Why do experienced top agents sell more in shifting markets? We will cover the various reasons, and why it matters when selecting an agent in a shifted market.

87% of agents fail within 3 years. Some start out as part-time and many end up as part-time before ending their career. People are attracted to the real estate industry because of the lure of big commissions and schedule flexibility. They quickly realize real estate sales is harder than they thought, requires more work, more money, and more time. At the end of the transaction, after expenses, broker splits, and fees agents are disappointed with how little they keep. People are also disillusioned with the emotional toll a transaction takes. Learning the skills and knowledge to guide people through a transaction and remain calm is a mindset few are prepared for.

Experienced Top Agents Sell More

If agents are going to survive in real estate they must develop better skillsets. The ability to talk to people doesn’t cut it. Understanding people’s needs, fears, finances, and motivation can lead to better solutions for the client. Agents must possess knowledge and solutions after they thoroughly understand the client’s situation. Talking accomplishes none of those things, but listening and understanding does, assuming the agent has the experience and knowledge to offer solutions.

Top agents also invest back in their business. Not only do they invest in themselves with education, they also invest marketing dollars to promote their listings. Gone are the days of relying on the broker to spend money to advertise a listing. Listing a home on Zillow or Realtor.com is not marketing. Almost every listing is there, so if everyone is there, what does that do to make a home standout?

Advertising

Paid advertising creates leads. In lieu of paying advertising, some agents will sign up for referral networks where they pay a referral fee for leads. The problem with this is the company can change the policy at any time, change the fee, or cancel you altogether. Many agents using Zillow have found out this lesson the hard way.

Experienced agents know that clients expect advertising. Advertising helps build a database of buyers and sellers. Without this database, agents are relegated to a pay as you go model. If an agent has a slow month or two, many cannot afford to keep paying. I’ve seen some agents paying $15,000/month for leads and only bringing in $10,000/month from them. That’s a good way to be out of the business in 3 years or less.

Real Estate Cycles

Real estate moves in cycles. Agents come into the business in one cycle and learn how to operate in that cycle. When the market shifts, agents are lost. What worked yesterday no longer works, and the expenses are piling up. Agents who came into the business in the boom times are struggling right now, and have no money and no answers. This is where skillset and capital comes into play.

The last major market shift occurred beginning in 2005. If you find an agent who has been successful since before 2005 you will have selected an agent that has worked in all three types of markets; up, down, and sideways.

Selling Homes

Agents are asking how the Ellis Team is selling so many homes. The answer is education, experience, skillset, hard work, and marketing. We may make it look easy, but it is not. The Ellis Team is good, but it is hard work and takes skill.

We are fortunate. Our sales have been strong the past several months, and we are on pace to have another big month this June. If you have a property to sell, you should call Sande Ellis or Brett Ellis at 239-310-6500. We can answer your questions and evaluate your situation. Or visit www.SWFLhomevalues.com for an instant free online home value estimate. When you have a property to sell, you’ve got to do something to make it stand out from the crowd. We can help with that! Experienced Top agents sell more. Put the real estate marketing experts to work for you.

Good luck, and Happy Selling!

We wondered what was in the one big beautiful bill and if it would be good for real estate. The house just passed the bill, and it is subject to change when the senate gets done with it. Real estate has been tough in SW Florida, so let’s see what in this bill would help our market. This is not an endorsement or condemnation of this bill. We simply want to know what’s in it and how it affects real estate.

Key Provisions of One Big Beautiful Bill

1. Individual tax rates remain the same. Failure to pass a bill would mean consumers would see the largest tax hike in history, eroding purchasing power from millions of buyers. For real estate values, this item is essential.
2. Mortgage Interest Deduction is made permanent at current levels, maintaining stability for the housing market.
3. 1031 Exchanges were maintained which encourages investment and ownership of real estate. Eliminating that provision may have taken away many future buyers.
4. SALT deduction was increased to $40,000. This is the state and local tax deduction owners can deduct from federal taxes. This provision was highly controversial, but it did make it in the bill.
5. Immediate expensing for certain industrial structures. This provision encourages companies to build in America, thereby raising jobs and wages in the US. Rising wages helps make housing more affordable.
6. Estate and gift tax threshold was made permanent at $15 million which will allow families to pass down generational wealth without the government taking it.
7. Child tax credit was raised to $2,500 today and goes up in 2029 which will help families with children afford more home.
8. Low income housing tax credits are included which will promote development for more affordable housing.
9. Taxes on social security benefits are slashed which will help seniors keep more of what they earn. In turn, seniors will have more money in their pocket and less going to the government.
10. Taxes on tips and overtime are eliminated from federal tax which will put more money in many people’s pockets. More money means consumers can afford more to offset the costs of housing. This provision helps many of the people who need help with housing the most.
11. Standard deduction is expanded, making it simpler for people to file taxes while reducing taxable income for small business owners

