Flipping Out

BRAVO TV did it again. They created a new truly must see tv show with a cast of zanies that you will adore. The new show is called Flipping Out and it is the saga of a real estate professional who buys houses, re-styles them, and flips them for a profit. The difference between this show and other similar shows about house flippers is that the "star" is quite mad. In a good way. His name is Jeff Lewis and he comes across as vain, maniacal, egocentric, glib,lonely, caring, self-absorbed, funny, and sexy. He buys houses with "potential" and gives them sex appeal. His sense of style is right on.

I mention the show here because it is fun to watch and it shows the risks one takes when a flip is undertaken. Especially in the current real estate market. Granted Beverly Hills real estate is not the same as Key West. But the risks are the same only with more zeros. Watch it on Bravo TV on Tuesdays.

Key West Commercial Real Estate

Ever hear of Seller's Remorse? It is when a seller regrets having nixed a sale because he thought he could get more for the property at a later date only to find out that he was wrong. Dead wrong.

Such may be the case for the owner of a commercial condo CLICK HERE located in the same developments as our office, Duval Square at 1075 Duval Street.

The Duval Square is is a planned unit development that stretches from Duval to Simonton Street just one block south of Truman. There are several restaurants including Square One Restaurant plus various commercial businesses on the ground floor and about 22 two story townhomes on the second and third levels of the buildings. We are about four blocks from the Atlantic Ocean. Upper Duval has really changed in since the mid 1980's. Back then the world famous LaTeDa's guesthouse and restaurant were the primary commercial activity in the area. But two decades later there are many restaurants, galleries, guesthouses, and the Butterfly Conservancy that line the street.

Club Body Tech closed its doors two years ago. I was a member and the gym had been a thriving business. In my opinion the absentee owners hired a very poor manager that ran the business into the ground. Equipment got broken and wasn't repaired. The showers and locker rooms were never clean. The office was as messy as a pig sty. And the membership fees were very high compared to the level of service offered.

The condo owner has had the property on the market ever since the gym closed. The initial asking price was $1.3 million. That is $387 per square foot for the largest commercial space in the complex--3361 square feet. The first Realtor to list the property told me that the seller did have offers near the asking price but that he wouldn't budge off the asking price. Two years later the price was just reduced to $600,000 or less than half of the original asking price. The price per foot today is $178. There are three other commercial spaces also for sale and they are priced at $684 per sq ft (656 sq. ft.), $570 per sq. ft. (700 sq. ft.), and $873 per sq. ft (800 sq. ft.).

Now the owner of the former gym property bought the unit in 1996 and paid $300,000 so he will not lose and principal but his holding costs (taxes, insurance, association fees, cma fees, and debt service if any) are adding up. Two of the owners of the other units for sale bought at prices much lower than their asking price so they are alright as well. But I do think there prices are very aggressive for this market. The owner of the forth unit paid $450,000 three years ago and he must be bleeding. His space is across the courtyard from the old Club Body Tech and several different businesses have failed at that same location.

I think the owner of the commercial condo that was the Club Body Tech probably does have seller's remorse. And I think the sellers of the three other units for sale need to reassess their current asking prices. There is not a lot of commercial space for sale in Key West overall. There are, however, too many commercial spaces for sale of for lease on Duval. Duval Street property owners have gotten way to greedy for their own good. They charge exorbitant rent which causes small business owners to fail whether they lease or own the property because the lease payments or mortgage payments are too demanding. Other commercial areas of Key West seem to fare much better.

CLICK HERE to search for additional commercial properties in Key West and the lower Florida Keys. Then give me a call to help you find your next business in Paradise 305-766-2642 or email at garyethomas@aol.com.

July Real Estate Sales for Key West

I have often reported that the best time to buy a home in Key West is during the summer when sales are low. There usually is not as large a selection because sellers typically wait until late fall to list hoping to sell in a more robust market.

Key West had only ten single family residential sales for the month of July. The least expensive was a 2 bed 1 bath home with 627 square feet. It was on the market only 27 days and was listed and sold at $390,000. The average home was a 2 bedroom 2 bath with 1309 square feet that was listed at $912,709 but sold for $826,591 after being on the market 186 days. The most expensive home for the period was a 3 bedroom 4 bathroom with 2,710 square feet that was listed and sold at $2,675,000 after 549 days on the market. There were 17 sales during the same time period in 2006 and 17 sales during 2005.

