Dramatic Price Reduction - Casa Marina - Incredible Value

The asking price on 906 Johnson Street in Casa Marina area is now $1,769,000.

CLICK HERE to to read more about 906 Johnson Street. The "bank" has set this price. This is not wishful thinking. This is the opportunity for a buyer with big bucks to score a grand property at an incredible price.

CLICK HERE to do a price comparison for other similarly priced homes. I have written about some of these homes before. But at the new price of $476 per sq ft, the price of 906 Johnson Street is just too hard to beat.

Please call me, Gary Thomas, 305-766-2642 to schedule a showing. Preferred Properties Coastal Realty, Inc. is the listing broker on this wonderful home.

Reversal of Fortunes - Key West Real Estate

People are funny. They always want what they can't have. Little kids want to grow up; adults wish they were younger. They buy giant SUVs that cost moola money; they trade in clunkers for cash which could be as rash. They admire the body of Adonis; they continue to eat at Abbondanza. They see a "wet paint - don't touch!" sign and tap the spot on the dot. They dream of owning a place in Key West; they scorn a deal that could seal their fate.

Between 2004 and 2006 when real estate developers were going hog wild building new properties from one end of Key West to the other, this town of ours was hoping. Since Key West has a limited supply of the kind of places most second home buyers theoretically want, developers did what they do: they developed--the best! Because of its limited land size, lot density requirements, height restrictions, HARC guidelines, and State of Florida imposed limited new residential construction permits, the developers constructed numerous high end properties. While each was different, they were all pretty much the same in that they were designed to appeal to our inner snobbery. Location, amenities, high price tags were the common bond of these Key West properties.

Developers envisioned big projects with big profits. Some were built. But not all of the projects broke ground. Other projects were stymied by lawsuits by neighbors protesting developments they did not want. Harbor House Condominiums is a multi-million dollar example. The delays cost the developer valuable time and racked up huge legal fees. When construction finally started, the market had already started to fizzle. There is a story in today's Key West Citizen CLICK HERE about a code violation of a construction fence surrounding the the now "abandoned" project (see photo above taken this morning). Another example was the proposed condominiums at Atlantic Shores. Delays there caused the project to instead became more hotel rooms at Southernmost on the Beach Resort. There was major erection dysfunction.

But some of the projects did get built. Parties were given to introduce the people of Key West to the new developments. I even wrote about a few of the parties I attended when I started this blog. I knew at the time that there were too many high-end projects and not enough buyers. Most of the units built were 1500 square feet or larger. Most had private pools, designer kitchens, three bedrooms and bathrooms, and enough amenities to lure buyers into spending two million dollars for a vacation home in Key West. Most of the new construction did not get purchased. Some of the few that were purchased have since become or will become short sale or bank foreclosures.

The fact that most of the units that were built were not purchased should not surprise us. Even if there was a real demand for so many elegant units, I think it was foreseeable that there would not be enough ready, willing or able buyers to pay the outrageous prices. Many lot of the units that were built during this time period are now offered at much lower asking prices. Some owner/developers or lenders have turned unsold units into vacation rentals and await a real estate market rebound.

The thing that strikes me funny is that buyers who lusted after units priced at $2,000,000 now scoff at the idea of paying perhaps half the price. That same buyer's "logic" applies equally to single family homes, especially the well located and tricked out houses in Old Town. The properties they coveted are now marginalized.

You may have seen the story about the family that is the sole tenant of a 32 story condominium in Ft. Myers CLICK HERE That family was on the evening news yesterday. As I watched the report I looked at the building and thought to myself that the building and dozens, maybe hundreds, of similar buildings are located across Florida and that they all face a common future: it will be years and years before all of those units get filled. But Key West has never been and never will be like the rest of Florida. There is a limited supply of houses and condos. My advice to would-be buyers is to buy now before the market correction is complete. Because prices will rise and property in Key West will cost more. I have already heard of bidding wars going on for lower priced units at some condominium and townhome developments. Some developers are now exercising their right of first refusal.

CLICK HERE to search the Key West Association of Realtors mls database. If you see something you like, 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 beautiful Key West, Florida.

Southard Street Selections - Old Town - Key West Properties

Just listed (but not by me) 530 William Street in the heart of Old Town Key West. This house was purchased in 2008 after just 21 days on the market. Perhaps the great location and beautiful architecture had something to do with the property selling so quickly.

This is how the listing Realtor describes 530 William Street:

"Elegant Historic Home located in the most desirable area of Old Town. Large spacious rooms in main house. Downstairs has Formal living dining, eat-in kitchen, 2 bedrooms 1 bath. Upstairs also full kitchen 2 bedrooms and 1 bath. Two meters with seperate heating and cooling units. Easily converted back to a grand single family home. Also, included 725 and 727 Southard Street cottage. Each is Living room, 1 bedroom 1 bath and kitchen. total of 4 units. Grand home in great condition. Well maintained. Must see to appreciate."

530 William and the adjacent two cottages CLICK HERE occupy the northwest corner of William and Southard Streets. The listing Realtor states the properties have 3276 sq ft of living space and sit on a 4455 sq ft lot. There are six bedrooms and four bathrooms. The asking price is $1,645,000 or $502 per sq ft. There is no pool nor room for a pool. And there is no off street parking. CLICK HERE for more information on this property and to view more listing agent provided photos.

The big old Great Dame across the street at 730 Southard Street CLICK HERE is still on the market. It is now priced at $1,490,000 or $525 per sq ft. It is a fixer for sure. The house size and lot size provide ample opportunity for creating a great living space for the rest of this new century. This is one of the great Key West houses and it is truly a buying opportunity.

