The Naples real estate market has changed sharply since the pandemic-fueled surge of 2021 and 2022. Inventory is now at its highest level in five years, and buyers have become more selective and analytical. In this new environment, successful brokers are closing deals by combining realistic pricing with a full-service approach that pressures traditional commission structures.
Kathryn Zangrilli, broker and co-owner of Broker Brothers LLC, has worked through multiple market cycles during her 25-year career, alongside her husband Tony Zangrilli’s 35 years in the industry. Together, they have successfully navigated at least six major downturns in the Naples and Jacksonville Florida markets. Their experience provides a clear view of how today’s market compares to previous cycles.
“Where we sit today is definitely neutral to a buyer’s market,” Zangrilli says. “The sellers that are realistic about their home price are selling. The sellers that still think it is 2021-2023 are having difficulty grasping the change in market depending on what type of home the seller owns.
A Commission Model Built for Today’s Sellers
In 2016, Zangrilli and her husband restructured their brokerage to offer a 2% listing commission while maintaining full-service listing support. This “Full Service | Fair Fee” model has become a draw for sellers who are increasingly focused on net proceeds.
“Where most of the market is still charging sellers 2.5% – 3% listing fees with less service to sellers than in years past. We are at a 2% “Full Service” listing model. Our model is unique in that we are a full service brokerage and offer sellers the opportunity to save significantly without sacrificing service. It truly is a win-win for the seller.
The financial impact is clear. On a $750,000 home, Zangrilli’s clients can save up to $15,000 in listing commissions compared to a traditional listing fee and that is in addition to the further savings on buyer – side fees offered to buyer agents. “Our sellers are saving a tremendous amount of money. We feel our sellers should keep as much of their equity as possible and we help put more money in our sellers pockets. As the home price goes up, the savings are even more significant.
Broker Brothers LLC offer services including pre sale staging, any and all repair work pre sale, professional pictures, aerial photography, floor plan design, drone photography, either Matterport or Zillow 360 tours and local, pay per click marketing, social media website marketing and both national & international marketing via portals. Zangrilli will tell you that the most valuable asset however is their negotiating skills. When you hire Broker Brothers LLC, you are buying decades of negotiating experience. My husband and I are known in our market as being very good negotiators.”
Market Segmentation: Single-Family Strength, Condo Headwinds
Performance in Naples varies sharply by property type. Single-family homes have held their values best followed by attached villas. Condominiums, however, face significant obstacles due to new engineering study requirements introduced after the Surfside collapse in Miami.
“The properties having the most trouble right now are condominiums because of the new engineering studies that are now required on condominium properties typically above three stories. Zangrilli explains, “The costs of Home Owner Association ( HOA) fees continue to rise due to new regulation, rising insurance costs, deferred maintenance on older properties and associations needing to replenish HOA reserves. These issues we feel are keeping buyers on the sideline.”
Despite these challenges, Zangrilli maintains that any property can be sold with the right strategy. “I think all properties are moving if they’re priced, prepared, and marketed correctly.”
A New Breed of Buyer Emerges
Today’s buyers are more cautious and analytical than those active during the pandemic boom. The urgency and willingness to pay premiums seen in 2021 and 2022 have given way to careful research and value-driven decision-making.
“A lot of the buyers today were the buyers that didn’t want to buy back then,” Zangrilli says. “Now we have buyers who are very well educated, very knowledgeable about where they want to buy, and they’re not so free with the checkbook.”
These buyers expect detailed market analysis and want to understand long-term value. Financing patterns have changed as well. “The buyers in the Naples market three, four, five years ago had a budget and planned to pay cash. Fast forward to today and we’re finding more and more buyers need to supplement their cash with a small mortgage in order to close the gap on rising prices”. This trend brings an additional layer of scrutiny. Mortgage-dependent buyers tend to be “even more analytical when it comes to their purchase.”
Inventory Peaks and Pricing Disconnects
Naples inventory has reached a five-year high creating new challenges for both buyers and sellers. “It’s wonderful to have inventory, but if it’s not priced correctly sellers are not being prepared for lower offers and the process becomes challenging” Zangrilli says. Increased supply hasn’t made it easier for buyers to find what they want either. “Just because there’s more inventory doesn’t mean you can find a desirable property that your customer wants to purchase at a price point that makes sense to all parties. As a result, price reductions and withdrawn listings have become more common.” “We also see homes selling significantly below the asking price after multiple price reductions which is a clear function of sellers not being educated about current market conditions. We feel it is better for a seller to understand what the home is worth prior to listing the property. This way when it comes to offers presented, the seller has a much better understanding of what they will net from the sale.”
Agent Discipline and Managing Expectations
Zangrilli stresses the importance of agent-led education to keep sellers grounded in market reality. Broker Brothers LLC is in the business of selling homes not listing homes. There is a big difference. “ We simply can’t take a listing that is 100,000 overpriced. Our philosophy is to take listings that are fairly priced based on comparable market analysis not seller sentiment. The goal should always be to get as much money for our seller as possible but it must be based on strong analytical fundamentals of the current market.
This policy requires frank conversations with sellers: “Mr Seller, why do you feel your home is worth more than a similar home that was recently sold?” There’s got to be data. There’s got to be reasons behind that.”
The strategy also applies to buyers. In 2025, the contract fall-through rates now exceed 17% across Florida. That being said, Zangrilli points to four key factors in preparing buyers to get to the closing table: Clearly explaining the new Exclusive Buyers Broker Agreement, qualifying buyers properly by obtaining a proof of funds letter or pre approval letter before showing property, educating buyers about the costs to purchase and carry a property after purchase and managing uncertainty through clear communication.
Migration Trends and Demographic Shifts
Despite broader economic uncertainty, Naples remains a top destination for out-of-state buyers. “I would say 75% of our buyers are from out of state in 2025 Zangrilli reports. The international buyer pool has also grown. “You cannot discount the amount of internationals coming to Naples. We’re getting an influx from far away places like Russian, Eastern Europeans and of course Canada and England..” The age profile of buyers has shifted as well. “I continue to see retirees but also see a migration of younger families that want the safety, peace and tranquility that Naples has to offer. What’s so interesting is that the younger families seem to be coming from bigger cities from within Florida to have better schools and a better quality of life.
Investment Activity Contracts, High-End Buyers Remain
Investor participation has dropped sharply. Zangrilli estimates that “about 50% of investors are just out of this market due to prices being too high. They’re moving to transitional markets like Jacksonville & Tampa Bay.” The investors who remain tend to operate at higher price points with substantial capital. “The investors that we do work with tend to be at the higher end at 1,000,000 plus and are well funded. They know what it’s going to cost to bring a property up to value,” and have the money and staying power to finish projects and get paid” she says.
Market Outlook and Strategic Guidance
Looking ahead, Zangrilli believes that a modest drop in interest rates and greater price stability of home prices can renew momentum. For buyers, caution is essential. “You have to do your due diligence, understand the comparables, establish purchase limits and make sure you know why you’re moving here. For sellers, she emphasizes the need for realistic goals. “If you’re going to sell, you have to make sure that you’re realistic about the sales price and what you will net. These changes will strengthen buyer sentiment and confidence in purchasing and allow sellers to cash out their profits and move on.
Naples illustrates the adjustment underway in many luxury markets across the country. The days of seller-driven pricing are over, replaced by a more balanced environment that requires careful strategy and realistic expectations. Success now depends on expertise, discipline, and a willingness to adapt to current market realities, rather than relying on outdated price benchmarks from previous cycles.
