Deal or No Deal

In my previous post regarding "Handwriting on the Wall" I discussed the dramatic price reductions occurring that are becoming necessary to sell some properties. Today's blog is going to discuss what one smart developer is doing to avoid holding an inventory of over-priced and unsold properties sometime in the near future.

Atlantic Drive is a new neighborhood development being constructed just 750 feet from the Atlantic Ocean. These 2-story homes will each have a private entrance through a separate gated picket fenced yard. Each home will feature custom finished interior with 9-ft ceilings. Each home includes custom milled baseboards, crown moldings, exotic hardwood flooring, Thermador Professional Series kitchen appliances and Anderson doors & windows to create a light & airy expanse. The homes are designed to replicate the charm of Old Town Key West.

It sounds to me like these homes will have all the bells and whistles being offered by other developers in the Old Town area, but here's the rub: the developer is offering these 1950 square foot units at a pre-construction price of $1,295,000 or $666 per square foot. If you look back at some the other new properties currently being offered, you can see that this developer is not going to sit on his project. That my friends is a deal.

If you bould like more info on Atlantic Drive Townhomes, please call me at 1-305-766-2642.

Handwriting on the Wall

"There was so much handwriting on the wall that even the wall fell down." Christopher Morley

A Total of 46 residential properties (condos and single family homes) sold in Key West between January 1st thru February 28th in 2007. And there were an additional 4 commercial sales. Sales are down miserably from 2005 when there were 105 residential sales during the same time period.

Almost every day the number of new listings is exceeded by the number of listings with a price reduction.

It is a good time to buy, but it is a horrible time to sell. I think there is some panic setting in. Certain areas are seeing huge price reductions such as the golf course. Units that sold for $525,000 in 2005 are now re-selling for $355,000. That is scary. The seller took a $165,000 hit plus had to pay the commission and closing costs for about $25,000, so the total loss was $190,000 for two years of ownership. That is depressing. And the sad fact is that there are several units at the golf course on the market right now in exactly the same position. And the same holds true for single family homes Key West. These "short sellers" are having a negative impact on the rest of the market and are dragging down the market as a whole, because those sales impact the entire sales dynamic.

The picture to the right is used by Permission of the artist, Kimberlee Clark.

Slice O' Paradise

Click on the title above to see a group of photos and a narrative description of a charming eyebrow cottage that we are going to list very shortly. This notice is to give reader's an inside advantage of buying this one-of-a-kind cottage just listed at appraised value $785,000.

"What makes this cottage so special?", you ask. Location, Location, Location and Charm, Charm, Charm plus affordability.

The cottage was totally renovated in 1995 when the present owner purchased it. The owner updated all the appliances and interiors a little over a year ago. It is part of an assemblage of buildings that make up the Campbell Court Condominiums. Assemblage refers to the fact that each building is different, but also part of the whole. The cottage was divided into two units. This unit is two story and has two bedrooms and two baths. It has a dead on view of the pool and gardens, and it is adjacent to the offstreet parking. Two immediately adjacent single family homes are on the market: #1 is located at 623 Fleming and is priced at $1,295,000; #2 is a two home estate located at 416 Elizabeth & 620 Eaton and is priced at $9,200,000. That is not a typo! This is a great location.

Give me a call if you would like to see A Slice O' Paradice.

Key West Hometown PAC

So last night there was a meeting of Key West Hometown PAC (political action committee) at Monty's at the lower end of Caroline Street. The purpose of the meeting was to introduce announced and potential candidates for upcoming city elections for the utility board, city commission, and mayor.

One person announced for the utility board and said that he had been serving on the CRB (citizen's review board -- police review) that is an unpaid job. He said the utility board position is a paid job, so he wants to do that. At least he is honest. Talk about civic duty!

One of the candidates for city commission gave a very authoritative description of his qualifications in business, family, and civic affairs. He recited the numerous committees, organizations, and boards that he has served on, always ending up as president. After the meeting, I commented to Peter Batty Jr., a realtor who used to be in my office and who is also a potential candidate, that I am always suspicious of people who have served on so many boards. I quipped "Can't they do just one thing really well!"

Leading up to the mayoral candidates, a couple of people suggested that all candidates and their partisans keep the campaigns clean and free of dirty tricks and personal assassinations. I wondered what they were referring to.

