Dirty Rotten Scoundrels

I heard a story yesterday that really pissed me off. I feel the need to share it with you. It involves a local guy who wanted to buy an investment property, a local builder who had several very high priced houses to sell but no buyers, and a bank with money to lend. The story takes place just a few years back when real estate sales in Key West were still go-go.

We now know that a lot of people bought a lot of properties in Key West at what now seems very inflated prices. Up until the mid 1970s when Key West was "discovered" by gays and hippies, prices for real estate were low. A few years back I sold a small house on Stock Island to local woman who told me of the time when her father passed up the chance to buy an entire block on upper Duval that would have cost him $70,000 (which was a lot of money at that time). She implored "Gary do you know how much that would be worth today?" I did.

As Key West became a destination for gays, lefties, and counter culture types, prices for real estate started to tick up. More people came and saw how wonderful this little island is and decided they wanted to own a place in Paradise. The more people came, the higher the prices rose. A broader spectrum of visitors started to travel here when big cruise ships made daily voyages to the city. The allure of Key West became known around the world in magazines, TV shows, and movies. A new group of buyers who were more Wall Street than Duval Street types started to eye Key West as a place to invest. And prices for houses of any type went even higher. There was not enough supply of old homes to go around. New places were built so that more buyers could buy more new places in Key West. The new properties weren't cheap; most of the new properties were trophy houses.

The local guy had saved some money which he wanted to invest in Key West real estate. The problem is his wad was only large enough to pay a pittance of the asking price of a particular new Key West trophy house. He and a lifelong acquaintance pooled their funds and came up with just about 11% of the purchase price which they planned to use as the down payment. Since the property was classified by the bank as an investment, the buying duo would need to come up with a total 25% of the purchase price - or its equivalent. The builder had not sold any of his units at this point and really felt the need to get one sale under the belt. That sale was critical to his marketing plan for his properties since it would establish the bona fides of the asking price. One high priced closed sale would be proof to the world that the trophy house development was worth the trophy asking price. The builder offered to carry back a soft note (non interest bearing with principal deferred far into the future.) The builder even "advanced" over $300,000 in real cash money to the duo which was placed in a "reserve" account at the bank where the new purchase mortgage was made. The reserve funds were to be used to pay the principal and interest payments, taxes, insurance, and operating costs of the property as long as the funds held out. The $300,000 payment from builder to buyers was treated as a gift for federal income tax purposes and the buying duo used some of the reserve fund to pay their individual taxes. The bank (the mortgage lender) was fully aware of all this. Everything.

When I heard this story I asked "Why would the builder do this?" "He had no sales" I was told. This sale was the builder's first for this development, and it was done to entice others to close on existing contracts and to entice other new buyers. It worked. I asked if the bank knew what was going on and the buyer named the bank officer who was involved in the planning.

Over the following few years real estate property values sank across the board from their inflated highs. Some of the subsequent buyers in the same development have already lost their properties through foreclosures or short sales at new sales prices less than half of what they paid. The local builder forgave the soft loan to the local duo. The reserve fund is now depleted. The local buyer and his investment pal have no funds to repay the mortgage. The bank recently offered the defaulting duo a loan modification which would include reducing the on-book mortgage to a set amount (about a 50% reduction form what is owed) but would also require the duo to sign a new soft note for the balance. I assume the bank is trying to defer taking a present write off of the difference.

Do you remember the movie DIRTY ROTTEN SCOUNDRELS? It is about a pair of con men that set out to take other peoples money. In the movie the cons con each other and get conned themselves. It seems in con games nobody is safe, nor pure. I found this short treatise on The Art of the Con - CLICK HERE. It will only take a couple of minutes to read. Substitute "real estate" for "stock". The con is the same.

In the movie Dirty Rotten Scoundrels the con men were suave and funny, and even though everybody got screwed a little, it was all just fun in the end.

August 2010 Real Estate Sales Report - Key West

I did a quick search of real estate solds in Key West for the month of August 2010. There were 14 single family homes that sold during that time period. Three of those sales (21.4%) were bank owned homes; six (42.8%) were short sales. Five of the fourteen sales were priced over $500,000 which means that 64% of the sales were for homes priced under the $500,000 price point. Only one house sold in August above one million dollars. It sold for quite a bit more: $2,100,000. The average per sq ft sales price for a single family home in Key West in August 2010 was $319.

