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Why more than just home prices need to be considered when buying in Naples Florida

Typically in real estate, any home $1 million and over are considered in the luxury market, but is that really the case in Naples Florida?  Home prices in Naples Florida aren’t telling you the entire story.  In an affluent town such as Naples where opulent estates are common, neighborhoods such as Park Shore have been seeing in influx of $1-$2 million tear downs. Neighborhoods broken down by ZIP codes make ore sense than when homes are broken down by price range.  It’s about location, not price range, it’s how close you are to the beach, which drives your value.

For those of you who have been watching the housing market for a few years are having a hard time watching the prices increase, but there is a reason for this change.  In most parts of the country, homes are based mainly on the homes value while here in Florida, especially in Naples, there is more of a focus on the land value, specifically properties that are West of US-41. Something hard for some buyers to swallow is that smaller or less attractive homes can provide greater investment returns.  Since neighborhoods like Park Shore and Moorings do not have an HOA (which is rare in Naples) investors can come in and buy a property for the land, tear it down and build a large $6 million home, which is the current trend in this area.  The homes may be older but the lot is in walking distance to the beach, Venetian Village and Waterside Shops and that is always coveted by any home buyer looking to be close to the warm, sandy shores.

Although $1 million and $2 million tear downs are still being bought by local builders and investors, there are great deals that can be found in Park Shore, like 468 Devils Lane.  This home is on a large lot and in walking distance to the beach, luxury shopping and fine dining while providing ample space, premium hard wood flooring and move in ready for less than $1.4 million, which is a great value in Park Shore!

 Tips for Buying Luxury Real Estate in Naples Florida

Despite the strongest demand for Naples luxury real estate, there are intelligent options for buyers who are looking for luxury real estate for a vacation home, a future retirement home, or a full-time residence.

• Location, Location, Location! It’s an age old addage but investing in a with a good location is paramount when maximizing your return on investment. Buyers are always looking to be close to the beach or property with a waterfront view (ocean, gulf, canal or lake), therefore when you choose a property with amazing views or within a walk-able location to the beach, your investment will always maintain or increase in value.

• Understand home prices are increasing and with limited inventory homes are generally priced correctly.  Some homes may seem overpriced but in our current market with low inventory and buyers looking to get a piece of Naples real estate we are seeing cash buyers in bidding wars over these properties.  Typically we are  seeing homes sell for 85-100% around list price and in the last year we have also experienced buyers submitting offers above the asking price!

• If you are serious about a house, submit a cash offer and consider different contract options.  Since there is fierce negotiations on many listings, talking to an agent and getting their perspective on the market and which terms and conditions should be applied to the contract to give you an advantage.

• Interview a real estate agent who best understands what you are trying to accomplish and who is available to answer all your questions, give educational insight and information so you understand each neighborhood’s unique conditions.

When considering putting an offer on a home in Naples Florida, consider the tips to ensure your offer has a chance of being accepted.  For more detailed information, please contact Ann by calling her directly at 239-580-7367 or emailing her at ann@myluxuryexpert.com.  Since Naples, Florida is not a typical market place for luxury real estate, Ann will be able to walk you through and guide you with additional tips to ensure you have the best chance of having your offer accepted.