The cute as a button cottage at 723 Southard Street CLICK HERE is also still on the market. It has been reduced to $749,000 or $681 per sq ft. This two bed twp bath cottage is just too sweet and should meet the needs of a buyer who wants a Key West retreat complete with pool and charm. No "fixing" required here.

And the lovely recently renovated two bed two bath cottage at 712 Southard Street CLICK HERE has been reduced to $829,000 or $808 per sq ft. The large pool and rear living area CLICK HERE is just awe inspiring.

Each of the houses in this block offer something a bit different and may appeal to different buyers. A buyer wanting income to help pay for the cost of ownership may be attracted to the 530 William Street assemblage. A buyer that wants to make a mark on Key West surely would be interested in 730 Southard Street. Someone wanting a cozy Key West cottage with everything done just might fall in major love with 723 Southard Street. And that buyer who wants a large pool and total privacy could just as easily fall madly, crazily in love with 712 Southard Street.

Tomorrow I am going to write about the real estate sale for July and give my opinion, such as it is, about what has happened recently and where I think the market may be headed. If you are truly looking for a deal in Key West, consider the four properties mentioned here today. They share a great common location that is convenient to everything that Old Town Key West offers.

Please give me, Gary Thomas, 305-766-2642 a phone call, or e-mail me 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.

Major Casa Marina Short Sales - Key West Florida

I have written about the two new houses located at 727 and 731 Waddell Avenue in the Casa Marina area on several occasions. The houses were built in 2007. 731 Waddell Avenue is located at the corner of William Street and 727 Waddell Avenue is located next door to the west. Both properties are now each offered at the short sale price of $1,799,000 or $642 per sq ft.

This is how the new listing Realtor describes 731 Waddell Avenue:

"Casa Marina Beauty...circa 2007, this solidly built home features impact windows, hardie plank siding, a custom kitchen, double decks off the front and back, first floor bedroom and bath, and a generous great room to stretch out and relax. The second and third floors all have bedrooms with bathrooms ensuite. Sitting on a large corner lot with plenty of convenient off-street parking, a heated pool and spa with an elegant water feature and a mature landscaping presentation all contribute to this terrific home and the Key West lifestyle. This is a potential short sale and may be subject to 3rd party approval."

Each house is virtually the same except for the floor plans which are flip-flopped. The listing Realtor shows the houses have approximately 2800 sq feet of living space on a 5000 sq ft lot. Five bedrooms and five baths are unheard of in Key West. These are houses that can actually accommodate owners with large families or friends. No more sleeping bags or futons will be required. No more over-crowded bathrooms to endure.

The size of these two homes really set them apart from other new construction in Key West. The physical size and interior living space is bigger than just about any other new property in all of Key West. The lots are large. The interior and outside spaces are well thought out and are user friendly. Each bedroom has its own exterior porch. CLICK HERE for more detailed information on these properties and additional photos.

The beaches are one block away and Duval Street is a five minute walk to the west. I took THIS PHOTO and THIS PHOTO this morning. Both pics were taken one block away from 727 adn 731 Waddell. Theses houses are close to everything but far enough away for you to enjoy the peace and quiet of the Casa Marina area.

Please call me, Gary Thomas, 305-766-2642 or email me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. We area an affiliate of Christie's Great Estates.

What Are You Doing the Rest of Your Life? Will You Spend "It" in Key West?

When I found the photo above of a ship coming into Key West I was reminded of one of my very favorite songs ever, Michel Legrand's "What Are You Doing the Rest of Your Life?". Of course the lyrics deal with one's desire to spend the rest of his or her life with that special someone. But if you think about the lyrics and add in how to spend the rest of your days, that melody may evoke that yearning that so many returning visitors to Key West have: to spend the rest of their lives in Key West.

We have our problems in Key West. If you follow the politics in any of the Key West newspapers, you know that our politics are always interesting and that some of our politicians even end up on the crime page. We have our bouts with bad weather. But most of the time the weather is just wonderful. When I tell people I actually enjoy the rain, they think I am nuts. But most locals enjoy the occasional bad days. Conch Trains and tourists on motor scooters honking their horns are my biggest annoyance in life. If you live someplace with problems worse than crooked politicians, an occasional rainstorm, or tourists who toot their own horns too often, maybe you should consider buying a place in Key West where you can spend the rest of your life.

I fell in love with Key West on my very first visit. It took me nine years to eventually buy my first place. I regret that it took me so long because each year I wasted trying to get the "best deal" prevented me from achieving my ultimate goal. When you consider how many years you may really have in the "rest of your life", how many thousands of dollars is it worth to you to get to the point where you can make your move here?

When somebody young and famous dies accidentally or because of some disease, I remind myself how fragile life is. When you are gone, you are gone. That is it. You get one shot. If you are religious maybe you get a second shot in heaven. But your shot on earth is over. If you are fortunate enough in life to be able to make choices, where will you spend "All the nickels and the dimes of your days"? Will it be someplace cold up north in a city filled with people, cars, commotion, smog or whatever? Or will it be in little Key West where you can walk from the Gulf of Mexico to the Atlantic Ocean in about 30 minutes? Or where you can watch a dog ride a bike or some zany Key West character living his life out loud.

CLICK HERE to search the Key West Association of Realtors MLS database. If you see a property that interests you, please call me, Gary Thomas, 305-766-2642. Let me help you make "the reasons and the rhymes" of your search to spend the rest of your days in Key West.

