Key West Condo & Townhouse Short Sales - 1

It is that time of the month again to haul out the unsold Key West Condos and Townhouses that are offered by the sellers as "short sales". Just so nobody thinks that I am misleading the Public into thinking these are my listings: they are not! These are all listings in the Key West MLS that you can search on your own. CLICK HERE to search the Key West mls to your hearts content. There are many good deals out there and I encourage buyers to invest some time in separating the deals from the "no-deals".

The group I am providing today are units in the Old Town, Casa Marina, the Meadows, and the Midtown areas. CLICK HERE to see the units. They are listed alphabetically by street. Spend the time and compare pricing per square foot, amenities offered, age and quality of construction, and monthly or quarterly management fees. Each property is different from all others so you have to do your homework to figure out the price and location that may work for you.

Some of the units have Transient Licenses. Those units without a transient license may be legally rented as a monthly vacation rental. There are rules that govern different areas so let's just say look for the property that you like and then figure out what type of rental opportunities may be available to you if you decide you want to rent your unit.

I will do another list of condos and townhouses in the burbs of Key West in a couple of days.

Let me encourage serious buyers to take the current downturn in the market seriously. I think there are some good buying opportunities on some nice properties. If you see something you like, make a serious offer. The better your offer, the more likely you are to get it accepted by both the seller and the lender(s). Turn the downturn into an investment opportunity for yourself.

If you happen to see a property that appeals to you, please call me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com and ask for more information.

Key West Short Sales to Dream About

There are 85 condos and townhomes in Key West currently listed as "Short Sales" but there probably more because the listing agent may not have clicked the right button when adding the listing to the mls database or the owner does not want everyone to know his financial plight. Both of those happen. I went through the 85 and selected 13 (don't know if that's a good number or not!) for you to consider. Each unit is in a good location. Some units have transient licenses are are available for legal transient rentals on a daily basis all year long (except units in Truman Annex which have some limitations). All are units that one might actually dream about owning.

CLICK HERE to see the list.

Sunset Marina is on Stock Island across the street from the Key West Golf Club. It is about the same size as units at 1800 Atlantic and priced competitively. All of the units have direct marina views. There is a pool, covered parking, a small gym, and the place was built very well.

120 Angela Street is a small complex of only four units, two up and two down. Each is outfitted with beautiful kitchens and baths, attractive floorings, and comfortable living spaces. Each unit has one off street parking space and there is a beautiful pool and comfortable island landscaping. It's located next door to The Shipyard condos, priced lower, has more space, and much more private.

Two units at 1401 Simonton are included (Santa Maria Condominiums). Theses units are re-sales at a much lower price than the owners paid. The Santa Maria stays booked constantly. So these units might make more economic sense if they are purchased at a lower price (on a short sale) that actually has the potential to make money (or not lose money) for the owner.

1108 Duval is the Cuban Club. Great Old Town location and use of the pool at the Douglas House make this unit attractive to vacationers. The management fees are higher, but the units here seem to stay busy most of the year.

Two units at Seaside at the east edge of Key West are included. Both are three story with private garages, private elevators, ocean views, lots of quality living space on three levels, and the buildings were new in 2005.

There is a cute little place on Windsor Lane located between the Key West Cemetery and the top of Solares Hill. It has its own little pool and 2 bedrooms and a bath.

I included one unit at 1800 Atlantic in the A building. Terrific ocean and nature preserve views.

The townhome at 809 Washington Street in Casa Marina was built in 2007. It has its own private pool and garden, custom floors, cathedral ceilings, and a beautiful kitchen. Off street parking, of course. And multi-million dollar homes all around.

514 Porter Lane in the Truman Annex President's Walk area is a comfortable entry level two story town house with two bedrooms and three baths.

3841 N. Roosevelt is the new (2007) Beachside Resort. Westin Hotels is now managing the facility and owners with transient licenses (such as this one) can use the Westin as the property manager or rent the unit themselves or with any other company. Other re-sales are priced considerably!!! higher.

I wrote about 1075 Duval in Duval Square a couple of days ago. This is a good price for someone looking for a transient unit in a good location.

If any of these units look attractive to you, please call me, Gary Thomas, 305-766-2642,or e-mail me at kw1101v@aol.com. You could be a Key Wester sooner than you think for a price you might never have imagined. Lay back, relax, and imagine your life in Paradise..........

Duval Square Townhome - Key West - Short Sale

Key West Townhome Short Sale. That's not news, you say. But take a look to see what might be a good investment opportunity.

