Open House - Easter Sunday - Key West

If you are in Key West on Easter Sunday please stop by and take a look at 630 Elizabeth Street between 12:00 to 2:00 PM. I will be providing hard hat tours of this wonderful old Key West property that is ready for renovation. This property has received HARC approval for renovation into a 2300 sq ft single family residence. CLICK HERE to view the Key West mls database.

Turn this OLD HOUSE into your NEW HOUSE

718 Olivia Street - Short Sale - Old Town - Key West

718 Olivia Street - Old Town - Key West - Short Sale - September 2010

718 Olivia Street as it appeared in the 1960s

The asking price on the large Old Town home located at 718 Olivia Street just got a lot more attractive. This property was previously offered at $1,149,000 then reduced to $849,000. Now the property is listed with a new company as a short sale at $679,500.

This is how the previous broker described 718 Olivia Street:

"Beautiful historic home on a huge lot in great Old Town Key West neighborhood. Nearly 10,000 square foot lot with huge potential for mini Old Town Estate. Handsome conch house with high ceilings, large rooms with bright, open spaces. Great front yard with potential for off-street parking. Home has been in the same family for several generations. A Must See for the buyer who values a great Old Town location and an estate size lot with potential for large pool, tropical gardens and large entertainment areas."

I found the above black and white photo taken of this property in the 1960s by the Monroe County Tax Appraiser. The Monroe County Appraiser notes that this house was built in the 1920s on one website and in 1938 on another. It's old either date. But the character of this old house still shines through. A huge Royal Poinciana tree dominates the front yard today. The front porch today still has the same wrought iron posts as shown in the 1960s vintage photo as well as the jalousie windows and the concrete block front fence. I would advise a buyer to check with HARC (Historic Architectural Review Commission) to verify that the 1960s additions could be removed and replaced by historically correct architectural elements. I think this house would make for a stunning renovation project.

Gated entrance to back yard

CLICK HERE to checkout the mls listing data sheet and current mls photos of this home. You will note that the listing states this house has 1538 sq ft of living space. The property site is much larger than it looks in the photos. The front parcel where the house is located occupies only about 2600 sq ft of the entire 9401 sq ft lot. The remaining lot is located at west rear of the front parcel. That is the space where one would likely put in a pool and/0r guest quarters. An adjacent property to the east presently could provide vehicle access to the site but some easement or other arrangement would likely be required.

CLICK MAP to help locate 718 Olivia Street. If you click the STREET VIEW you will see a mix of old cigar maker cottages, gentrified cottages, and the house next door CLICK HERE which is one of the prettiest homes on the Island of Key West. Duval Street is a four to five minute walk to the west on Olivia Street. Seven Fish Restaurant in only one block away. A small neighborhood convenience store is one block to the east. Olivia Street is a one way street that goes east. I don't recall having ever seen a Conch Train or Trolley car on this portion of Olivia. A lot of the neighbors have lived in the nearby houses for decades. This area really is a Key West neighborhood.

If you are looking for a renovation project in the Old Town Key West area this may be the house you have been searching for. The house certainly has street appeal and the yard space is just huge. Creating a viable plan for the property as a whole is the key to making a project like this work. We have lots of great local architects such as Matthew Stratton, Tom Pope, or Bert Bender that could help a buyer develop a winning concept for this one of a kind property.

Please call me, Gary Thomas, 305-766-2642, to schedule a view of this property. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. This is a short sale buying opportunity.

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New Bank Owned Houses - Key West

For those who think they can get a good deal by buying a Bank Foreclosure, may I present two new offerings for your consideration.

607 Margaret Street is located in the Old Town area of Key West. It is two doors to the south of Mangia Mangia for locational reference and across the street from the old Harris School. There is a big tree in front to provide shade from the sun. The interior has Dade County Pine walls. And it is a fixer for sure. The listing Realtor describes this house thus:

"Bank Owned. Fantastic location in Old Town Key West. This home has charm and needs your personal touches. Make this your oasis. Backyard has patio. Bedroom on first floor and second bedroom is on the second floor plus additional storage in the attic."

CLICK HERE for more info supplied by the listing Realtor and to see 4 photos of the property. This house is offered at $349,900 or $360 per sq ft.

