 key indicators we will be tracking.

One thing is for sure. Ellis Team clients will always have the latest information on what we are seeing. We feel it is our duty to buyers and sellers to have our latest research. It is part of why people hire us. We do not mind sharing some of this research with News Press readers as we feel the public should be informed.

If you are interested in selling, always call Brett or Sande Ellis 239-310-6500. We can discuss what we are seeing and how this will affect your property value. For a free online instant property valuation, visit www.SWFLHomevalues.com Our system will update you every month the value of your home.

The Ellis Team looks forward to speaking with You!

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Ellis Team Weekend Open House

Hendry Creek

Open House Saturday & Sunday 12-3 PM

15666 Light Blue Cir

Ellis Team Open House — Hendry Creek Waterfront Open House

Home sales fall behind 2020 levels in August for the first time this year. Is this a sign of a slowing real estate market, or simply lack of inventory?

Home Sales Fall Behind 2020 Levels

Last week we reported inventory increased for the fifth straight month. In February, listing inventory stood at 1.916 homes. In January listing inventory was 2203. August listings were on its way up at 1,764. Perhaps we need inventory levels closer to 2,000 or more to sustain the blistering pace we have seen this past year.

It could also be that inventory is rising, sales are slowing, and buyers have cooled off. Home prices peaked in April and May and saw a decline. Funny thing though, median home prices stabilized in June and July while average prices went up slightly in August.

If the market was declining, we would expect to see the trifecta of rising listing inventory, declining sales, and declining prices. Right now, we have two out of the three, and it is quite possible sales will pick up as inventory increases.

It is also possible rising interest rates will deter some home buyers. October 1^st will bring in flood insurance changes which will raise rates on some. Rising insurance costs can affect home affordability.

Florida is still a state where people are attracted to. Some northern states markets have begun to cool a bit while others have not. It is safe to assume, Florida is an attractive option for many up North which adds to our demand. As listing inventory increases, we may very well have excess demand to make up for the inventory.

In any market, many homes sell, and some fail to sell because they were overpriced. When a market begins to shift, you do not want to overprice. I am not saying our market has shifted or will shift anytime soon. All markets shift eventually. Proper pricing becomes critical when they do. To be honest, proper pricing is always critical. Would you believe that in this great market, some sellers have failed to sell? It is true, and it happens in all markets, up down, and sideways.

Hire the Right Agent

Hiring the right agent is critical now. Marketing and negotiating matters more than ever. Some mistakenly believe they can throw a home on the market, and it will sell. The truth is it might sell. The question is, did it sell for as much as it should have or did seller leave money on the table? There is an art and science to getting what your home is worth. It takes knowledge, experience, skills, and marketing. If you thought it was expensive hiring the best agent, just see what it costs you hiring the wrong one.

As we study the market, we will be looking at several key indicators. Of course, we will watch home prices. We will also watch inventory levels, sales velocity, dollar volume, and bring back and track our current market index which helps predict forward motion of the market. If you do not know what the Current Market Index is, search for it on our Blog https://blog.topagent.com

If you are interested in selling, call Sande Ellis or Brett Ellis at 239-310-6500 or visit www.SWFLHomevalues.com to find out what your home could be worth.

The market goes up, the market goes down, and sometimes it just goes sideways. Do not let the market dictate your decisions. Talk to the Best and get your questions answered.

The Ellis Team has been voted the Best in Real Estate for 7 straight years in the News Press Readers poll. We thank all our past and future customers. We look forward to helping you buy or sell your next SW Florida property.

Ellis Team Weekend Open Houses

Saturday Open House 12-3 PM

Open House Sunday 12-3 PM

Lee County listing inventory increased fifth straight month which has led to a leveling off in home prices. We are seeing September daily listing inventory counts drop slightly so we will keep an eye on official numbers when they are released next month.

As you can see by the chart, listing inventory is still very low comparatively speaking. We look at actual numbers and the trends. The actual numbers tell us where we are at a point in time, and trends can give clues about the future. Once a trend emerges it does not mean it will stay, so we must be careful predicting the future based upon a small trend in data.

