The Naples Housing Market Review: Top Common Questions Answered

If you’re looking to buy or sell a home in Naples, we’re here to help.Below are our answers to some of the frequently asked questions about the local real estate market:

How does the current sales period look like in Naples?

Due to the pandemic, it now takes an average of about 123 days for homes to sell in Naples.Most average homes are now selling 5% below the asking price and take about 83 days to sell while“hot”propertiesare going for at least 1% below their list price and would hang around for at least a month in the market.

How much will I pay for a down payment?

In Naples, you can only qualify for the Federal Housing Authority mortgage of 3.5% deposit if your credit score is above 580 and 10% down payment if your credit score is 500.

What is the average utility bill in Naples?

In Naples, you can expect to pay about $103.44 on average for necessities such as electricity, water, and garbage for an 82m2 apartment. To get exact quotes, directly contact and ask the previous owner of the house.

Is it okay to buy the first house I like?

Yes. Go for it if the property is within your budget and checks off everything else on your list. The market now has more buyers than sellers and the house might not last for long.

How do I check its resale value?

Naples currently has a median home value of $320,300 making its local housing market quite lucrative for both buying and selling a home. Use websites such as zillow.com, realtor.com, trulia.com, and redfin.com to get estimates of current resale values of the specific home by address, zip code, and neighborhood.

What upfront costs should I be aware of in Naples?

Other than the regular mortgage repayments, you should prepare to incur a one-time documentary stamp tax of about 0.7% of the home’s sales price, an average conveyancing fee of about $700 to $2500, and home inspection costs of about $300 for a house less than 2000 square foot.

What type of market should I expect in Naples?

According to realtor.com, the local housing market in Naples currently records a sale-to-list price ratio of 96% meaning that homes are being sold at least 4% lower than their asking prices. This falls within the 0.12 to 0.2 scale for total sales to total listings ratio favoring a balanced market for both buyers and sellers.

What is the current trend in the local market?

As of last month,the Naples’ real estate market stands at a 7.8% rise in the year-over-year median list price of homes with an average list price of $219 per square foot and a median sale price of about $366,300.

What do I need to know about the cooling-off period in Naples?

A cooling-off period refers to the time given to buyers to think and consider either pushing through with the contract or call it off so long as you issue out a written notice. In Naples, the law allows you to cancel any property purchase and get a full refund of your deposit within 15 days.

How can I beat the competition?

Begin by getting a copy of the sale contract examined by your licensed conveyancer/solicitor, have pre-approved finances, and make an offer either verbally or in written format. Strive to have it in written form to keep track and record al negotiations during the process.

How can I safely buy/sell a home in Naples during the COVID-19 pandemic?

For an in-person purchase, ensure that everyone involved abides by the CDC guidelines for protecting yourself and others. You can also explore and use the different options of virtual technology to help you secure your dream home from a safe distance.

Conclusion

Times are changing and so is the real estate market. The coronavirus pandemic is changing our way of life as well as local markets. In Naples, it has slowed down the local housing market but things are slowly picking up again. If you are interested in buying or selling a home in Naples during this period, you should start by considering the discussed answers above, do your research, shop around for better deals, and consult trusted property managers just to be sure.