The recently listed 1325 sq ft two story, 2 1/2 bath townhome located in the Duval Square Condominiums (1075 Duval Street in Key West, Florida) is offered as at the short sale price of $479,000 or $362 per sq ft. This is how the Listing Realtor describes this property: "Transient License - Turn-Key Income Condo on Duval St! This Mediterranean Style condo has Mexican Tile downstairs and oak floors upstairs. Downstairs features the kitchen, a half bath, laundry and a dining room with seating for six. French doors open to your own private outdoor patio. Upstairs, the master bedroom has French doors opening onto a private porch with seating. An in-suite bath with large Jacuzzi tub, vanity & skylight completes this spacious bedroom. The second bedroom features a bed, large walk-in closet and private bath. Secure covered garage with dedicated parking. Being sold fully furnished with an excellent rental history."

CLICK HERE for more detailed information on this unit and a lot more photos. The complex was built in 1987 and has undergone some cosmetic updates in the past few years. There are several restaurants and small stores on the ground level. All of the residential units are on the second and third floors. (All units are two story.) There is covered parking for each unit with controlled access. There is a lovely second floor rooftop pool that overlooks Duval Street.

This property may appeal to the second home buyer who is looking for a property that can be legally rented as a transient rental to produce income to offset the cost of ownership.

I would suggest potential buyers compare this property to others similarly priced at 1800 Atlantic and The Shipyard in Truman Annex. 1800 Atlantic has that oceanfront location and tennis courts and the units are similarly sized. The Shipyard units are about half the size of either 1800 Atlantic or Duval Square but have a popular location with tourists. This unit is definitely worth a look. It will not last long at this price.

If you are looking for a condo or townhome with a transient license that permits you to rent the unit on a daily basis every day of the year all year long, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to search the Key West mls database to find comparable units and prices to do your own comparison shopping.

Some Neat Key West Condo Short Sales

I just did a quick search of the Key West mls to find condos and townhomes on the Island of Key West that are offered as short sales. There are 76 such sales available as of this morning. A short sale occurs where the seller offers to sell the home for less than what he or she owes to the lender, and the lender agrees to accept this amount and "forgive" the remaining balance.

There have been a bunch of short sales in Key West over the past year and the lenders and local Realtors are getting better at managing these sales on all sides. (Thanks to the other professionals like the title companies and local real estate attorneys that are shepherding these sales through to completion.)

I selected several properties to consider. I like these units because of location, value, potential future value, and income potential.

Unit 421 Beachside Condos is oceanfront living DeLuxe. You could not ask for a better price, better construction, or amenities. This unit is the least expensive unit available and it is offered at $599,000. CLICK HERE for more info and photos.
It has two (2) transient rental licenses. You can rent the unit on your own, hire a local property management company, or use the services of the Marriott Hotel group that is taking over property management of the other units that participate in the rental program. Or just live in the lap of luxury at a Class A resort.

Unit A 213 at 1800 Atlantic Condos sits at the rear courtyard corner and has a transient rental license. The listing agent reports that this unit is one of the most often rented units in the complex. CLICK HERE for more info on this unit that is offered at $489,000. Future bookings are included.

Unit 32 at the Santa Maria Condominiums at 1401 Simonton Street is a short sale offered at $925,000 for the two bedroom 2 1/2 bath unit with transient license 1/2 block from the Atlantic Ocean. CLICK HERE for details. Guests have beach and other privileges at the Reach Resort next door. There are 13 units available at Santa Maria. Get aggressive and strike a bargain.

31 Seaside South is located on the far east end of the Island and has views of the Atlantic Ocean from the living room and master bedroom. The unit has an enclosed garage, a private elevator between all three floors, and the place is built like a fortress. There is a small outdoor space where you might be able to add a dip pool or create a nice garden. CLICK HERE for photos and more info on this unit offered at only $619,000. The furniture is not included but may be purchased separately.

How about a two bedroom unit on Solares Hill on 709 Windsor Lane priced offered at only $449,000? CLICK HERE for photos and more details. This place is located right in the heart of Old Town so you are near everything but far from the noise makers. And it has a cocktail pool to boot.

809 Washington Street Unit 101 is offered at $1,150,000. CLICK HERE for photos and detailed info on this newly constructed town home in the heart of the Casa Marina Area. The town home is a spacious 1876 square feet on three floors and has its own private pool and garden area. Great details throughout the home and the location make this worth the look.

Remember that the asking price on short sales is the same as any other property. And in today's volatile market, the sales price is often much less. Most of the units I selected can be rented as vacation rentals or as transient rentals. This could provide some cash flow to help make the purchase more affordable--in case that matters.