922 Thomas Street - Bahama Village - Key West

The Old House at 922 Thomas Street in Bahama Village needs a new owner. It needs an owner that has vision, some cash, and a good contractor. And, oh yeah, a green thumb would be really useful. CLICK HERE to see the listing info and a couple of listing photos.

922 Thomas Street is a very modest two bedroom one bath house with 821 sq ft of living space. There is some new vinyl siding on the outside and a few windows have been replaced. But not all of the windows match, and though the house is perfectly usable as is, it could be so much more. The property is priced at $350,000 or $426 per sq ft.

Before you start to chime in and saying "Gary you have lost your mind!" consider this: the lot is huge for Old Town (58' frontage X 139' depth), or 8004 sq. ft. CLICK HERE to view a not so good photo that shows the depth of the property. There are two fences. The first fence at the back of the house is covered in green vines. The actual property line extends another 50 or 60 feet beyond that fence to the barely visible fence at the the very rear. The lot is enormous and the property size is where I see potential. There is plenty of room to greatly expand the current house, add a pool, put in some off street parking, gate the driveway and put up a white picket fence in front. But it is that space to the rear that just really intrigues me. There is room for a corn crop for now and hold the ground for future development.

Also you need to consider the neighborhood. I took some photos of the adjacent properties to help you both recognize the location and to see who the actual neighbors will be. Next door to the south CLICK HERE is the Bethel AME Church on the corner of Thomas Street and Truman Avenue. There are two single family houses just west of the church CLICK HERE whose small backyards abut the rear portion of 922 Thomas. They currently have no room for a pool. But someday the owners of those houses may really wnat to have a pool. The property immediately south of 922 Thomas Street CLICK HERE is a smartly remodeled home that is owned by a judge. (Notice the bricked driveway.) There are three additional properties directly across the street that are equally smartly remodeled. CLICK HERE, CLICK HERE, and CLICK HERE to see these properties. Each of these properties are as nice as almost any property you would see in Old Town. At least half of the homes on this block have been nicely redone.

I know there are buyers out there looking for project properties. 922 Thomas Street has a lot of upside potential in my opinion. The house is tenant occupied so we need at least 24 hours notice to schedule a showing. I think this house is definitely worth a look. If you would like to see this house, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty in sunny Key West, Florida.

1800 Atlantic Condominiums - Key West Florida

There are a total of 14 units available for purchase at 1800 Atlantic Condominiums in Key West. The aerial photo above together with the photos of the pool and gardens ought to entice you to consider this oceanfront resort type property as a potential second home purchase. In addition to that fabulous Olympic sized pool and spa are the beach, three private tennis courts, garage parking, on sight property management, and 24 hour security. 1800 Atlantic is close to the Key West International Airport, Smathers Beach, and three shopping centers. It is quick jot down to Duval Street and all the craziness.

Smathers Beach is located about 60 seconds west of 1800 Atlantic. CLICK HERE, CLICK HERE, and CLICK HERE to see why it is so popular. At Smathers you and your friends can play volleyball, participate in all kinds of water sports, or just work on that killer tan.

CLICK HERE to checkout the two (only two remain) SHORT SALE units. However, there are 12 other units still available. CLICK HERE to view the remaining 12units. It is really important to read the listing Realtors comments. Many of these units have TRANSIENT RENTAL LICENSES which means you can rent the unit on a daily basis, everyday, for 365 days per year. Some units may be rented as VACATION RENTALS which is different. The City of Key West allows owners to rent a unit one time per month for up to days to one vacationer. The renter can stay one day, one week, or all month. But the unit can only be rented one time during that month. So having a Transient Rental License might make your rental of a unit more profitable than having a unit that only permits use as a vacation rental.

There are three other important factors to note. Each factor may influence pricing and value. (1) Location. Look at the aerial photo again. Note that the road to and from the airport (Bertha Street a/k/a South Roosevelt Blvd.) runs adjacent to Building "C". Most units that front Bertha Street are priced a little less expensively than other locations. Units that have the best views are usually priced higher. Units on the top floor have vaulted ceilings so they may seem larger. (2) Remodeled. Some units are "virgin" and look the same today as when they were built over 20 years ago. Others have been remodeled. Some have been tastefully redone. And some less so. (3) Transient License. The existence of a Transient License does not in itself me you will make money right away. Some units have dormant licenses that the owners maintain to preserve the license, but have not used. If you want to make money, you need to consider buying a unit that has a rental history. Please note that most units are 1357 sq feet in size. However, a few units are larger. So compare size, because size matters in real estate just as it does in real life.

Only two units have actually sold and closed at 1800 Atlantic as of today. CLICK HERE to see those units. But there are three units under contract right now. The number of available units is pretty large. There may be some sellers getting a little anxious to sell what with the dog days of summer and potential storms heading this way.

If you are thinking of buying a second home in Key West and want to have it help pay for itself, please consider using me, Gary Thomas, to be your Realtor. I am a full time Realtor at Preferred Properties in Key West. You can reach me at 305-766-2642 or by e-mail at kw1101v@aol.com.

June 2009 - Key West - Real Estate Sales

A little over a year ago there were just about 1000 active real estate listings in Key West. The number of active listings reflected an over-supply of available properties. Few new properties have been built during the past year. Month by month the number of active listings has been trimmed due to sales of existing properties. There are now 833.

Key West had 23 single family homes sales in June 2009. CLICK HERE to see all the houses that sold in June. Three of those sales were listed as "short sales" and seven were bank owned properties. There is such a disparity among the properties that price per square foot is meaningless.