There were 26 single family home sales in 2009 compared to the 14 this year. Four of the 2009 sales (15%) were bank owned properties. Six (23%) were short sales. Interestingly, 9 (34.6%) of the single family sales in 2009 were for homes priced above $500,000 and two of those sales were for homes priced above $1,000,000. The average per sq ft sales price for a single family home in Key West in August 2009 was $315.

I then checked out the condo and townhome sales for August 2010. There were a total of 12 sales with an average sales price of $256 per sq ft. Seven (7) were bank owned units (58.3%) and 4 were short sales (33%). Only one low priced unit was neither a short sale nor bank owned. Just one property in Truman Annex sold over the $500,000 price point. The other 11 were below that mark.

During the same period in 2009 there were 13 sales (one more than in 2010). The average price per sq ft in 2009 was $264 or $8 per sq ft higher than this year. Eight (8) bank owned condos (61.5%) and only 1 unit identified as a short sale (7.6%) were sold in August 2009.

It is obvious that the 2010 sales compared to 2009 are fewer in number. Prices are up on a per sq ft basis for single family homes, but prices are down for condos compared to 2009. We are not seeing actual closed sales for higher end properties. There are still buyers for the nicer and more expensive homes. They are using restraint and not rushing to buy. Some higher priced properties have recently gone under contract and are awaiting closing. This is a Buyers’ Market and sellers better understand that they need to meet the market or their properties will not sell.

The photo at the top of today's blog shows a over-turned building in Key West after a hurricane in October 1910. The world must have seemed pretty upside down at that moment. I'll bet that the building got up-righted and that the perplexed fellow in the photograph got to live a decent life after that sad event. We've got a lot of unpleasantness in our economy right how. Things will work out and the things that are upside down will improve.

1800 Atlantic Condominium - Bank Owned - Key West Waterfront

Just listed, but not by me, 1800 Atlantic Condominium Unit # A-109. There are several units for sale at 1800 Atlantic but this one caught my eye because it is "Bank Owned" and priced at just $375,400. Just a few weeks ago it was offered at the asking price was $650,000. Yikes!

This unit is located on the first floor (above covered parking) in the A wing (or the west wing). It has courtyard and partial pool and ocean views. The listing Realtor describes this bank owned unit this way:

"Lush Tropical Courtyard View. 2 Bedroom 2 Bath Located In The Most Desired Condominium Complex In Key West. Completely Remodeled From Top To Bottom, Kitchen And Bathrooms. Hardwood Floors, Crown Molding. Seller Will Credit Buyer Up To A Maximum 3% Of Sales Price Towards Closing Costs If Negotiated In Final Signed Counter Offer."

Now let's see how the previous listing Realtor descried the exact same property:

"Luxurious tropical courtyard view two bedroom condo. This exceptional condo has a City of Key West Transient License which permits the owner to rent on a short term basis.This property is totally remodelled, no attention to detail was spared, top of the line finishes, hardwood floors, Crown molding, Recessed lighting. This unit was designed by an interior decorator and is being sold totally turn-key. This unit is on a Transient rental program and will require notice to show if occupied by a guest."

I "borrowed" photos from the previous listing that show what this unit looks like when it is nicely furnished. CLICK HERE to checkout the current mls listing info and to view the current photos. I'm not faulting the agent, most unfurnished spaces do not show well. That 's why looking at pics of this same space can give buyers feel for what they can do with the same space. Except now the same space is priced much better.

(Remember, these are all photos from before this property became bank owned and do not depict what this unit looks like today.)

If you have looked at units at 1800 Atlantic before you know that some units have been remodeled and others are pretty much the same today as they were when they were built. The photos show that this unit has been remodeled. The air conditioner was replaced in 2005.

1800 Atlantic Condominiums have a great reputation. Guests return year after year because they know exactly what to expect. The love the ocean, the huge Olympic pool, three tennis courts, and proximity to Smathers Beach. The condos are close enough to town to bike but far from the madding crowd when distance is held dear.

If you would like to see this unit, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty,Inc. in Key West. This unit probably will not be on the market very long at this price.

This Will Sell in a New York Minute

611 Southard Street Unit # 3 offered at $434,900

Everybody knows what a New York Minute is, right? I checked the URBAN DICTIONARY for a readily understandable definition and read this:

Approximately 36 seconds, as opposed to the normal 60 seconds in a minute

"So would you do her?"
"In a new york minute."

When I first saw the new Hollingshed House listing at 611 Southard Street Unit #3 I knew instantly that it would sell in a New York Minute. This is how the listing agent describes this property:

"Wonderful property with EXCELLENT rental record. Transient License included! One block from Duval. Totally renovated in 2008. Wood floors, new Kitchen and bath. Professionally decorated."

