TUNE IN or MISS OUT

 

Over Asking Solds

 

I check the Key West MLS HOTSHEET multiple times throughout the day - every day.The HOTSHEET shows MLS changes in real time including new listings, price changes, back on the market, contingent show, contingent, pending, and closed listings plus text changes. 

Last Friday afternoon I noticed three more solds posted since earlier in the day. I looked at each sold to see the property, the price paid and the agents involved. It was only after I looked at each sale that I noticed all sold over asking. Then I recalled seeing several over asking solds earlier in the week. 

We all know that homes are selling over asking across the nation. So what is going on here is not an anomaly. This year I personally sold three houses over asking. I also know that the Key West real estate market exploded in sales this spring and that sales from then are still posing.

I decided to look back at single family solds from April 1st to August 23 and found we had 242 homes sold in Key West. The median home sold for -4.14% under asking. For years the number has averaged between 5 to 6%. That's not a huge drop but it tells us that demand is driving sales prices up and we already know that our sales prices are up significantly over the past two cycles. 

Then I examined each MLS sold to see the house, the location, and the price paid in relation to asking price. Percentage numbers in the raw don't make sense to anybody but statisticians as far a I am concerned. What I found confirms what I have told my customers and written in my blog for years. The most in demand homes were located in Old Town and Casa Marina and that most of those sales were either full price or within a few thousand of asking (plus multiple over asking). The New Town area homes sold lower. 

I went back and found 33 of the 242 sold homes sold over asking. That is 20.9% of the solds during this limited time period. I have never experienced anything like this.

 

 

Who You Gonna Call?

Yesterday morning I was searching the Key West MLS for new listings and saw property that looked interesting. I clicked the CRS Tax Info tab on my agent console and nothing happened. I clicked again. Nothing happened. Odd I thought. So I went to the Monroe County Property Appraiser website and typed in the address which brought up the property. 

Later in the day I went back to my agent console and clicked the TAX link again. Still not working.

Then in the afternoon I opened an email from the Key West Realtors CEO advising this:

All,

Due to the Explosion in Nashville CRS Tax Data is experiencing an Outage of the CRS Data websites and email. I will send an update when it is restored.


Best regards,

It is still not working Sunday morning as I write this. 

Ever since 911 there has been talk of another act of terror or multiple acts of terror that could target our infrastructure and render parts of the United States defenseless. We have spent Billions upon Billions of dollars to set up systems and re-routing systems to protect against such an attack or attacks. Well it did not work. I don't care about the TAX link. I care that this attack proved how down right vulnerable we are. 

If we do not have electricity, or water, or communication, the safety of our homes is at risk be it momentary or long lasting. I would like to know who has been in charge while this mess was occurring. And who is going to fix it? We are at risk.

 

That is the AT&T Building in Nashville at the top of the page.

Key West Realtor Understudy

I was searching the Key West MLS yesterday when I noticed a new listing that reminded me of a nearby property that I sold a few years ago. My buyer and I arrived at the house on an early Saturday morning to be present during the home inspection on the house he had under contract. We met the inspector who set out to poke, prod, test, and photograph various parts of the house.

Remember this was an early Saturday morning - not anywhere near cocktail time - not even near lunch. Or even brunch.  The listing Realtor was present. She was wearing heels and a tight fitting dress with a very short hem.

The home inspector opened the access panel to the attic and went up. The listing agent followed. I was standing below with my buyer. We both looked up as we were preparing to follow. Imagine the photo above but without the tights. Or anything under the dress.

Things that have been seen cannot be unseen.

In the Key West Closet

I check the Key West MLS hotsheet constantly throughout each day. It is important to know about each new listing and also be aware of price reductions and houses that go under contract. Just as important are new solds as they indicate what has sold, at what price, and identify the agents who listed and sold the property.

A few days ago I was drawn to the sale of little home a few miles outside of Key West. I seldom drive that far to show a house as most of my buyers want to be in Key West, and, more particularly, in Old Town. But for some reason I had to look at that listing.The main photo was a violation of our MLS ruls in that it showed the water. Rules dictate that the main photos should be of the house. The agent broke a little rule but that is why I looked at that listing. I hit the photo button and started to view the photos of the modest two bedroom home located at water's edge. I thought what a pretty view this owner had. The interior wasn't that much to look at but that was just the snob in me being judgmental.

I paused when I saw a photo of the living room where I noticed both a weight bench, an abs machine, and a treadmill. The owner or a tenant was perhaps a man who was into fitness.  Best not be too judgmental after that earlier remark I made.  I looked through the rest of the photos and saw a niche off the living room where various items were displayed including a ONE HUMAN FAMILY sticker which is seen on cars and in homes all over the Key West area.  Key West is a very welcoming community to all people.