Pros and Cons of the One Big Beautiful Bill

There is a lot to like for housing in this bill. Opponents argue that it will raise the debt, which could lead to higher interest rates down the road. Proponents argue the CBO fails to use dynamic scoring. The last time the government lowered taxes and brought jobs back to the US, revenue to the government increased. Static budget models don’t fully account for growth. If the US does achieve 3% or better growth, we may not see a deficit at all.

Of course, this is politics we’re talking about here. This would mean if more money comes in to the treasury, Congress shouldn’t find a way to spend more. For the US to get back on track, we need to grow revenue and cut expenses. This bill may do that, but some say it doesn’t cut expenses enough.

It will probably be July 4^th through the 31st before we know what the final bill will be, and we can evaluate at that time what it looks like. For now, there is a lot to love, and a few things of concern. We’ll be watching to see how this unfolds, and how the provisions will affect real estate.

Real Estate Help

You can search all homes in the MLS at www.LeeCountyonline.com or call us at 239-489-4042 and our team will help you answer questions.

Our listings have been selling, and we need more! If you are thinking of selling, or tried before without success, call Sande Ellis or Brett Ellis 239-310-6500 We’re having great success, and perhaps we can help you make your move too. So many sellers wished they would have called us first.

Good luck, and Happy Selling!

We are seeing more real estate buyers taking advantage of the opportunity in SW Florida in 2025. Last year the first half of 2024 was strong, and the second half fell off. Home sales this year are behind the first half of 2024, but they are accelerating. The thinking is the second half of 2025 may be stronger than the second half of 2024.

Real Estate Buyers Taking Advantage

Preliminary April home sales data suggest home prices fell 8.24% year over year. We are writing this article on Tuesday and official numbers will be released on Thursday. Additionally, we are reporting 1,417 single family home sales in Lee County. Last year’s official number was 1,431, so we’ve almost caught up to last year’s number, and we know a few more sales will be added to our unofficial numbers.

Many people might ask, how can you say the market is improving statistically when prices are down? All market metrics do not move at once. First sales need to increase, and inventory levels need to come down. We are seeing sales increasing each month. Some of that is seasonal, and we will be watching the coming months for supporting data.

We are seeing listing inventory declining. Some of that is increased sales, increased pending sales, and perhaps some sellers giving up and taking their home off the market.

Sellers finally lowering prices have real estate buyers taking advantage because affordability has increased. Throw in a rate cut later in the year and sales could increase in the second half of the year versus last year.

Price Direction

Home prices can go down even in an improving market. We still have a lot of inventory to move; plus, the shadow inventory we talked about last week. Also, there are different degrees of improving. Markets can improve gradually or all at once. Most people remember the sharp market shifts, either up or down, so they are unaware of the gradual shifts unless they study the numbers. In fact, it’s easy for Realtors in the business to misjudge the market unless they study the numbers regularly.

Your Home Value Estimate

Check out your home value estimate online for free at www.SWFLhomevalues.com Our site will track your home’s estimate over time and give you a new figure each month. This way you can stay on top of the real estate market and track your value. While some online valuation models do a fairly good job of estimating value, no computer estimate should be taken as 100% accurate. We like to look at the price direction as much as the actual value it states. The Ellis Team is here to validate your price if you’re considering selling, so you know you’re getting Top Dollar when you decide to sell. Call Brett or Sande Ellis 239-310-6500.