If you carve out the four large home sales CLICK HERE in Old Town and Casa Marina areas the average price per square foot was $628. These houses are the kinds of properties many dream of owning and few can afford. The buyers got great deals on these properties. In a couple of years people will be saying "I wish I would have bought that place when it only cost $$$$."

There were five smaller home sales in Old Town: 1209 Olivia Street, 1214 Knowles Lane, 405 Frances Street, 822 Eaton, and 1018 Thompson Street. Three of those sales were short sales. When you take the time to scour the active single family home listings for Old Town and the Casa Marina areas you begin to notice one thing: there are not a lot of listings anymore. They supply is shrinking.

Thee were 22 condominium and town home sales in June. Seven of those sales were short sales and another seven were for bank owned properties. The units sold at an average price of $298 per sq ft. The most expensive unit that sold was a corner unit at Harbour Place. It had a real water view and it sold for $670 per sq ft. I wrote about 809 Washington Street when our office had it listed as a short sale. This unit sold for $775,000 or $413 per sq ft. There are other units still for sale in this new complex priced well over one million dollars. The buyer got a real deal. Three units sold at the Key West Golf Club with the least expensive going for just $217 per sq ft. The over supply of Golf Course properties is "over".

If you have been waiting for the market to hit bottom before you make an offer to purchase your dream home in Key West, reconsider your strategy. I can't say for sure that we have hit bottom. But if you look at the few properties actually for sale in Old Town or the Casa Marina area you will see one thing: there are few houses on the market. The properties that are available are either total fixers, fairly expensive, or really expensive.

CLICK HERE to search the real Key West Association of Realtors mls website. Your search will not be tracked and you will not be contacted by anyone. If you see something that interests you, please consider working with me, Gary Thomas. I am a full time Realtor at Preferred Properties Coastal Realty Inc. Give me a call at 305-766-2642 or e-mail me at kw1101v@aol.com.

Watson Up, Doc? Ugh, I Mean Down!

Pardon my trying to be cute with a little play on words. But I wanted to get your attention. This is newsworthy. The really cute cigar maker's cottage at 1117 Watson Street has just been reduced in price to a point where it may make sense to you bargain hunters.

The listing Realtor describes 1117 Watson Street thus:

"This very attractive cigar maker's cottage is located in the Conch Grove Compound. The tastefully renovated home features pine floors, new kitchen appliances, vaulted ceiling and an open, airy floor plan opening through French doors to a large private landscaped garden. Note the large lot. Walk through the private L-shaped lot to a beautifully landscaped yard with heated pool and sundeck. Also note that the upstairs loft (26 ft. x 11 ft) is not included in the square footage."

1117 Watson Street is located two blocks west of White Street and two blocks south of Truman Avenue. The Conch Grove Compound consists of several cottages and single family homes that share a large sunny pool, gardens, and parking. The owner of each cottage or house owns the ground under the property in fee simple. But all property owners share ownership of all of the common areas. As I recall there are only nine units. The shared space seems more like a large private park than a typical condominium or town home pool. Each cottage or house is unique. So the place does not look like a Disney version of Key West. It is the real thing. And I mean that in the most positive way.

Writer James Kirkwood, co-author of "A Chorus Line", was one of the first homeowners in the Conch Grove Compound. Local author David Kaufelt used to live there as well.

You enter the cigar maker's cottage from a door on the south side, not the front door in the photo. Inside you move to the right and enter the shared kitchen and living area with vaulted ceiling. French doors open from the living room onto the privately owned and very cloistered rear yard CLICK HERE and CLICK HERE. That area is surrounded by tall and lush trees and vegetation. It is just too sweet. There is a little path that leads over to the pool. The separation is very marked. You would never know the pool exists unless you wanted to go to it. Likewise, the neighbors can't see what you are doing in your own private outdoor space.

The cottage has just one official bedroom. It is located at the front. The door in the photo does allow access to the front porch. You can sit on the front porch CLICK HERE and watch neighbors walk their dogs or see an occasional tourist riding a bike. There is a loft that can be used as a second (unofficial) sleeping area. It's a bit tight for full time use, however.

1117 Watson Street was originally offered at $599,000. The new asking price is $499,000 or $730 per sq ft. CLICK HERE to see more info and view all the photos of this really cute cottage. This place is not a fixer. It is in move-in condition. It has all the attributes of a single family home plus the partial ownership of that really big sunny pool.

If you are looking for a single family home in Paradise that is priced under $499,000 CLICK HERE to see the other 23 houses in the Key West Association of Realtors database. Do your own comparison shopping. I have written about a couple of those houses. If you would like to schedule a showing of 1117 Watson Street (or any other house for that matter), please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in Key West, Florida.

Going "Realtor"

We are all familiar with the slang term "Going Postal". It originally referred to postal employees that suddenly exploded with workplace rage and committed horrible acts of violence. But it evolved into a description of ever more common sudden, extreme, and uncontrollable acts of rage and violence towards people in the workplace and to fits of rage inside or outside the workplace.

Please understand I am not making light of the awful deaths and personal tragedies that have become a part of the term "going postal". But I am concerned that there is so much distrust of Realtors, bankers, mortgage companies, short sale negotiators, appraisers, Congress, and "investors", that the distrust and frustration will turn into similar acts of violence towards this group.

One Monday many years ago when I was a young lawyer working in a suburban Denver law firm, I arrived at work very early only to find that the glass front door to our office had a shotgun blast through it. One of the partners had been representing a woman in a nasty divorce. Her estranged husband had called the partner's house and warned that he was going to kill the lawyer. I surmise the shotgun blast was meant as proof as to how much the husband hated his wife and his wife's lawyer.

