Here are a few tips I've learned regarding how smart people have purchase property in the Naples area. Keep in mind this is a compilation of conversations and events that have taken place during the purchasing process of people who have or are currently purchasing property in the Naples area. Tips may or may not be different in other markets.
#1. Aside from personal needs and requirements, smart and successful people are very interested in features and amenities regarding properties and locations that may be of no personal interest for themselves but know it's important when they resell their property.
Ex. A. I have a customer who requires a good sized wine cellar. She doesn't drink wine but she believes it will be a requirement for the person or people who will purchase her next house when she's ready to move on. Because of the dollar amount she's spending, she's correct even though she has no intention or desire to utilize this feature while she's there.
Ex B. Although many people have no interest in a pool. Having a home without a pool here in Naples can actually be a detriment depending on what area the property is located. That is why homes without pools in these locations tend to stay on the market longer and sell for considerably less....often much less than it would cost to put in a satisfactory pool because of the fact that many people don't want to go through the hassle of doing it themselves.
#2. Smart people will forecast where their best investment is. Not just how much their future purchase will appreciate or retain its value but what location is best and what changes may come regarding competition of their property when they decide to sell.
Ex. A. There's no doubt about it, we have lots of golf course communities here. In fact during the big investor blast we experienced a few years ago, people were standing in lines to put their name in big lotteries etc. There is NO SHORTAGE of golf communities and chances are within the next ten years there will be more thus...more competition if that's what you're buying today. Location, amenities and price points are key for your purchase today.
Ex. B. I worked with a smart couple earlier this year from Michigan. They were quite interested in a Bay Colony property with a beautiful view but not direct Gulf view. In fact, they had a contract on the property but unfortunately it didn't work out. They decided on a Gulf front Remington unit in Bay Colony offering Ritz Carlton amenities. Why? History on the Remington proved consistent resale results and shorter market times for resells than any other building in the Bay Colony location. Increasing their odds when and if they decide they want to do something different, they'll be able to when they want to and stand a safer chance of netting what they want compared to the other properties of interest.
#3 Smart people are usually very busy or at least they have things they'd rather be doing than becoming an area real estate expert. Although many go with great referrals from people they know and trust, some choose to do the necessary research to find a proven professional to lead them in the right direction. They don't take the time to be the area expert but they do take the time to work with an area expert.
Ex. A. I can't tell you how many people I've worked with who have said, "I have a friend in the business but..." or "My brother-in-law is an agent but....". It's an uncomfortable concept but more comfortable than making the mistake of working with someone who doesn't know what they're doing.
Ex. B. I'm working with a lady right now who beyond a shadow of a doubt, had I not been a credible resource right from the start, that would've been the end of it but fortunately we're accomplishing her objective while having a great time doing it.
#4 Smart people consider their sources and pay attention to their surroundings. To take advice from a train wreck will probably cause a......well, you know. That's why it breaks my heart to see so many people who got caught when the investor flurry music stopped and now many people who had the same idea are now on the same "can't sell my same unit" boat. Unless there's a fire, don't do what EVERYBODY is doing. Where do you think musical chairs came from? Why do so many people in pyramid schemes end up not making their "millions"? Do what few wise people are doing, not what everybody is doing.
Ex. A. There's just too many examples of this one. All those same people that stood line at the lotteries are now with properties not selling on the market standing in a new line with same people waiting for a buyer. That why they say buy low sell high....when stocks are low nobody wants to buy, when stocks are high, nobody wants to sell.
Ex. B. There are some people out there cutting some magnificent deals right now and some new found activity with a new group getting ready to do the same. An updated home in the Moorings just sold today for $890,000. It went on the market initially for $1,750,000 was reduced to $1,295,000 and sold for $890,000. Is it because the market is so bad bad bad? Or is it because the seller is so tired, didn't care, needed to get out today? Who knows? Bottom line...Who cares!