Price Reductions

The average price reduction was 3.56% last week. If your home is on the market and not getting offers, reducing it $1,000 won’t cut it. It’s always nice to know what other typical sellers are doing in this market to compete. You don’t want to drop too much, but staying at the wrong price too long can cost you. We can help with this too. We have the data.

Ellis Team listings are selling. Aggressive marketing and proper pricing and data are the key. Always Call the Ellis Team at Keller Williams Realty before you make a real estate decision.

See Last Week’s Article “Housing Market Improving Locally in SW Florida”

 New Study About Home Sales

Single family Southwest Florida housing supply increased from 5.9 month’s supply last November to 8.36 months presently. We’ll identify which price ranges are the hottest and which are the coolest in this article and provide some insights.

The price range of less than $300k price range saw the greatest increase in listing inventory, up 89% in 5 months. The next price range was $600-800 k with a 64.79% increase in listings followed by the $ 1 Million + range with a 61.85% increase. These increases affected the month’s supply in each of these categories.

Southwest Florida Housing Supply Increase

The price range that saw the most increase in the month’s supply was the $1 Million + range. It gained 6.43 months supply in just 5 months. In November Lee County had 9.74 months’ supply in this price range. That shot up to 16.17 months presently. If you have a $1 Million + priced home, it has to be marketed well and provide value. Buyers have an excellent choice to choose from, and they will only select the best value to them.

If buyers cannot find a suitable home they like, many are waiting on the sidelines, because they are not worried that prices will rise anytime soon. Buyers perceive it in their best interest to wait because they know prices are falling. There is too much competition amongst sellers and inventory is rising. A buyer will act when a home meets their needs, and they perceive the value of the home they like far and exceeds that of other homes they’ve looked at. You’ve heard the saying, “If you’re not first, you’re last.” This is true when there is an abundance of homes on the market in a particular price range.

Pricing and Marketing Critical

Anything $500k and up has about a 10-month supply or more of homes on the market currently.  Pricing and marketing are critical to sell in this market. Working with a Realtor who can listen to the buyers’ wants and fears is also critical to overcoming buyer reluctance in uncertain times. Offering suggestions and alternative ways of thinking about the buyer’s situation is crucial to making a sale today.

While pending sales are down compared to 2024, we had hopes of an improving market when interest rates declined. There was an uptick in pending sales a few weeks back when rates dropped, but suddenly rates shot up again about ¾% overnight as trade wars escalated. Global uncertainty has caused some to pause, which is not good because we already had a backlog of inventory going into season.

Trade Wars

This could all work itself out, but we better get some good news fast. It takes time to work through inventory backlogs, and capital is frozen until supply chain decisions are made. Money is available for lending on homes, but money doesn’t know where to find safety in the economy. The longer this persists, the more repercussions we will see. The good news is, if trade agreements are announced soon, this could all reverse itself quickly and we could begin working down the inventory along with lower rates.

We are frozen in time, and nobody knows for how long. We are still selling homes, but solving uncertainly in the economy makes everyone feel better about making big purchases.

If you have a home to sell, Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Put our marketing and expertise to work for you. Or, find out the approximate value for your home instantly at www.swflhomevalues.com Our system will update you the change in value every month, so you’ll know which way the market is headed consistently on your home.

We’re here to help. Good luck, and Happy Selling!

“Nobody wants to buy real estate right now” is what I heard a seller say this past week. They were taking their home off the market with their agent because they felt like there were no buyers. When your home fails to sell, and you didn’t have many showings, it might feel like nobody is buying.

Nobody Wants to Buy Real Estate -Actual Numbers

There were 927 closed single family home sales in February. That is down from 1,022 last year, but it’s not nothing. There were 335 closed condo sales in February, compared to 445 last year. That is a bigger percentage drop than the single-family home sales.

What this tells us is there is pricing pressure. Fewer buyers are buying, but it’s not nobody.  To put this in perspective, let’s say you have a home that is worth $500,000. If you put that home on the market for $50,000 would you have offers? If you put that home on the market at $100,000 or $250,000, would you have offers? The answer is a resounding yes, you would have multiple offers.

