Our 10-Step Buying Process

While the process and procedures of buying real estate are relatively straight forward, they are not without potential complications. There are important tasks to complete. And serious consideration should be made to highly consequential decisions that buyers will need to make. Over the many years I have helped buyers purchase homes in the Naples area I have honed a suggested 10-step buying process or outline if you will. I hope this proves beneficial to you.

Please note, while there is a logical order to this, there are no hard rules. The order can be changed when appropriate and some tasks can be done alongside each other, as well as revisited.

Additionally, please know that to many, some of what follows might be considered obvious and/or very rudimentary. Please keep in mind that we all have different life experiences. Some buyers are first-time buyers and know very little about buying real estate.

1. Determine Your Timeline

Once the bug is in your ear to potentially buy real estate, deciding specifically when you might like to do so is a very good first step. This can save you quite a bit of time spinning your wheels and can also prevent issues related to financing, should you want or need it. There is also potential investment, retirement, tax and other personal finances implications related to specific dates or general time periods. Once you determine when you want to buy, you can determine when all other steps need to occur to meet your desired timeline to own real estate.

Tip: As suggested in our previous chapter, should you have professional services providers that are involved with your personal finances, please utilize their expertise. Determining your purchase timeline should likely involve them.

2. Understand Your Ability to Buy

A buyer must know if they are able to buy when they want to buy. Even high, very-high and ultra-high-net-worth individuals – those that can buy what they want, when they want, with very little to no financial consequence – must know their ability to fund a purchase when they want to make it. All buyers should know what they can afford to spend on real estate before investing much time examining more specifics of a potential purchase. There are two scenarios here:

Buying With Cash

Having liquidity, with enough available cash on hand or at the quick ready, able to wire transfer to provide a down payment and then close on a new real estate purchase, provides a buyer the strongest negotiation stance. Considering this, it is recommended when possible.

Should a buyer want to make an offer that does not require a financing contingency please know that “proof of funds” will be required. A buyer must provide ample proof to the seller that they have the funds to buy in cash. Acceptable forms of proof are usually recent monthly statements from bank accounts, investment portfolios or otherwise. Should a buyer have any level of high-net-worth and not want to disclose specifics, provide the documents we typically use or otherwise, a letter from a reputable financial institution might suffice. It is up to the seller as to whether they are satisfied with the proof of funds provided.

Tip: A “cash” purchase agreement is also referred to as a “no financing contingency” agreement. Cash agreements can be all cash or include financing. What they do not have is a financing contingency that allows the buyer to exit the agreement should they not obtain financing.

Tip: Should a buyer want or need to liquify assets to buy, the timetable to do so must be understood. Buyers need to know how long it will take to have cash in hand. (They should also know the tax implications of decisions made.)

Required or Desired Financing

Many buyers require financing to purchase. Others will use financing not due to need, but choice. Whatever the case might be, should you want or need financing you should be talking to a lender(s) no sooner than approximately 90 days before you might make a purchase offer. Lenders require up-to-date income and debt statements, credit scores, bank account and investment information, and more. A lender’s ability to vet you and provide a pre-approval – highly beneficial over a pre-qualification – requires up-to-date financial data. Working with lenders nowadays can be “challenging.” Many find it an unpleasant experience. Having to do it only once is preferrable to most. If you are too early, you might have to send more up-to-date documents.

Tip: If you have professional service providers involved with your personal finances, you should likely get them involved early on. (Purposefully repeated for emphasis.)

Tip: If financing any portion of a purchase please be certain that the lender(s) that you are working with know about any/all community fees, private club fees and/or otherwise that might be associated with a purchase. If you do not know the fees, I suggest using a high estimate and go from there. Their calculations rely on this data.

Tip: Using a lender that does regular business in the State of Florida is strongly advised.

Tip: Do not assume you can buy what you think you might want to buy. Liquidity, tax implications, monthly income, debt and more can impact the ability for one to purchase real estate in a financially sound manner.

Tip: If you are not yet retired, but plan on being so soon, you might want to purchase a home before losing current income. You might have to. As noted in our previous chapter, monthly income is a key determinant factor in obtaining a loan.

3. Identify Your Location Options

Once you have a timeline and know what you can afford to buy, you need to identify all locations of potential interest to you.

When I first engage in direct conversation with a potential Naples homebuyer, I make no assumption as to Naples being the place they will in fact buy. Clearly, there is serious interest in the Naples area if we are communicating, but I know well that many who consider Naples also consider other areas of Florida, as well as other states in which to purchase property.

