Today we would like to introduce the inventory sales gap metric for Lee County Single family homes. This metric measures the difference between the available single family home inventory versus the pending sales.

Inventory Sales Gap Metric

It is entirely possible to have rising inventory and rising sales. Imagine a low inventory market where virtually all the homes that enter the market go pending. In this case, the inventory sales gap metric is very low. As more homes come on the market, more go pending because demand from buyers is high. We saw this happen in 2022 and some weeks in 2023.

When pending sales exceed new listings entering the market along with homes coming back on the market, the gap lessens. This new graph shows in a different way than our supply-demand graph what the gap looks like. Both of our graphs help identify in an instant the health of the market.

As you can see from the graph, the inventory sales gap metric is widening. This means that the gap between listings and pending sales is widening. Currently, single family home inventory is rising and pending sales are flat. The good news is that we are seeing a slight uptick in new pending sales except for last week, which dropped by 1 home.

Ellis Team Current Market Index

The current market index is the third indicator our team uses, which accurately predicts the forward direction of prices. The current market index is still rising, which is not a good indicator for future prices. The index is the highest it has been all year. We’re going to be keeping an eye on new listings, new pending sales, and closings for the next 6 weeks. It will be fascinating to see how many new sellers decide to enter the market and how buyers respond.

Buyers seem to be responding. Showing activity is picking up and the phones are ringing. Many experts are predicting interest rates may not fall much in 2025 and could stay in the 6-7% range, which is average over time. Once buyers’ expectations for rates to decline go away it could spur motivation to buy sooner. It is possible the index could reverse course if buyers turn on in season.

The real question becomes what happens in January? Are there more shadow sellers waiting to place their property on the market? How does that number compare to the buyers looking to purchase this season. The forward direction of the real estate market feels like a college football playoff game. The winner will be decided in the trenches. Whichever side gains the most ground will determine the future of real estate prices in the next few months.

Selling?

If you’re thinking of selling, you need a team with marketing and experience. Many of our properties are receiving offers. Ellis Team listings receive more exposure than average listings, and our experience is second to none. If you’re thinking of selling, call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevalues.com for an instant free online home value. Of course, Sande or Brett will be glad to verify if the estimate looks correct.

Good luck, and Happy Home Selling!

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

11830 Bayport Ln Unit 2304 Fort Myers FL 33908

Open House Sunday 12-3 PM

2304 NE 13th Ave Cape Coral FL 33909

Many Southwest Florida property owners are doing a cost versus benefit analysis on their property following nearby major storms in the past few years. Hurricanes Irma, Ian, Helene, and Milton have brought storm surge and flood damage to many coastal homes and inland homes near the rivers.

Not What I Signed up For

SW Florida homeowners bought paradise, and they paid a premium for it. Many even ponied up big bucks for flood insurance, while some did not. The price of paradise was worth it. SW Florida has not had much flooding in recent decades before Irma in 2017.

Cleaning up after a flood event is not fun. Some homeowners spent their life savings to restore their property back to a livable condition. Some even upgraded from what they had before the storm.

If once was bad enough, imagine going through this process two or three times. Some unlucky residents have, and they’ve had it. Nobody can tell us when we’ll get hit again. All we know is people are tired of it, and it might be time for change.

New Money Replaces Long Term Residents

Long-time residents may give way to new residents willing to take on the fight. The answer may be homeowners need to raise their existing property, or tear down and build new at a higher elevation. It costs a lot of money to raise a property. Some of our quaint and charming properties are beautiful where they sit, but will it be worth it to invest so much to raise them? In a sad way, the land may hold more value than the cost to raise a small and quaint home. The cost versus benefit analysis may dictate something else.

Future Values

We see values eventually going up along the coast as homeowners replace existing homes with more luxurious homes built at higher elevation. They may lose their charm, but they will have more cost and more value. Newer homes will not be as susceptible to ongoing flooding events. Existing homes that are raised will add value as well. Another option will be for owners to add a second story onto an existing home, essentially replacing living area on the bottom floor with living area a floor higher. The bottom floor becomes the new wash away floor that doesn’t require much repair.

Push Inland

Many potential buyers have decided they wish to avoid the high cost of flood insurance and flooding and move inland. Some inland homes require flood insurance, so it’s best to check on each property. A good real estate agent can help you select an area that meets your needs.