So, there are buyers. The real question is, at what point do buyers turn off for that $500,000 property? Is it $450,000, $475,000, or $500,000? If the property is truly worth $500,000 that is going to be the point where buyers accept the property but not over. If buyers turn off at $480,000, is it really a $500,000 property? Just because it is worth $500,000 in the seller’s mind doesn’t mean it is in the market’s mind. The market is the totality of buyers, not simply one buyer. If you overprice the property, you will not find even one buyer. If you underprice the property, you’re likely to find many buyers.

Marketing

The other question sellers ask is was my property marketed to its full potential? If the market was aware of your property and your price, it wasn’t the marketing? However, if it wasn’t presented in its proper light, or marketed fully, that’s another story. I’ve seen instances where a property was classified wrong, or didn’t have certain key features listed. If an agent can’t search on a field, you could be missing buyers. If just one key item is wrong, your listing could be invisible to the market.

Reach

If everything is correct in the marketing, what was the reach? Was the marketing muscle enough to have the proper reach for the intended audience? Getting everything correct and not spending money to market is a common mistake agents make. Perhaps the agent doesn’t have the money, or they’re counting on their broker to market it. The problem with that strategy is the broker then advertises all their company listings, and each listing waits their turn until the next time.

Portals

Agents rely too heavily on the national real estate portals like Zillow, Realtor.com, or Homes.com While buyers do look there, they don’t have all the features of a site like www.LeeCountyOnline.com Additionally, these portals sell user data to agents as a lead source, so when you search on them, an agent who is not the listing agent may contact you to sell you a home somewhere, anywhere. The portals have no incentive to sell your home.

Ask Your Agent

Ask your agent where else they advertise. Do they advertise in print? What about digital advertising, segmented ads, and other forms of advanced advertising. What are they going to do to make your home stand out? Most of the sellers are also on the portals, so what will make your home stand out?

Two Reasons Why Homes Don’t Sell

There are typically two reasons why a home didn’t sell. Was it marketed properly, and was it priced correctly? You, the seller, oversee who you hire. You are also in charge of pricing it correctly. In other words, the agent you hire makes all the difference.

Always call the Ellis Team at Keller Williams Realty 239-310-6500. We’ll explain how to fully market your home, and price it correctly. Or visit www.SWFLhomevalues.com for an instant ballpark price on your property. Don’t forget to call us to validate the price, and go over your marketing options.

Good luck, and Happy Selling!

See Last Week’s Article “SWFL Real Estate Buying Signals Flashing”

Featured Home of the Week

5839 SW 1st Ct Cape Coral

March Real Estate Update

Expired Listings April 1, 2025

We are starting to see some SWFL real estate buying signals flashing in the market right now. Everybody always asks, “is now the time to buy real estate?”

The correct answer is not to try to time the real estate market. Don’t wait to buy real estate, buy real estate and wait.  This article is not going to focus on that. This article is for all the people who want to time the market.

Several indicators are flashing green right now. This does not mean prices will begin rising right away. In fact, prices could continue to go down some as these are leading indicators, meaning it takes time to take effect, and conditions could change in the meantime while we wait.

Inventory Levels

For the first time in a while, single family inventory in Lee County declined this past week. Pending sales have picked up nicely. They are not to the level of last year but welcomed just the same.

CMI Index

The Ellis Team CMI index has been falling since its peak in January. This is a good sign for future prices in SW Florida, albeit down the road. If this continues falling in April and May sellers will breathe a sigh of relief.

Interest Rates

Interest rates have been falling since January 16^th when they peaked at 7.04%. This week they were down to 6.67% according to the St Louis Fed. As rates drop, housing becomes more affordable to more buyers.

Insurance Rates Drop

 4^th qtr. insurance rates fell by .7% for single family homes and 1.7% for condos. This is the first drop in over 2 years. Granted, rates rose much more than that, but it is a sign that recent insurance reforms enacted are helping with insurance costs. Everyone said it would take time but watch for lower premiums in the future.

The Gap

The gap is the difference between the number of homes on the market and pending sales. The gap peaked on Feb 11^th and has been declining since. This is another welcome sign for homeowners.

Tariffs

Tariffs on lumber and steel may help home sellers. Resales have been competing with new construction for years, and many times losing. As the cost of lumber, steel, and other commodities increases it raises the cost of new construction. This may help resales compete with new construction prices and stem the loss of buyers who have been buying new construction.

