We have been running and running in Naples with people who are wanting to buy homes and know they should, but are still subject to national news. That is broken up into two types of people: The ones who are still working on the news from 12 months ago that the bottom is yet to come and are sarcastic about the values and couldn't see one if it hit them squarely between the eyes; and those who have seen the recent articles from the media (six months behind) saying listen up folks, when it comes to specific markets such as Naples Florida, don't wait too long because you won't be rushing to buy until you see the market heading up. These are the people who are buying, but then revert to the news from a year ago and try to offer 50% off the already reduced by 70% property. Yikes. That is especially the case for me because I only show the extreme bargains and so they don't have a frame of reference unless I sit them down on the computer and show them the progression of closings.
But the good news is that this second group is starting to understand. The first group will most likely miss the boat.
Two recent articles that have captured the imaginations of buyers. One was in the February issue of Money Magazine. I don't have it in front of me now and I will update this when I do find it, but basically it indicates that there are three places in America where you should get on board the rocket before it shoots into the sky: Naples, Florida, was one of the three named.
There was also the research conducted by CNBC where they commissioned Trulia, a noted real estate site, to determine for which areas most real estate searches are being conducted. In the top ten was Naples Florida and in fact six of the top ten sites were in Florida with the majority of those along the Gulf Coast which is where we are.
I can definitely tell that there is dramatic interest in real estate on my websites and with my email queries. Not a day goes by that I don't have have at least two or three people contacting me about they fact that they are planning to buy something within one to six months. And the interesting thing is that most of these are now saying they don't have a home to sell or they have cash which makes me think we are starting to see a transfer of former stock market money into real estate.
Not so long ago I read a report on some of the California towns currently seeing unexpected battles over the bottom end of the market. and we are seeing that here as well. For one thing we are seeing well-heeled concerns buying or thinking about buying multiple properties as investments. A fellow from Germany was wanting to buy up to 10 condos. I've heard of hedge funds investing in multiple units here.
And then there are the deals that have been on the market for weeks. Those are the ones that wear me out. When I see a fantastic deal, I show it and show it and show it to everyone I can because I want one of my clients to get it. And then as soon as one of them says they will bite, I look and it is gone. Then they want to hold off again, because they want a deal like that one and I tell them that with the current climate in real estate people are less likely to price the next one below the deal that just sold because if they always did, prices would never go up. They agree with that, but it is human nature to not desire a deal when it is presented to you and to want it desperately after it is gone. If only I could hypnotize them!
But truthfully agents in town have reported not being so busy since 2005 and I can vouch for that. I have used tanks and tanks of gas successfully and not so successfully (though I have made great friends and potential clients for the future). I've spent days and days with people getting them a good (no let's say GREAT) deal and then have them go home, turn on the national media and back out. Sure I will someday get to say "I told you so" (once I'm sure I'm correct of course : ) ) but the truth is it does neither of us any good. But by the same token, I have many people who already have equity in places they purchased just months ago.
The good news with all these property tours we've been doing is that the next step will come along soner than later: more hits than misses, even more reducint in inventory; the bottom of the market prices rising; and the recovery suddenly becoming obvious to those NOT in the trenches every day like I and my team of agents are. I just hope that the people who really would like to get into Naples, but have been outpriced for years, won't miss this opportunity, because when it takes off, it will TAKE OFF. We've seen this pattern before. Especially as beautiful, and cleans and desireable as Naples is. But as generally happens in these situations, the well-heeled generally make the profits and the others will try to get in at the last minute. Some will make some will just be kicking themselves a couple of years from now. If not, we are all in huge trouble.
Now here is story that is interesting...
Clients of mine were falling behind in payments because of economic events. They contacted the bank a year ago and said: " We will pay you all that we owe you, but we just need to to reduce our interest rate temporarily."
The bank did not and would not agree. And so these people who have always had perfect credit had no choice but to stop making payments in order to keep their business and hence their future livelihood going. The property went into foreclosure when we were not able to sell it for what they owed. The bank now has it on the market for less than HALF of what they owed -- and as it happens a relative of theirs is going to try and buy it back so they can get the property back into their hands. What where the bankers thinking? Is that ridiculous or what? They people lost because they valued their credit more than the discount though they might wind up getting at least half a last laugh; and the bank lost a client who would have paid off the loan eventually with just a little compassion and concern thrown into the mix.
In fairness to the bank, I understand it's hard to work by committee and they didn't have a crystal ball. But the good news is that at least some of these banks are now understanding that by hurting their customers in times of crisis, they only hurt themselves. Hopefully this new understanding will stem the tide of foreclosures and make "short sales" more viable as the rest of the market shores itself up.
Have a great day and check out my community websites: www.naplestouristcenter.com, www.bonitatouristcenter.com, www.marcotouristcenter.com, www.esterotouristcenter.com
This is such a beautiful part of America -- and I know how beautiful America is since I've traveled all 50 state three times in my life and even wrote the book Headfirst Into America. Consider making it your vacation home or a primary home! You can contact me directly at marlenegraham@earthlink.net or (239) 821-9046.