Identifying all areas of potential interest will allow you to plan any additional research needs into them. Whether learning about locations overall or examining specific real estate opportunities within them via online portals like this very site, I suggest you think broadly about locations at first. Specifics can come later. If you have not visited areas of interest, you will likely need to do so to begin gauging suitability.

Tip: It is at this stage that using real estate websites really comes into play. You should have a basic timeline now. You should know what you can afford to buy. You have locations of interest in mind. Now, it is time to start learning more about locations, and the real estate that is available within them. Online portals are a great tool for this. You can “window shop” to your heart’s content.

Tip: Naples Abodes is very Naples-centric, but much of what is covered on this site is applicable to other areas. Key learnings from this guide should be beneficial regardless of whether you buy in Naples, areas surrounding it or elsewhere. This said, as you will learn in our next chapter, Buyer Representation, the specifics of local area real estate will eventually need to be understood well.

Tip: While Naples is the most desirable area of Southwest Florida for most, areas surrounding it might be a better choice or requirement for a given buyer. This site contains listings throughout the entirety of both Collier County, where Naples is located, and Lee County to the north of us. If Naples is not quite right for you, I suggest examining Marco Island, Bonita Springs, Estero and other areas throughout both Collier and Lee.

4. Hire a Real Estate Agent

Ideally, a buyer will find and hire a real estate agent to represent them early in the process of buying. It is never a good idea to wait until the last minute to do so. The earlier, the better. Why? Because buyers now need to legally engage with real estate agents for representation via binding Buyer Broker agreements. This said, buyers need to dedicate adequate time to vetting an agent for hire. Furthermore, once hired, the expertise of a local real estate agent should provide demonstrable assistance in very short order. Your agent will assist you in working through the buying process from this point forward. You will learn a lot, save time and potentially a lot of aggravation.

Tip: Chapter 9, Buyer Representation, provides very important information concerning hiring a real estate agent. Please read it.

Tip: If you are examining multiple locations, you might need multiple real estate agents. Please be certain you understand the implications of the Buyer Broker agreement(s) you will need to sign. They could cover areas beyond an agent’s true expertise. If the case, this could be to your detriment.

Tip: Should a buyer not be ready to formally engage an agent by way of an executed Buyer Broker agreement, they can still begin the process of forming a relationship with one. (I always welcome contact from those that can benefit from my expertise.)

Tip: While I place hiring an agent in the #4 position here, a great buyer’s agent engaged earlier in the process will be of particular benefit to some buyers. As an example, I know several local lenders that provide exceptional service, highly competitive rates, etc. It could serve a client well to use who I recommend. (Please know that it is illegal for real estate agents to profit from lender referrals. I provide referrals only if/when it will be of benefit to my clients.)

4. Solidify Your Price Range

To solidify your price range means that you have defined a price range you can afford and real estate that meets your interests and needs can be purchased within.

Price range can be a choice, as well as a requirement. What you can afford or want to spend is one thing. How much you need to spend to buy something you would be happy owning is another thing entirely. Solidifying a price range is where questions pertaining to general location, community type, home style, feature set and more begin coming into focus.

Assuming your interest remains on Naples, this is where the Naples Abodes site really shines. Our proprietary real estate search tools will help you determine what needs to be spent to purchase real estate that will satisfy your interests and needs. You can search by listings. You can search by communities. And each search engine utilizes the other within our novel listing and community pages. No other site has these specific tools. There is no better site to use to conduct an online Naples, FL real estate search.

Tip: A lot can change during this phase. Some cannot afford to purchase real estate that is “perfect” for them. Sometimes sacrifices must be made. Needs and priorities must be well sorted. Some wants might take a backseat. I always suggest keeping an open mind and maintaining as much flexibility as you reasonably can.

6. Get Specific

At the start of this stage the fundamentals of buying are now in place. You have answers to the broad questions of where to buy, what to buy and when you will likely do so. You also know the price range you can afford and/or want to stay within. Assuming that you are choosing the Naples area, you have determined that there is available real estate here that will meet your interests, needs and price range. You know you can afford real estate in the Naples area that you will be happy with and have decided to make a purchase in the short-term. Now it is time to get into specifics.

Please know that short-term is referenced in consideration of the fact that real estate pricing is fluid, inventory is constantly changing, etc. Getting into specifics makes little sense unless/until you are ready to buy in the immediate to very short-term.