This very same Hollingshed House unit was listed for sale on December 12, 2006 and sold (closed) 39 days later. That is a New York Minute in Key West real estate speak. And I think the current asking price, location, and Transient Rental License will create the same buyer response in our current market. Here is why: This Hollingshed House unit is a bit larger than a typical Shipyard Condominium unit. The Hollingshed House unit has just one bedroom whereas most at Shipyard fit two bedrooms into the same square footage or less. The Hollingshed House pool is shared by only a couple of other units whereas Shipyard pool is shared by half of New Jersey at any given moment. This second floor unit has a balcony which provides views of the comings and goings on Southard Street as people make their treks to Duval Street and beyond. Unit #3 is offered at $434,900.

Sarabeth's is located across the street. Fast Buck Freddie's is a block away at the corner of Duval and Fleming Streets. Starbucks, Rick's, Sloppy's, and tons of bars and feederies are located to the north. You will find some fine dining establishments to the south including La Trattoria, Antonia's, 915, Martin's, La Te Da, and Denny's. (I went there once. That was enough.) There is live theatre at The Waterfront Playhouse and The Red Barn. The Tropic Cinema always has something you will not see at the Regal Cinema in New Town. The Tennessee Williams Theatre is a jaunt so you will need friends or a taxi, but Key West has lots of taxis and lots of people who are very friendly.

CLICK HERE to view the mls listing info on this property. Do your comparison shopping and you will likely agree with me that this property will sell in a New York Minute. Please call me, Gary Thomas, 305-766-2642 to schedule a showing. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.

Strip Center - 1200 White Street - Key West

1200 White Street Strip Center Key West Florida in 1965

The same strip center in 2010

The strip center shown above is located at 1200-1206 White Street in Key West. Locals know the building by sight. Ugly sight. A sight that needs razed and rebuilt or renovated into something befitting the location. The asking price has been reduced to $999,000. CLICK HERE for more info and photos.

This is how the listing Realtor describes this property:

"A rare, mixed use strip center with adjacent parking lot on busy White Street in Key West. There are three commercial units and two residential units on this property. Property was formerly used as a bakery and has the potential to be opened under a similar use. White Street is the fastest growing commercial corridor in Key West, acting as a border of Old Town and New Town Key West.Owners may consider owner financing package. Included in sale 1212 White Street."

The property sits in the last block of commercial property in the 1200 block of White Street. All of the remaining properties situated to the south lead to the Atlantic Ocean and the beaches except for two small churches and a doctor's office that is located in a house. The commercial enterprises in the immediate vicinity include the Island Gym, a real estate office, a super expensive hamburger joint, a hand job car wash, Island Tile, Dog 30, a real estate appraiser's office, several yoga places, two gas stations that sell very expensive gas (must be imported or something), several art galleries and antique stores, several hair clip joints, a very confusing French restaurant, more art galleries, a travel agency, a few guesthouses, and Faustos Grocery. The National Weather Service is located one block to the south across the street from the old Key West High School that is used as an elementary school today.

Two parcels that are for sale that have a total square footage of 8147 sq ft according to the listing Realtor. The two properties have approximately 153'.26" frontage on White Street. The lots are 51'9" deep per the Monroe County Appraiser's website.

The adjacent parking lot at 1212 White Street is included in the offering

1223 White Street Key West Florida in 1965

The same location but all new and really attractive mixed use development in 2010

Cars enter on United St and exit on White Street

Look a the three photos immediately above. The black and white pic was taken in the 1960s and shows a one story CBS building (concrete block structure) that was used as a pizza parlor. That structure was razed and a new commercial /residential building with parking was erected in 2007. The new building is mixed use of commercial office space on ground level and residential apartments on the second. A nice bricked parking area and landscaping complete the parcel development. The property at 1200 White has about 40' less frontage but the lots are just about equal in depth. I think that a structure somewhat akin to the building above might work for 1200 White Street. The 1200 White Street lot size is smaller and a new building could not be as large as the one pictured.

There is a real need for nice new office space with parking in the Old Town and Mid Town areas. If you are an investor or developer looking to acquire a development parcel such as this, please call me, Gary Thomas, 305-766-2642 or Phil Wilson, 305-394-4105. We are both full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. Phil Wilson has extensive commercial sales and leasing experience. Together, let us help you find your investment opportunity in Paradise.