3725 Eagle Avenue is located one block west of A1A or near the intersection of Flagler and South Roosevelt Blvds. The two blocks just prior to A1A have some of the nicest homes in Key West. This is not one of them right now. It needs a lot of work in my opinion. But the house is very large (2900 sq ft) and it sits on a huge lot of 12,000 sq ft. That is not a typo. The lot is gigantic. The asking price is $355,000 or only $122 per sq ft. The listing Realtor describes this house this way:

"Mediterranean Style Home. This 3 Bedroom/2.5 Bath residence has authentic textured walls, beamed wood ceilings, beautiful redwood staircase, soaring ceilings, arched french doors and windows, fireplace, private dining area, window-wrapped family room and pinewood floors. Bank Owned Property. Priced to Sell."

CLICK HERE to view listing information and more photos.

The house directly next door to the east CLICK HERE was renovated in 2003-2004 and it is beautiful. I even took a pretty picture of it this morning so you get an idea of what 3725 Eagle might look like after a few hundred thousand dollars and a lot of work.

Both properties are bank owned. I suspect 3725 Eagle will be under contract by Monday. So if you want to buy it, contact me right away. This house will be an an undertaking and it is going to take money and vision to transform this property into a showplace.

607 Margaret Street has a tiny deck and the smells. There is an open toilet right off the living room--no door. The exterior was butchered with an aluminum awning and most of the windows need replaced. The interior stairway does not meet city building code requirements. And you will be throwing a lot of money into any fix-up of this place.

If you think you want to buy a bank owned property, this is your chance. Two new listings in two different areas of town. Both are "affordably" priced. Both need vision, work, and money. Please call me, Gary Thomas, 305.766.2642, if you would like to make an offer to purchase either property. Don't wait.

The End is Near!

The End is Near! At least it is for the small eyebrow house at 405 Frances Street in Old Town Key West. No, the house is not going to be torn down, but after months of being on the market, a contract has been signed and the owners and buyers await the closing on the transaction. CLICK HERE to see the particulars on this old house.

The house on Frances Street is quite similar to many other Old Town homes that have been lived in by generations of Key West residents. A few houses in similar condition are still available for purchase. And you might be surprised to read that there are buyers looking to purchase old relics like Frances Street. All of the Old Town houses are in the Key West Historic District so the rules of the Key West Historical Architectural Review Commission ("HARC")will apply. CLICK HERE to read and download the HARC Rules. If you are thinking of buying any house in Old Town, you really need to know the general intent of the rules.

Some of the more valuable houses in Key West once looked something like 405 Frances Street to some extent. When I show old houses to prospective buyers I suggest that they forget about the often cramped interiors and take a different approach. I suggest that buyers look at buying the house as a box with no inside walls. Let the designer or architect rebuild the house utilizing the existing exterior walls and maybe add an addition to the rear or side, HARC permission required. Existing walls go away and new functional living spaces emerge. The look from the street hides the new functionality at the rear.

People who buy old houses in Key West are basically buying a look, a lot, and a location. If the buyer is lucky, the buyer gets a nice looking old house, a decent sized lot, and a suitable location. We all know certain locations suck. We know certain lots are tiny. And certain houses are just plain ugly. 405 Frances is cute and has a great location, but the lot is tiny. So the buyer gets two of three. That's not bad.

I created a list of active houses in Old Town that I think might make for good renovation projects. Some of these properties have been on the market for a long time. Some may not be in good condition--the kind where a buyer would feel comfortable moving right in and sleeping and eating. Some may still seem to be priced very high given their condition. I would simply suggest that buyers take a look at the house CLICK HERE for a late addition: 630 Elizabeth Street just went back on the market. It is bank owned and it would make a great remodel project.

CLICK HERE to see the houses that I think might make for good renovation projects. It is my subject opinion. The only caveat I would add is not to let the asking price dissuade you from considering the individual properties. I think deals can still be made in this tight market. Some of the houses listed have very inflated asking prices in my opinion. The sellers either are living in La-La Land or they are just waiting to get an offer and think they will negotiate.

If you are one of the many buyers who has postponed making an offer on a second home in Key West and continue to hold to the belief that prices will continue to drop, I would simply urge you not to wait too long. The end of the down market is near. The supply of houses is drying up. The supply of houses in Old Town is really drying up.

More on the current market tomorrow. If you see something you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc, an affiliate of Christies Great Estates.