Getting specific boils down to a handful of real estate considerations. Below, please find thoughts on some of the specific decisions a buyer will need to make.

Location

While a decision to likely purchase in the Naples, FL area has now been made, the specific location that comes closest to meeting your interests and needs must be determined. Should you have read this guide from the start you know that we have defined 9 specific areas of Naples. Furthermore, there are additional locations outside of these including Marco Island, Bonita Springs, Estero, etc., that might fit a buyer well. You need to decide where specifically you would like to purchase.

Wants & Needs

Buyers usually benefit from clearly defining their wants and needs in a real estate purchase. Wants should be realistic based upon price range. Needs should be given deep evaluation prior to defining them as such. As an example, a need to have a 3-bedroom property might very well be served by a home that has 2 bedrooms plus a den, office and/or flex room. And a need to have a home with a specific minimum square footage might be topped by a home with less square footage but having a superior floor plan with no wasted space. What are your wants and needs?

Tip: Putting pen to paper, listing all wants and needs, and then prioritizing them, can be highly beneficial to many buyers. Especially during periods when real estate inventory is strong this will aid the process of identifying the most suitable listings.

Communities

The type of community you choose to live within, as well as the specific location of it, can have a highly meaningful impact on your life. Understanding community types, and the finer intricacies of specific community offerings, fee structures and more is essential. What do you want or potentially need out of your community? Low fees? A full social activity calendar to ease making new friends, keep busy and/or entertain company? A gym? Onsite pickleball courts or a golf course? A new or fully renovated clubhouse to try to ensure there will be no short to mid-term special assessments? Onsite food and beverage?

Building Types

Most buyers have a firm idea as to what type of property they would like to buy when they begin exploring the idea of a real estate purchase. Whether a house, condominium, townhouse or attached villa buyers usually focus on one property type alone. This stated, once an agreeable price range, location, community type and other real estate factors come into play, property type realities are realized. Sometimes a buyer’s dreams can be fulfilled, with one exception, the building type. As an example, while a buyer might want a house, specific beach proximity desires might only be possible within price ranges of available condominiums. Pets can also shift building type decisions. Why? Pets are not allowed in many, many condominiums. If you have a pet, you might have to buy a house or attached villa.

Property Design & Features

Mediterranean and Coastal designs are most common in Southwest Florida. Do you have a preference? How about floor plan preferences? Open concept is all the rage, but there are benefits of more defined spaces with walls. How about split bedrooms? Are you concerned about the proximity of bedrooms to each other? Or the Master Bedroom alone? Would you like a lanai that has ample covered space for a large outdoor dining table? This list can be long.

Price Range (Redux)

It is the exception to work with a buyer that does not end up buying near or at the very top of their initial price range. Practically every buyer I have worked for – the exception being very and ultra-high-net-worth parties – buys at the maximum they can afford. Often, they scrape the barrel to be able to buy a home that is slightly out of reach. Does your price range need to change to buy a home that will satisfy your interests and needs? If so, can you really afford it? Will an increase in purchase price be a wise financial move? Clients often fine-tune price ranges at this stage.

Tip: If you have not yet hired a real estate agent by the beginning of this stage, you really should. While this guide and site go a long way in assisting any potential Naples area homebuyer, nothing takes the place of working with a capable and trustworthy real estate agent. I am only touching the surface here. There is much more to know. You will benefit from professional guidance.

Tip: Thinking long-term might be the very best course. Should you believe that you might retire into a Naples home, making it your primary or only residence at some point down the line, you should consider buying the right home for that purpose now if possible. Many buyers regret buying real estate not suited well for this. They buy something small that they plan on using sparingly for several years. Then, they end up spending much more time here, on a much quicker schedule than they ever anticipated. They end up selling and then buying an upgrade. While this is certainly good for my business, it may not serve your interests very well, financial or otherwise. “One and done” now might be the best choice.

At the end of this stage, you should know specifically what you are looking for that will satisfy your wants, needs and price target as closely as possible. Our proprietary real estate search tools were made to benefit you in this effort. The more time you spend searching for properties on this site, evaluating what you find, and making direct inquiries when appropriate, the more informed you will be. An educated buyer usually makes the very best purchase decisions. And I want you to make the very best decisions for you and yours.