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Shopping Lessons

I am bored with TV. The over-paid programming executives (except for the USA Network!) have ruined TV. There is nothing new and plenty of old that has been re-furbished to look "new". I watched the trailers on the new ABC TV program called "V" and thought I had seen all of this before. I did. About 20 years ago. Reality TV is cheaper to produce so we get to see races and hear the filthiest insults from so called adults acting worse than children. Why in the world would I ever want to buy their designs or eat their food is beyond me. And HBO, once my favorite place on TV, has grown old and wary. I am paying well over a hundred dollars a month for cable TV and getting little that really interests me. That is until I found the Sundance Channel's new series "MAN SHOPS GLOBE".

The program follows Keith Johnson (buyer-at-large for the Anthropolgie stores) as he goes around the world looking for antiques and objects that he can take back to the US where his company can either use them as marketing displays or as a prototype that can be reproduced for resale. He seeks out things that nobody has seen before or he creates new things by re-interpreting old things. Example: on a trip to Belgium he found a beautiful old wood headboard with lots of character. Nothing new about that. But he found this talented graffiti artist and told the guy to create. I know we have all seen painted furniture, but what this kid did was entirely different.

Keith Johnson tells the viewer the purpose of each destination and the general types of things he seeks. On his trip to France he wanted a few really grand one-of-a-kind pieces that could be used as major display items in the Anthropologie stores. He shared his frustration with over-priced items in Paris. He took us along to Avignon to the flea market and later to an artists studio. He gave up a lot of information on price negotiation methods. I'm not sure he really should have done that. His negotiating style was definitely worth watching.

The series' official website MAN SHOPS GLOBE has lots of helpful information about each destination Keith Johnson visited. There are useful links and some great photographs that provide more detailed information for someone like myself who was just totally taken by this series. You can watch full episodes ON DEMAND or when they appear on the Sundance Channel.

Keith Johnson is quoted as saying

"The flea markets in France are legendary. The best part of the Saint-Ouen Flea Market in Paris is the Paul Bert Section. It has the most decorative things. My advice on buying is to ask yourself, "How much is this worth to me?" Then bargain, be fair and be willing to walk away. The truth is that you'll only regret the things you don't buy... you'll never regret what you do buy. In the context of the market, surrounded by similar objects, a piece may not seem special. That's the hardest part of being a buyer - taking things out of context."

The thing I appreciate most about Keith Johnson is his collegial style. He's obviously successful but he does not come across like some know it all that talks through his teeth with disdain for little people. Instead he asks opinions of others and gives them the opportunity to create.

Go to the Food Network to learn how to cook something or watch DYI to learn how to fix something. But if you want to learn how to shop and get something you really want, watch "MAN SHOPS GLOBE" on the Sundance Channel and take shopping lessons from an expert. If you are thinking of buying a place in Key West keep Keith Johnson's admonition in mind "The truth is that you'll only regret the things you don't buy... you'll never regret what you do buy."

If you want to go real estate shopping with a Keith Johnson wannabe, 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. in Key West, Florida.

1223 Royal Street - Key West

1223 Royal Street is a small Key West compound, an investment property, if you will. It is offered for sale at the asking price of $524,900 or $393 per sq ft. This is how the listing Realtor describes this property:

"Behind the privacy of the wood fence sits a very private very Key Westy compound. 1/1 in the front with a stone path leading to 2/1 plus loft in the rear. Lovingly cared for with etched glass, cathedral ceilings, wood floors, built in shelving and French doors opening to a yard with room for a pool.This legal duplex has two electric,garbage and sewer accounts? Central air through out."

You may not recognize the neighborhood or the area by the address. El Siboney Cuban Restaurant is located down Catherine Street two blocks to the east. And Duval Street is four blocks to the west. St. Mary's of the Sea Catholic Church is two blocks to the north. The Atlantic Ocean and South Beach are a five minute walk to the south.

CLICK HERE to read more details on this property and to view photos of the interior and grounds. The lot is 4278 sq ft (46' x 93').

If you are familiar with the street numbering system in Key West you will know that most odd numbered houses are on the east side of the street. 1223 Royal Street is located on the west side in this block. Key West planning officials do this just to keep everybody on their toes. (There are two Thompson Lanes which are located about a mile apart. Planning did that to drive taxi drivers crazy.)

There were three sales in this same block earlier this year. CLICK HERE to see what sold and the prices paid. 1223 Royal has been used as a vacation rental so I am not sure it really compares to any of the properties that recently sold. I have not been inside of this property so I can't add much to what the listing Realtor has provided. If you are looking for an investment property you may want to see 1223 Royal Street.