Condo sales were much worse. There were only 5 condos sold during that same time period. The least expensive was a 2 bedroom 1 bathroom on the golf course with 680 square feet. It was listed and sold after being on the market for over a year. It was re-listed at $392,000 and went under contract 4 days later. It sold for full price. The average condo was a 2 bedroom 2 bathroom with 1,036 square feet listed at $656,800 and sold at $584,200 after 239 days on the market. There were 13 sales during the same time period in 2006 and 18 sales during 2005.

The National Association of Realtors reported dismal sales results last week for the period ending July 31st and that sent (and other disappointing economic news) the DOW into a tailspin. There is no mistaking it: Key West real estate is in the dumps. Here is another interesting tidbit.

The Key West rental market isn't fairing much better. There seems to be an oversupply of homes, condos, and apartments for rent. Many would-be sellers have opted to rent there properties rather than trying to sell them in this market. That means that renters for once have an advantage because the rates are down for rentals as well or the rates have not risen by 10% over the prior year as is the norm.

The houses and condos that sold quickly during the month of July were priced to sell. Not priced to see how many cobwebs could be grown. There are some good deals in the Key West market. CLICK HERE to preview all current mls listings in real time and then give me a call to see if we can find a home or condo that suits your needs. Thanks.

Won't You Be My Neighbor?--Part 2

I thought I would share some pics I took this morning of some of the sites near my house in the Casa Marina area. (Turn OFF your pop-up blocker. Click any photo to see a larger version.) Since my neighborhood does not have any commercial activity itself, I had to ride my bike about 3 blocks to the White Street corridor. White runs from the Atlantic Ocean to Eaton Street. About one mile. The US Navy and US Coast Guard own the small strip of land on the other side of Eaton that ends at the Gulf of Mexico.

But the area nearest my neighborhood stretches a whopping 3 blocks. CLICK highlighted name to see photos of the sites I am describing. One of the first scenes from the 1950 Tennessee William's movie The Rose Tattoo was shot from the old Key West High School that is now the Glen Archer School on United and White. The road back then was dirt. Today the road is paved and the front of the school is landscaped. The tiger is a favorite photo-op for tourists. Across the street is the new National Weather Service station for Key West. And across the street to the north is Dairy Queen.

Down one block on White and Catherine is my gym Island Gym. I wrote about it in January--when I was heavy. Lost it! Across the street are several small shops, art galleries, and eateries. Page's Paint is where I buy my paint. The guy's are great and you get a local's discount too. (I'm serious. I wonder how many tourists shop there for paint to take back home.) Mo's is a French Restaurant, but not the kind you would expect. Try it sometime for a meal you remember. But don't blame me if you don't like it. Not that the food is bad. It is just very strange.

Faustos grocery is across the street. It's a landmark. Everybody goes there even though the produce is usually older than St. Louis. The meat is top rate, however. And the Lotto line is always busy with Key West characters. Gotta go there for sure.

On the corner of White and Virginia you have Faustos parking lot, Dog 30 ( a new dog store--they don't sell dogs but do sell dog things.) Next door is Island City Tile one of two tile stores within the same block. The M&M Laundry and Sandy's walk-up coffee bar and sandwich shop are always busy. (I often stop at Sandy's to buy my customers coffee when we are driving around looking at homes.) And across the street is The Wave Gallery. There corner building is always a delight.

Down at the corner of White and United are two landmarks: The Chevron Station and across the street DION'S QUICK MART. Dion's is also a gas station and chicken station. Best chicken on the island.

I wonder if the guy who left the front loader in the street next to DION's knows something I don't...

So that's a part of my neighborhood. I'll post more pics later of some of the homes in the area.

If you live in Key West you already know how wonderful a place it is to call home. If you are thinking about buying, checkout the mls listings by CLICKING HERE and then please give me a call at 305-766-2642. Prices are down and there is a good selection in all Key West neighborhoods.

The Key West Antiques Road Show

Do you regularly watch Antiques Roadshow on PBS? I do. It's a great diversion from the mindless dribble that has become so much of broadcast television. It is great fun watching regular people who discover that some item they bought at a thrift store or estate sale is worth a gazillion dollars. I think we all enjoy that and wish that it could happen to us.