7. Identify & See Best Candidates

Once a buyer is ready, willing and able to buy it is time to put a list of best real estate candidates together to visit for further evaluation. Direct communication with your chosen real estate agent is key during this phase of buying. You should be working closely together to identify the very best opportunities to potentially buy, meeting your interests, needs and price target as closely as possible. You should discuss listings you have identified and (hopefully) saved via this site or otherwise. And your real estate agent should also dive deep into current market availability to help identify top candidates for your consideration. You should then agree to a list of properties to see together.

Tip: We have a site feature called For Your Consideration. Should we work together this allows us to highlight properties for you that we believe might be a great fit.

Tip: Identifying properties for which to schedule showings can start well prior to seeing them. This said, the actual scheduling will not usually occur until 24 hours beforehand to about a week at maximum. As new listings come online and are sold every day, waiting to schedule ensures newly listed top candidates might be added to the scheduling list and sold properties removed.

As for seeing and evaluating listings for potential purchase, there are two potential scenarios.

Will Buy Without Direct Visit

Most buyers will not make an offer to purchase real estate without seeing it in person. This is completely understandable. With this said, please know that I have helped many do just that. The peak of buyers buying this way came during Covid-19. There was very, very little inventory and buyers wanted/needed to buy ASAP. If the right property came online, or close enough, there was a requirement to buy very fast should there be any hope of landing a home to buy at all.

While Covid-19 was the peak of buyers buying sight unseen, out of necessity, this also happens when not in a crisis period. A common scenario involves a buyer that knows specifically what they want. They have identified a location, community, etc. It is just a matter of the right home becoming available to purchase. Should that listing come online and that buyer not be in Naples they must decide whether to try to get to Naples lickety-split or potentially lose the home to another buyer. It might make sense to send your real estate agent to the property to evaluate it directly and do a virtual showing with you. Then, an offer could be made should the buyer be comfortable doing so.

Tip: If there is one scenario when it is an absolute requirement to work with a fully trustworthy real estate agent that knows what they are doing, and has only your best interests at heart, this is certainly it. If you have that, you are not in Naples, and the right property for you hits the market, you should at least consider this option. That property could be gone in a flash. (Please know some agents will not engage in sight unseen purchases due to liability concerns. I do engage in them. And I have had no issues. All clients were very happy with the process and outcome.)

In Naples Now or Trip Here Scheduled

Seeing listings in Naples will most likely require being with a buyer’s agent/representative. Many communities are gated and require a scheduled showing with a real estate agent to enter. And most sellers are not going to open their doors to strangers. Unless it is a “for sale by owner” property, you will need a licensed real estate agent. Should a buyer care to simply peruse open houses on their own, buyer beware! It could cost you substantially. (There is much more on this in our next chapter, Buyer Representation.)

If a potential buyer is in Naples currently and would like to see a listing(s) they should understand that many require 24-hour notice for approval. A same day showing might not be possible. And your agent might not be available to assist you in any case. It is always in the best interests of buyers to plan showings with this in mind. Contact your agent ASAP should a listing come online, and you want to see it ASAP.

Assuming a potential buyer is not in Naples already, they will need to schedule a visit to see listings and potentially buy. As soon as that trip is a possibility you should let your real estate agent know. Then, when a trip is firmly scheduled buyers should book a specific date(s) and time(s) to see real estate with their agent of choice. It is never too early to schedule time with your agent. I always encourage clients to do so immediately upon knowing their arrival date. The worst thing a buyer can do is show up in Naples without having started a relationship with an agent and expect a reputable agent to be available when they want/need them to be. Book early, please.

Please know that I understand that many buyers need to see real estate in person before solidifying their purchase plans. While many buyers locate and purchase real estate during their first outing with their real estate agent, many are months to years away from pulling the trigger on a purchase. Seeing homes for sale, as well as the communities they reside within is part of the process of evaluating the area for purchase overall. And it can be an essential element to honing wants, needs and price target. Should we work together one day please know I welcome you to see property with me whether you intend on buying immediately or not. If I have the time to spend with you, I will be happy to do so. There is never any pressure to buy when working with me. I only want buyers to buy if/when they are comfortable doing so.

8. Make Offer & Solidify Deal

You have found real estate that you want to buy. You are ready to make an offer and potentially solidify a purchase agreement. Now, you need to land the home with the right deal terms and a full understanding of your responsibilities and rights. You will rely heavily on your real estate agent for professional guidance. And they better know what they are doing. Your agent should know how to evaluate the current fair market value of a home. They need to know our purchase agreements, addendums and various other legal documents extremely well. Our purchase agreements are legally binding. You must know what you are getting yourself into. Please, never sign any document that is not made very clear to you.