CLICK HERE to perform your own independent search of the Key West mls to find the potential deal in your future. Simply identify the type of property you want to find, the geographic area, the price range, and any more specific features you want. Remember that people create the input and sometimes people omit some features. So it may be advisable to be more lenient on features or size and more generous on price just to expand your potential search.

If you would like more information on any of the condos shown above please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you find your place in Paradise. And hopefully save a whole lot of money in the process!

Key West Beachside Ocean Front Condo

Attention Maties! There is treasure to be found in this sweet listing of Unit 421 in the new Beachside Resort. People that read my blog know I don't just hype things. I try to get people to consider options when they are looking at purchasing a permanent home or a second home or income property in Key West. Not all jewels are located in Old Town. If you are looking for a condo with two transient licenses, this gem may pique your interest.

Here are the details: Unit 421 Beachside Resort is a 1357 sq ft a 2 Bedroom 2.5 Bath, type A floor plan with lockout feature & 2 transient licenses for optimal rental potential. All of the finest amenities including designer furniture package grace this 2nd floor luxury condominium situated in building 4 with a pool and courtyard view. Beautifully appointed floor plan with gourmet kitchen overlooking comfortable living room and spacious covered balcony. Endless on-site resort amenities include private beach (inviting hammock supplied), heated waterfront pool, spa, poolside bar and grill, valet parking, concierge, optional on-site management, gourmet restaurant; and the island's largest conference center.

CLICK HERE for more detailed info on Unit 421 and additional photos. This place is super high end. You walk in the front door and it is like walking into an ante room of a Ritz Carlton. High ceilings, crown molding, massive wood doors, polished brass fixtures, marble floors, high tech kitchen, elegant bathrooms, luxurious bedrooms, quiet: these are among the features of this and every unit with the designer furnishings that are included in the asking price.

There are two transient licenses. One bedroom is entered right off the formal entry. It can be legally rented as a "hotel room" on a nightly basis or as part of the entire unit as a two bedroom condo. Or both units could be rented separately.

Unit 421 is priced at $599,000. That is $441 per sq ft. Experienced lookers know the price of everything in Key West. You know that $599,000 is an incredible price. But for those who are not so familiar with prices, CLICK HERE to see the list prices on the remaining units at Beachside. Unit 421 beats every property offered. When this unit sells, and it will, there will be no more priced like it. This is a deal limited to one buyer only. When it is sold, there will be no more--at that price. That does not mean the other units are priced too high. Every unit is different in size, layout, and location.

I suggest that seasoned shoppers look at this unit and compare what you will get for your dollar versus a similarly sized unit at 1800 Atlantic or a much small unit at Truman Annex that is priced similarly. There is no comparison. This property wins. True units at Truman Annex are very close to the rock and roll of Duval. And 1800 Atlantic has a loyal group of vacationers that return year after year. But Beachside is new and far from the madding crowd.

Would you like to see the Beachside Resort and test my theory of value? Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. This is an exceptional property at an exceptional price. Maybe you are the exceptional buyer who will grab this little gem.

1800 Atlantic Condominiums --Key West

"When you finally feel like you are really there. Warm sand." CLICK HERE to see why so many people travel so far to enjoy Key West.

Most people in the United States work 50 weeks a year just to make enough money to have a vacation. For many people it isn't even the cost of a vacation, it is their jobs that prevent them from taking more vacations. I used to live in the real 9-to-5 world, but I was smart enough to plan trips around three day weekends to stretch my vacation days. And I always looked forward to my trips to Key West.

On December 31, 1986 I was stuck at the American Airlines terminal in Miami waiting to catch a plane to Key West. There was a horrible rainstorm and all flights were delayed or cancelled. American finally let one plane leave somewhere around 9:00 PM and I got on it. I arrived at the funky Key West International Airport without any baggage. It was late and there were only a couple of cabs at the airport. I shared a cab with 3 or 4 locals and I told the driver to "Take me to the Copa." Where else would you go without food or clothes on New Years Eve in Key West?

There is an over-supply of condos for sale just about everywhere these days. As a buyer you can buy a place at any destination you please and get a pretty good deal. But the point of buying a place ought not to be just buying to get a good deal. It ought to be about dream fulfillment. It took me about 8 years to finally buy my first place in Key West even though I made up my mind the first week I came here I wanted to live here. I just had to make certain that I got the very best price. And that stubbornness cost me so much money because of all the opportunities I missed.