The economy is in a mess. People get crazy and do things that are completely out of character when they feel powerless. Lives are falling apart. Men may lose their self-esteem and see themselves as failures. Women have to work harder and longer and fear more for the well being of their children. Nobody knows how it all will end and everybody is fearful of what horrors may befall them. They get a legal notice posted by the Sheriff that reads "Lis Pendens". Foreclosure has been started. Consider the following.

Seller owns a property he cannot afford. Seller can no longer afford the mortgage payments, insurance, taxes, and utilities. Why should he even try because the property is not worth what it cost a few short years ago. Many neighbors are losing their houses in foreclosure or are trying to short sell them. Seller finds a Realtor to short sell the property.

The listing Realtor enters the Seller's property into the mls database as a potential short sale. The term potential short sale conjures up the image of a "deal" to many potential buyers.

Buyer looks at the property and makes an offer on the house. The Seller accepts the offer which is conditioned upon the formal approval of Seller's lenders. The contract normally requires the lender to accept less than face value of the amount Seller owes to lender and precludes the lender from pursuing Seller for a deficiency.

The contract is delivered to a short sale negotiator hired by Seller to persuade the lender to accept the short sale offer. Weeks and often months pass. Nothing happens.

Time passes and e-mails and phone calls go from principal to agent, from agent to negotiator, from him to her, and all go nowhere--slow. Very slow.

The mortgage company negotiator complains it did not receive all the documents that are needed. The short sale negotiator goes back to the Seller or Seller's agent requesting more information. Days pass. Documents get prepared and faxed, and paper trails of the financial affairs of Seller get traded back and forth between agents and negotiators. Documents get "scanned" onto the computers of the mortgage lender far away. The mortgage company is all powerful and demands its procedure be obeyed on its timetable. Piss off one peon at the mortgage company and get screwed for life. So do what they demand and shut up. You can't complain to the supervisor because everybody there is anonymous. Or so it seems.

Procedure for approval of a short sale contract includes obtaining a broker price opinion ("BPO") which is ordered by the lender. Supposedly a disinterested third party Realtor will do a drive by appraisal of the property and send an opinion of value to the mortgage lender. If the BPO amount seems reasonable, a formal appraisal is ordered. (Consider this, however. If the party doing the BPO also happens to regularly "list" bank owned properties, could that party be giving mis-information to the mortgage lender that would cause the lender to disapprove the short sale and thus permit the foreclosure to ultimately occur? Does this procedure ensure confidence or distrust?)

Mortgage lender is being asked to forgive thousands of dollars in debt. It then engages an appraiser to determine the current market value. Appraisers have their jobs on the line and are busy chasing values in a declining real estate market. Fannie Mae has drawn up new guidelines that require lenders not to have direct contact with appraisers. Third parties now select "random" appraisers. (Another level of intrusion into the process because of governmental distrust of the players.)

Key West is known for its quirky houses and neighborhoods. Out of town appraisers often have to travel here from Miami and Fort Lauderdale to appraise potential short sale properties. Makes a lot sense, I know!

The process can seemingly go on forever. Some short sale properties permit the seller to accept multiple offers on the same property which are then all submitted to the mortgage lender. That process really creates distrust by Buyers towards the Seller, the Realtors, the appraiser, the mortgage lender, and everybody else that has anything to do with the process. The process is viewed as imperfect and corrupt, and all of the players in the process may be viewed as being corrupt. And in real life there are can be some really corrupt people involved in this imperfect process.

Realtors can, likewise, be distrustful of each other. Snips and sales and unreturned phone calls, unanswered e-mails, inability to show a property because a tenant won't allow it, excuses for days and more delays--that's what little ploys are made of.

Most buyers want a deal anytime they try to buy something. That normally means that the buyer intends to gain an advantage over the seller. When you consider it, buying real estate sometimes brings out the worst in people. I just Googled the terms "real estate" and "seven deadly sins" and voila I found THIS BLOG.

I've said enough. You get my point. Like I said, I hope "going postal" does not become "going Realtor".

P.S. Interesting things happen to people who buy from me. Follow me on TWITTER today to see what just happened to one.

Let's Do the Fifties Over Again

I'm old enough to remember the Fabulous Fifties with some degree of clarity. My advice to President Obama: Let's do the Fifties Over Again.

When I was a little kid attending the Mountain View Elementary School in Wheat Ridge, Colorado (Denver suburb), kids were the silent savers that helped secure America's future. Every week, year in and year out, every kid was asked to buy a savings stamp. The stamps were sold by our teacher in denominations of 10 cents and 25 cents. A thrifty kid like me would buy as many as he or she could. The kids would lick the stamps and put them in their private Savings Stamp Album. When there were $18.75 worth of stamps in the album, it could be exchanged for an official United States Savings Bond. When the bond matured it would be worth $25. And it was guaranteed by the United States Treasury. So you knew your investment was safe.

The government got little kids to give up part of their allowances (maybe) to help finance our way out of the debt carried over from World War II. We didn't borrow from China, Japan, England, France, or any other country. All the countries were recovering on their own from the war. (In fact the United States helped finance some of the recovery in Europe through the Marshall Plan.) So the incremental contributions of millions of kids on a weekly basis really did add up.

I remember my mother taking me to Empire Savings at the Lakeside Mall to open a savings account in my name. I'm sure I wasn't older than twelve at the time. When I made money, I'd always put part of it in my savings account. Believe it or not, I've still got money from that account today. I never stopped saving.