Blueprint

Each storm is different, and past performance is no guarantee about future performance in a storm. However, many have taken comfort in the fact that we’ve had several major storms and certain areas have suffered no flooding through all of them. There is a new required flood disclosure that sellers must complete. The disclosure details whether a home has had water intrusion and buyers will want to study these carefully when evaluating homes to purchase.

Flooded Homes Value

For areas that consistently flood, and no remedy is available other than flood insurance, such as townhomes or 1^st floor condos, prices may be subject to buyers’ appetite to take on that risk. Some condo associations will be affected as well because the flood insurance may be for the full association, and the first floor affects the policy.

Professional Advice

When buying or selling, hiring the right agent is more important than ever. The Ellis Team at Keller Williams has more experience than just about anyone out there. We’ve been voted Best in Real Estate for 12+ years by News Press readers. Always Call the Ellis Team at Keller Williams Realty 239-489-4042

Let us know how we can help! We have resources we can give to you if you need vendors. Let’s hope 2024 storm season is done so we can get back to enjoying paradise.

To get your home’s online value instantly, check out www.SWFLhomevalues.com

No Flood Insurance Required

We have several homes that did not flood and require no flood insurance. This is one home we held open last weekend that may be popular among home buers. We have others as well.

Reduced home inventory supply is indeed good news for home sellers in Lee County. The overall monthly supply of homes on the market decreased from 5.67 months in June down to 5.39 months currently.

Price Ranges

Every single price range decreased except for the under $300,000 market. Even though closed sales are falling in some of the price ranges, they are being made up for in others. Perhaps the largest reason for the drop in housing supply is because sellers simply aren’t selling in the quantity they were back in June.

We have 302 less listings on the market right now. There was an increase in sold closings of 31 homes. This tells us that the drop in inventory levels has more to do with sellers taking their home off the market or less sellers deciding to bring their home to market. The decrease in home listings was not due to a drastic increase in closings.

Interest Rates

Interest rates are falling. It’s hard to get a feel for what they are officially because everyone quotes from a different base. For instance, Freddie Mac is reporting rates nationwide at 6.73%. This was last week’s rate to be fair. Other sources are quoting below 6% online, but there could be some points or closing fees involved to equalize the rate. Suffice it to say, rates have fallen, and they could fall more as the economy deteriorates.

Double Edged Sword

Sellers have been hoping for falling rates so more people can afford to pay a higher sales price on their home. The double-edged sword is that many are losing their jobs and businesses are cutting back, so there may be less buyers in the buying pool. The buyers that do have jobs may afford more when rates fall, but there could be less buyers overall.

Some buyers and sellers are holding off until the election before deciding to make a move. Americans feel less certain about their futures right now and they are looking for a reason to be optimistic. We just came off big inflation numbers where American purchasing power diminished, and now jobs are on the line. Some people are not optimistic about moving forward until they bring back a sense of control in their life.

We’re not sure the election is going to give them that, but we understand it as we hear these every four years.

Industry Changes

Industry practice changes are in effect. We predict several months of chaos as buyers, sellers, and agents figure out how to work in the new environment. Some brokerages have already figured it out and are operating as though not much has changed. Other brokerages and agents are in a state of confusion and don’t know how to move forward.

We’ve been telling readers for a while; it pays to work with an agent who understands what is happening and how to succeed in this environment. Our clients’ successes are literally in the hands of agents who are experienced and well trained to work in this environment. You must know the new practices inside and out to be able to explain it to clients. Buyers and sellers need this information to make good decisions, and unfortunately some are not getting good information or making the best decisions.

The good news is, even if a seller doesn’t understand the practice changes and makes a decision they later wish to change, they can. And you don’t have to switch agents or brokerages to make the change. Sit down with your agent and ask questions. If you’re unhappy with the results, make a change to the way they operate.

Interview

Buyers and sellers should interview agents now. Who you hire matters. The Ellis Team at Keller Williams is available to meet with you and discuss your options. You may or may not hire us, but at least you’ll understand better the options available to you and how they affect you. Take advantage of reduced home inventory supply levels while it lasts.

Good luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

This is the week real estate industry changes went into effect. Today we’ll cover those changes once more as this will be a whole new process for Realtors, buyers, and sellers.