Mayor Morgan McPherson led off by repeating his campaign slogan from two years ago when he first won the position: balance and integrity. He then recited a litany of his accomplishments and proposals for the future. Next up was a perennial candidate who said he's really a non-candidate because he does not run to win, but to discuss the issues. What an ego to think that he will bring a higher level of discourse because of his presence! Then Heather Caruthers spoke. I was very impressed by her as were many in the audience. She said she has not decided whether to run or not because of other current commitments. But I liked her. And then former Mayor Jimmy Weekly got up.

Jimmy Weekly started off by announcing that he had not made up his mind yet, but that when he did the first person he would tell is Morgan McPherson. And then in a louder and more intense strain he added "That is more than Morgan did when he decided to do when he ran against me" or something to that affect. He then pointed out several vital issues that Key West needs to address politically in the near future including becoming a "green city", developing a real affordable housing policy, cleaning up Duval Street (saying it has become dirty!), and enacting new laws to manage the expected growth more effectively.

The former mayor still works at his regular job as the meat cutter at his family owned grocery store FAUSTOS. He made a really pertinent comment about how he had to reinvent his business as the Old Town of years gone by changed with the gentrification that has occured in the last 15 years. In th e old days the store was a typical neighborhood market with basic groceries and a meat counter. Nothing high end. But several years ago the transformation began. The meat counter introduced certified prime Angus beef, "designer" chicken, a sushi station with sushi chefs preparing dishes for takeout. The deli expanded to offer Boars Head meats and cheeses and homemade salads. The fruti and vegetable department grew as did all of the other grocery lines. And then they added the best wine selection in Key West. Mayor Weekly pointed out that as the town changed, he had to adapt if he was to succeed. And he said the city has to adapt to the changes that are occuring across South Florida and those that are imposing themselves on Key West in particular.

Jimmy Weekly lost the last election by about 40 votes. I didn't vote that election. I thought he was a sure winner and that my vote wasn't necessary. I was a political science major in college. I know the value of a single vote. What a fool I was.

After the meeting I heard why some of the candidates made comments about keeping the contest clean: a smear campaign has already been launched by some people against Jimmy Weekly. Typical Key West.

If you would like to view all current real estate available in Key West please Click Here.

Shell Shocked--and Not by a Conch Shell

For those of you out of towners who read this and know a little about Key West's tradition of political alchemy, you may share my utmost surprise when I read today's Key West Citizen to learn that prominent Key West attorney Jimmy Hendrick was convicted on Friday on 4 criminal counts in federal court in Key West. The charges were conspiracy, witness tampering and obstruction of justice. Read the whole story in The Miami Herald.

I met with Jimmy Hendrick several years ago regarding a personal matter. He could not represent me because he had a potential ethical conflict with one of the people I wanted to sue. I also met with him on a couple of other occasions and was deeply impressed by his professionalism. I have been an in house attorney for two banks for many years and have engaged many attorneys to perform numerous legal duties over the years,and Jimmy Hendricks struck me as one of the smartest and sharpest attorneys that I had met.

I have said that Key West is a very big, small town. Everybody knows way to much about everybody else's' business. We know who is cheating on the spouse, partner or the I.R.S., who is drinking to excess or doing drugs, who is succeeding or failing in business, who got arrested for doing something stupid. We have people come here from all over the world. And we have people who live here who have never gone anywhere.
I do know his wife. She used to be my normal waitperson at the Cafe Marquesa. She quit that job a couple of years ago. But she was always very friendly and upbeat. I feel very sorry for her.

I was working at another real estate company when Hendrick was first arrested and indicted. Some of my fellow Realtors immediately said he was guilty. And I said "You can't say that. He hasn't even had a trial." I was furious. People were assuming that he must be guilty because he was smart (and I will admit conniving). But being sharp does not equate to guilt. I remember asking one of the Realtors would he prefer to go to an attorney that is smart and wins his cases or go to someone knows and is cheap. His response was to go to the attorney who wins cases. I said that is Jimmy Hendrick.

The jurors were from all over Monroe County, and it stretches about one hundred miles northeast of Key West. Hendrick had been the county attorney, so I sense that most of the jurors were somewhat familiar with his name and reputation for being smart, but maybe not for the allegations charged. He won most of his legal battles, and for that I am sure he had some enemies. I trust that the jury panel did not have any member that harbored ill will for Hendrick.