1039 Buttonwood East - Sugarloaf Key - Waterfront Property

What can I say. Look at the photo of the little boat and the big ocean all within view of 1039 Buttonwood East on Sugarloaf Key at Mile Marker 17. This property is a new listing of Preferred Properties. The listing agent describes the Buttonwood property this way:

"Open water beauty on Sugarloaf Key. Two bedroom, two bath CBS home on huge private lot with SE exposure. Tile floors, vaulted wood ceiling, new kitchen, covered deck overlooking beautiful open water. Direct access to ocean with no bridges. Dock permit is included."

CLICK HERE to read more detailed information on this house and view some great photos of the interior and the waterfront views that this house offers every day of the year.

1039 Buttonwood East is offered at $614,900 or $385 per sq ft. The house was built in 1975 and has 1686 sq ft of living space on a huge 14,972 sq ft lot. CLICK HERE for an aerial view of the house and its relationship to the water and surrounding homes. There are two bedrooms and two baths. The property has a seawall. Interestingly, the Monroe County Appraiser added this note to the Appraiser's Records "GOOD VIEW". And Howdy!

If you are looking for a waterfront property with a "good view", please call me, Gary Thomas. I can be reached at 305-766-2642 or by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in beautiful Key West, Florida. We are an affiliate of Christie's Great Estates.

Million Dollar Babies - Key West

I hosted an open house yesterday 1502 Petronia Street in The Meadows CLICK HERE. The property is currently priced at $975,000. It was originally priced at $1,795,000. It is now bank owned and priced to sell. There was a good turnout of "lookers" and there were some actual buyers out and about finding what they could get for their money.

One particular man looked around the property 1502 Petronia Street and said something to the affect "So this is what you get for a million dollars!) as if "not much" or "too highly priced". I had a sheet of similarly priced homes that I gave him so that compare 1502 Petronia Street to the competition.

Later in the afternoon I was driving some customers back from a showing. As we drove through Old Town the gentleman said he did not want to go through another renovation. He said he and his wife had gone through two and that was enough for a lifetime. He said he would rather spend more money and get exactly what he wanted.

I think there are a few properties located in Old Town that if purchased at the right price could become million dollar properties not too far into the future. Old Town followed by Casa Marina and then the Meadows are the most desirable areas for second home buyers in all price ranges.

I can't tell you how much any renovation will cost because each property is different. Depending on the property, HARC (Historic Architectural Review Commission) could be restrictive as to what it would permit. The lot size or configuration might also limit what a new owner could permissibly do on a renovation without getting a variance. I suggest that buyers talk to a local architect and to go to the building department to discuss in general terms what might be possible on any given property. The point of both conversations is to provide a quick education as the process one goes through and to get an idea on potential costs. Then the buyer can decide between a project property or one ready to move into.

I created a quick shopping list CLICK HERE of homes in Old Town, The Meadows and Casa Marina priced around a million dollar. Interspersed in that list are a few houses in good locations that have the potential to become million dollar houses.

I wrote about 911 Watson Street before. It could be incredible! The house itself is pure "Old Key West". And the lot is lush with all kinds of trees and plants. But it's gonna take money to renovate. (529 Olivia was added by accident and I am too lazy on Labor Day to remove it.) I wrote about 1000 South Street (it is another house where Ernest Hemingway once lived) and,if purchased at the right price, this house could be another great property.

A few months ago I wrote about 825 Southard Street. This house is next door to Michael's Restaurant to the east rear of the house. That is a serious locational minus to some buyers. And there is a cottage at the rear that is price around $300,000 that is a burden to this property. 825 Southard Street would have sold in a heartbeat, maybe more than the current asking price, if it were not for that cottage. This could be a great renovation if a buyer has the money to purchase both. Then you get to add in the costs of renovation and the property is well over the million range.

1415 Pine Street is a big house with potential. The house next door at 1411 Pine Street CLICK HERE is spectacular. It is priced at $2,495,000. Other houses on the blocks are much less expensive, but the location is really good.

A couple of weeks ago I wrote about 919-921 Southard Street. It is currently a multi-unit property that needs total renovation. I would try to get permission to tear the whole thing down and build all new. Since that is highly improbable, the next best approach might be to leave the facade and build all new beyond it. The lot is very large. My thought is that one could build a $400,000 new house on the lot, put in a $35,000 pool and add $15,000 worth of landscaping. The location would justify the cost. If HARC permitted it.