Then I spotted the closet. No big deal; it's a closet. But then I looked at contents. What a snoop I was, and a snitch I am. Now I am telling and showing others far and wide about the contents of that closet. Look close at the shelves where you will see two pairs of stiletto high heels. The only girls in this town that wear heels this high are drag queens. How do I know this or why do I know this, you may ask. It's because Key West is so laid back that there are not that many places for women to wear high heels. Except...

My First Loan and What I Learned About Buying on Credit

The Key West MLS is transferring to a new service provider this weekend. I have a new listing to add but can't because the system is not accepting new listings until Monday. So instead of writing about something I can't share, I thought I would share a memory of my first loan and the lesson I learned.

I have written about growing up in the little suburban town of Mountain View, Colorado - a suburb just west of Denver. I lived in this quite little burb through my formative years until 1960 when we moved a couple of miles to the south and west. The town was two blocks wide and six blocks long. There were a couple of mom and pop stores and my barbershop on Sheridan Boulevard and several small stores on West 44th Avenue including a Army surplus store, a Lotta Burger, a gas station, and an auction house and candy store located at 5410 W. 44th. Through the miracle of Google Maps you can CLICK HERE to view that building that still exists today.

I remember going to the auctions a few times with my parents. I must have been six to eight years old at the time. After the auction company failed a tax preparation company occupied the same space. I went there as well and was as bored as any kid could be while his parents were getting their taxes prepared.

The candy store and toy store were located next door. I would go there by myself to buy penny candy. Yes, in the 1950s you could buy a lot of things for a few cents or a couple of dollars. Every time I think about that store I can smell the sweet aroma that filled the air. One day I found a box that intrigued me. It contained what looked like a metal gun which actually was a movie projector, or so I thought. I was transfixed by it. The price was just $1.25 which is equivalent to $11.49 today. While I had a piggy bank that held my life savings, I didn't want to rob myself of my future by buying the projector. Yet I really felt I needed it.

I went back to the candy store many times to visit my object of desire. I remember the following fairly correctly.  One day I approached the owner and proposed to buy the projector on credit.  I offered a quarter down payment and said I would pay off the balance with my allowance. The owner agreed and saved the projector for me. The weeks passed. I paid off my loan.  I took the projector home and set out to make it work. It did, but it didn't.  It wasn't what I thought it would be.  I lost interest in it very quickly and blamed myself for not being more careful.

527 Margaret Street, Key West - Stunning New Renovation in Old Town

Just Listed, 527 Margaret Street, Key West. The listing agent describes this beautiful Old Town property this way: 

"Stunning and Stylish Renovation in this Historic Home, Ideally Located on 500 block of Margaret St, walking distance to so many attractions, Restaurants and Galleries. Remodeled in 2015, the home underwent a complete Foundation to Roof Renovation and received the Historic Florida Keys Preservation Award in 2016. Features include Soaring Exposed Beam Ceilings, White Oak Wood Floors, Top End Appliances, A wall of glass leading to pool and Deck. Beautifully finished bedrooms and baths, with 2 bedrooms and additional loft. Being Sold Turn Key!"

I have written a couple of earlier blogs about this property when it was a hodgepodge of additions and used as multi-family home. I wrote about it while under renovation in my Projects of Key West continuum.  Later I wrote about the house when it was completed. Now it is for sale. The original house was taken to the ground and totally rebuilt save enough boards to fit within a thin definition of a renovation. The end result is a beautiful home located in a great Old Town location near all the places primary and second home owners seek. It is located just four blocks from world famous Duval Street and only four blocks to the Historic Seaport. One of Key West's finest steak houses in located across the street and dozens of small joints and fine dining restaurants are within easy walking distance. While what you see from the street is picture perfect, it's the interior that will really grab your attention. As you look more closely, you'll appreciate the quality new construction and the cost saving benefits of owning a home like this.

When you look at the house from the street you would probably expect the interiors to be compact and tight because the house simply looks like a quaint one story home with a cute little front porch. But you would be wrong. Very wrong. Oh, it is just a one story house, but once you open the door and pass through the formal entry hall you'll see a wall of glass which soars to the vaulted ceiling immediately refuting any pre-conceptions about this home being small.