Median home prices peaked in May and June and slipped a bit in July, however they held steady in August. Average home prices peaked in April and slipped in May, June, and July. Average home prices rose slightly in August, confirming the trend that home prices have leveled for now.

Seller’s Market

With 1.1 months of official inventory, we are in a seller’s market. August saw a rise in new listings of 3.6% and a drop in new pending sales of 10.2%. The daily inventory numbers are telling as well, and we may see the SW Florida real estate market pick back up again. Rentals are very expensive, and in many cases, it is cheaper for a buyer to purchase than rent.

The number of homes closed fell again for the second straight month. Nationally mortgage applications are picking up again. With Covid cases decreasing dramatically in Florida and the return of Fall, we may see the market heat up once again.

What is unknown is when and how fast interest rates will climb. The expectation is the Fed will taper asset purchases which have helped keep rates low. We expect the Fed to announce the start of tapering in November which means rates could rise by the end of the year.

Increased borrowing costs will cut into buyers purchasing power. Eventually decreased purchasing power helps cap price increases. The fascinating thing to watch is that the US has been short building units to the tune of 5 million plus. This has caused a shortage in supply. Housing demand is strong. These two forces are at odds with each other, and whichever wins out will hold the key to the direction in home prices.

It is quite possible they will temper each other. If this happens, we will return to normal price swings and a leveling off, which is a good thing.

Time for Seller’s to Sell

The takeaway for sellers is now may be the time to sell. The takeaway for buyers is now may be the time to buy. If you are a seller looking to purchase a home with a mortgage, this is especially true for you.

You might ask, how can it be a good time for buyers and sellers to make a move? The answer is, it may cost both groups to wait. Most people think of buyers and sellers as dueling warriors, and one must win to the other’s detriment. The reality is, in this market, both can win now, and both can lose in the future by waiting.

We live in interesting times. So many factors are affecting our economy, from supply side shortages, to rising rates, to rising inflation. The Delta variant changed things for Floridians for a few months. Assuming no new major variants, between the vaccinated and those with natural immunity, Florida is shaping up to be in good shape going forward. This Fall and Winter will be interesting to watch.

Always Call Brett or Sande with your real estate questions 239-310-6500 or visit www.SWFLHomevalues.com to get an instant value on your home.

The Ellis Team at Keller Williams Realty is here to help you with your questions. Good luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday and Sunday 12-3 PM

1936 Savona Parkway, Cape Coral

June housing inventory levels remained at 3 weeks of inventory compared to April. We did see some movements in the markets the past few months. Let’s look at which price ranges changed since April.

We have a little more inventory today in the $300k-$600k price range. The $300-400k range grew by 42 homes and the $400-600k range grew by 50 homes. Overall inventory grew by 91 homes. We saw an increase of 38 homes on the market in the $250-300k range. All price ranges saw increases in inventory except for $250,000 and below which all saw decreases in inventory. What offset the increase in inventory was steep closed sales in the $300k+ market.

While $300k plus market did very well, the $600k+ market is booming. June housing inventory levels are declining in the $600k+ market while it is increasing in the $250k-600k market.

The 365-day moving average number of homes sold has increased since April which indicates the market is gobbling up any increased inventory. The numbers tell us we have a robust housing market despite rising interest rates.

In April we saw a 160.2% increase in the number of cash sales over 2020. Closed sales were up 63.3% in April, so this tells us more buyers are paying cash. In fact, 35.5% of all deals in April were cash.

If closed sales were up 63% in April, why are agents talking about a slowdown? We may see a slowdown in sales, but it will not be because of lack of demand. Supply plays a role too. New builders may turn out less product in the second half of 2020 and it will not be due to lack of buyers. Many builders have cut off sales to keep their backlog manageable.

We will keep our eyes on the market to see if certain price ranges begin to accumulate inventory. So far we are not seeing it in any meaningful way, and in fact many ranges are still decreasing.

New Listings We are Working On

Our team has been working on several nice listings we will be bringing to the market soon. What is different now than in years past is it seems to take sellers longer to make their decision to sell. Many factors go into a decision to sell and sometimes a lot of things need to happen first. We work with sellers to help with these details.