Almost every appraiser ends up his or her discussion of the item with a statement of its' value--as if that value is the end-all of the discussion. Depending on the value we then get to see its' owner puff-up like a peacock or feign thanks to the appraiser. But the show troubles me just a bit because the focus seems to be on dollar value of the item rather on its' intrinsic worth.

Maybe Antiques Roadshow is just a reflection of our society's obsession with how much something costs. Magazines such as Architectural Digest have regular features comparing similarly priced homes in different geographic regions. Key West Magazine and The Key West Citizen newspaper regularly have similar features. I have even done such comparisons in this blog. But I think those comparisons miss the point. Price is not the same as value.

I am remodeling my house. And I have learned a valuable lesson about what things cost--or the price of everything. Here are a couple of examples. I used to think of nails and screws as being almost free because you need so many of them to build a house. Wrong. Go to Ace Hardware and checkout the prices. We have metal roofs in Key West, and they are attached to the house by specific metal screws. And those screws cost $.26 each. Electric wire is priced by the foot and most new wiring and most re-wiring require three strands of wire (or one strand of Romex)to run each course. Windows and doors, marble and granite, glass tiles and mosaics, bath and light fixtures and kitchen cabinets come in varying quality and price ranges. Once you finish the inside you get to start on the garden and pool. And you start the spending process all over again. Palms and pools are priced by the foot, so the bigger (or more rare) the palm or the larger (or more opulent)the pool/deck;, the higher the cost. And if you are fortunate enough to live in Key West you get to pay more for every item just because of it. But that is not the point.

I have written before about what I call "staple gun remodeling" referring to cheap redo a house in order to sell it for a quick profit. There are numerous examples of homes and condo conversions where attractive but relatively inexpensive kitchens and baths are installed along with a fresh coat of paint and maybe even new windows and doors. The property looks good, but most of the improvements were done just to surface areas and not to the building itself. You get the point.

Since we have so little actual new construction in Key West, most resale homes are remodels. And it is always nice to see a real quality renovation that uses quality materials and has quality workmanship. Then when you add those qualities to mature landscaping and a great location you get to see the real value of the property.

It is really frustrating right now. I have several people I am working with that are in the market to buy a second home or a business. Each person (or couple) focus their attention on price above all. They want the best price. I get it. I do the same thing. But my recent experience in redoing my house gives me a better appreciation for the real value of some of Key West's homes. There are some real bargains available right now. The real estate market is always slow in the summer, but this summer is a killer. Some businesses have closed. There are more foreclosures than ever before. And there is the omnipresent fear of another hurricane and the dread of what could happen. Prices are down about 33% pretty much across the board from what they were two years ago. But buyers are not buying.

I think it was back in 1990 when there was talk that Citicorp which was then the first or second largest bank in the United States might fail. The stock went down to $8 per share. I reasoned that the U.S. government would not let that bank fail because the consequences for the U.S. economy would have been disastrous. So I bought Citicorp stock. It eventually went back up to over $160 per share. I knew the low price of the stock was not a true reflection of its value. Citicorp's assets were enormous. It was the market's perception of problems that had devalued the stock, but not the value of the underlying assets.

And I think that thought process is what is at play in Key West real estate right now. There are many, many high quality properties that are going unsold because prospective buyers are focusing on price rather than looking at the underlying value of these properties. Sure there is a bunch of crap in the market. A good Realtor can help a buyer avoid that--or buy it for next to nothing if you are so inclined. But the smart buyer may be the one who, like me when I bought Citicorp, sees an asset that has been beaten down.

Give me a call if you are interested in looking for a bargain in the Key West real estate market. 305-766-2642 or email me at garyethomas@aol.com. Thanks.

CLICK HERE to checkout all current Lower Florida Keys mls listings. Remember to turnoff your popup blocker so that you can see the photos.

Buddy, can you spare $35 for a haircut?

I turned 60 years old on January 1st. When I was a kid someone aged 60 was a relic. But I don't see myself that way--now. When I was a kid I did respect older people. But I don't know if young people respect older people much these days. The youth culture (defined as anyone under age 30)has pretty much taken over the way this country functions. And maybe that's part of the problem with the economy as a whole and the real estate market in this little blog.

