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Wednesday, August 29, 2012

Old Town Key West Bank Owned Property - Price Reduction

I have written about 1111 Watson Street #D a couple of times. I have shown it several times.  Buyers look. Buyers hem and haw. Most liked the place. A couple liked it a lot but then said something to the affect, "It needs some work." Well, Duh! That's is why it is priced where it is.  If it were perfect, the price would be higher.  And yesterday the asking price on this Bank Owned stand alone cottage located in a nice little Old Town compound with a shared pool to just $309,900 or only $274 per sq ft.  I did a quick price comparison to see if there are any other properties priced this low in the Old Town area. There is one: 1209 Margaret Street which I wrote about two weeks ago. Everything else is priced higher.

The listing Realtor describes this 2242 sq ft home this way:
"Cute 2/1 home in a well located, well known Key West compound. Your front door faces the shared pool! Your living room and one of the bedrooms have french doors to your private walled, landscaped wooden deck. You bath and shower are glassed in within its own private space for communing with nature. Great house for entertaining. Priced right to live in Old Town."
 The  home is located at the end of a meandering brick pathway that winds through lush tropical foliage past the other cottage style homes in this compound. The shared swimming pool and spa are located just to the front of this home.  The first time I entered this compound I was immediately taken by the quaintness of the garden area and the neat little homes located in the compound.  The gardens and open spaces are immaculate.
 This particular home sold for $700,000 in 2007. It is offered for less than half that price now. Of course, it needs some TLC, a good scrubbing, some fresh paint, and it would look much better. I told buyers I think it would make sense to  redo the kitchen and bath, rip out the existing floors and install one uniform floor surface throughout the home. I would even take out the existing windows and doors and replace with wind impact resistant windows and doors to reduce long term wind insurance premiums.  I'm not a builder, but I don't see any of these suggested projects as being terribly expensive, but I do see them as adding tremendous long term value to the property.  I just did a simple mortgage amortization that assumed a purchase price of $300,000 with 20% down payment. I financed $240,000 at 3.1% over 30 years. The result is $1,025 per month (P&I).  That, Dear Reader, is equivalent to rent on a one bedroom apartment in a funky building in Old Town.
Living room and dining area as they appear today
Adjacent living room as it appeared in 2007
 The mls states the home has 1137 sq ft of living space under air and sits on a 2967 sq ft lot. The house is basically a 35' x 29' box plus some additional spaces that add dimension and variety that make this house really unique. Two of the features that come to mind are the wall of French doors in the living area that open out to a private garden area and the once amazing bath with an indoor/outdoor shower that lets you shower under under the sun and the stars. 

CLICK HERE  to view the Key West Association of Realtors mls datasheet to view listing info. The agent says this house does not have off street parking, however the prior mls does show that parking is included. This is something to verify if interested. Other units do have parking as well.
Private deck and garden area as it appeared five years ago
Same deck and garden as it appears today - it needs some TLC
The indoor/outdoor shower as it appeared in 2007
The same area today needs a good cleaning
 If you would like to see this home or any other property in Key West, please contact me, Gary Thomas, 305-766-2642 or send me an email at I am a buyers agent and a full time Realtor at Preferred Properties Key West. Let me help you find your place in Paradise.

1 comment:

Manish Kumar said...

The content of the article was in good details. I hope you’ll keep posting nice to read blogs and informative articles. Thank for sharing a nice one. Great job.
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Gary Thomas in a Nutshell

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Key West, Florida, United States
I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.