Real Estate Industry Changes

Locally, effective July 31, 2024, the MLS compensation field has been removed from MLS. Sellers may still offer compensation to buyers’ agents to sell their property, but the amount can no longer be listed in the MLS.

Buyer agents will need to call the listing agent directly to find out how much the seller is offering or view it on the listing brokers custom website. Offers may be placed on signs, newsletters, brochures, etc., just not in the MLS, or associated connected tools of the MLS.

Buyers

Buyers must sign an agreement with an agent to tour homes. This agreement shall cover such things as compensation the buyer will pay the buyer’s agent for services, among other things. This does not mean that the buyer agent cannot accept payment from the seller, because they can. Any fee recouped from the seller will offset how much the buyer will have to pay the buyer agent. In many cases, the seller will be paying the entire buyer’s agent fee.

Buyers will have choices. If a seller is not willing to pay all or part of the buyer’s agent fee on the buyer’s behalf, the buyer can ask the seller to pay it through the offer. Or the buyer might decide to skip that property and move on to more buyer friendly properties. In the end, the market will dictate which properties hold the most value to the buyer. How the offer is structured will be a point of negotiation.

Sellers

Sellers will make decisions at the time of listing how much they will compensate buyer’s agents. This offer will then be communicated to showing agents. Buyers will then make decisions about which properties they wish to see based upon the totality of their criteria. Buyer agent compensation may be a big thing to some buyers and almost negligible to others. If buyer agent compensation is not offered, buyers may offer less for the property, unless the property is deemed such a good value, and they don’t want to lose it to another buyer. Again, the market will decide the total value of the property based upon market conditions.

Work Around

Buyers could go directly to the listing agent. In this case, the buyer will not need to sign a buyer broker agreement to tour homes. A buyer may need to sign a representation agreement, depending on the brokerage, but this will not require a compensation agreement.

Listing agents will in many cases be paid their listing fee plus a fee to work with unrepresented buyers because the agent will spend more time showing the property, educating buyers, attending inspections, and working both sides of the contract. The primary benefit of this arrangement is the buyer won’t need to sign a compensation agreement.

Open Houses

Buyers will not need to sign a buyer agreement to visit an open house. However, if a buyer meets an agent at an open house and asks them to show the other properties, then they will need an agreement.

If you thought buyers and sellers were confused before, these next several months amp up the confusion. The end goal is to have a more educated buyer and seller upfront.

Interview Before You Hire

The agent you list with now matters more than ever. Trust and reputation between agents will be more critical as communication through MLS is taken away. The buyer’s agents will show homes that offer the best relationships and efficient communication. If a buyer’s agent calls a listing agent with compensation questions and the listing agent doesn’t return calls, this will be a problem and that property may be skipped. This will harm buyers and sellers.

Agents know which agents do the business and who they can work with. Experience matters now more than ever. The next 6 months could be chaos, so working with an agent who has the tools and experience to handle these real estate industry changes will be critical.

Always Call the Ellis Team at Keller Williams Realty 239-489-4042. We’ll guide you through the process, no matter which side you are on.

Fun Real Estate Video

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd Fort Myers, FL 33913

Open House Sunday 12-3 PM

2752 Geary St Matlacha, FL 33993

Lee County Home Prices fell again in June, bringing the median home price to $400,000. Last year it was $430,000, so that was a 7% drop in the last year. In May median home prices were $415,000, so prices are continuing to drop.

Closed home sales fell 9% from last year, and 18.62% from last month. New pending sales are down 10.5% from last year, so things are not looking up for the coming months. The deteriorating housing market is not surprising as the effects of rising interest rates have had their desired effects to slow things down. The deterioration is usually the worst just before interest rates start declining.

The Fed can lower rates once they see data that the economy has cooled off. The risk is they overshoot the slowdown and things continue to deteriorate after they begin easing rates. Because economic activity is a lagging indicator to rates, it is very difficult to time interest rate hikes and easing perfectly for a smooth landing.

Rate Cut?

Wall Street odds place a September rate cut at 96%. The Economist’s odds are in the 82% range. We believe rates will come down 25 basis points in September or November depending on the data that comes out in the coming months.

Mortgage activity picks up each time interest rates fall. We’ve already seen rates fall about a quarter percent in the last 3 weeks. If economic data becomes bleaker, the mortgage market may react before the Feds cut rates.