Fixers - Key West

I don't get enough of real estate working it full time almost every day of the week. No, I gotta watch those stupid "reality" TV shows like Flip That House and Property Ladder. My favorite is Flipping Out on BRAVO. I was showing a $3.4 million house last Saturday when I opened the linen closet. The shelves were stacked with towels and bed linens that had been ironed. And each shelf had neat little tags that told the maid exactly where each item must be placed. I made a remark to my clients and the woman said something like "Jeff Lewis must live here". (He's the neat freak on Flipping Out.) And then we all confessed we watch that show religously.

There are so many shows on TV about fixing houses that it almost looks easy to redo a house. It isn't. Don't kid yourself. Especially in Key West.

On my first trip to Key West many years ago I saw lots of old homes and shacks and thought "somebody ought to buy that place and tear it down and put up a nice new house." The reality is that you can't do that in the Historic District (Old Town) Key West with a few exceptions. Most of the Historic District (Old Town) area falls under the HARC (Historic Architectural Review Commission) Guidlines. CLICK HERE to view the entire HARC Guidelines in pdf format. The purpose of the guidelines is to preserve and protect the architectural environment and unique character of the historic neighborhoods of the Key West Historic District.

The stated purpose of the HARC Guidelines is "to assist property owners, architects, developers, and the HARC Commission in making appropriate decisions concerning renovation methods and materials used. Those guidelines extend to signs, kiosks,out buildings, streetscapes, street furniture, murals, and other new construction. Sometimes it seems that HARC rules with an iron fist and other times it acts like a change agent. I take no position on HARC. I've had good success with HARC.

The photo of the humble house on Thomas Street and the shack CLICK HERE are good examples of why locals don't tear down existing structures even though they serve no useful purpose. Before the City of Key West had building codes and rules of adornment, property owners pretty much built what they wanted where they wanted it. But that was in the old days. Today there are set backs, side yards, floor area ratios, etc. that direct exactly what a property owner may construct on his property. But if a buyer acquires a property with a non-conforming structure, such as a shack in the rear corner of the back yard, the current set backs do not apply. It might be possible to renovate the shack into a pool house or a guest cottage by expanding the property from its present location.

I have just enough knowledge about land development to be dangerous. So I always tell prospective buyers to go to City Hall and discuss their general development plan with someone in the Planning Department. Every time I have done this the people at City Hall have been very helpful. I don't recall any city official ever saying something like "Yes you can do that". But I have heard them discuss the method by which approval is granted and that usually makes it easier for a buyer to make a decision.

Most of the flip reality shows get the houses totally renovated in 30 minutes. In Key West it takes more like 30 months. Plan on several months of working with your architect to get the plans done the way you want. Then you have to go through the HARC process. Maybe you'll have to go before the Board of Adjustment for a variance. That always takes a little more time. And then you get to deal with the contractors, electricians, plumbers, dry wall installers, painters, swimming pool installers, and landscapers. Maybe you even get to use an interior decorator. Thirty months. Count on it.

Or you could buy a house that is already done. CLICK HERE to search the Key West mls database in real time to checkout all real estate listings. Set your search parameters. If you see something you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

The Walls Came Tumbling Down

I don't claim to be an "expert" like some people in real estate. If you have read parts of this blog you know that I have admitted to some big screw-ups in the Key West real estate market--most of which dealt with opportunities I lost in buying property that I wanted. The bad thing about lost opportunities in real estate is that you get to drive by and see what someone else got that you missed. And it can gnaw on you for years.

Today I am talking about two properties that I did buy and what I learned from them. This will be continued through a few more updates as time progresses. I bought a large late 1940's home in the Casa Marina area in late 1995. My Realtor was the owner-broker of a very prominent real estate company. He sold a commercial property that I owned and made a huge commission on the deal. So I relied on his judgment and integrity in helping me find a new home. Bad decision on my part. I ended up suing him, his partner, his company, and the seller over allegations of fraud and misrepresentation. I settled the lawsuit after five years of litigation. And I cannot discuss the terms of the settlement or infer any outcome.

The house I bought had flooded in 1994 and the seller allegedly misrepresented in writing that the house had not flooded and had no settling or foundation problems. Since I paid cash for the property and needed a quick close, I was not required to have an inspection or appraisal. Bad idea folks because an inspection would have revealed the previous flooding and the lingering problems associated with it. It would have also disclosed that the site is prone to flood during any large rain event--not just a hurricane.

