Southwest Florida's Health and Wellness Magazine Health and Wellness Articles
By Robert Nardi, Broker/Owner
Buyers in February 2023 had more choices to select properties than in the past. Overall inventory increased 131.4 percent to 2,835 properties from 1,225 properties in February 2022. Broker analysts reviewing the February 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), attribute some of the rise in inventory to Hurricane Ian as many Sellers placed their damaged properties for purchase. February’s median close price is the same as January’s closed sales price of $600,000. The gap in sales activity year over year continues to close thanks to continued confidence in the Naples real estate market.
Overall pending sales in February decreased 16.8 percent to 1,241 pending sales from 1,480 pending sales in February 2022. Overall closed sales in February fell 17.2 percent to 682 closed sales from 824 closed in February 2022. In addition, showings decreased by 15 percent in February to 36,574 showings from 43,032 showings in February 2022.
The NABOR® February 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are in chart format. If you wish to receive a copy, please send an -mail to Robert@NardiRealty.com.
What does this mean?
Our inventory continues to rise, which gives potential Buyers a more comprehensive selection. However, even though the amount is increasing, it is partially populated by damaged properties from Hurricane Ian that the Sellers have never remedied. They figured that season would be the right time to throw them onto the market. However, Buyers need to investigate the property and the community to evaluate if this property would be a good fit for them.
In dealing with damaged property, you must determine if the Sellers have paid all hurricane assessments to the condominium or homeowners’ association. You should request minutes of the board meetings, call the association directly, and ask to speak with someone who manages that association. You’ll also want to investigate what the association is responsible for. An association will often be accountable for any drywall damage if it is a condominium. Therefore, receiving a copy of the Bylaws would be crucial before you make an offer on the property.
Lastly, it would be best to determine where the Seller stands regarding an insurance payout. If they received their payout, please consider this when making your offer. In addition, if they have yet to be paid out and are going to be, you may want to negotiate with them to see if they would be willing to assign any insurance monies to you as the Buyer.
And speaking of insurance, you’ll need to determine what insurance will cost you concerning hurricanes, wind, and floods. Since Hurricane Ian, the insurance cost has risen significantly; therefore, you may want to use an insurance broker to shop around to get several different insurance quotes. Lastly, since the property is in a damaged state, it will be a challenge for you to obtain a mortgage. You may have to go to a “hard money lender,” but you’ll pay a much higher interest rate.
All of these are essential factors to consider when purchasing a damaged property.
Seasonal Rentals
Many people this year rented from January 1 through March 31, 2022. With Nardi Realty, we give the current renters “first right of refusal.” If they pass, the condominium or home will be available next year. If you are considering renting for next year, contact my Rental Administrator, Sheri Martin, at 239-571-6189 or email her at sheri@teamonesource.com. You’ll have a better opportunity to “nab” the rental before they fill up.
Happy Spring to all!
3400 TAMIAMI TRAIL N. STE 103, NAPLES, FL 34103
239-293-3592 | www.NardiRealty.com