Uncertainty

America has about as much uncertainty as we have seen in a long time. Inflation rose at a record pace followed by record interest rate hikes. Too much money has been released into the markets due to government overspending and it has taken high rates a while to influence the labor market and economy. Housing has certainly been affected. Couple the drastic economic fluctuations with a polarized electorate, and assassination attempt of a former president, and the current ruling party forcing their candidate to withdraw from the race, and you’ve got a recipe for uncertainty.

With election season upon us, who knows when the silliness will abate. It’s silly season alright, but there are signs the real estate market could do better in the 4^th quarter.

Currently oil prices are declining. Once we have a winner and know the makeup of the White House and Congress, our country can begin moving forward. If we have lower interest rates later this year and things quiet down in the middle east, Ukraine, and Taiwan, we could be in for improving real estate conditions.

I know these are big ifs. However, we must admit we are living in uncertain times, and much is unknown. I watched a documentary the other day that showed how America was similar to 1968. I went back and looked at home prices from 1968-1970 and prices declined about $30,000 adjusted for inflation. I did not study any other economic conditions from 1968 so don’t take this analogy in American history as a predictor of what the real estate market will do.

I think we can all agree it will be nice to settle into certainty. Our home is our castle, and some certainty with our castle will feel more settling.

Like to Sell

If you have a home to sell, always call the Ellis Team at Keller Williams Realty 239-489-4042. We cannot settle the country, but we can settle your situation. With over 37 years of experience, Brett and Sande are uniquely qualified to sell your home in this changing market. We look forward to speaking with you, no matter your situation. We’ve been through changing markets before and hiring a professional that understands marketing must change to meet the moment. Sande and Brett Ellis know how to market to the moment.

If you’re thinking of selling, or tried to sell and it didn’t work out, give us a call. We can help.

Good luck, and Happy Home Selling!

Big Changes Coming August 1

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

5407 Parker Dr Fort Myers, FL

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Springs, FL

Fun Real Estate Marketing Videos

Traditional sales dominate SW Florida real estate market, but that doesn’t stop buyers asking how they can buy foreclosures and short sales. Every week we get calls from buyers looking for off-market properties and distressed sales.

This tells us a few things. First, they’ve looked at everything available on MLS and have not found anything that meets their criteria. Secondly, these buyers have an expectation that our market is distressed, and they want a deal.

With one glance at the chart, you will see that foreclosures are practically nonexistent in the Lee County single family housing market. Less than .6% of our home sales were distressed in May. We had zero short sales and only 8 foreclosure sales in MLS.

There will always be a few distressed sales in almost any market. The 8 foreclosure sales are negligible statistically. I remember about 70% distressed sales back in 2008-2009. Our market is nothing like that time, for many reasons.

Speculators

Back in the 2005 market we had speculators purchasing properties as fast as they could and flipping to another speculator. There was never an end-user in sight, but that didn’t stop the speculating. I don’t call these people investors because they didn’t follow any of the typical investing strategies. These speculators operated on the “what a bigger fool will pay” theory until the music stopped. It worked for several years, until it didn’t. All they did was finance the overproduction of homes with cheap capital.

Fast forward to today. During the runup from 2020-2022 we had end users in every home. That was true for owners and renters. You could hardly find a home to move into no matter your financial wherewithal.

What hurt this market was the combination of things. Hurricane Ian did not help. Rising interest rates hurt the ability of homebuyers to afford homes at the current prices. Add to that the rising cost of homeowners and flood insurance, and we had a recipe for a strain on affordability. Lastly, some employers have been calling their people back to work at the office. This has led some that moved here because of Covid to move back.

Affordability Strain

Housing inventory is up 82.8% versus last year, but median home prices are only down 6.7%. There is no doubt housing affordability has put a strain on the real estate market, and most is the result of rising interest rates. As the economy slows down, rates may begin to drop. The official forecasts are rates should hold steady in 2024 and perhaps begin to drift lower. In 2025 rates should begin to drift lower. Forecasts range from about ½% to 2%.

Buyers may not want to wait for rates to fall a full 2% for two reasons. One, it may not happen. Secondly, all the other buyers will be jumping back in, and they will be competing with each other. Right now, the seller is on the defensive and wondering when this market is going to turn around. Once rates start declining, the buyer may not have the advantage over sellers like they do today.