800 Elizabeth Street is burdened by those small cottages at the rear. If only they could be demolished that lot and that house have great potential. But getting permission to demolish those cottages would not be easy.

In the end I suspect a buyer would end up paying around a million dollars for any of the houses on THIS LIST. Renovations are not cheap nor are they quick. But the homeowner will get what they want (or are willing to pay for) in the end. I know that buyers can probably get bigger houses on bigger lots elsewhere. But then you wouldn't be in Key West, would you?

If you are looking for a place in Key West please consider contacting me, Gary Thomas, 305-766-2642, or by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc. We are an affiliate of Christie's Great Estates.

August 2009 Real Estate Sales Report - Key West

It ain't over till the fat lady sings. But she's heading for the mike.

There were 18 single family home sales in Key West during the month of August. Sales prices ranged from $280,000 for a 1240 sq. ft ranch on Harris Street in Mid Town to $1,795,000 for a 3600 sq.ft. waterfront property on Shark Key (sold by Preferred Properties). I eliminated all non Old Town, Meadows, and Casa Marina area sales to determine an average sales price or $421 per sq ft. That number, however, is misleading because of the disparity among the sold homes. Two of the sales were short sales and one (1119 Von Phister St.) was a bank foreclosure. (Congrats to Walt & Mitzi.) By comparison there were 11 single family home sales in 2008 at an average price of $512 per sq. ft. Two of those sales were short sales and, again, one was bank owned. The price per sq ft was skewed a bit because one of those sales included the Thompson Estate that sold for $3,312,500 or $912 per sq. ft. And in 2007 there were 16 single family homes sales (two bank owned properties that I know of) that sold for an average price of $545 per sq. ft.

Key West had 17 condo and town home sales in August 2009. Three were identified as short sales and five were bank owned. The average unit sold at $258 per sq ft. By comparison there were 8 condo and town home sales in 2008 with an average price of $425 per sq ft. (Sad to report one of those has become a new short sale in 2009!) In 2007 there were 4 sales at an average price of $589 per sq. ft. (other than several sold by the developer of the Beachside Resort that sold way over $1 million each).

There have been 46 new single family home listings that have gone under contract that are now shown as contingent or pending in since August first. Twenty of those listings are short sales and six are bank owned properties. That sounds discouraging, I know. But five of those contingent or pending sales are for properties priced at over $1 million with an average asking price of $715 per sq. ft.

Interestingly there are 36 condos and town homes shown as contingent or pending since August first. Twenty-four of those are shown as short sales and two as bank owned. One of the number is a market priced uber-expensive unit at Key West Beach Club. (That is important. Maybe, just maybe, the Beach Club will bounce back now. One bad sale can drive prices down. One really good sale can drive sales back up. Here is hoping!)

There has been a flurry of sales activity during the past month. If you have been sitting on the sidelines waiting for the fat lady to announce the end of the down market, get up off your backside.

If you are a potential buyer and have not picked your property or better yet your Realtor, CLICK HERE to search the real Key West Association of Realtors mls website. If you see something you like, please contact me, Gary Thomas, 305-766-2642 or kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in beautiful Key West Florida.

See Click Fix

I have added a link above to a website that may interest some readers. http://www.seeclickfix.com/ is a citizen powered 811 service (non-emergency govt issues). With it, people can report problems that others can fix, or the local govt can keep tabs on.

Okay citizens of Key West, click and fix our city and country government. And our Monroe County School Administration. While you are at it, give President Obama some much needed help in getting the Public Option into health reform. And finally, would somebody get some government money to repave A1A (South Roosevelt Blvd.) from the airport back into Key West. SeeClickFix!

How Gay was My Villa?

It's a free world (at least it is here in Key West) where people can and do just about anything and everything they want. We all seem to get along. And except for some do-gooders that sit on some public commissions, we all try to stay out of each others "business".

One of the really great things about my job is that I get to see inside so many Key West homes. Some places amaze me. I go home and start to clean, or paint, or redecorate. Others make me feel pity for the sad souls that live in helpless hovels. I have been inside more than enough places that reek of urine but that are inhabited by human beings. I have had to move sideways through rooms filled with years of accumulated trash. And I wonder what in the world is wrong with the people that live there.

I have been in multi-million dollar properties that exude an ambiance most of us can only dream of. But more regularly I get to see some really nice homes that are comfortably decorated with Key West flair. You can't by flair in a store, but you know it when you see it. Many of the chicest of homes are gay owned have the look and style buyers want. But then the buyers get the drama of trying to negotiate with royalty.