Please note, once a purchase agreement is fully executed your agent should immediately provide a list of key dates to you. These might include due dates for purchase application submittal and escrow deposits, outline due diligence periods and more.

(Please see Negotiations and Purchase Agreements below for more.)

9. Do Your Due Diligence

You are now under contract. Any/all due diligence efforts that have been negotiated must get underway quickly. The clock is ticking. Should you have certain rights and not utilize this period to your benefit it could cost you substantially, whether legally, financially or otherwise. Again, your real estate agent must know what they are doing here and provide the very best guidance to you.

Please know, should a buyer have certain inspection rights and want to use them it is up to the buyer to decide who to hire to conduct the inspections. Reputable agents have longstanding relationships with best-in-class service providers, but the buyer must choose who they want to use. (Please know, it is illegal for a real estate agent to benefit from an inspection company referral.)

Also, please know that in addition to property inspections, your real estate agent will work with your attorney, title company and/or closing agent to ensure there are no open permits, a clean title and otherwise. Real estate transactions are simple on the surface, but there is quite a bit of work going on in the background prior to and throughout a real estate closing.

10. Close

Approximately 24 – 48 hours before your closing you should receive a draft of what is expected to be the final closing statement. This is also known as the HUD-1 Settlement Statement. This lists all the credits and debits associated with the transaction for both the buyer and seller. It also lists any balance due to close. If a cash deal, the buyer will need to wire the cash immediately. (Important: Wire fraud is prevalent. You must confirm wire transfer instructions directly with your closing agent prior to wiring any monies. This cannot be overemphasized.) If any portion of the purchase is financed, your lender and closing agent will work together to ensure all numbers match and the required paperwork you must sign for the loan is provided to sign.

Just before close, the morning of or late afternoon before, a final walkthrough is typically done of the home. If you are here in Naples, your agent should accompany you. If you are not, many real estate agents are willing to do this solo on behalf of their clients. (Some will not be due to liability concerns.) The final walkthrough is to ensure the home is as it is expected to be for you to buy it. Items have been removed if unfurnished. Personal property remains if part of the deal. The home is in the condition you found it in. Any/all items that required repair or attention, and were legally agreed to by both parties, have been completed. The home is clean. If all is in order you should give your, “OK to close.”

The real estate closing process differs in specific areas of Florida, as well as other states throughout the country. Our closings can be done in person or remotely. You do not have to be here to close on a home. If you are not here and are financing, you will need to sign before a notary. If you do happen to be here, you can attend in person should you choose to do so or still sign remotely. Please know that the seller will not be in attendance. They sign separately and usually (not always) with their own closing agent.

The process and procedures of buying real estate can be cumbersome and stress-inducing for many. There are many potential legal, financial and personal complications, complexities and risks associated with buying. A skilled and caring real estate agent should help alleviate much of this, making it as easy and worry-free as it can possibly be. When I work with buyers, I always attempt to make buying an enjoyable experience. While there can always be events out of my control, should we work together one day I will aim to not only help you locate and purchase the very best available real estate for you, but keep you happy and unscathed along your journey to do so.

Negotiations

I have negotiated business agreements and real estate transactions with a combined value of over $3.5B. I enjoy negotiating and believe it is a strong suit. This said, to provide much thought on this subject here, via a guide available to the public that includes my competitors, would not serve my clients well. With this said, I do want to provide some thoughts on negotiation basics, as well as a couple bits of advice. Let’s start with the latter.

Buyer Advice

Do not make any assumptions. Whatever you think you know, please put it aside. Facts are what matters most. Assumptions can be OK at the right time, in the right context and should some facts beneficially inform such, but it is usually best to focus on facts alone.

Seller Advice

Seriously consider all offers. An offer in hand could be the very best offer you will find. Furthermore, the longer it takes to close on a property the higher the ongoing carrying costs to own that property. An offer today could net you the same amount as an offer many months from now at a higher price in consideration of the costs to hold on to it.

Negotiation Basics

Below, please see a handful of important steps involved in negotiating a potential real estate purchase. Please note, this list is incomplete, lacks important specifics, and provides limited and basic advice. This is intentional. (See opening paragraph.)