The first thing I saw was the canopy of the old banyan tree at the rear. The blue sky seemed to blend with the subtle and not-so-subtle blue tones interspersed throughout the house.  The wood ceiling and white washed wood floors add a natural color perspective to this living space. There is a guest bath located off the center hall adjacent to the adult beverage center with color co-ordinated booze. The laundry area is opposite. Dale Trice designed the interiors and created the media and display wall with storage below. Giant shells and white objets d'art fill that space and throughout the house. The setting is like something out of Coastal Living Magazine or Architectural Digest. Maybe it should be!

The master and guest bedroom (with loft) are located at the front of the house. Both have en-suite baths.The master suite is stunning-almost regal. The guest bedroom is quite understated by comparison. The loft space will be a favorite of the grand kids. I don't know if kids still play "fort" like I did when I was a child. This space would make a perfect fort, of that I am sure. 

CLICK HERE to view the Key West MLS datasheet and listing photos.  527 Margaret Street is offered turn key at $1,549,000. Please call me, Gary Thomas, 305-766-2642, to schedule a private showing. I am a buyers agent and a full time Realtor at Preferred Properties Key West.

Key West Real Estate Horror Story No.1

People who read my blog are typically looking to purchase a home in Key West. They usually find my blog by searching an address after viewing a property on Zillow, Realtor.com, or even the real Key West mls website. These new prospects often read additional blogs I have written to get a sense of who I am as a person and the services I may be able to provide to them.

Many readers think that they can get a deal by buying a bank owned home because they think they'll get it at a bargain price. During the past couple of years some bank owned properties have been offered for sale via several online auction websites.  I have helped several buyers purchase homes through these sites. One particular online auction turned into a real estate horror story.

I registered the buyer and myself as his agent so that I could be a part of the process and earn a commission if the buyer was the successful bidder. I read the TERMS before signing up.  I warned my buyer up front that the standard Florida Purchase and Sale Contract would not be used but that the contract written by the online auction company would be used instead. That contract was totally written to benefit the bank as seller. I used to be a lawyer. The law describes this type of contract as a contract of adhesion. The thing is if a buyer wants something so badly, he'll probably sign anything just for the chance to get a good deal.

My buyer was the successful bidder in a particular online auction. Thus began the saga that became a minor real estate horror story. After my buyer's bid was accepted, the buyer was required to sign the bank prepared purchase contract - the contract of adhesion I mentioned above. I did my part by providing all the documentation to the bank asset manager who is located in a faraway town.

My buyer was paying cash so there was no third party mortgage involved. The house itself was a total mess. My buyer did not do an inspection as the buyer planned to do a major renovation.

Within the first week or so we received a preliminary title report which showed that the law firm that foreclosed the mortgage omitted a necessary party to the foreclosure' This required the attorney to do a new foreclosure the omitted party. This set back the closing date by several months. Just about the same time my buyer became aware that someone had complained to City of Key West Code Enforcement about yard debris and trash in the front and back yards on the house upon which my buyer had a contract. The City of Key West Special Master imposed a daily fine of $250 on the property until such time as the mess was cleaned up and the fine paid. I got a copy of the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER and emailed a copy to the listing agent, asset manager, and closing agent all located at the same address in the faraway Florida city. All of the asset management people and title people had Muslim last names except for the real estate agent. I checked with the Florida Real Estate Commission - he is a real person who lives in Florida.

 When neither the listing real estate agent nor the asset manager responded to me, I called both. I left a voice message for the real estate agent. The agent never returned that call nor did he ever respond to any email I sent to him. When I called the asset management company I asked to speak to M**** Mohamed, the asset manager. The first person I spoke with sounded far away, much farther away than the address in Florida where the asset management company's office was located. It was as if I was talking to someone on the other side of the world or that I was speaking on a tin can phone or both. I was asked to call back at a later time. I did and that is when I spoke to Mohamed. I knew then what I suspected earlier that I was talking to someone in India or Pakistan and not in Florida.

I told Mohamed about the code violation and ongoing fine. He asked me to send him a copy of the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER which I had previously sent to him. I did. Then we began a series of email correspondence about the ever-growing fine.  A few weeks into the process Mohamed assured me the problem had been resolved. He said he initiated a process to hire a vendor to clean up the yard.  During the meantime my buyers left town for a previously planned vacation. I drove by the house to see if the place had been cleaned up. The front yard looked okay but I could see trash in the side yards. I went to the backyard where fallen palm fronts and other debris littered the yard. I took photos. Then I went to City Hall to speak to someone about the property. I was informed that the city would hold my buyer responsible if the bank owner did not clean up the mess and pay the fine by the time we closed.

