1505 Pine Street - Bank Owned - Key West - Do the Math

Do the Math

The local bank that owns the three remaining homes for sale at The Meadows just dropped the asking price. Two of the Bank Owned homes are three bedroom models and those are the properties I want to discuss with you today. I think they are a real deal and you may feel the same after you do the math.

1505 Pine Street is a 3 bedroom 3 1/2 bath home that was built in 2008. The bank foreclosed on the entire development (except the model which was financed by another lender). The units have not been lived in. This three bedroom unit is a two story 1629 sq ft home that sits on a 2503 sq ft lot. It is now priced at $825,000 or $506 per sq ft. The listing Realtor describes this home like this:

"...Built with quality materials and craftsmanship, this home offers everything one expects in a luxury residence. The first level features marble floors, soaring 11' ceilings, a wall of glass doors leading to the private pool and spa. A gourmet kitchen provides solid wood cabinets, high-end stainless steel appliances, luxurious granite countertops & lots of storage space. The living room features a wet bar and is great for entertaining. The bedrooms are en suite and feature high ceilings & sumptuous baths plus a second floor laundry. A private carport has an entry through a gated drive. Lush landscaping provides a tropical backdrop for this spectacular home."

If you have walked inside as many Key West houses as I have you would be impressed by the quality of the materials used and craftsmanship that went into the design and construction of this home. Light fixtures, fans, toilets, kitchen cabinets, etcetera all have functions but life teaches us that some things are made to last and some things are made cheap. Sometimes cheap lasts a long time. Usually not. These homes were designed and built to sell in the $1,700,000 and higher price range. The developer built quality and long term value. The developer obviously missed the market: these homes came onto market after the decline had begun and failed to price the homes into the market quickly enough. But the developer did succeed in building quality homes.

Architectural details including crown molding, high ceilings, porches and solid wood doors. The wood doors on the first and second floor front are massive and of the highest quality. The 8' sliding doors that separate the living area from the pool are hurricane impact resistant to 155 mph that open wide to let the outside become part of the inside. The exterior features Hardiboard siding which is pest resistant and easy to maintain. The roof is a tradition Key West metal. While the home looks old on the outside, it is built to the highest building standards in the State of Florida. This means long term costs of maintenance and insurance should be lower than a similarly sized stick built older home in Old Town. A private, gated drive leads to the carport and a separate entry to the private pool and spa area. Each home is completely fenced and beautifully landscaped.



One of the biggest challenges to selling these homes is the fact that they are not "old". Buyers in the sub million dollar price range seem to prefer the original Key West homes with the Dade County Pine walls and profess a willingness to buy a fixer at a better price than to pay for a house that has had all the flaws of age fixed. Some will be willing to accept a home without a pool or parking or both if they can get a good deal. Yes, folks will settle for less to save money. I get it. I accept it. If a buyer wants old, buying new that looks old is not an option. Saving a few thousand dollars now (especially at today's historic cheap interest rates)

Here is the math quiz: 1505 Pine Street is offered at $825,000 or $506 per sq ft. CLICK HERE to review the mls listing info sheet on this property. I did a search of other 3 bedroom homes in the Old Town area (I even added a bank owned property on Atlantic Drive) priced at or under $825,000. CLICK HERE to see the mls datasheets on each comparison property. I have written about some of these homes previously. I have shown them. I know what they feature and what "issues" they may have. The average asking price on the comparison homes is $774,555 and the average price per sq ft is $396. It looks to me like the price difference is about $50,000 or so. The question is which is the better value. You do the math.

If you are looking for a quality Key West home priced below a million dollars, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. Let's go house hunting. Let's look at some of the homes shown above and do your own comparison shopping. Let's compare age, features, amenities, presence or absence of pool, parking and landscaping, quality of construction, location, and cost of insurance. I'm not saying that 1505 Pine Street is the best deal. But I do think it is a very good property that ought to be given very serious consideration. Do the math. You may agree.