During the past two decades two different condominium developments have helped buyers fulfill their dreams of owning a place in Key West. One is Shipyard in Truman Annex and the other is 1800 Atlantic. The Shipyard units are all basically 680 sq ft, 2 bedrooms and one bath condos in a quaint setting within walking distance to everything in Old Town. The price per sq ft was cheap when first built, but the amenities and location made the units very popular and that caused the prices to rise.

A mile or so to the south and east you will find the 1800 Atlantic Condominiums. Unlike Shipyard, they ain't quaint. The three buildings have a very modern facade made of reinforced concrete and glass. But once you go inside you understand why so many people have chosen 1800 Atlantic as a second home. Many of the units have a valuable transient rental license that permits owners to rent the units on a daily basis much like a hotel room. In reality the condos are typically rented on a weekly basis but not always for just one week. But it is the ability to rent the unit multiple times during the month that makes transient rental units very appealing to the buyer who wants the condo to help pay for itself.

It is legal to rent a condo at 1800 Atlantic as a vacation rental without a transient license, but the rental rules are different. Owners can only rent the unit once per month for a period of 28 days or less. Only one rental per month. That's it.

There are sixteen units available for purchase at this time. All of the units at 1800 Atlantic are about twice as large as those at Shipyard. The 1800 Atlantic units are all 1357 sq ft and have two bedrooms and two baths. The bedrooms are large. The living rooms and kitchens are large. Many have transient licenses. CLICK HERE to checkout the properties available. Look carefully because some units are actually located next door to each other so you can see a marked variation in pricing on some units. "Why is this?" you ask. The property is 20 years old and many of the units have not been updated with new kitchens or baths. Others have been. Look at the photos of the units and determine which looks better to you.

And of course there is the location issue. The complex looks like a big "U" with all units facing the Atlantic Ocean. The east side of Building "C" has units with view of Bertha Street and the ocean beyond. Units across the hall have courtyard views and the ocean. All units in the "B" building have straight one ocean views but those units sit furthest away from the ocean. Half the units in the "A" building have courtyard views and the other half view the mangroves and nature preserve on the west side of the building. And then there is the other issue of floor level. The higher floor, the more expensive the unit. The lower floors offer the same amenities and square footage as the upper floors, but the upper floors generally offer better views or more privacy.

Several of the units currently for sale CLICK HERE are Short Sales meaning that a short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. Some of the properties may be priced at about half of what they were sold for a few years ago during the market bubble. I doubt if any of the condos anywhere actually totally pay for themselves. But units that are properly managed and correctly priced ought to generate enough income to help make the purchase of a second home in Key West a possibility. If you do a Google search of 1800 Atlantic rentals you will see many companies and individuals with websites offering units. Prices for rentals vary somewhat based on unit location and condition and time of the year. I think many people return to the same location(and often the same unit) year after year because they know exactly what they are going to get. The best surprise is no surprise.

The photos show 1800 Atlantic at night with the ocean and full moon. Imagine, that could be your view. You could walk your dog or take your kids down to Smathers' Beach just east of the condo or down to the private beach at the condo itself. You could play tennis, go for a Jacuzzi, take a dip in the pool, get a tan, and have a bar-b-que without ever leaving your property. Some people like the tranquility of the ocean and save Old Town for limited visits. To each his own.

Remember I just changed offices. I am now at Preferred Properties Coastal Realty, Inc. If you would like to see any of the units at 1800 Atlantic or get more information on them, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

April 2008 Real Estate Sales Report for Key West

There were 23 single family homes that sold in April 2008 for a total of $16,442,000. The one an only short sale was at 1119 Oliva Street that I reported earlier this week. But there were three bank foreclosures that sold. All three sold for about one half of the original mortgage amount. Interesting!

Eleven condos and town homes sold during the same time period with sales totaling $7,612,900. Two of those were bank foreclosures, and both were at 1800 Atlantic Condominiums. The same bank that foreclosed on one unit financed the repurchase by a new buyer. (It was my customer and he got a great deal.)

There are a total of 59 homes, condos and town homes currently listed as contingent or pending. That means there are binding contracts between seller and buyer that may either have some condition that needs to be satisfied or that is just waiting to close. Interestingly, 46 of the properties are listed as contingent/continue to show or contingent/kick out. The Key West Association of Realtors requires that property listings be changed from "active" to "contingent" once a short sale contract has been accepted by the seller and is pending approval by a lender. It looks to me like a significant number of the contingent sales are short sales awaiting lender approval.