When my mother went grocery shopping she'd always take the Green Stamps home and I got the job of licking them and putting them in the album. Then we'd go to the Green Stamp store and look for something to "buy" with the stamps. Sounds hokey now, I guess. But millions of families did it in the Fifties. We were all about the same back then. Regular people who worked for a living and had houses in the suburbs of cities across the country. Just regular people without fancy European cars or European cabinets in our granite and stainless steel kitchens. We had one TV and one phone. Most families had just one car. Two at most. Thrift and saving was the norm. Indulgence was showy.

My parents were newly married at the beginning of the Depression. I came along unexpectedly 17 years later. I learned Depression-era frugality, and I was taught to save money and to spend it wisely. I put myself through college and law school. I did get some scholarships, but no money from home. None! So what I have achieved in life is from hard work, saving, and maybe a few good investments.

Kids that grew up in the Fifties learned that there was a permanent record of every deed they did. Bad deeds would indeed be put on your Permanent Record. Bad deeds got punished. Achievement got rewarded. I was never a super achiever, but I was never an evil-doer. George Bush would have been proud of me.

Fast forward fifty years. There is little savings and lots of credit. We buy things we can't afford--on credit. Banks lend money the shouldn't and reward the bankers who lent the money with big bonuses. When the whole economy starts to implode, the government steps in and gives more money to the morons that got us into the mess. Big banks and big businesses are too big to fail we are told. So the government borrows money from the Chinese (remember when we called them "the Red Chinese"?). That moniker kinda faded away real quietly.

My suggestion Mr. President: stop borrowing money from China and start borrowing it from our kids. Re-institute the savings stamp program in schools. Teach kids about thrift and savings. Teach them to plan for tomorrow and not to just borrow money. Teach them them to buy what they can afford. And while your at it Mr. President, tell the few American companies that actually manufacture things to start producing items the old fashioned way. You remember, I'm sure. Items that were built to last beyond their warranty expiration period.

One final suggestion, Mr. President: take the morons that created this frigging mess to the woodshed. Give them the old fashioned licking kids used to get before lickings became politically incorrect and socially intolerable. Let the Wizards of Wall Street get their fannies spanked. Let those bozos know that their greed and incompetence is going on their permanent record. No deals for morons. No get out of jail cards for the really big swindlers like Bernard Madoff. I can just see it coming, Mr. President. He's gonna work a deal to keep his sorry ass out of jail by agreeing to get some money back. Send that creep to the prison were common felons go. Let the guys on the inside do to him what judges and polite society won't do. That will send a message louder than you can imagine to every crook out there. No bonuses this year to the guys on Wall Street either.

630 Elizabeth - Old Town - Key West - Bank Owned

630 Elizabeth Street in Old Town Key West sits at the top of Solares Hill. The public records show the house was built in 1933 but the house is much older than that. This Old House has seen better days, for sure. It has been used and abused and now it is Bank Owned. It went through that earlier Florida Real Estate Auction and went unsold. So now it is back on the market with a new listing Realtor and a new price.

This is how the listing Realtor describes 630 Elizabeth Street: "This historical building, located atop Solares Hill, was the Solares family General Store circa 1884. It sits on the corner of Elizabeth and Angela Streets just 2 blocks from Duval St. In addition to the excellent curb appeal and 2012 sq ft of living area, it has approximately 936 sq feet of bonus attic space. It is a duplex with infinite possibilities for renovation. The location and square footage make this property an investor's dream. Foreclosure."

I've shown this property a couple of times. It's gonna take some hard work and mucho denaro, but this place has possibilities of being transformed from a sow's ear into a spiffy place in a great location. Here's why. At the asking price of $321,900 this 3068 sq ft house is now affordable as a redo. The cost per sq ft is only $105 and that's incredible for Old Town. There is a crappy addition on the back that I would try to get permission to demolish and that would create space for a nice pool and deck. The house is so big that the loss of the small addition would really be a plus, not a minus. The property is such an eyesore that I bet HARC would work with a responsible buyer to restore this property.

CLICK HERE to view more detailed info and lots of photos of this property. I would suggest that you forget about what the interiors look like now and concentrate instead on tearing everything on the interior out. Think of re-inventing the inside the way it would work for you as a homeowner. Gear your plans toward Key West living with the main living area at the rear overlooking the pool and gardens. You will never have off street parking, so get over it.

This is a great neighborhood with some very expensive homes. The house is two blocks to Duval Street and three to the Historic Key West Seaport. CLICK HERE to see a photo of the area in 1970. The area has changed, but 630 Elizabeth looks like it just got a little more tired.

I can't promise that HARC or the City of Key West will let you do anything with this property should you buy it. I always suggest that prospective buyers consult with a local knowledagle architect and a builder before making any decision to buy a renovation project. But I do have good feelings that this house could be a good investment for a buyer who wants a project house in a good location at a good price.

If you are looking for a place in Paradise, please consider calling me, Gary Thomas, 305-766-2642 or send me an e-mail at kw1101v@aol.com. Someday you could be standing on that front porch looking down on the tiny little houses and rooftops in Old Town Key West. Turn this Bank Owned REO into Your Place in Paradise.

6 Lopez Lane - Old Town - Key West

Some people dream of moving to Key West so that they can live in one of those cute little Quintessential Key West Cottages that all Key West Realtors like to tout. I have reported on many such casas. Other potential buyers seem to feel they need more space and want big grand houses like they owned up north in America. Some people want to live close to the action near Duval Street and others want to be in the Casa Marina Area so they can be near the beaches. Yet others want to live on a quiet lane away from it all. The house at 6 Lopez Lane may be the home of your dreams if living life on a slow lane in Key West is your dream.

