Key West Short Sales to Dream About

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

CLICK HERE to see the list.

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

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

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

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

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

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

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

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

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

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

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

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

Some Neat Key West Condo Short Sales

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

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

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

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

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

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

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

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

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

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

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

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

Greed and Stupidity

Back on April 4th I wrote about a story in the Key West Citizen regarding some Key West investors that sued the Realtor who sold them units in the Santa Maria Condominiums that were under construction. CLICK HERE to read that blog. The plaintiffs alleged that the Realtor misled them about their ability to flip the condos and make a profit once the units were completed. The market in Key West declined and the buyers were forced to either perform under the contract (close on their sales) or lose their substantial earnest money deposits.

Today's Key West Citizen reports the results of the lawsuit: Judge tosses condo lawsuit. CLICK HERE to read the article. According to The Citizen "The buyers also admitted in the lawsuit that they had not read their investment contracts, but had relied on their Realtors' claims."

The defendant Realtor's attorney stated "The written contract was very clear and unambiguous," said Ed Scales, one of the lawyers representing Santa Maria. "The judge held that we didn't do anything to prevent these folks from reading their contracts. He said it was 'entirely unreasonable' for people to plop down [that amount of money] as a deposit and not read the contract."

I specifically remember the time around Christmas in 2004. People were buying up everything in sight including blue sky condos under development. Four condo developments were in various stages of development and each enjoyed hearty pre-sales,including the Santa Maria Condominiums. Another property at the site of the old Holiday Inn was demolished for a new Ritz Carlton style condo-hotel project almost sold out in about 30 days time. Again, locals were buying the units.

I remember discussing this buying frenzy with fellow Realtors at the time stating that I didn't think the market could support that many new high end condos. And it didn't. Even if the market had not cooled off in Key West, the number of high end condos was just too great to absorb so quickly. So it is no surprise that "investors" who relied on their own greed and stupidity failed to consider that the might not be able to resell their condos at an inflated price.

When I have a buyer who is ready to do a deal I suggest that he/she/they do two things: (1) get a professional inspection of the property and (2)engage a local real estate attorney if there are any legal issues (title, zoning,etc.)that may affect the property. Had the "investors" in the Santa Maria Condos hired an attorney before the contracts were signed, the lawsuit probably would not have happened because the lawyer would probably warned them that they were risking a lot of money on something that might not occur.

CLICK HERE To find your own good property in Key West's mls database. And then call me for more information. 305-766-2642.

Holy Flipper Batman

A few weeks ago I wrote a blog about the new Santa Maria Condominiums. CLICK HERE to read that blog. I wasn't impressed. I think the project has many flaws and the units are overpriced. I abhor the architecture of the new building. And I think the 40% managemtn fee for condo owners is ridiculous! But that is not the point of today's post.

A top story in today's Key West Citizen discusses a lawsuit filed by seven disgruntled buyers who purchased units at the project prior to or during construction and who now claim the were defrauded by the developer, the real estate company, and three realtors who marketed the project. CLICK HERE to read the article.

"The plaintiffs were assured by the defendants that once the building was under construction, prices would increase dramatically as they were contracting at a bargain price, therefore there would be no issue with the plaintiffs being able to resell their investment contracts to somebody else at a profit," the lawsuit says.

But later in the complaint plaintiffs admit "Plaintiffs ... did not carefully read the agreements, did not get professional advice regarding the agreements and ignored the language and disclaimers in the agreements as they were assured they would never have to close as their contracts would be resold at a higher dollar amount prior to closing."

If we could all only sue someone else for our greed and stupidity. I do not know the facts of their individual cases, but I did get to experience a sales presentation with a customer who was interested in the project. I listened intently as the rep went through the litany of all the things that were promised, but I also heard him say all the things that would cover his backside if things went south. My customer heard only the good stuff, and wanted to buy. He didn't have any money, however, and wanted to borrow the hefty down payment. Seller wasn't in the business of financing down payments so the deal did not get made. My guy didn't have a nickle, but he wanted to participate in the buying frenzy that was going on in late December 2004.

Two and a half years later the would be flippers who did have the money are having to pay up and close on their contracts, or lose their hefty earnest money deposits. I personally know many locals who bought into various projects or existing properties thinking they would hold them and later flip them for a profit. And many of those folk are in deep trouble today. Many.

I personally think now is a good time to buy because prices have taken a major correction downward. That doesn't mean they are going lower. I can't predict the future. But I do think there are some real buying opportunities in Key West. I know that there are several "big deals" in the works. And smart buyers are snapping up good properties. Good is always like gold. Gold may go up and down with the market, but gold will always be gold. And good properties will always be good properties.

CLICK HERE to find your own good property in Key West's mls database. And then call me for more information. 1-877-778-7092.

Two Tales of a City -- Part 2

Part 2

Lots of Realtors and other town folk headed to the Santa Maria Condominiums Open House last Friday to see the newly constructed complex. We were feted to sushi (again--but this time prepared by the sushi chef from Ambrosia Restaurant, cheese and pate`, shrimp cocktail shooters, crab-melon shooters, top drawer liquor, and sounds from The Bubba System
.

Two units were available to preview. The first was a ground level 945 square foot two bed/2 bath unit priced at $1,500,000. That's $1587 per square foot. The unit looks just like the artist's conception from two years ago. When you enter there is a sofa to your right and two swivel chairs, a cocktail table and a plasma tv to your left. Straight ahead is the ultra-streamlined kitchen with under counter everything. The bedrooms are on either side to the rear. The model had both bedrooms with windows just at street level so that Key West's homeless could easily look in to see who is at home. There is a semi-private patio area at the front of each unit, but it offers no real privacy.

The two story unit is larger in size, but the rooms are still small. The kitchen is at the rear and has room for 3 bar stools (same as the other unit--I guess only 3 people can dine at one time). The bedrooms are equally small, but this unit has 4 balconies--each with glass fronts that offer no privacy or room for chairs. The top floor did, however, have a terrific aerial view of the property and the Key West skyline.

The units have lots of marble, wood, and glass. All units are furnished exactly the same because they are part of a mandatory rental program. The management company charges a 40% management fee plus adds on all expenses related to guest stays. The decor inside and the exterior construction is definitely modern (ala South Beach in Miami) and totally out of character with the rest of Key West. But some people may like this look as opposed to the weathered character of the William Fleming House. And the Santa Maria Condominiums have privileges of the use of all of the amenities of the adjacent Reach Resort (gym, restaurants, and private beach).

I'll pass on this one.