Our mls system does not automatically sort short sale or bank foreclosure listings. So it is necessary for a Realtor to make a search of all listings for language that denotes short sale or bank foreclosure. And some Realtors are entering erroneous information into the mls database. So our database is not exactly 100% correct. We did a manual search of the 1154 active residential listings and of those about 250 are listed as short sales. That is scary.

There are way too many properties on the market right now. Many of the pre-foreclosure properties are condos or town homes and are being listed as short sales. Many of those properties were purchased in the past three or four years and most of those were purchased with little or no money down. That means the "owner" has no money invested and no commitment to the property. Many of those same properties have declined in value and are not worth what they owe. It is no wonder that owners are walking away. That exodus is driving down the value of other similar units. Home owners who purchased their properties years earlier are unaffected by the price decline as long as their basis is at par with the current market value. They just missed the opportunity to gain from the huge price increases that occurred prior to the bubble burst.

I think we will see continued downward movement on prices overall until the remaining homes condos - town homes are foreclosed upon. I know there are many more properties that will be foreclosed upon and I anticipate more downward pressure on prices as a result.

The banks are keenly aware of what is transpiring. They are playing a numbers game. They do not have an emotional tie to their real estate assets. Their only commitment to Key West is that they either own or will potentially own a foreclosed home or condo. The goal of the banks is to recover as much on the sale of their assets as quickly as possible. That is is. A good Realtor can help a buyer find a short sale or bank foreclosure and turn a bad deal into a good deal. Not all short sale properties are good deals. And certainly not all foreclosures are good deals. Low price does not equate in any way to some piece of real estate being a "deal".

I still think that there are some very good buying opportunities in Key West, especially in the Old Town area, Casa Marina, and Meadows areas. The topsy-turvy market is driving down the asking prices of properties that are not under distress. And that creates opportunities for prospective buyers. If you are interested in buying a home or condo in Key West please consider calling me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Key West Real Estate Q & A

I have been getting e-mails and phone calls regarding some pretty basic real estate issues in Key West. So I thought I would start a Q & A thread.

Explain the difference between Transient Rental and Vacation Rental The City of Key West has an ordinance that prohibits homeowners (and condo owners) from renting their homes on a nightly basis unless the house has a transient rental license. Transient rental licenses are limited to specific areas that are zoned for such use, and those areas are specific and very limited by design. There are a limited number of new transient rental licenses that the city can issue. Some transient rental licenses are available for purchase through Realtors, but the transfer of these licenses from one property are restricted. The City of Key West issues a medallion that is to be affixed to the outside of any property to identify it as being a legally licensed transient rental. I encourage any potential purchaser to verify with the city licensing office and private counsel to ensure that a license if purchased may be transferred and used for the purpose intended.

Since the transfer of transient licenses is so tightly regulated you may appreciate the value of such a license. A transient rental license is a license to make money, sometimes lots of it. Tourism is the biggest business in Key West and tourists who flock here need a place to lay down and rest their heads in beds. In recent years several established guest houses and motels were converted into condominiums, so the number of available hotel type rooms decreased.

The City of Key West does permit property owners who have obtained a non-transient occupation license to rent there homes or condos legally once per month for a period of 28 dyas or less. That means a property owner can rent his or her home for one week in January or for the entire month to the same renter. The property owner may not rent the property for one week to one tenant, skip a week, and then rent the same property to someone else for the remainder of the month.

Are there any special rules for transient rentals at 1800 Atlantic? The rules cited above apply to 1800 Atlantic, and it is in an area that is zoned to receive transient rental licenses. But you cannot purchase a license from one place (even within the complex) and transfer it to a unit that has not previously had a transient license. If you purchase a unit at 1800 Atlantic that has a transient license you are not required to rent your property out as a vacation rental. But you should pay the annual license fee to the City of Key West and Monroe County to maintain the license (about $80 total) because that license adds about $50,000 in additional value to your unit at 1800 Atlantic.

By the way there are some good buying opportunities at 1800 Atlantic. CLICK HERE to checkout all of the current condos listed for sale. Some have transient licenses, some are rented as vacation rentals, and some folks actually call 1800 Atlantic home. If you see a unit that interests you and you want more info, e-mail me at kw1101v@aol.com.

April 22nd: CLICK HERE to see a new listing at 1800 Atlantic with a transient rental license. Although this unit is not listed as a short sale, it may in fact become one because the amount the owner owes on the mortgage cannot be satisfied even if the unit sells at full asking price. The unit is on the second floor on the Bertha Street side (east) of the complex and is located 5 units from the Atlantic Ocean so it does have an ocean view. It does have a new kitchen and baths, but the asking price is high in my opinion for this demanding market. But should not deter a serious buyer from looking.