The SW Florida real estate market was flashing red for the past 2 years, but now some SWFL real estate buying signals are flashing green. We do not believe prices are headed higher anytime soon. We do believe if you are trying to time the market, there are some buying signals that look favorable.

Have We Hit Bottom?

We will never know when the market has hit bottom until some time after and it is heading up. We see signs of increased buyer affordability. It is better to buy at 1-2% before the market has hit bottom than 1-2 % after, because of the leverage buyers have today versus when everybody knows, including the sellers, that the jig is up. Today, buyers have maximum leverage and might one day regret not buying.

To search for your home and help analyze the market, check out www.LeeCountyOnline.com. Not only will you see all the listings, but you’ll also appreciate the neighborhood market reports.

Sellers love the free and instant home value tool at www.SWFLhomevalues.com Still others prefer to talk to us. You can reach us at 239-310-6500 and we can talk about your situation and the market. See last week’s article “Top 10 Reasons Sellers Become Frustrtated With Their Listing Agent”

Good luck, and Happy Selling!

The Future of Real Estate Market Update March 2025

Which is Better, Zillow, Realtor.com or Homes.com?

Fort Myers Beach in March

Expired Listings April 1st

We recently did some research and discovered the top 10 reasons sellers become frustrated with their listing agent and thought we’d share them with you. We’ll group them into areas.

Performance

1. Overpricing or Underpricing the home. Agents who overpromise a high selling price to secure a listing, then fail to deliver, or agents that underprice the home, causing the seller to lose money, create major frustrations. We avoid this entirely by pricing homes based on real-time velocity data from the Southwest Florida Current Market Index (CMI), not just outdated comps.
2. Inadequate Marketing.  Sellers expect more than simply placing it in the MLS and letting it automatically go out to portals like Zillow. Today, if your agent isn’t structuring your listing data for the algorithms, your home might be entirely invisible to modern buyers. When marketing efforts lack a true AI Search Optimization Strategy, sellers are left in the dark. Before you list, we recommend making every agent take The AI Interview™ to prove they have the tech to actually sell your home.
3. Lack of Experience. Inexperienced agents may make mistakes or lack the knowledge to handle complex situations, causing stress for sellers.
4. Scheduling Issues. Issues with scheduling showings, open houses, or other important appointments can create significant inconveniences for sellers.
5. Poor Negotiation Skills. Sellers rely on their agent to negotiate the best possible deal. If an agent fails to effectively advocate for their client’s interests, it can lead to disappointment.

Communication

6. Poor Communication. This is a frequent complaint. Sellers want to be kept informed throughout the process, and a lack of responsiveness or updates can lead to significant frustration.

7. Inadequate Feedback. Sellers want to know what potential buyers think of their home. A lack of feedback after showings can leave sellers feeling uninformed and anxious.

8. Not Addressing Concerns. Agents that do not listen to the sellers concerns and address them in a timely manner cause frustration.

9. Honesty. Sellers need honest feedback about their home’s condition and marketability. Agents who avoid difficult conversations so as to not upset the seller can hinder the selling process.

10. Disappearing Agent. Once the listing agreement is signed, some agents become less responsive, leaving sellers feeling abandoned. The list it and forget it agent is a big turn off for sellers.

Decades of Experience

In all our years of experience we can say little has changed over the years. The reasons sellers become frustrated with their listing agent hasn’t changed either. Our team has been through up, down, and sideways markets and sellers have the same frustrations today as they had back in the 1980’s. Sellers want an experienced agent with marketing muscle to make their home stand out, and an agent that listens and communicates. Is that too much to ask for?

We don’t think so. It takes a caring person with systems to pull this off. An agent has to be willing to spend their own money to market a client’s home because the broker advertising won’t make a home stand out.

Culture

The agent must have people to help, as it is too big for one person to do it all. The people on the team must share the leader’s vision of communication, marketing, feedback, and honesty. When you find a team like that with experience, hire them.

There are good agents out there struggling to provide everything a seller needs. Failure to provide any of these needs leads to frustration. The real estate industry is consolidating now, and it is pressuring agents to do more. It takes money to advertise, and time and money to train people.

