Naples Home Buying Process
The buying process is pretty easy and not complicated at all. Buyer finds a property they like, an agreement is reached with the seller, and the closing process begins. The only reason a buyer needs to be in town is to view properties, everything else can be handled by emails and faxes.
It usually takes just a couple of outings for a buyer to make a decision. I have had buyers, that made a decision after seeing just a couple of properties. I have had buyers, that could not agree and made no decision. I have had buyers that have bought sight unseen and are very pleased. Everyone is different
Buyers with a higher price range will have a greater selection of possibilities. A buyer for example looking for a condo with a price range up to $500,000 might end up with something for $300,000. But a buyer with a price range of $150,000 will have a small universe of possibilities.
The most important part of finding a home in Naples, is to work with a knowledgeable Naples real estate agent. The search, buying and transaction process will go much smoother and the Naples FL home buyer will end with the best results.
By using dozens of possible search criteria, I am able to filter through thousands of MLS listings for a list of potential choices. The tools available to me are many times more sophisticated than what a buyer uses in online search sites.
Next comes the qualitative process. As an experienced Naples agent. I can further narrow the potential choices down to the very best possibilities. Knowledge such as market dynamics, where future road expansion will take place, preferable features, local preferences, etc. can all come into play, for a list of the best possibilities.
There is no MLS button that can be pushed that will return only the best values or the best possible properties. It is a qualitative process by an experienced agent
Making an Offer
Once a buyer has decided on a property, it is then time to find the best matching recent comparable closed sales. Suggesting a buyer offer 10% off list is not zeroing in on the value. List prices range from aggressively priced, to the laughable.
Many neighboring homes in Naples can be very heterogeneous. The exact home across the street might be hundreds of thousand more if it has water access for instance. Or maybe much less because it backs up against an Interstate highway. Other neighborhoods can be very homogeneous, with very little differentiation between them.
Based on consultation with the buyer, I will prepare and negotiate the offer. A lawyer is not involved at this stage. Usually the seller is given two days to respond. The seller will either accept, reject or counter. If the seller counter’s, then the original buyer’s offer is terminated. The end result is either the buyer and seller can agree to disagree, or through negotiations reach a mutual agreement.
These items are customary for Naples, but everything is negotiable within reason:
- An initial deposit with the offer, is usually not required.
- Upon acceptance somewhere in the area of 10% down is expected.
- If a cash offer – then typically 30 days to close.
- If a mortgage contingencies – 60 days to close. And the buyer is expected to have a pre-approval letter from a lender with the initial offer.
- Buyer has 15 days to complete inspections. Any defective item must be corrected (or credit given) by the seller or the buyer can terminate.
- Some properties are sold “AS IS.” On an AS IS offer, the buyer is agreeing to accept the property in its AS IS condition. In this case, the buyer typically has 10 days to complete inspections, and can terminate the agreement for any reason within that 10 day period.
- Buyer has three days to review homeowner association or condo association documents and financial statements. These are provided by the seller after an agreement is reached. And a buyer can terminate the agreement in their three day review period (weekends days do not count as part of the three day period).
The Naples Property Closing Process
- The buyer does not have to be present for closing. Everything can be done through emails, and express mail.
- If the property is in a condo association or homeowner association, then it is very likely they will require the buyer to complete an application.
- The buyer will close through either a title company and/or an attorney who will issue the title insurance. In Naples, title insurance is the responsibility of the buyer.
- Closing costs for a cash buyer will be around 1% of the purchase price. If there is a mortgage, then approximately 1.5% of the purchase price, plus lender charges.
- Also, if the property is in a homeowner association with nice amenities, then it is very likely the association has a contribution fee they will collect from the buyer at closing. This ranges in from $1,000 to $3,000.
- Prorations will be made between the buyer and seller for such things as property taxes and community fees. For example, if the seller paid association dues for the year equaling $3,000, and the closing is on June 30, then at closing the buyer owes the seller $1,500 for the prepaid fees.
If you are at the stage where you are considering a Naples home purchase then please email or give me a call.