Naples Park, located in North Naples, Florida, has numerous homes listed by a variety of real estate agents. A few languish on the market and some sell quickly. However, selling at a price that is below market value, could mean a loss of thousands of dollars or more.
For example, the home in the above photo, located on 91st Ave N, was listed on August 1, 2017, before Irma hit Naples. It was recommended by an agent to price the property at $650,000; at the time, sales for a 2,400 to 2,500 square foot home in Naples Park were in the mid-six-hundreds. However, the condition of the 91st Ave property was better than most of the homes selling at $650,000. This seaside retreat, a minute walk to the beach, had designer touches galore, was built in 2013, and still had that new construction feel. Properties that are meticulously maintained like this Key West-style residence tend to sell slightly above the fair market value line, and homes in poor condition sell below the line.
Fair market value is determined by what buyers are willing to pay for a property given their choices and what sellers are willing to sell a property for, given their choices and the market competition. Homes that are overpriced don’t sell. If you list a house in excellent condition at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home.
After a thorough comparative market analysis, and with a residential/commercial appraiser and MBA in Finance on the team, we determined that the property would sell for approximately $750,000 and most likely within five percent of the listing price. Considering all these factors, the house was listed at $788,000, which gave plenty of room to negotiate. The property ended up selling for $756,000 on November 10, 2017 – even after the hurricane and within 5 percent of the listing price. If the sellers would have chosen to list at $650,000, their proceeds would have been approximately $100,000 less.
To avoid losing money from a sale, make sure your agent knows the market in your specific area. Your agent should be able to rattle off that there are 3,589 (which includes Connors) households in Naples Park (the information can be pulled from the U.S. Post Office). In the last 120 days, Multiple Listing Service (MLS) shows eighty-eight active listings with a price range of $215,000 to $1,429,500 million (the million dollar property is an outlier — it is actually in Connors). The average listing is $479,774, and the median listing is $349,900 (MLS data is from September 7, 2018).
A real estate agent’s job is to not only interpret the above information, but give your property maximum exposure in the marketplace, help you enhance the value of your home so you get top dollar for it, and implement a pricing strategy that will not only sell but net you the most dollars. Make sure your agent ensures a final sale price that properly reflects the market value of your home, so you don’t miss out on any proceeds.
1185 Immokalee Rd, Ste. #300
Naples, FL 34110
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