This Old House

The key requirement when purchasing an historic Key West home is that it be constructed of Dade County Pine. You can't buy Dade County Pine anymore, because it all got used. There is no "new" Dade County Pine because almost all the trees were cut down years ago. New pine comes from other areas now and are inherently soft and fast growing wood. Dade County Pine, on the other hand, is native to South Florida and is an aged wood of superior strength.

So what?, you say. This is what. Dade County Pine that is found in almost every old house in Key West is apt to be over 150 years old or older. Key West still has a few homes built in the early 1800s and many built soon after the Civil War. The Dade County Pine used to construct those homes was "old" when it was used, and by the passage of time that wood has become extremely hardened and resistant to termites. Many of the larger historic Key West homes were built by ship chandlers (builders or out-fitters). So the historic homes became desirable because of their character and the materials used in their construction.

I have mentioned several times that I used to own the Eaton Lodge guest house at 511 Eaton. That property is one of the great Key West homes. I learned first hand how damned strong Dade County Pine is when I did a little remodeling to a room in 1994. I removed one interior wall constructed of Dade County Pine. Big deal, you say. Yes it was, I say. The wall had Dade Pine on both sides and the 2x4's were also Dade Pine. And they were so strong that the Mikita reciprocating saw I used was almost useless. I remember swinging a huge sledge hammer at the wall that did nothing except exhaust myself. I think it took over two days to get the wall removed.

Here are some some photos of interior walls in a Key West home. Photo #1, Photo #2, Photo #3, Photo #4, Photo #5. CLICK each "Photo" to see the pictures. The pics demonstrate my reference to the construction method. This particular house is not a historic home other than it is old. I had one "fancy" Realtor get just damned irritated at me one time when he was showing his listing to me and my client and said the house was "historic". The house was a dog in a crappy location. I asked what historic event or what historic owner used to live there. He got real snippy after that...

If you think about how the big houses were constructed years ago they were made of Dade County Pine on the outside walls, the inside portion of the outside walls, the interior walls (both sides), the ceilings, and the floors. That is a lot of wood, and the houses are very strong because of it. Since the wood is native, it works well in this climate and environment. Homes that have been remodeled and homes that have been preserved and restored (as the case may be) are very sought after. Unfortunately, they are also very expensive. Even in today's market. CLICK HERE to checkout such a house located at 406 United Street in Old Town. I encourage you to checkout all of the photos in the link as they show several rooms where the Dade County Pine walls have been masterfully restored and put to excellent modern use. The house is actually a bargain by Key West standards. It is priced at $2,495,000 or $689 per sq ft. It was remodeled only a couple of years ago and many of the homes of that same time are being marketed around $200 per sq ft or higher.
CLICK HERE to perform your own search of Key West homes to see if you can find a house with Dade County Pine construction that you want to transform into your dream home in Paradise. It can happen. It just takes work. Then call me, Gary Thomas, at 305-766-2642 to schedule a showing. Who knows, you may end up owning a This Old House.

Pre-Sale Marketing Tools You should Use

During the time I have been writing this blog I have mentioned the variety of homes (style, age, value) on any one street or in any particular neighborhood. Up north in America there are blocks after blocks of very similar buildings or homes, mostly built contemporaneously with each other and in a style and scale as to not be dissimilar. The suburbs that developed after World War II are filled with "cookie cutter" homes. So the buyer can easily shop for the best value by comparing similar homes in similar areas.

But Key West is different. On any one block you can find a cigar maker's cottage of 1000 square feet next door to a two story 2200 square foot grand conch house (Greek Revival). So pricing and comparing properties is a bit more difficult. And since the current real estate market in Key West is in such a flux, I suggest that potential sellers get their property appraised before we place it on the market. Now most Realtors can do a Comparative Market Analysis and give a seller an opinion of the current value based on recent sales. I view the impartiality of an independent appraiser (who is not going to list the property) as being more beneficial. Then the seller can use the appraisal as an additional marketing tool to sell the property.