And there have been a few occasions I have shown houses that are just a gay as gay can get. The most memorable gay house was located in the Meadows area. I showed that house several times a few years back. It had the obligatory statue of David near the pool. There were statuettes, oil paintings, charcoal prints,and etchings of nude and semi-nude males throughout the house and garden. Every square foot had some form of art that paid homage to the naked male figure. After months of not being able to sell the house, the listing Realtor finally persuaded the owner to store some of the artwork off property. A few years later when that same house was for sale again I actually noticed what terrible shape it was in. The naughty artwork from before had distracted my attention from the condition of the property itself. But it did the same thing to my potential buyers because nobody was ever interested in seeing that place a second time.

One gay man asked me to look at his house to discuss listing it. Key West was in the height of the real estate boom.I might have got the listing had I not told him to take down the huge and virtually nude portrait of himself that hung above French doors leading to the back yard.

There was also that time I was in a really nice home located at the dead end of a Key West lane to discuss listing the house. The owner and I were standing in one of two master baths discussing the features of the house when I spotted it. The DILDO! I lost my voice and the ability to put words together. Decorating with dildos is a no-no.

I have seen enough mannequins dressed in drag or adorned in leather posed in the corner of a room or next to a window that I don't even take a second look anymore. But my buyers do.

Mannequins are one thing. Slings are another. I wrote in my blog about "The War of the Roses" house. I showed it several times. The name I gave the property was derived from the ordeal the two gay owners were going through in the split of their personal lives and their real estate investments. But I had to laugh at the extra bedroom that was set up as a dungeon complete with sling. Most of my buyers did find that room very interesting.

A few weeks ago I showed a house I had written about in my blog. The owners have left town and the place now has a long term tenant that has turned the place into his own comfortable gay love nest. I say that kindly. The tenant is as sweet as he can be. The place is immaculate. Let's just say the walls of the master bedroom and master bath are decorated primarily with photos of naked gay porn stars. I think it would be very difficult for a normal straight couple to imagine living in this house because of the huge collection of gay porn photos and other gay decorations throughout the house and near the pool. God, I must sound like some prude!

Call me old fashioned. I grew up in the 1950s when gay decorating was -- different. But what the heck. This is Key West. It is okay to be gay here, and it is okay to decorate your home or garden anyway you want.

If you are thinking of buying a place in Key West and are looking for a gay Realtor, call me, Gary Thomas, 305-766-2642 or contact my by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. Living life in Key West is just great. I could care less how you decorate your villa as long as you are happy. However, sometimes it might be a little easier to sell the place if you hide your porn and stow away the dildos. lol

Are We There Yet?

People ask me if we have reached the bottom of the real estate market or if I think we almost there. It's like a kid asking "Are we there yet?". The uncertainty of the market drives some would-be buyers half nuts. They want to buy, but they don't want to pay too much. They want the deal of a lifetime without having to worry that someone else may get a better deal by waiting a little longer. It's like sitting in a hospital waiting room. You expect the worst and hope for the best. I guess more people prefer some finality over more uncertainty.

The chart above was borrowed from The Catherine "Cathy" Chaudemanche Team at Keller Williams Realty on this same topic. CLICK HERE to read that concise and very well written essay on real estate market cycles. The writer asked the same question as I did, but more artfully: "Which Real Estate stage are we in today?" I don't know when she wrote her piece but she gave an anecdotal account of where she perceived her local market at that time. She perceived her market was still in the Despondency and Depression stages.

I have been writing for some time now that most of the inexpensive properties have been put under contract. Those properties include numerous short sale houses, condos, and town homes in the Mid Town, New Town, and numerous Stock Island communities. Bank owned properties all over the Key West area seem to go under contract soon after they being listed if they are priced correctly and marketed properly. Bank owned properties that do not sell right away may have some underlying problem that continues to make the individual property difficult to sell. Finally, some upper-end properties are selling very quickly because of their inherent perceived value (location, design, construction, amenities, price, etc.) as compared to other similar properties.

I have noticed a resurgence of an almost buying frenzy starting to occur on some properties. Places that sold within the past few years for high prices that get listed as a short sale or bank owned property often go under contract within days if not hours of being listed. Many Realtors have clients waiting for that too-good-to-be-true buying opportunity.

Something else has just started to happen: price increases. There have not been enough increases to call it a trend, but there have been enough to note that not all properties are being marked "down".