What is HARC? HARC is a board of Key West citizens appointed by the Mayor of Key West to oversee the development plans and execution of same in the historic district of Key West. CLICK HERE to see the official City of Key West Historic Architectural Guidelines. The guidelines provide a simple statement of the types of materials that are generally permissible in the restoration or renovation of historic properties or the construction of new properties in the historic district. If you intend to buy an renovate a property in the Old Town area it is essential that you review these guidelines before you start planning to demolish anything or construct anything that is new.

What happens in Short Sale if I am a Buyer? A Short Sale offering is made by a Seller who owes more against a property than he believes the property will sell for in the current real estate market. The Seller will have contacted his lender(s) and provided detailed financial information about himself and his inability to sell the real estate for the amount(s) owed to secured lenders on the property. The Seller asks that the lender(s) agree in principal to permit the property to be sold at a market price that is negotiated between seller and buyer. The lender then determines whether to release the existing by examining the nature of the offer: is the price reasonable given the condition, location, and comparable recent market sales in the area.

The Key West Association of Realtors requires that a Short Sale Addendum accompany any Short Sale Contract for Sale and Purchase of Real Estate. The addendum references the contract and then interjects a provision that permits the lender a specific time period within which to accept or reject the terms of the contact. If the lender accepts the purchase price, the lender normally agrees to either release the mortgage on the real property subject to receipt of the sales proceeds less closing costs, taxes, and real estate commissions.

Other than the lender acting as the final arbiter of price, the seller and buyer are still free to negotiate the other terms of the contract. The lender's primary objective is minimizing loss and mazimizing recovery. So contracts that are all cash with no contingencies (other than inspection, survey, and clean title) are recommended. Get pre-approved for your financing before you attempt to buy any short sale property or any bank owned property.

Who pays the real estate commission? In most instances the Seller has a signed contract with the Seller's Real Estate Broker agreeing that Seller will pay a specific percentage of the purchase price as a real estate commission at closing as a fee procuring a purchaser. This fee is usually divided between the listing broker and the broker who procures the buyer. If you are a buyer you do not have to pay a Realtor for his/her services (unless you have a specific agreement to the contrary).

If you have a Question please leave a comment or send me an e-mai at kw1101v@aol.com.

1800 Atlantic Condominiums

There has been a lot of sales activity at the 1800 Atlantic Condominiums over the past couple of months. Several units have either sold or are in the contingent or pending stage and are awaiting final closing.

And a few new units have also been added to the roster of units available including an a very attractive transient unit with great ocean views. Located one unit from the ocean front it has many custom features including an entire living room wall with built-in cabinets, book cases and custom window treatments on all 3 sets of sliding glass doors. There are terra cotta tile floors throughout except for the bedrooms and baths. This home shows extremely well. CLICK HERE. Priced to sell at $629,000 or $464 per sq ft.

The number of units available today is 17 or about 10% of the total number of units at 1800 Atlantic. CLICK HERE to checkout the 17 units now available. They range in price from $398,500 to $1,590,000. (The photos show the view from the unit priced at $1,590,000.) A couple are ugly ducks and more than a few are magical vacation homes with incredible ocean views. I think as tourist season starts to wind down we may see some more aggressive price reductions by sellers or we may see sellers more willing to consider low bid offers--not just at 1800 Atlantic but pretty much across the board in Key West.

I think there are deals to be made. My suggestion is that you obtain pre-approval from a local bank (or your hometown bank that will lend out of state) or come with cash in hand and make your best offer. If you want to get an offer accepted, don't complicate it by having lots of contingencies. Offer cash or the next best thing--pre-approved financing. Be willing to close within 15 to 20 days. Limit your contingencies to home inspection, survey (if necessary), and clean title. Be willing to either split the title insurance or better yet offer to pay for title. That way the seller may think a little better about your offer.

Want to look at any of these units? Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Do Overs

Remember wanting to get a "Do Over" as a kid? It had nothing to do with renovating a house. And it had absolutely nothing to do with the "do" or "sweep" some half-bald guy uses to disguise his very high forehead. But it had everything to do with achieving a better result because you knew you could do it better if you could just do it again. It was like instant replay, but with a different and this time winning outcome.

I've been selling real estate in Key West for 11 years and I've heard so many people tell me they wish they had bought a little house in Key West before the market took off and everything got so expensive that they got priced out of the market. If you are one of those people who wished you had bought but didn't, this is the chance for a "do over".