He will appeal. It is a sad day in Key West.

Outdoor Showers in Paradise

One of the real joys of living in Key West is the outdoor shower. Key West had its annual cold snap a couple of days ago, and I had to forgo my daily outdoor shower and suffered greatly. I had to use the inside plumbing!

When I show properties I eagerly point out the outside shower,and often the client looks at me with suspicion. "What could be so exciting about an outdoor shower?" the client ponders. It is akin to swimming in the nude. Try it once and you will understand.

Showers in the early morning rain are very interesting. I often question whether to shower in the rain or not, but always opt for the outdoors reasoning that I am going to get wet anyway. All I need to do is adjust the faucet for warmer water. And it works.

Many new houses have very fancy outdoor showers. And the City of Key West now requires that they be connected to the sanitary drain. But most of us lawbreakers let the water continue to drain into the ground. I will occasionally spot an earthworm or gecko running for dear life as the water water hits the ground. Ah, communing with nature.

If you want to buy a home in Paradise and enjoy your morning shower outdoors,"> and search the Key West Board of Realtors Multiple Listing Service website. You can see all mls listings, not just the ones some realtor wants you to see. And then please call me at 1-305-766-2642. Thanks.

Two Tales of a City -- Part 2

Part 2

Lots of Realtors and other town folk headed to the Santa Maria Condominiums Open House last Friday to see the newly constructed complex. We were feted to sushi (again--but this time prepared by the sushi chef from Ambrosia Restaurant, cheese and pate`, shrimp cocktail shooters, crab-melon shooters, top drawer liquor, and sounds from The Bubba System
.

Two units were available to preview. The first was a ground level 945 square foot two bed/2 bath unit priced at $1,500,000. That's $1587 per square foot. The unit looks just like the artist's conception from two years ago. When you enter there is a sofa to your right and two swivel chairs, a cocktail table and a plasma tv to your left. Straight ahead is the ultra-streamlined kitchen with under counter everything. The bedrooms are on either side to the rear. The model had both bedrooms with windows just at street level so that Key West's homeless could easily look in to see who is at home. There is a semi-private patio area at the front of each unit, but it offers no real privacy.

The two story unit is larger in size, but the rooms are still small. The kitchen is at the rear and has room for 3 bar stools (same as the other unit--I guess only 3 people can dine at one time). The bedrooms are equally small, but this unit has 4 balconies--each with glass fronts that offer no privacy or room for chairs. The top floor did, however, have a terrific aerial view of the property and the Key West skyline.

The units have lots of marble, wood, and glass. All units are furnished exactly the same because they are part of a mandatory rental program. The management company charges a 40% management fee plus adds on all expenses related to guest stays. The decor inside and the exterior construction is definitely modern (ala South Beach in Miami) and totally out of character with the rest of Key West. But some people may like this look as opposed to the weathered character of the William Fleming House. And the Santa Maria Condominiums have privileges of the use of all of the amenities of the adjacent Reach Resort (gym, restaurants, and private beach).

I'll pass on this one.

Two Tales of a City

Part 1
I attended two Broker's Open Houses on Friday and saw two totally different kinds of properties that are priced just about identical. I thought it would be interesting to compare the two for prospective buyers.

Friday afternoon we were treated to sushi, veggies and fruits at the poolside cabana at the William Fleming House, a historic condominium at 800 Fleming Street. The 2 bedroom 2 bathroom unit is on the second floor and occupies 1421 square feet of space plus and additional loft area (not counted in the square footage). This unit is constructed of Dade County Pine walls, floors and ceiling, so it has that "old Key West feel" that some many buyers want. But it has a new and very modern kitchen and equally elegant bathrooms that give this property a distinctive New York loft feel--at least to me.

The ceilings are very high and the doors and windows open to decks overlooking the pool below and the pristine homes on William Street. This unit is priced at $1.075,000 or $757 per square foot. The condo is located on one of the best blocks in Old Town and is a convenient walk to everything. The property is 3 blocks to Duval and 3 blocks to the historic seaport.

So many condominium's feel cramped and confined. But this one is the opposite: it has the feeling of lots of living space and different living areas with very sophisticated edge.