This is how the listing Realtor describes 6 Lopez Lane: "Elegant and Luxurious newly renovated historic home on a quiet lane in Old Town Key West. High end finishes including crown molding, Dade county pine walls, high, vaulted ceilings and open floor plan make this a wonderful home for Key West living. Tucked away behind tropical foliage and with an incredible location, this home has it all. Bright and airy rooms, chef's kitchen, huge master suite with split bedroom floor plan. Gorgeous pool surrounded by lush palm trees, Brazilian Ipe decking and privacy galore. Off- street parking for 2 vehicles. An Elegant Oasis in One of The Best Neighborhoods of Old Town Key West."

You need a map to find this place. If you have not been there you would not know where it is. It is like many of the houses on the little lanes that populate Old Town--tourists can't find them. You won't see Conch Trains or Trolleys filled with tourists with Kodaks taking pictures. (That's a hoot: shows you how old I am!)

This is not a house for the owner who wants everybody to see his or her house because it is not possible. The listing Realtor got it right when he said "privacy galore". This is house for the person who wants a real sweet house that is "done" and located near everything, but not in the midst of everything. If you lived at 6 Lopez Lane you would have a two minute walk to the Historic Key West Seaport. There are some great shops and lots of great eateries there in addition to the marina. If you lived at 6 Lopez Lane you could walk to Duval Street in about five minutes. I always seem to talk about walking to places in terms of minutes. I don't know why. Time really doesn't matter that much when you live life on a slow lane. I guess it's a leftover from when I lived in a big city and had lots of appointments and important stuff to do.

CLICK HERE to read more information on 6 Lopez Lane and see up to 14 photos. The house has 2086 sq ft and sits at the end of Lopez Lane on a 4626 sq ft lot. There are 3 bedrooms and 3 full baths plus a half bath. There is a killer pool (I've been in it!) And this place is just magical. The asking price is $1,499,000 or $719 per sq ft.

If you are looking for some much deserved privacy and a really sweet place to call home, please call me, Gary Thomas, 305-766-2642. Let me help you find your place in Paradise.

January Real Estate Sales in Key West

I've been telling you that sales are picking up in Key West and advising you not to wait too long before you buy. Snoozers are Losers!

In January there were ten single family home sales in Key West (including a couple of properties that could be used as legal duplexes). Going either way is common in Key West, I guess. I have written about several of the homes that sold and I gotta tell you, I told you they were bargains to be had. Included were 701 Elizabeth, originally $1,579,000 and sold for $695,000 (Not a Short Sale nor a distress sale); 3 Pinder Lane, originally listed for $1,390,000 and sold for $900,000; 716 Olivia Street (originally listed for $2,895,000 and sold for $1,025,126 in one day). The buyers on the above referenced properties made excellent buys in my opinion. A major Key West house sold that was listed for $6,495,000 and sold for $5,700,000.

There were eight condo and townhome sales during January. Four of those were identified as either bank owned properties or short sales. Among the winners of that group are a unit at 1075 Duval with a real transient license. It sold for an incredible $439,774. A third floor bank owned unit at Sunset Marina with a terrific water view sold for $399,000. And a two story townhome at Windward Park sold for just $400,000.

Even, perhaps, more interesting is the number of contingent and pending single family and duplex properties in Key West. Fifty-three properties are now under contract. Of that number, 26 are shown as short sales and 11 were identified as bank owned properties. In case you think that all short sales are crappy little houses that could not be sold CLICK HERE. The incredible house at 811 Southard is a short sale and somebody snagged this big one. I wrote about 1212 Olivia CLICK HERE. It is a bank owned house on a really nice block. I showed that house twice within a couple of hours of when it was listed. (Just as in the case of the sold bank owned home at 716 Olivia CLICK HERE (scroll down to October 27th) mentioned above under single family sales, this unit reportedly went for a little more than the asking price just so that the buyer could seal the deal.)

Finally, thirty one condos and town homes are shown as contingent or pending sales. Of that number, 15 are short sales and 6 are bank owned properties. The most notable in my opinion is the gift at 1118 Olivia Street that was listed at only $359,000. CLICK HERE to see what I wrote about that property that went under contract just 4 days after being listed.

You need to be aware that there is some confusion about how to classify houses and condos that have signed short sale contracts. Not all properties that have signed short sale contracts are listed as such. I believe the number of actual contingent and pending sales is much, much higher. But that is just my opinion.

Buyers who are not in Key West have a bit of a disadvantage to those people who happen to be here when new properties get listed or when prices are reduced. But that should not stop you from using your computer to do some research and using your noggin to figure out if a particular property could work for you. You probably know what you want and what you can afford. I encourage potential buyers to search the real Key West Association of Realtors mls database CLICK HERE to see what kind of property they can buy for the money they want to spend. Always look at properties priced higher than you can afford and search properties with less space or amenities than you require. CASH is KING and you may be able to negotiate a real sweet deal, just like some of the lucky buyers mentioned above.

Let me, Gary Thomas, help you buy your place in Paradise. Please either call me at 305-766-2642 or 3-mail me at kw1101v@aol.com. Tell me what you want and how much you want to pay. You might own a place in Key West where you can snooze on the beach.