Most of the Key West real estate market has corrected itself downward about 35% from the highs of the year 2005. If you bought then you probably have lost equity in your property. People who purchased very high end properties in good Old Town locations lost the least or lost nothing at all. People who bought at the Key West Golf Club may have experienced up to a 50% decline in value.

What does the above paragraph tell us about the real estate market in Key West today? I think it says what it has said ever since I came here for the first time: good property in Old Town will continue to rise in value, and property that has locational issues or that needs repair will not rise in value at the same rate and may decline in value in some instances.

Does that mean a new buyer has to spend $2 million for a house to have a safe investment? No. But I do believe that a buyer should buy into a good location where the nearby properties have been redone. You limit your risk by buying wisely, not just by buying expensively.

There are many properties on the market right now that are cheap by recent Key West standards. But the old rule "location, location, location" still governs even when it comes to a down market. I recommend that you buy into a good location or buy at a very discounted price. Your upside in buying an inferior location may not be as great as if you were to buy a well located property, but you may still achieve parity by buying a bargain price. For example condos at Shipyard usually rent for about the same price per week, yet some units are being offered for sale at prices much higher than others simply because of their location or the extent and quality of any upgrades or perhaps have a tremendous repeat business. All things being equal I'd probably buy the cheapest unit. But if a more expensive unit had a tremendous rental history, I might elect to buy that one.

There are six units available at 1800 Atlantic that have transient rental licenses. They are priced between $669,000 to $1,698,000. They have their own locational issues within the complex and some are nicer than others. But I suspect they throw off just about the same amount of income. Again all things being equal I would look at buying the least expensive if all I was looking at is getting a good rental unit. But I would try to also buy a unit with a good rental history that is managed by a good rental company. A good price means nothing if you have a poor property management company. CLICK HERE for more info on the six units with transient licenses.

There are 21 single family homes available in Old Town priced under $700,000. CLICK HERE to see those properties. Some of those houses are still priced at ridiculous levels because of the cost of renovation. But a few of the houses may offer an upside if they are purchased at a fair price. An inferior Old Town location usually trumps a good location out in the boonies.

If you are considering buying a place in Key West there are still lots of places available in all price ranges. Give me, Gary Thomas, a call at 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to checkout all Key West mls properties currently available for purchase.

Don't Say Cheap--Say Inexpensive

I have talked with several would-be buyers who think that the economic downturn has not hit bottom. They think prices will continue to fall and that they will be able to buy a second home in Key West at some future date for a lower price than is currently available. They may be right. But they could just as easily be wrong.

In an area where you have lots of similarly located, sized, aged, and comparable constructed homes I can understand how market events could cause prices on individual properties to fluctuate. And in locations that are dependent on one business or one industry, I can see where a downturn in a business segment (such as a plant closing) could dramatically effect prices across the board--not just in housing but in all segments of the local economy. But Key West is different from most parts of the American economy because of its particular location, the housing base, the tourist industry, and the significant military presence.

Some of the reasons people who visit Key West think about buying a second home here is the wonderful weather, the laid back lifestyle, the colorful locals, and the charming homes. There were stories on this morning's Today Show about the miserable weather in Michigan, snow in New York City, an earthquake in Nevada, and rioting in Europe. Our weather seldom changes and the front page of our paper, The Key West Citizen, usually deals local political news and human interest stories. We don't have riots or any serious crime as a rule. Our economy has taken a downturn because of the national emerging recession, but not all segments of the local economy are effected.

There are unique homes like the one I wrote about yesterday (409 William Street) that are very well priced by today's market and that I think will be deemed to have been a bargain just a few years from now. Some individuals who own numerous properties in Key West are hemmorhaging because they own too many properties that they have not been able to sell and have been forced to liquidate at below the now reduced fair market value. There are numerous properties in the foreclosure pipeline or that have been foreclosed that are now offered for sale at dramatically reduced asking prices.

Yet there is still a resistance by some buyers to buy because they think the markets will continue to decline. There are currently 17 condominium units at 1800 Atlantic listed for sale or less than 10% of the 172 units. They range in price from $398,000 to $1,698,000 (or $253 to $849 per sq ft) depending on location within the complex, extent of renovation, and the existence of transient rental license. There are several units that are in the process of foreclosure or that have been foreclosed. Those units have the lowest price points. A few weeks ago I wrote about ocean front and beautifully decorated unit at 1800 Atlantic that was being offered by the estate of the former owner at a very affordable price. It got snapped up immediately. I can understand hesitance or resistance at buying at the top end of a price range, but the units that are being offered as short sales or units that are bank owned are "buying opportunities". But that is just my opinion. CLICK HERE to checkout all current properties available at 1800 Atlantic. See for yourself whether there is a buying opportunity waiting for you.