Research

The first step is to gather all currently available information. This includes information available to the public, as well as that which only licensed estate agents can obtain. To the latter, it is important to know that there is often confidential information, and several important legal documents related to listings only available within the MLS. Unfortunately, there is also information that should be made available by the seller or seller’s agent but is often not. Some of it is absolutely required and must be sought out by your agent should it not be readily available for review.

Make Contact & Build Rapport

The first contact your agent makes with a seller’s agent starts the negotiation whether an offer is to be presented or not. It is important that your agent knows what to say, how to say it and when, whether they are simply setting up a showing appointment or presenting an offer. Every contact moment is important. Ideally, your agent will build a positive and professional rapport with the seller’s agent from the get-go and maintain it throughout any potential deal.

Ask Questions

Asking the right questions, the right way can go a long way in understanding a purchase opportunity and making the best decisions in how to go about potentially securing a desirable home with the most favorable deal terms.

Listen Actively

To listen actively is to not be distracted by your own thoughts while someone else is speaking. It is to let someone speak until they are done speaking and before considering a reply. What a seller’s agent says, and how they say it, can be highly informative.

Conduct Analysis

Once armed with all available information it is time to analyze the situation in whole. Know what you know, as well as what you don’t know about the property, as well as the seller’s priorities, motivations and potential willingness to make compromises.

Consider Your Options

Before an initial offer is made, and during any ongoing negotiation, buyers will have options as to what is presented, how it is presented and when. It is important to always understand your options and the potential implications of choices made.

Please know that a real estate agent that is a skilled negotiator and is looking after the best interests of their buyer will provide beneficial negotiation guidance, but it is guidance alone. The buyer always calls the shots. Also, please know that some real estate agents will not provide much direction. Out of fear of liability or otherwise they will not provide their opinion on matters, nor much guidance at all. They will simply present current facts as best they know and understand them, and ask what you would like to do. Should a client want my opinion I will always provide it. Most often, clients allow me to fully negotiate on their behalf.

Purchase Agreements

The purchase agreement is the document(s) used to form a legally binding relationship between a buyer and a seller stipulating the terms both parties agree to in the exchange of real estate.

When you are ready to make an offer, you will need to understand our purchase agreements well enough to know the legal commitment you will have, as well as your rights and responsibilities as a buyer should the seller accept your offer. You will also benefit from understanding the seller’s obligations, rights and responsibilities.

The importance of your agent’s understanding of the legal aspects of purchase transactions cannot be overemphasized. Your agent must know what they are doing with the legal documents used, processes and procedures within Naples specifically to buy real estate here. While I have yet to have any legal issues with buyers, many legal problems do occur here. There are plenty of lawsuits between brokerages, agents, buyers and sellers alike. Real estate agents can make mistakes and do. Some lack necessary know-how. Others stray from doing the best job possible for their clients. Experience counts here, as does your agent’s commitment to doing the right thing for you, always.

For Your Information

Below, please find several details about our purchase agreements that you should know.

Necessary Offer Details

Before a purchase agreement is presented to a seller, the buyer must make a handful of critically important decisions that will be reflected within the purchase agreement/offer. These typically include, but are not limited to:

Market Timing

I am often asked if it is a good time to buy. My answer is simple. If you are ready to buy, you want to buy, and the right home at the right price is available, it is likely a good time to buy.

For most buyers it comes down to one home being the right home. No matter how many homes I help identify as being closest to meeting a buyer’s interests, needs and price target at any given time, there ends up being one that stands out among the rest and is “the one.” My point is that when you locate that one, it likely makes sense to try to buy it if you are ready and able to do so.

All said, I understand that many want to know if/when it is a good time to buy from a financial perspective (mainly) and otherwise (sometimes). Everyone wants a deal, and some want to wait until the “right time” to potentially secure one. We have a handful of considerations when examining purchase timing overall. Let’s go over them.

How is Inventory?

If home inventory is in the range of healthy to high – a minimum of about 6 months of inventory – it is likely a good time to buy. This means that there are hopefully many homes for a buyer to choose between. Furthermore, sellers have more competition, and should they not be getting many showings or otherwise, they might be more apt to negotiate deal terms.

Peaks & Valleys

The Naples area usually sees two distinct periods of time when new property listings rise. These are at the start of our winter season and at the end of it, before summertime.