Reuben Concepcion of Keys Financial sent out his take on the market a couple days ago. He said:

"The Federal Reserve left the key Fed Funds rate unchanged today. However, that’s not the important part of the story.

The Fed has been purchasing hundreds of billions in long term treasuries and mortgage backed securities this year as part of an effort to drive down long term interest rates – i.e. MORGAGES, and therefore help the real estate market recover.

They announced this program will come to an end by early October and will not be extended.

Rates have been artificially subsidized to the lows we’ve seen this year largely as a result of this government buying. Therefore, expect upward pressure on long term mortgage rates in the near future.

Additionally, the “positive” (not as terrible) economic news coming out (lower unemployment claims, etc) is helping the stock market rally, which also creates upward pressure on mortgage rates by moving money back into stocks and out of bonds."

I have been fortunate to have some "all cash" deals and some traditionally financed deals during the past year. I would love to see the low cost money continue, but I realize it probably will not.

If you read my blog regularly you have seen that I have mentioned many really nice properties that once sold at high prices that are now offered at significantly lower price points. I usually refer to these types of properties as buying opportunities. Sometimes I even call them bargains (as compared to previous prices or as compared to similarly priced properties that I subjectively view as inferior or too highly priced). Some readers and commentators may feel the Key West market will continue to fall. I don't know the answer. Nobody does. I monitor the County Clerks records and I know that more foreclosures are on the horizon.

What I do know is that the Island of Key West has a finite amount of permanent housing. Real buyers are now purchasing as opposed to sitting in the waiting room. If you look again at the above chart I think the Key West real estate market is somewhere between Hope and Optimism. There are enough indicators that we are no longer in the Despondency and Depression stages.

If you believe we are on the road to recovery and want to buy a place in Key West, please contact 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. in Key West, Florida. CLICK HERE to search the Key West Association of Realtors mls database. Get your place in Paradise.

631 Southard Street - Old Town - Key West

Here is another real deal. The problem is you need to be kind of rich to afford it. But there are still lots of rich folks in America and some of them are looking for homes in Key West. If you are among that lucky bunch, you might want to consider 631 Southard Street that was just listed for sale at $1,995,000 or $785 per sq. ft. The listing Realtor describes the property this way:

"Elegant, Sophisticated, and Luxurious Historic Home on Solares Hill in the Heart of Old Town Key West. Fully renovated and restored with an eye for perfection and quality. Beautiful kitchen with Jenn-air and Fisher & Paykel stainless steel appliances. High ceilings, hardwood floors, bedrooms with bath ensuite,laundry room, and open floor plan with finest details throughout. Huge tropical lot with lush vegetation, heated pool, spa and outdoor living room with privacy galore. Newly renovated guest cottage CLICK HERE offers glass tile shower room, open floor plan for easy tropical living. Off-street parking, full house generator, wrap-around porches and custom made Ipe' shutters. A Luxurious Residence in the Heart of Historic Old Town Key West."

This house is such a charm to show. The downstairs combined living-dining areas work so well for the relaxed Key West lifestyle. The French doors look out onto the gardens and pool. And unlike a lot of older Key West homes, the view is bright and cheerful on all sides. That corner location provides nice morning light on the east and the extra large yard provides sun for the pool and gardens. CLICK HERE for more details and some great photos of this special property.

631 Southard Street is located at the corner of Southard and Elizabeth Streets--just two blocks from Duval but only one block from 5 Brothers CLICK HERE to the east or Sarabeth's CLICK HERE and Nancy's Secret Garden that is hidden at the rear of Free School Lane CLICK HERE. Fausto's Food Palace CLICK HERE is a two block walk and the Key West Cinema CLICK HERE and The Red Barn Theater CLICK HERE are about three minutes away by foot. (The Waterfront Playhouse CLICK HERE to see a "chick play" is about a ten minute walk because you have to walk through hordes of tourists!) The Historic Key West Seaport CLICK HERE is five minutes by foot. So you see you cannot beat the location. The house is near everything important.

I represented some people that tried to buy this house back in 2004. My buyers offered $2.8 million cash and the then seller turned them down. The then seller eventually sold to the present owners for a lower price. Such is the fate of market timing. Greedy bastards sometimes lose even in an up market.

The present owner has put a lot of time and money improving this already superb home. If you are looking for a second home in Key West and want the lifestyle, the excellent location, and the amenities 631 Southard Street offers, please call me, Gary Thomas, 305-766-2642 to arrange a showing. I am a full time Realtor at Preferred Properties Coastal Realty, Inc., an affiliate of Christie's Great Estates.