Buying a house for the first time can be a daunting task – let alone buying your first home in a luxury real estate market like Naples, Florida. The Paradise Coast is one of the cities with the most millionaires and is hailed the best place to retire to, with its affluent laid-back community catering to different tastes. With the luxurious area filled with everything you need to live, play, and work, it’s no surprise that many are flocking to properties for sale.
If you’re choosing your first home in Naples, there are some home buying tips you should know. From how to stand out in a market of buyers, to making sure you get the best deals on property that you want. Here are some things to know before buying a home in Naples, FL.
Get A Pre-Approval On A Home Loan
Not all buyers in any real estate market are alike. On one hand, you have buyers who are just casually browsing or curious to see properties in the market. To sellers, these are the ones they might try to filter out to avoid wasting time and effort trying to sell their homes.
On the other hand, there are serious buyers who are actively looking for a house to buy. One of the signs a buyer is serious is when they are pre-approved for a home loan. Unlike pre-qualified loans (which are just a rough estimate without all factors considered), pre-approval loans mean the bank has taken a closer look at a buyer’s finances and is offering loan terms that the buyer can accept once they find a house they decide to purchase.
Getting pre-approval lets a homeowner and their agent know that you’re serious about buying property. You know how much your lender is willing to give you, so you should be looking for a property that lower than or around that price range. This means you aren’t looking at houses you cannot afford, so a seller and their agent are more likely to see you as a potential buyer and are willing to focus their attention on you – including negotiations – since the chance of closing a deal with you is higher compared to doing business with buyers who do not have pre-approval.
Have Expert Negotiating Skills (Or A Real Estate Agent That Does)
Naples is a luxury market, which means the practices in more mid-range real estate markets do not necessarily apply here. For one thing, negotiations can be more difficult because of their luxury status. Homeowners in this area are not in a rush to sell property, so they may not be willing to negotiate for a lower selling price and will sell to whoever can give them what they want. And since they’re not desperate to sell, there’s nothing stopping a seller from simply taking their home off the market.
Many buyers may have a background in sales and negotiation, but most probably don’t have experience in negotiating for luxury real estate property. On top of the other advantages having a real estate agent can give you, one of the most crucial benefits of having an experienced agent that understands Naples’ market is that they know their way around negotiations. Wiggle room for luxury property may be limited, but you can leave it to your agent to get you the best deal.
Pay In Cash, Or Increase Your Down Payment
Considering that Naples is one of the wealthiest cities in the United States, it’s no surprise that sellers in this area prefer cash offers over financed deals. This is because it is a much easier transaction than dealing with a lender, which is why many buyers stand out by offering cash rather than having to take out a mortgage. If buying property without a loan is not an option for you, consider increasing your down payment so you can pay for more of the property with cash.
Should you decide to pay in cash, however, keep in mind that it’s not a good idea to lowball a seller (pro-tip: lowballing is less likely to work in a luxury market). In short, whether you’re paying with cash or a combination of cash and a loan, make sure your offer is a strong one.
Have Hard And Soft Requirements For Your Property
With so many choices, it can be difficult to weigh the pros and cons. So, base your decisions on properties that meet your hard requirements. Create a table of your hard and soft requirements. In one column, write down the must-have features of your home. For example, if you’re planning on growing a family in Naples, you’ll want a home with multiple bedrooms and close proximity to good schools.
On the other column, write down features that would be nice to live with, but are willing to be flexible for. If you want waterfront property, for example, but you can’t find the property that matches your hard requirements, you may be open to properties that are a short walk away from the beach.
Consult With Us Today In Buying Your First Home In Naples
Buying your first house in areas like Naples, Florida means buying luxury properties that have a lot to offer. However, given the nuances of luxurious property and its sellers, going into the market blind and unprepared can result in fruitless searches, while knowing what to expect can increase the chances of finding the right home for you and getting your offer accepted.
At Engel and Völkers, we offer real estate services in Naples, Florida. We know the market well and how to get the best deals for our clients looking for their dream home. Contact us today to choose your first home in the luxurious city of Naples.