GO HERE to read my previous blog on the home inspection and the requirement of a seller to disclose material defects.

In 1998 I got the opportunity to buy the adjacent two story duplex for the price of a song. I bought it instantly because I feel any time you have the opportunity to control your property you should do so. The property was run down and looked even worse. So my initial idea was to buy it and fix it up and collect rent on two units. I did have it inspected and appraised. It appraised for more than the purchase price. I started to renovate the property and decided to stop because the cost of repair was greater than the value I expected to receive. So it sat vacant for 8 years.

A couple of months ago I decided to take down the house. The house is located in a part of the Casa Marina area that is included in HARC so I had to get HARC approval before I could get the house raised. The house was not a contributing structure (a building on a historic map noted for its construction or some other significance). So I got permission to tear it down. The approval process was actually not all that difficult and getting the demolition permit from the building department was not that difficult either.

Last Thursday this big ass monster machine arrived at the property around 10:00 AM and starteg to munch away on the house. Within four hours most of the building had been demolished. The crew returned the next day and took down the rest of the building and a series of trucks hauled the debris away. The lot is now barren and now I get to figure out what to do with it.

The owners of the house next door to the east are renovating that property. They have their house listed at $3.8 million and are happy as hell to have my eyesore gone. In fact I think all of my neighbors will probably nominate me for some award for getting rid of the ugly thing.

I am not going to build anything on the lot but rather plan to landscape it. The total lot size for my house and the vacant lot is just under 9,000 square feet. That is huge for Key West. My property taxes will go down because I won't be taxed for an unproductive building. And I anticipate that the value to my residence will appreciate significantly because of the value of the extra large lot in an area of more estate type properties. Time will tell if I am right.

Later I will talk about what I am going to do with my residence located next door.

I think there are some real buying opportunities in Key West. We are in the worst selling time of the year and some sellers have to sell. So if you are thinking of buying CLICK HERE to preview all current mls listings in Key West. Then give me a call at 305-766-2642. Thanks.

HARC

When tourists walk or drive around Key West and see a big old house like the one to the right they often think they could buy it and fix it up. Yesterday I discussed the cost of renovation. One of the hidden costs is governmental compliance. And with houses in Old Town, that is cost that affects just about everybody because the entire Old Town area has been declared a National Historic Landmark.

The primary government body that oversees the renovation of old properties and the construction of new properties is called HARC (Historic Architectural Review Commission). CLICK HERE to read the HARC Rules (Adobe Format). The commission is made up of Key West citizens and a local architect. They review all building permit requests for structures in the historic area. Not every structure is covered, but most are. And is this group of citizens that decide the proposed change or new structure complies with the HARC guidelines.

A smart homeowner will hire a good architect to design a structure that meets the guidelines in the first place. But the architect must then sheperd the proposal through HARC and the building department to get building permits issued. Sounds reasonable enough. But it isn't easy. At a recent HARC meeting one of the new commissioner's stated that the HARC guidelines are the commission's bible and that adherence is mandatory. That is the rub.

Rules are rules because we need a fair and understandable system of dealing with issues in how structures are to be remodeled. But it is the interpretation of those rules that can make construction costs rise. Each meeting an architect must attend and each revision of a plan costs money. And repeated changes repeatedly cost more money.

Most of Old Town Key West was built before there were any building codes. And there are many buildings in Old Town that encroach is some way upon a neighbor's property. It is this haphazard construction that HARC seeks to protect with the enforcement of the HARC Guidelines. I don't know if anyone has ever challenged the legality of the City passing this responsibility off to a non-elected board. (Meaning I think the commission may be an unconstitutional body and may be acting without legal authority. While I am an attorney, I am not licenses in Florida so my thoughts don't matter.)

HARC is not going to go away. Potential buyers must assume that they will have to go through the process of getting HARC approval on any project in the Old Town area. Just don't assume that because you are going to improve an existing building that you will get instant approval. This is Key West, you know.

If after reading that you are still considering buying a property in Key West, please CLICK HERE to checkout the entire mls database of current real estate listings and please consider giving me a call 1-305-766-2642 to help you find your next home or business in Paradise.