Age and experience help teach us how to do things correctly so that we do not have to correct costly mistakes. Here is an example: I used to do commercial loan workouts. I was the muscle guy in the back office that delinquent borrowers had to deal with when they defaulted on their loans. Over the years I learned the stages of borrower default and the gimmicks they come up with to try to avoid litigation, repossession, foreclosure, or bankruptcy. Interestingly I also learned about lender misconduct in making some loans or in trying to hide a delinquency from bank management in the hope that the borrower would somehow turn his loan around or that the lender would find a new position elsewhere before the bad loan was discovered. Some very ingenious defense attorneys successfully defend cases on the defense that "the bank should have never loaned me that much money because they knew I couldn't pay it back." And that is true in more cases than you could imagine.

Banks reward young lenders that "produce" by giving fancy job titles, good salaries, and bonuses based on loan production. The more one produces, the more one makes. It's all about the numbers and the perception. Non banks like Countrywide and American Home Mortgage book loans (mortgages), repackage them and sell them to institutions like Chase, Bank of America, or Citicorp. As a lender (or underwriter) the more you produce, the more you make. Production rules.

So it is no surprise to me that we have another bank crisis on our hands. The downturn in the real estate market is now taking its toll on the some of the banks or quasi-banks such as Countrywide and American Home Mortgage. Today the Dow tumbled again on news after mortgage lender American Home Mortgage said it could no longer fund loans and was considering liquidating its assets. That reminds me of how the S&L meltdown started. What we had back then was a bunch of greedy banks doing risky deals to make a quick buck. When the U.S. economy hit the skids in the mid 1980s, the S&Ls risky investments collapsed. The problem was not that the S&Ls had lots of non-performing residential loans that went bad. Rather it was that the S&Ls risky investments tanked as the U.S. economy turned down.

I have talked to several people who have home loans from Countrywide that are in foreclosure or that are nearing foreclosure. They all report that Countrywide is consistently inconsistent and very difficult to deal with. Countrywide and American Home Mortgage are not the issue. But they may be the omen of worse things to come.

On July 27th President Bush stated "And so I want the American people to take a good look at this economy of ours. The world is strong -- the world economy is strong. I happen to believe one of the main reasons why is because we remain strong. And my pledge to the American people is we will keep your taxes low to make sure the economy continues to remain strong, and we'll be wise about how we spend your money in Washington, D.C." At the same time the National Association of Realtors was reporting dismal existing home resales and sluggish new home sales. Ten days ago the Dow was at 14,100. Today it sank to 13,200. He did not mention the "imbalance of trade" with the Chinese or how we are going to have to deal with it. He did not mention that we are eventually going to have to pay for the wars in Iraq and Afghanistan. And that repayment will come from taxes!

We went through all of this hoopla forty years ago. We were in a different war and had a different President, but the political jawboning was the same. The hawks said that if we left Vietnam that the communists would takeover all of Asia. It did not happen. The Vietnamese people reconciled after the U.S. left similar to the way the East and West Germans did after the East German government collapsed in 1989. Likewise, the U.S. military ran up a huge war debt that had to be repaid. A Cornell University study placed the overall U.S. cost of the Vietnam War at over $200 Billion. The Congressional Budget Office estimates the War in Iraq is currently costing $9 Billion per month. The numbers are so large that they lose meaning to normal people like me. But I understand enough to know that eventually the U.S. will have to raise taxes to pay the debt or that we will have to forgo something else (new roads, new schools, health care, social security reform, improvements to a failing infrastructure or some other worthy cause).

Thirty years ago (1978-79)there was a a major crisis of confidence in the dollar. U.S. interest rates were more than 20 percent in the early 1980s, leading to the deepest recession in the post war period. That was the time period when I was doing commercial loan workouts. I remember it well. But I wonder if the MBA schools teach about that time period.

I believe in the validity of the saying "those who do not learn from history are doomed to repeat it." I think the youth culture dismisses history as being irrelevant to the present. At the beginning of today's blog I said "Age and experience help teach us how to do things correctly so that we do not have to correct costly mistakes." I don't think the youth culture has time or inclination to consider the value of history.

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.

