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Naples  Best Priced Homes

Samples of Overprice Homes

Naples Florida Over Priced Phenomenon

The Naples area has a large disparity in asking prices for very similar types of homes. As just one of hundreds of examples, take two bedroom condos at Forest Glen, a very nice golf community, that are for sale. At the time of this chart (Nov. 2006), the average selling price per sq.ft. of the last 9 condos sold there was $212 a sq. ft. Compare that to the 35 condos for sale that had asking prices at least 10% higher than the recently sold averages, including 8 asking at least 30% more..

Forest Glen
Recent Sold Avg. Price Sq.Ft. vs. Prices For Sale
created Nov. 2006

Over Pricing Has Been Pervasive

The table at the right demonstrates the extent of the pricing differences in the Naples area between like-kind properties. In some cases over 50% for the exact same floor plan. For example, one property could be listed at $400,000 and the exact floor plan within the same community could be listed for $600,000, or 50% higher.

Many factors can influence pricing between comparable properties such as upgrades, location, view, decorative accents and more (get details here), and these factors need to be considered in determining value.

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The differences shown in the right hand chart are primarily due to differences between a Naples Best Priced Home, and an overpriced seller.

Detailed Example

Take the listings of the 1,194 sq. ft. floor plans at Cedar Hammock from the chart on the right, for a comparison between the highest and lowest priced condo.

Why So Many Over Priced Homes

There are several reasons for the large percentage of over priced homes in the Naples area:

• Naples had an artificial run-up in home prices during 2005, and many sellers "mentally banked" those gain, and do not accept the fact that homes are selling at much lower prices.
• Listing agents accepting over priced listings, as a way of building their business.
• Listing agents allowing sellers to set asking prices regardless of the true value or trends (see market trend report).
• Sellers testing the waters at a higher price with the intent of reducing in the future if no buyer takes the bait.
• A belief by sellers that once the Best Priced Homes are sold, then their pricing becomes attractive.

Regardless of the reasons, only the best priced homes are selling, not overpriced homes.

Created Nov. 2006