Tomorrow I will discuss the new Santa Maria Condominiums: hence the title "Two Tales of a City".

To see more detail on this listing, please click the title above "Two Tales of a City".

Here and There

It's Valentines Day and everybody is in a good mood, right? There are two photos to the right. One is looking out onto a snowy yard from inside a cold house up north in America. The second is a photo out an open window overlooking sunset in Key West.

I just checked the weather in upstate New York near Saranac Lake, Adirondack Regional Airport, New York. It is -16F. Brrr. It is 9F in Denver, my life long home until moving to Key West in late 1993. The upper midwest and northeast is covered in snow.
And it is 81F at 11:30 AM here in Key West. That is one of the reasons I moved to Key West: The Weather!


If you want to move to Key West to avoid winters like this, click the above title "Here and There" to preview all real estate listings in Key West. Please contact me to help you find your new dream home in Paradise. You won't be sorry. Call me toll free at 1.877.295.7099.

For Sale by Owner in Key West: Buyer Beware

I was nosing around on the Internet last week and found an ad for a Shipyard Condo that was "For Sale by Owner". I read further: "This one bedroom (800 square feet), fully furnished condo is located in Truman Annex..." The condo was priced at $610,000.

Thinking I might turn this FSBO into a listing, I checked out the property. While the owner did not list the unit number, it was easy enough to figure out from public records, as I knew his name, and coincidentally had researched listing the unit a couple of years earlier for the previous owner who sold it to the present owner as a FSBO. (The previous owner wanted me to cut my commission to get the listing and still offer a 3% split to the selling broker. But what he really wanted was for me to do a CMA (competitive market analysis) to establish a price for the unit).

I knew that the unit was 600 square feet as opposed to the 800 square feet the seller had advertise. I sent the owner an email advising him of his error and told him that there were 23 other units on the market in the Shipyard complex, 4 of which were also one bedroom and similar size, but priced differently. There has always been a waiting list of potential buyers for Shipyard condos, but this new market has created an oversupply of available units. So prices are dropping. It could be that the previous owner misrepresented the square footage when he sold the unit to the current owner. I just checked the site where I found the ad for the unit, and the current owner is still running the same ad with misleading information.

In the 1986 landmark case Johnson vs. Davis, the Florida Supreme Court found that sellers cannot conceal material defects. In that case, some prospective buyers were looking at a home and noticed evidence of a roof leak. When they asked about it, the sellers admitted there was a leak long ago but that it was completely repaired. Before closing on the house, it rained, and the buyers discovered that the roof was still leaking. They sued to get their deposit back and won.

Material Defect
Defects, including any property damage, malfunctions of major systems and environmental hazards affecting the condition of a home, which should be readily disclosed to a buyer.

I mention the Johnson vs. Davis case as an example of things to avoid when dealing with a FSBO. I advise every buyer of mine to engage a professional home inspector to inspect a property as part of the purchasing process. Sellers often forget, overlook, or even intentionally misrepresent the condition of their property when trying to sell it.

I am of the opinion that sellers who are unwilling to pay a 6% commission to a realtor to sell their property are going to be difficult and cheap to deal with. Difficult because they want to control things. They want to control the information regarding the property and what the prospective buyer may see, when, and for how long.
They may unintentionally represent or omit material facts regarding the property such as square footage, previous flooding, or some other matter that might kill a sale. Cheap because they think all there is to selling a property is putting up a for sale sign, running an ad in the newspaper or Internet, and filling out a printed deed form obtained from a legal stationery store. They think they do not need a realtor to do something so simple.

But buyers who deal with a FSBO do so at their peril in my opinion and experience.

In a lighter note, I am including some photos from my yard. One pic is of a huge Canary Island Date Palm with bougainvillea on a trellis below. The other pics are of baby pineapples by my pool. My Date Palm got sick after Hurricane Wilma and started yellowing. I called the Florida Extension Office and a representative came to my house, took pictures and sent them to the University in Gainsville to determine what was going on. The tree needed fertilizing to combat the salt water damage from the storm. Case solved. The baby pineapples are like rabbits, if you get my drift. I "borrowed" one from the grounds of a hotel in Miami about 8 years ago. It has reproduced itself several hundred fold. It is truly a joy to watch as each new crop of babies come to fruition.