Teams

Not all teams are created equal. Some teams are two or more agents that simply partner together and do the same thing. A true team divides up tasks and has experts specializing in what they do best. In this way, the whole is greater than the sum of its parts and true synergy is achieved.

If you’re thinking of selling, always call the Ellis Team at Keller Williams Realty 239-310-6500 We’d love to sit down with you and see how our team can help you achieve your goals.

Good luck, and Happy Selling!

See last week’s article “March Housing Supply Increases in Lee County”

Latest Sales Numbers

Zillow Vs Realtor.com Vs Homes.com Analysis

The real estate market is constantly evolving, and today’s conditions demand a nuanced approach with shifting market pricing strategies. Gone are the days of simply listing above comparable sales and waiting for a bidding war. In a shifting market, strategic pricing is crucial to attracting buyers, minimizing time on the market, and ultimately, maximizing your return on investment.

Shifting Market Pricing Strategies

Before diving into specific strategies, it’s essential to understand the current market dynamics. Are interest rates rising? Is inventory increasing? Are buyer preferences changing? Keeping a pulse on these factors is paramount. Rising interest rates, for example, reduce buyer purchasing power, making price sensitivity even more critical. Increased inventory means more competition for sellers, requiring a sharper pricing edge.

The Pitfalls of Overpricing

The temptation to overprice is understandable. You love your home, and you want to get the best possible price. However, overpricing can be a costly mistake. It can lead to:

• Limited Buyer Interest: Buyers often start their search online, filtering by price. An overpriced home may not even appear in their search results.
• Extended Time on Market: The longer a home sits on the market, the less attractive it becomes to potential buyers. It can create a perception that something is wrong with the property.
• Price Reductions: Eventually, an overpriced home will likely require a price reduction. However, initial price reductions can make buyers wonder if further reductions are coming, potentially leading to lower offers than if the home had been priced correctly from the start.
• Stigmatization: Nobody wants the home that has been sitting on the market for an extended period.

The Power of Strategic Pricing

So, what are the keys to pricing your home effectively in a shifting market?

• Accurate Comparable Market Analysis (Comps): Your real estate agent will conduct a thorough analysis of recent sales of similar properties in your area. This is the foundation of sound pricing. Pay close attention to the “days on market” for comparable sales. If similar homes are selling quickly, it indicates a stronger market.
• Consider Market Trends: Beyond comparable sales, analyze current market trends. Are prices generally trending upward or downward in your area? Are interest rates rising or falling?
• Evaluate Your Home’s Condition and Features: Is your home updated and well-maintained? Does it have desirable features that are in demand? Factor these elements into your pricing strategy. A move-in-ready home will command a higher price than one needing significant repairs.
• The Psychological Impact of Pricing: Consider pricing in a bracket. Pricing brackets exist and knowing where they are is paramount. This can make your home appear more attractive to buyers searching within a specific price range.
• Don’t forget the importance of a skilled real estate agent: They have access to the latest market data, understand the nuances of pricing in your specific area, and can provide invaluable guidance throughout the selling process.

Adapting to a Buyer’s Market

If the market is shifting in favor of buyers, you may need to adjust your strategy. This might involve:

• Pricing Competitively: Be prepared to price at or slightly below comparable sales to attract attention.
• Offering Incentives: Consider offering incentives such as paying for some of the buyer’s closing costs or including extras.
• Highlighting Value: Emphasize the unique features and benefits of your home.
• Marketing: When there are fewer buyers, you have to spend more to find them.

The Bottom Line

Pricing your home in a shifting market requires careful consideration, market knowledge, and a strategic approach. By understanding current trends, analyzing comparable sales, and working closely with a skilled real estate agent, you can position your home for success and achieve your real estate goals. Remember, the right price is the one that attracts buyers and gets your home sold in a timely manner, maximizing your return in today’s dynamic market.

Always call the Ellis Team at Keller Williams Realty 239-310-6500 for a consultation about your home or visit www.SWFLhomevalues.com for a Free Instant online home value estimate.

Today’s Short for the Day

The Future of Real Estate March 1

See Last Week’s Article “National Home Prices Trend Higher“