1124 William Street

This morning's Business Report on CNN.com says Tough Day on Wall Street."Dow tumbles 226 points on worries that housing, subprime mess will dent corporate earnings growth." A few days ago I wrote about my experience in the ever unpredictable stock market. When prices are rising people want to go there and make their fortune. And when the market dips, they cringe, hoping it is just a momentary hiccup. Well,we've got that same situation going on in the Key West real estate market right now. People bought everything in site at the drop of a hat just three years ago. Then the market moderated a bit and people were still buying, but acting more cautious thinking that we were in a bubble. Then Wilma occurred and knocked us to the ground.

There was a falling down worthless shack at the corner of William and Amelia Streets. The lot was 3939 square feet and a quiet location across the street from the rear of St. Mary's Catholic Church. Most of the other properties in that neighborhood have not yet been gentrified.(Read about the exception a bit later.) It was purchased by a local contractor-developer in February 2006 for $675,000.

The builder just completed building an entirely new house on the property and listed it last week for $2,250,000. Brand new two-story home with beautiful finishes and elegant details. Boasting bright & spacious rooms with high ceilings and hardwood floors. Features 3 bedrooms & 2.5 baths, gourmet kitchen with granite counters & top-of-the-line stainless appliances and an open living & dining area that opens onto the poolside terrace. Lots of windows and glass doors, crown molding, custom built-ins, covered porches & balconies and off-street parking. It has all the bells and whistles a buyer wants in a Key West home--except the location. And there's the rub. More on that later.

The same contractor-builder built four single family homes on Ashe Street two years ago. They had all the bells and whistles as well, but they were constructed on basically 0-lot line lots, meaning no yards. They had pools and off street parking, but everything is cramped and that particular block on Ashe is not one of the best Old Town locations. The same contractor-builder is currently building a house almost identical to 1124 William on the corner of Grinnell and United Streets. Untied is a busy street during the day. The neighbors include an elementary school playground, a four story warehouse, newer townhomes, an adjoining renovation, and older Conch homes in need of renovation. Again,not the best location.

The houses on William and Grinnell were both started at about the same time and it looks like Grinnell is almost near completion. So I assume it will be listed for about the same price. It does have a larger yard and may be a little larger in usable square feet as well.

Back to 1124 William and its location. The real estate axiom "Location, Location, Location" rings true when thinking about the price point for this house. It is priced at a whopping $2,250,000 for 1782 sq. ft, or $1,262 per square foot . That's expensive. Especially in this market. The high end of construction costs a normal person would pay in Key West for this type of property would be $400 per sq. ft (or $712,800) in my opinion. And I think the builder brought the property in for less than that. Add his purchase price and construction costs and his stake is around $1,387,000. So he looks to make a hefty profit if he can sell the house near the asking price. My guess is that he can't and won't.

If you were a buyer looking for a second home in Key West and had over $2 million to spend, would you prefer a location right in the heart of Old Town, a property with a water view, a large lot in the Casa Marina area, or a new house in a quiet, but marginal neighborhood? My guess is that the last option would also be the last choice. A block to the east another contractor known for his superior construction and high prices built two spec homes at the corner of upper Windsor Lane. Both were on the market for two years and neither sold. He is now living in the larger house and the adjacent house appears to be rented.

My experience has been that second home buyers buy price first, location second, and amenities third. Most buyers know the market before they start to shop so they know about what they can get in their price range. And I don't foresee anybody running to buy 1124 William at the asking price or anything near it. That' my opinion.

There are a lot of well located properties on the market at better prices. Check out the mls listings below.
CLICK HERE for more information on 1124 William Street. CLICK HERE to search all current mls listings. Then give me a call to help you find your home in Paradise. 305-766-2642. Or email me at garyethomas@aol.com.

Please won't you be my neighbor?

Please won't you be my neighbor? That's the last line of the Won't You Be My Neighbor, Mr. Roger's theme song. The first line goes "It's a beautiful day in this neighborhood" and that makes me think of why I love Key West so much: it's neighborhoods.

Tourists come and go and most only see Old Town or areas visited by the Conch Train or perhaps a sojurn to the Overseas Market or Searstown. I know that when I am taking prospective buyers around looking at houses many often ask about where we buy groceries or clothes or lumber. Some just see Old Town as the center of the tiny universe that is Key West and wonder how we manage to live here. And many dream of being able to live here.