MLS Search

The best website to search for properties is www.LeeCountyOnline.com Bookmark this site. Things are changing in the real estate industry, and when the changes hit in August, popular portals like Zillow and Realtor.com may not offer as many tools and properties listed as LeeCountyOnline.com does.

Always Call the Ellis Team at Keller Williams Realty 239-489-4042 with your real estate questions. We are here to answer your questions on the upcoming changes in August as well.

Good luck, and Happy Home Shopping!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

2752 Geary St, Matlacha FL

As Seen on TV Fox 4 Out and About South West Florida

Open House Sunday 12-3 PM

14386 Reflection Lakes Dr, Fort Myers FL

Open House Sunday 12-3 PM

26236 Colony Rd, Bonita Springs FL

Sellers beware of our creative financing red flag alert. We have seen more creative financing offers in 2024 than any year I can remember, and we’re only 5 months into the year.

The scary thing is, many of these offers occur before the seller speaks with an attorney or their real estate agent, and they are taking some of these offers. These investor/wholesalers are not required to be licensed, so they can offer you anything they like. It is up to you to determine if it is legal and meets the terms of your existing mortgage.

An inexperienced real estate agent might fall for some of these scams. The calls I’ve received sound convincing, until you understand the mortgage clauses and how they work. The wholesaler will argue with us that we don’t know what we’re talking about and ask how have they been able to successfully do this in Florida many other times. Just because they’ve been done it before doesn’t mean it’s a good deal for a seller.

Creative Financing Red Flag Alert

Most mortgages contain a due on sale clause. This means that upon sale, the mortgage must be satisfied, or it will be called due and payable. The exceptions to this tend to be a divorce, separation, or inheritance. Selling to a third party would trigger this clause.

Subject To

The wholesaler wants to assume the loan without going through a pre-qualification process to assume it. In other words, they will not be on the hook for that loan if they do not pay. Most loans are not assumable anyway, but if one is, the wholesaler is not asking to assume it. They want to purchase it subject to. The buyer would agree to pay your mortgage company, and have the deed transferred into their name. So now you still have a debt against you in your name, and no property. As the seller you may not have the right to foreclose if they choose not to pay your loan in the future. Good deal for them, bad deal for you.

Crazy Offers

We’ve seen some crazy offers. Some are 50-70% of value. Others are 100% of list price, but you turn your property over to them and let them market or lease your home. Who knows who would pay the mortgage. Still other offers include an assignable contract with the right to market your home. In this case, you agree to an amount less than market value, and you agree to stop marketing or offering it for sale. They attempt to sell to somebody for a higher price and keep the difference.

As a seller, why wouldn’t you market the property and keep the difference?

Direct to Sellers

If they can reach a seller before they list with an agent, they know they have a much greater chance of convincing the seller this is all on the up & up. I called an attorney on one offer who said check with the current mortgage and see if they would allow a subject to. The answer came back, No! The loan company would call that loan due and payable, and the seller would be out a house and have a foreclosure on their record.

Creative Marketing

The wholesalers get creative with their marketing. They promise to buy your home with no commissions, and they’ll pay your closing costs. You can move out and have your home sold in 30 days without showing it. It sounds like a pretty good deal, until you realize it could ruin your life. In a best-case scenario, if they do perform, you could lose tens of thousands of dollars.

We’re not saying every offer is a scam. Each offer should be evaluated by an attorney and verified with your mortgage company. What we are saying is be careful. Sometimes the easy button makes your life complicated.

Thinking of Selling?

Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Protect your asset and maximize your home sale. Our marketing is the key to selling for Top Dollar and Fast! Our integrity and honesty are the keys to making sure your sale is safe.

Good luck, and Happy Selling!

View Our Newest Listing

Bridgetown at the Plantation

10831 Denning Rd

The latest housing inventory supply numbers show we have a 5.89-month supply of homes on the market today. This is up slightly from 5.84 months’ supply back in February. We decided to update the graph with more relevant price categories. Before, half the categories were under $300,000. The old format was useful until prices shot up over the decades.

Latest Housing Inventory Supply

Anything $400,000 or less in Lee County has the least supply, and this makes sense. When we start getting up $400,000+ you begin to see properties sitting on the market longer as there is more inventory. Buyers have an excellent choice to choose from over $400k.

If you’re a seller over $400k, don’t be discouraged. Our team just put over $5.6 million under contract in the last 30 days, and most of it is well above that number. One listing was on the market with another company for months over $650,000. The sellers called us, and we were able to sell it in 11 days.