Several of the properties that I have written about in the past couple of months have gone under contract and closed or are still awaiting closure. Most of the realtors I know are very busy right now showing properties and many are submitting offers. Many of those are There are opprotunites across the island in all price ranges and all types of properties. If you are seriously thinking about buying a property in Key West, it is time to get serious. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information.

Of course I understand that not everyone believes in the future the same way I do. Some will just hang around waiting for prices to fall. Others may dream of buying a luxury land yacht so they can travel the country in style. But maybe a few will act now and buy into the dream of owning a place in Key West--maybe a unit at 1800 Atlantic.

Distress Sale: 1800 Atlantic

Distress Sale: 1800 Atlantic Blvd #C122, Key West, FL
This is how the listing Realtor describes the offer: "PRICED TO SELL!!! Take advantage of the best priced 2 BR & 2 BA at 1800 Atlantic Condominiums. Located on the tropical courtyard of the complex, the unit offers a 1357 sq. ft. floor plan. Amenities feature a secure covered parking garage, heated beach side Olympic size swimming pool, hot tub, 3 lighted tennis courts & 24 hour. security. Condo fees cover water, sewer, extended basic cable TV, monthly exterminating, exterior building insurance & maintenance."

Owners at 1800Atlantic have a 15 day first right of refusal period for any resales. Tenant in place through March 2008 at $4600 mo. The monthly condo fee is $887.71.
CLICK HERE for more info on this specific unit.

The unit is located on the first level above the parking garage and has a courtyard view. It sits just above the trees so it is about as far back from the ocean and pool as you can get. CLICK HERE site plan and CLICK HERE for layout of unit. No interior pics are available. CLICK HERE to see the master bedroom of a similar unit. This is NOT a SHORT SALE. Make your best offer.

The property was purchased in June 2004 for $540,000. It was listed for sale in December 2007 at $478,000. The asking price was just reduced to $398,500 or $294 per sq ft. The unit does not have a Transient License and you cannot transfer a license to this unit. But you can rent the unit on a long term basis, do monthly rentals, or use it as your own private residence or second home.


CLICK HERE to checkout all similarly sized units without transient licenses so that you can compare the prices, views, interior finishes, etc. to determine if the unit listed here is a value to you. If it is and you would like more info or want to schedule a private showing, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Don't wait.

1800 Atlantic Condo -- Let's Make a Deal

Just Listed: 1800 Atlantic Unit C129. These are the basics: List price is $469,900 or $358 per sq ft. It is the lowest priced unit at 1800 Atlantic with a transient license which means you can legally rent the unit on a nightly basis to help cover your mortgage cost. CLICK HERE for more info and photos.

The unit has 1357 sq ft of space so it is identical to about 90% of the other units there. A couple are larger because they are located directly on the ocean; one is a 3 bedroom, and there is a smaller unit with one bedroom. Otherwise, the units are the same. The difference is the location and whether the unit has an ocean view, street view, or mangrove view. But the units basically rent for the same price.

The unit is not furnished and the kitchen has not been updated since the unit was built. If you are not buying the unit to live in, that is not a big deal and it certainly is not going to effect the average daily rate you charge renters.

1800 Atlantic is located directly on the ocean and has a private beach, huge pool, spa, covered parking, and tennis courts. There is a good solid base of people who return to 1800 Atlantic year after year because it offers them value. Click the following links to checkout a few comparable units that are rented nightly to see their pricing and availability. Rent Key West has a couple of units: Unit 228 and Unit 435. I sold unit 435 a couple of years ago. The buyer paid just under $1million for it. At Home in Key West has several units are varying price points. Papaya Place is the cheapest. Or go to 1800 Atlantic webpage to watch a virtual tour and checkout a variety of units, availability, and pricing. I think you will see that the unit mentioned here has some real upside to it as a long term investment.

This particular unit is Bank Owned. The prior owner purchased it in April 2005 and paid $742,000. The unit is priced today at $469,900 and reflects the new reality. I have sold and listed & sold units there and I tell my customers that they must treat their investment as an investment to make money. They need to hire the right management company and keep the unit rented as much as possible. A lot of people buy a property like this and then spend valuable prime season time in the unit or let their friends or family use the unit for free. Wrong idea. The unit is there to pay for itself, not to give your friends a free Key West vacation.

So if you think you might be interested in buying a nice unit at 1800 Atlantic give me a call at 305-766-2642 to schedule a showing. Don't wait. I really think this unit will sell fairly quickly.