Cigar Maker Cottages Galore - Key West

I've told this story before: I tried to buy a guest house in Key West for several years and was never able to get the deal I wanted. I always tried to lawyer the deal to protect myself and also to get the very best possible deal. I failed time and again because sellers in Key West will not make warranties about old houses and the improvements they may have made (legally or illegally) over the years. In good times sellers want more and more money. In bad times sellers want as much money as they can possibly get. So I wasn't all that successful as a buyer back then.

In late 1989 or 1990 I came to the conclusion that it might make more sense to simply buy one of those cute little cigar maker's cottage (Conch house) I had seen that was priced around $100,000 way back in 1987. My Realtor (Mitzi) told me "They are all gone Gary" or words to that effect. My heart sank again. My stupidity and greed had again prevented me from getting any deal--not just the best deal.

I eventually got a terrific property at bargain price, but it was with the advice of my Realtor, Mitzi, and my determination not to be stupid any longer. It was a big and beautiful guest house in a great location. I was able to leave the snow and cold of Colorado and move to Key West.

Key West is peppered with cigar maker's cottages in all areas of Old Town, Bahama Village, and The Meadows. There are a few cottages in the Casa Marina and Mid Town areas as well. Many of the original structures are gone, and most of the surviving structures have been renovated in some form. I created a sampling of such houses that may appeal to second home buyers. CLICK on Any Address to see the house at that location. 622 Southard Street,525 Louisa Street, 814 Simonton Street, 711 Elizabeth Street, 712 Southard Street, 610 Olivia Street, and 412 Louisa Street.

Please note that although the houses look quite alike, each is different is size, location, land size, and degree and quality of renovation. Some are "cherry" and others are just average. I did not include all cigar maker's cottages because not all interest me.

If you are in Key West or are traveling here in the near future, you need to go by new Gato Village Pocket Park behind First State Bank on Simonton Street. A group of residents is constructing a replica facade of a historic cigar maker's cottage. The facade will be the same as a small frame house that stood in that location from 1897 until 1945. Local contractor Bruce Neff (pictured above) and his wife, Patricia Madiedo (descendant of the owner of the original cottage at that location) are constructing the facade together with the assistance of various individuals and businesses in Key West.

If you a looking to purchase a home in Key West and think that a cigar maker's cottage might meet your needs, please call me, Gary Thomas, 305-766-2642 to arrange a showing. Don't let this current buying opportunity pass you by.

The Road to Recovery

I've mentioned many times that I grew up in one of Denver's suburbs in the 1950's. Life was much slower way back then. I don't have any access to old family photos of driving through the Colorado Rockies in the 1950's. The photo of the antique car isn't back in the 1950's. But it is illustrative of what our lives would be like if Interstate 70 had not been built.

During the summers of my youth my parents and I would drive up to the mountains to go fishing. We would either go over Berthoud Pass toward Grand Lake, Loveland Pass toward what is now Vail (Vail did not even exist then), or over Monarch Pass toward Gunnison. There were no interstate highways. There were very few four lane roads for that matter. There wasn't any need for four lanes because travel over the Rockies took so long, especially on a cold and snowy day. There was some skiing atop each of the passes mentioned and in small towns like Aspen (back then Aspen was just a small town without any big ambitions). So there was no compelling reason to get anywhere very quickly.

The interstate highway started to get built in Denver in the 1950's. But it would take more than four decades to complete the Interstate 25 and Interstate 70 and the loops that encircled Denver and the suburbs. But the major marvel was the construction of Interstate 70 through the Colorado Rockies. And I specifically refer to the construction of the Eisenhower Tunnel and later the elevated roadway through the Glenwood Canyon, one of Nature's Wonders.

When I was a kid and cars regularly overheated trying to cross the great Colorado passes, it would take hours and hours to get from Denver to any place on the other side (western side) of the Continental Divide. And like I said, there wasn't any particular place to go back then because we didn't have ski resorts and condominiums and golf courses in the mountains. Oops! Maybe the interstate highway wasn't' such a good thing after all.

What once took so much time now takes very little. The drive between Denver and the western slope now takes a little about three hours. And the life and vitality of the Colorado economy owes so much to that divided highway.

When I was going to law school in the early 1970's the construction of the Eisenhower Tunnel was in full bore so to speak. That construction project was massive and it created jobs throughout the Denver area and on the western slope as well. Two crews worked simultaneously to bore the holes that would one day unite the state like never before and that would make travel so easy. Nobody in the 1950's could have imagined owning a condo in Vail Colorado where they could ski in the winter and play golf in the summer. But that is just what happened. Little towns like Breckenridge, Silverthorne, and even Aspen experienced tremendous growth in terms of size and property appreciation. And I can tell you that the growth has been sustained over the past thirty years.

I am not afraid of public works projects to help jump start our failing economy. The TVA changed much of the South after the Depression. The Eisenhower Tunnel helped keep Denver from utter ruin during the Recession of the mid 1970's. Perhaps the Economic Stimulus Package that is working its way through Congress will create a project or two that can have as dramatic an effect on our economy and way of life. We won't know if the package gets derailed and money is spent instead on tax rebates.

I am not afraid of government spending to help create jobs. Jobs keep real people working. The dollars get passed around and around and around. When people work, they spend money. And when they spend money, that creates more opportunities for everyone.

You may or may not agree with me that money spent on public works may help pave the road to recovery for our country. If you do or if you don't, you can let your Senator or Congressman know your feelings just by sending a email. CLICK HERE to access the contact links for the US Senate. And CLICK HERE to contact your Representative. We are all in this mess together. Make your voice known no matter what you think.