Our team listed and brought the buyer for another home at $800k, and we put under contract our listing at $2.3 Million. We are grateful for all the sales in the last month, especially when we hear other agents having a difficult time selling homes right now. We are not bragging. We’ve been there too, and it’s not fun when you want so much for your seller’s listings to sell, and the market doesn’t respond.

What’s the Secret?

Everyone wants to know, what’s the secret to sales in a shifting market? There are four easy answers.

Be the economist of choice. Know the market you are in so you can prepare your clients. Educating clients on exactly what the market is doing helps them make better decisions. Always operate for the market we’re moving into, not the market that just left.
Better Systems. Make sure your systems are tight. Communication is key, and educating on next steps is critical to getting deals and keeping them together. Everyone’s role on team is defined, and each member takes ownership of the results.
Increase Advertising. Most agents want to cut back. This is why so many leave the business. They stop advertising, and their client’s listings don’t sell. In a rising inventory market, properties need more exposure, not less. If an agent switched to a brokerage with a higher split, be prepared to pay your own money for advertising. Most brokers do not advertise like the old days, agents do.
Advertise in the right places. Don’t select a medium simply because it’s cheap, or just to appease the seller that you’re doing something. Use proven advertising because you’ve tested it, and it works in the market we are in.

Experience

When inventory levels rise, there is no substitute for experience. Finding an agent who is 1% less expensive isn’t a bargain when they don’t sell your house, or worse, when they sell it for less than it should because it wasn’t exposed to enough buyers. Underselling costs sellers more money, but hey, they’re saving a percent, so they’ll never know how much they lost, because they never saw the higher offers.

The Ellis Team has sold over 5,000 homes locally. We’ve worked in up, down, and sideways markets, and our research staff knows exactly where the market is, and what may lie ahead.

Don’t panic. We’ve got this. Give Brett or Sande Ellis a call 239-310-6500 We’ll sit down, discuss your property and your situation, and show you the market. Together we’ll make a plan to get you Top Dollar on your timeframe. Nobody puts more money in your pocket at closing than the Ellis Team at Keller Williams Realty.

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

13916 Lily Pad Cir Reflection Lakes

Open House Sunday 12-3 PM River Grove

3199 River Grove Cir

Open House Sunday 12-3 PM

6110 Whiskey Creek Dr

We’ve all seen the TV ads, postcards, billboard signs, social media posts, etc. . Get a guaranteed offer on your home. You would think from all the advertisements this is a popular option.

iBuyer

The reality is nationwide only 1.3% of all home sales were purchased in this fashion. It is called iBuyer, which stands for instant buyer, and many companies and some agents have offered it. Why isn’t the iBuyer concept more popular?

Some agents use iBuyer as a listing lead source. They really do not want to purchase your home, but it gets sellers to make the call. Sellers are naturally curious what they can sell a home for with no hassles. It isn’t until they receive the instant price that they are turned off, but the agent is there and can offer them a better solution. The agent also has a full-value program whereby they list the home on the open market and fetch a much better price. If it doesn’t sell, the seller always has the fallback option of the lower instant offer.

Keep in mind, the agent may never wish to buy the home. They use this as a listing lead source to get in the door. And, if they ever do have to buy a home, for darned sure they want to make money off it. So, who loses? Typically, the seller. The seller may be so worn down after a lengthy listing process that they agree to take the lower instant offer. In fact, they might be convinced that the market was never as high as they believed and the instant offer is the fair market value, which may not be true.

Guaranteed Offer on Your Home is a Lead Generation Tactic

I know of an agent in another state that has offered this program. I asked him how many homes he has bought, and he said none. The program is a listing lead generation program.

True iBuyers wish to purchase your home at a discount and sell it for more money in hopes of making a profit. Generally, the home must meet certain parameters. iBuyers like homes that are in good condition and have established neighborhood data. They like homes to be in certain sellable price ranges, usually less that $500-$600k, and not require much remodeling or repairs. They are similar to flippers, except some flippers are willing to remodel and improve the home if they can buy it right.

A Better Faster Way

Many sellers do not know that there may be a better option for them. We became aware of a system that attracts top dollar for homes and sells the home in 8 days, so the amount of time showing is limited. One thing sellers do not like is having their home on the market for months and keeping their home show-ready all that time. Plus, the longer a home sits on the market the more buyers wonder what is wrong with it.