Start of Season

Many sellers will wait until just before or the beginning portion of our winter season to list their homes for sale. This helps ensure that their listing will see the most showings and usually highest offers. This said, with more available inventory comes more competition for sellers. Buyers have more homes to choose from. It is also important to consider that buyers also have more competition from other buyers during this period. Good homes priced right will usually sell relatively fast.

End of Season

Early summer or so, after “season” here has passed we usually see another small tick up in inventory. These are often listings by sellers that wanted one final season to enjoy a property before listing it for sale. Or sometimes these are investors that have concluded their final tenant occupancy peak and now want to sell. Neither want to hold property over the summer, so list it as soon as they are done using it. (Listing a home for sale as we enter our slowest time of year is something I rarely suggest, but some sellers do it out of desire to sell or necessity to do so.)

Summertime Buying

Is it a good time to buy during the slowest time of year, our summer? Well, it could be. A potentially perfect scenario in my view is for the right home for a buyer to have not sold during peak months of our winter season. And, to find the seller keeping it on the market over our slow summer months. Should a seller have had a price reduction or two is even better. Then, making an offer August/September or so, our very slowest months, might provide a strong negotiation front. This seller did not sell during a peak buying season and has another 4 months or so before the next wave of potential buyers to arrive. And they have indicated they are at least somewhat motivated to sell via a price reduction. Meanwhile, carrying costs have been ongoing for them. It is costing them to hold onto the home.

Summertime can be a good time to buy, but it is also important to know that inventory will be lower and better-to-best homes that were listed during season have likely sold. What is on the market over the summer here might not be the best real estate available at your price point. You may or may not get the “best deal” on a property, but the best home for your dollar might not be one that is available during our dog days of summer.

How are Interest Rates?

If you are borrowing, it is clearly a good time to buy if interest rates are low. This said, if they are not as low as they once were buyers need to be realistic about rate movement. We have been on the low side of rates for many, many years now as compared to decades past. And waiting for rates to fall could also be waiting for purchase prices to rise. There is a direct correlation between interest rates and purchase pricing. When rates are high, prices come down. When they are low, prices go up. These are general statements, but factual in most markets and at most times. If current interest rates allow you to buy a home you would be happy buying, serious consideration should be made to do so whatever they may be.

How is Current Pricing?

I have worked with many buyers that have unfortunately been priced out of Southwest Florida. While they could have purchased a desirable home a handful of years back, they chose not to do so. They wanted to wait for prices to fall. Meanwhile, they have done quite the opposite. And they can now no longer afford to buy the type of home they wanted to buy in Naples. During Covid-19 I had a few clients cancel purchase contracts. They lost money doing so. A couple of them told me that they plan on coming back to buy when the real estate market crashes. Quite the opposite happened. They can longer buy the types of homes they were under contract to buy.

There is no question that one day we will see a “market correction.” Prices will fall. Maybe they will fall a little. Maybe they will fall a lot. There will be market indicators of what might transpire if this happens or that other thing occurs. There are too many ifs and buts and unknowns. The most important thing to know is that real estate, over time, has long been a very strong investment vehicle. Over time, prices generally go up. Waiting for them to come down might not serve a buyer well at all.

Is It a Buyer’s Market?

Seller’s and buyer’s markets are usually defined by inventory alone. When I analyze local market activity, I look deeper. I examine inventory, pricing trends, annual fee movement, active-to-pending timeframes, interest rates and more. These all provide means to conduct quantitative analysis of our local real estate market. Equally important, I examine the qualitative information only a local area real estate expert can obtain by being out in the field representing buyers and sellers. Also, having an ear to the ground, hearing from other professionals about what they are experiencing on a day-to-day basis.

I have worked for clients that have had very good fortune in purchasing and selling real estate. They have always bought low and sold high. Their timing has been impeccable. I have also worked with clients that have not only not made any money from real estate but have lost quite a bit. If the short to mid-term investment potential of a home is particularly important to you – you have a set plan on when to sell, it is in the short to mid-term, and you expect to profit at that time – it is important to let your real estate agent know this. If I do, I will pay particular attention to this and provide sound advice aimed at helping you achieve your goals.

Timing the market is not easy. The fact is that an individual’s purchase timetable usually aligns with their life timetable, not the market. Most often, purchase timing is related to family planning, personal finances, age, retirement plans and other key life landmarks. The real estate market might be well out of alignment with these events. So, my best advice is to buy when you are ready and able to buy. Don’t wait, expecting to “buy better” later, unless you have a crystal ball.