About five months had passed since the new foreclosure was started.  The title agent emailed me a notice the bank was ready to close. I sent emails to Mohamed and others at the asset management company stating that the code violation constituted a title defect and that the buyer required the bank to pay the fine and get the code violation cleared. Mohamed and the title agent sent a series of written in English but which either intentionally or accidentally never stated that the bank clear the code violation and pay the fine before closing.

I re-read the bank purchase contract (the contract of adhesion). The contract specifically excluded the bank as being responsible for any code violations. I then engaged a local law firm to write a letter to the bank asset manager and title company reaffirming the buyer's position that the code violation constituted a title defect.  Mohamed and the title agent became more responsive to the lawyer who communicated in a non-threatening manner but simply required the bank to clear the title defect before closing. I went to city hall and got a form by which the bank could seek to mitigate (reduce) the amount of the fine which by then had risen to over $20,000. Remember the fine was $250 per day.

I sent the mitigation form to Mohamed who said the contractor he hired to clean up the yard had done so. I told him that whoever he hired picked up trash in the front yard but not the side yards or back yard. I told him emphatically not to mess the government. He finally got the message. The bank extended the closing a few extra weeks so that it could appear before the Special Magistrate to mitigate the fine. The yard was cleaned and the fine was reduced to only $15,000. The bank paid the fine at closing.

But that's not the end of the story. The TERMS disclosed at the online auction site were less than forthright in disclosing all the fees that the buyer would be required to pay. The biggest and most offensive non-disclosure appeared when we received the preliminary settlement sheet. The buyer was required to pay the Seller's State of Florida Documentary Stamp Tax which is calculated at 70 cents per one hundred dollars of sales price. This is always a seller cost, but under the bank's contract shifted this expense to the buyer. While the bank paid the title policy, all of the other title closing costs were likewise shifted to the buyer. The buyer's sole remedy upon learning all the associated fees would be to walk away from the contract, lose his deposit, and not get the property. Buyers do what buyers do: they suck it up and pay the fees.

My buyer closed on the property and got a really good price on what will end up being a very nice home once the renovations are completed. It could have ended differently, however, had I not kept pressing the bank to clear the code violation and pay the fine.  I can't help but wonder if anyone at the real bank with all the Billions of Dollars in assets has any knowledge that the bank asset management company in Pakistan or where it is that Mohamed lives cost the bank $15,000.

Key West Oceanfront Luxury - 20 Sunset Key Drive

20 Sunset Key Drive is located on Sunset Key, a private island just a five minute boat ride from Key West. The guest cottage, above, looks somewhat similar to some of the cute little cottages that you might find in Old Town Key West. That's where the similarity stops because this place is a show stopper. The cottage isn't little and it is only a small part of  a much larger manse with the very best oceanfront location on the island. A pergola connects the cottage with the main house. The pool and spa are on the west. The luxuriant garden paradise is everywhere.

The guest cottage is very informal and relaxed. The living room soars two stories with a gallery on three sides. The main floor bedroom has French doors that open out to the pool. The second floor bedroom is like an old garret - all cozy and cute. Both bedrooms have en-suite baths. Wherever you look, there is superb attention to detail.  CLICK HERE to view 164 photos I took of this incredible property.  You will not be disappointed.

The main house fronts the Atlantic Ocean. This house, the one next door to the west, and the large vacant double lot next to it are the three best lots on Sunset Key. They have incomparable views of the ocean and sunset. Whether sitting on the first floor porch, peering out from the second floor master bedroom, or searching the skies from the rooftop widow's walk, this property offers amazing views that will delight owner and guest from morning until night.

Inside this gracious home you will find formal and informal living and dining areas,water-view guest bedroom,  a huge kitchen, and laundry/pantry area. The two story atrium like entry leads to the second floor master suite which include a sitting room, the bedroom chamber with waterfront view, the extra large master bath and dressing area.

The 24 hour per day launch will speed you from Key West to Sunset Key. Residents have use of the community pool and tennis court. And, of course, very quick access to the amazing Latitudes Restaurant and the spa at the Westin Sunset Key Resort which are about a three minute walk from the front entrance at 20 Sunset Key Drive. Dang!

The 24 hour per day launch will speed you from Key West to Sunset Key. Residents have use of the community pool and tennis court. And, of course, very quick access to the amazing Latitudes Restaurant and the spa at the Westin Sunset Key Resort which are about a three minute walk from the front entrance at 20 Sunset Key Drive. Dang!

CLICK HERE to view the Key West mls datasheet and listing photos of this incredible oceanfront estate.  Then please call me, Gary Thomas, 305-766-2642 to schedule a very private showing. I am a buyers agent and a full time Realtor at Preferred Properties Key West. Let me help you find your place in Paradise!