The Ellis Team invested time and money learning this new system, and so far the results have been amazing. We used the new system on 4 listings and 3 out of the 4 indeed sold within 8 days or so. Two sold at full price or better, and the third was close but had significant hurricane damage so the price was adjusted. The 4^th is close to selling as well but has gone over the 8 days. This is significant because in each case the seller has done better than the market. Listing inventory is growing in SW Florida and traditionally marketed homes aren’t receiving multiple offers like they were last year. Many of our listings using this new system are receiving multiple offers.

If you are thinking of selling, give Sande or Brett at call at 239-310-6500. We’d love to sit down with you and show you how you can maximize your home sale and do it quickly. We do have investors that are buying homes instantly. If an instant sale is your thing, we can look at that. The reality is, we can probably net you more money and have a fast sale. Call us and we’ll talk.

Good luck and happy selling!

Coming Soon Listing in Eagle Reserve

4732 Imperial Eagle Dr

4 Bed, 3 Bath Pool Home on the Lake-Gated Community

We’re getting a lot of questions from homeowners who don’t know where to turn. Some want to sell but their home has sustained wind or flood damage. Today we like to provide a valuable Hurricane Ian real estate information update to answer some questions.

Insurers are reticent to issue new insurance without an affidavit that the home is free of hurricane related damage. What if the home has wind or flooding damage? Can the home be sold and financed?

Owner Wants to Sell

You may be able to buy a property with damage. Citizens Property Insurance will write coverage on damaged properties as temporary insurance and will simply exclude the damaged items. FHA has a loan called the FHA 203K that will allow a buyer to make repairs after they purchase. In this case we may be able to get a buyer a loan for a damaged home and do the repairs after closing all the while having insurance to satisfy the lender.

Owner Wants to Stay

What if an owner owns a home and it is wiped out or heavily damaged by the flood for more than the $250,000 flood coverage and they have a current mortgage on the property? FHA has another loan program called the FHA 203H that is only available in special disaster situations. It is a 100% LTV loan meaning no equity in the home is needed. The homeowner can finance on top of the current mortgage so they can rebuild or rehab their home without having to sell.

FEMA Resources

FEMA has setup two disaster centers that will help answer insurance type questions as well as tell you what is available through the state and federal government. Cape Coral and Fort Myers are allowing people to setup trailers on their property while their home is being worked on. They may have trailer assistance available for you as well as a plethora of other options.

Forbearance

Your mortgage company may call you with some payment relief options that can help. Be careful though as forbearance options shouldn’t harm your credit score but it will affect your ability to finance another home for 2-3 years. You would think when the government offers a relief program it wouldn’t harm you in other ways, so be careful. If you have a FNMA or Freddie Mac insured loan the forbearance is 18 months and is added to the end of the loan. Interest does accrue. Private lenders might require the interest be paid in bulk at some point, and that might be too much for some borrowers.

Assignment of Claim

We have been successful in transferring the right under a claim to new buyers who are buying a damaged home. This is different that assignment of benefits whereby a contractor takes over the claim for your home. This is especially useful in cash transactions as many mortgage companies will not finance a new purchase with an existing claim outstanding.

Be Leary of Out of Town Contractors

Out of town contractors come here looking to make a fast buck. Some are reputable and are lifesavers, while others simply collect as many deposits as they can and skip town. Dealing with a reputable local company when you can is wise because they have a local reputation at stake, and often times you know where to find them.

FEMA 50% Rule

Many cities will require damaged homes to adhere to new building codes. Naples is just one example. If the cost of improvements or the cost to repair the damage exceeds 50% of the market value of the building, it must be brought up to current floodplain management. See Naples Requirements. Look for Lee County and other cities to enact similar requirements.

Scammers

Be aware of scammers, both online and at your door or on the phone. Not everybody is who they claim to be. Be careful clicking on links. Scammers today are more clever than ever.

Property to Sell

If you have a property to sell, always call the Ellis Team at Keller Williams Realty. We are local and we have trusted resources. The Ellis Team cares about our clients and will do what’s right by you. We are not in it to make a fast buck. You can reach us at 239-310-6500 We’re here to help. If you have questions, we might know where to find the answer for you.

Praise God to all that survived, and prayers for the ones that did not!

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