We have a new program for sellers that allows them to purchase a home first then sell their existing property with no interest or payments for 6 months on their existing home. With the correct marketing plan sellers receive Top Dollar in this market. The biggest mistake we see sellers make is believing the market is hot, so they will automatically receive top dollar. There is a difference between selling for a number you would settle for versus selling for the top end of what the market will pay. Sometimes that difference can be tens of thousands of dollars or more.

To find out what your home is worth, go to www.SWFLhomevalues.com This is a starting point. Often, we are selling homes above appraised value. You can speak with Brett or Sande Ellis at 239-310-6500 and we can discuss how much we could really sell your home for, where you would go, and help with those details that impact whether it is a good time to sell now or not. Believe it or not, it is not usually the price that matters to sellers. Working out the details of how a sale would work is usually the biggest obstacle. Many people would like to sell if only they had someone to help them with all the details.

This is where the Ellis Team comes in. We look forward to working with you to manage all those details and get you Top Dollar.

Good luck, and Happy House Hunting!

Last week we wrote about how common mistakes cost sellers thousands at closing and we got a lot of response. We also heard from buyers throughout the country asking for help getting buyer’s offer accepted in low inventory markets. We thought we would write some tips for the buyer side to help them.

In a low inventory market, you must make your offer stand out to the seller. One of the biggest mistakes buyers make is upping the purchase price without regard to their ability to pay more. Sure, they may have a pre-approval letter showing they qualify for more, but that does not help if the property does not appraise more when getting a mortgage.

Your Competition is Other Buyers-Not the Seller

Keep in mind, you are not competing with the seller. The buyer is competing with all the other buyers wishing to purchase the same property. A cash buyer does not have to worry about an appraisal. A buyer putting 50% down may not either. Buyers putting a minimal amount down do, unless they can show sufficient cash they are willing to plunk down in addition to their down payment and closing costs to make up the difference.

One buyer called me from another state asking for advice in another market. They had the chance to buy a home there for $450,000 but did not jump on it right away. They waited a day, and 13 offers came in. Ultimately it sold for much more than what they could have sealed the deal for. Waiting cost that buyer.

They have their eye on another property. He asked if they should put a quick timeline for acceptance on the offer and threated to withdraw it if it is not accepted. My response was, not necessarily. The buyer is not holding all the cards. It is to the seller’s advantage to slow play the offers to generate more interest. Taking an offer too soon may cost the seller.

Seller Can Act at Any Time Regardless of What They Stated

The seller may say they will look at all offers on such and such a date. This may be true, but keep in mind the seller can also accept an offer before that date if they choose to. If you make such a compelling offer that the seller is worried that offer will disappear, you might be able to get your offer accepted. Do not threaten it will disappear as that will turn off the seller. Remember, the seller is not your enemy, but they are the gate keeper. They have what you want, but the other buyers are your enemy.

Negotiating Tip

I would rather softly tell the listing agent we have a certain amount of time to accept simply because the buyer has been shut out on other properties and does not want to miss out again. If this deal is not going to happen, we would rather find out sooner than later as there is another property they are considering. Your home is our first choice, and they would be absolutely thrilled to buy it. If the seller takes too much time, we must move on so the buyer does not end up homeless.

Keep in mind, the buyer still is not holding many cards. It is just a softer way to proceed and may help your chances. Relationships matter in this market more than ever. If your buyer agent is experienced it helps if they have done transactions with the listing agent in the past. A listing agent’s confidence in the buyer agent can go a long way to getting a deal together. Buyers must be educated and soothed, and an experienced agent is better able to help with that, and listing agents know this. Trust between the agents can make all the difference.

Other Resources

We wrote an article back in 2012 that still has some great tips today entitled “Top 10 Tips For Buying a Home in Today’s Market” you can find on our blog at https://blog.topagent.com Just search for that title in the search bar.

Another great article “Selecting Best Multiple Offer Tips From a Real Estate Pro” can be found here.

We hope these tips help. Always call the Ellis Team at Keller Williams Realty 239-489-4042 or visit www.LeeCountyOnline.com for the latest listings.

Ellis Team Weekend Open Houses

Open House Saturday and Sunday 12-3 PM

2200 SW 49th Ter Cape Coral

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.

To 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!

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