I have previously mentioned that I live in the Casa Marina area which is located onthe Atlantic Ocean side of the island. Old Town is located at the west and north side of the island. Then there is mid town located, naturally, midway between Old Town and New Town at the east end of the island. But each of these areas has its own separate neighborhoods. And that makes life here so interesting.

Take the area at the intersection of Southard and Grinnell Streets where the Five Brothers Grocery is located. Five Brothers is an institution where locals go every morning for coffee con leche and gossip. It's like Starbucks without the attitude. You will see cops and lawyers and contractors and city government workers hanging out on the street corner in the shade dishing the dish on everything Key West. Contractors meet to talk about what they are doing and where. And Key West politics is alaways the dish du jour. That little building is the anchor of that couple of block section of Key West.

A few blocks away on a not so nice location is the Blossom's Grocery. There you buyer the daily special which is advertised for everyone to see on a sign posted out front--just next to the chicken crossing sign. The area has several gay guesthouses and many apartments. The Sunbeam Grocery is located exactly one block to the south. And it has a totally different clientel and distinctly unfriendly vibe--in my opinion.

These neighborhood groceries harken back to the era before big supermarkets where locals would buy there food supplies at the corner grocery. And like I mentioned earlier, those grocery stores are the anchor for that neighborhood.

But there are other neighborhood hangouts as well. Take Page's Paint on upper White Street. If you spend 30 minutes in the store you will get a good idea about how busy the construction business is by listening to the painters buying paint and the guys in the store telling stories. Paulie, a 60-something Conch who is a paint mixologist, will give you a quick lesson in Key West history at the drop of the hat. I was there yesterday and learned about a city sewer project being constructed on Duncan Street and how much two houses recently sold for. (I previously wrote about everybody in Key West knowing everything about each other's property values.)

You may see people in a store, on a bike, walking their dog, driving in their car talking on a cellphone on a daily basis. You may not know their name, but you know their face. And you know they are your neighbors. You learn not to be rude or pushy, if you ever were either, when dealing with your neighbor. We all live on a tiny little island in the middle of the ocean. And it is a great place to live. Please won't you be my neighbor?

If you are thinking about buying a place in Key West, now is an excellent time to start looking. Prices have dropped, there is a good selection of properties in all price ranges. The remodeling business has slowed, so you may be able to engage a contractor at a better price as well. Give me a call and I can help you find your little piece of Paradise. 1-305-766-2642. Thanks.

CLICK HERE to search all active Key West and Lower Florida Keys mls listings in real time. Then give me a call.

P.S. make sure you have your POP-UP Blocker unlocked so you can see full size photos and all of the mls listings.

1009 Southard Street--Such a Deal!

The grand two and a half story home at 1009 Southard Street is another bargain looking for a new owner. The 3719 square foot home sits on one of the great streets in Key West. Just a few doors to the east is the big house that sold last year for $5.5 million. And across the street is the home of the former Vice Chairman of AOL Time Warner. (It was featured in a huge Architectural Digest piece a few years ago.) White House Chief of Staff Joshua Bolten owns the house next door to the west. All in all it's a pretty good neighborhood.

The house is presently configured as a 3 unit building with a studio apartment downstairs in the front, a two bed two bath apartment on the second and third floor, and the owners quarters are at the rear of the main level. The tenants have their own private pool, but the large pool at the rear is the domain of the owners. And the owner's guests have their own cottage accessed off Lowes Lane. Oh, and there is also a garage.

The house is in very good condition as it sits. The kitchen and bath in the owner's quarters are about 15 to 20 years old. But they are perfectly liveable as is. A new owner may want to restore the house to a single family residence. There is plenty of room to do whatever suits your fancy. This property was originally priced at $1,950,000 when it was put on the market just before last Thanksgiving. The owners want to downsize and have found a replacement home in Old Town that suits there present day needs. They have just reduced the asking price to $1,595,000. And the price at $428 per square foot is a bargain. But I believe the sellers are very motivated to sell, so I would strongly encourage potential buyers to make a strong, all cash, no contingencies offer. This is a deal in the making.

CLICK HERE to see more photos and read more about this great Old Town home. And then please give me a call to see it. I think you will be surprised at how wonderful a property this is. My number is 1-305-766-2642.