Another tool that should be considered is to obtain a Pre-Sale Home Inspection by a Certified Home Inspector. Recently, the Fine Living Network aired a an excellent 30 minute program t about Pre-Sale Home Inspections. It showed one would-be seller who obtained such a report and discovered several problems that any post contract inspection would have found. This gave the seller time to get the items repaired or obtain estimates to determine the cost of repair. The seller opted to spend the money and remediate the problems. The house was listed and went under contract 27 days after being listed.

The nice thing about a Pre-Sale Home Inspection is that it helps reduce the uncertainty of contingencies in a real estate contract. Most contracts have financing and inspection contingencies. (Most Key West contracts are "As Is", meaning the buyer can have the home inspected and walk away from the deal if the inspection discloses some problem with the property.) But the Pre-Sale Inspection, like the appraisal, can be used as a marketing tool to reduce the uncertainty in the buyer's mind about the condition of the property. If the inspection is done by a certified home inspector, it is usually transferable to the buyer without any additional cost. The inspection reduces the likelihood of a subsequent lawsuit by the buyer against the seller for failing to disclose material defects with the property since the pre-sale inspection is done by an independent, certified inspector who will not benefit from the sale.

Here is a great article to read about the benefits of a pre-sale inspection report.

If you live in the Key West area and are considering selling you property, contact Kevin Barlow at Islandview Associates. Go to www.islandview-associates.com for more information on fees and services they provide. I know Kevin. He is a real professional. He is very knowledgeable and will work hard to make your sale in this difficult market a little easier. It is worth a call to him. He can be reached at 305-304-9196. Mention that Gary Thomas sent you. I won't get a nickle, but I would like to know that someone heeded by advice.

I was talking with Kevin Barlow and he told me the true story of two recent inspection he performed. One at Key West By The Sea. He found a very antiquated electric system that was a fire hazard. He had to denote what he saw in the report and the deal unfortunately failed. Had the seller addressed the problem earlier and had the electric updated or obtained a pre-sale inspection and an estimate on the costs to repair the problem, the deal might have had a chance of succeeding.

Another recent inspection occurred on Sunset Key, just off the Key West "mainland". The house was priced over $3 million. The buyer's primary concern was to avoid any mold. None was found--except one pocket door. The inside of the door was a mass of mold. Had somebody cleaned the home earlier or had a pre-sale inspection been obtained the potential problem could have been found found and averted.

In both instances mentioned an ounce of prevention (and the expenditure of a few dollars) could have eliminated the potential for upsetting a potential sale.

And if you accept my premise about using a certified appraisal as an additional marketing tool to aid in the sale of your property, call Matt Zintsmaster at Bone Island Appraisal.
Bone Island Appraisal Company 925 White Street Key West, FL 33040
Phone: 305-295-8336.

Short Sales and Other Devices to Sell Distressed Homes

There's a new term that is appearing with more and more regularity in the Key West mls database: Short Sale. The concept is pretty simple. A home owner needs to sell his house quickly because of some impending situation such as a potential foreclosure, illness, marital conflict, etc. You get the idea.

So Seller lists the property at a price he hopes will attract a potential buyer. In turn, the Seller hopes his lender will agree to accept a payoff of his mortgage at an amount less than what is owed. If this occurs, the seller theoretically walks away from his problems and resumes the Life of Riley.

There are numerous discussions of Short Sales on the internet, so I won't bother to try to re-write what has already been artfully written. Here are two well articulated items well worth reading because they discuss the basics both the seller (borrower) and the buyer need to understand. BUSINESS WEEK article is a must read. Also read SHORT SALES IN REAL ESTATE.

I did a quick search of single family homes for sale in Key West priced under $600,000 that were either shown as "short sale" or possible short sale, bank owned, or houses that I knew were bank owned even though not listed that way in the mls database. CLICK HERE to see the entire list. It is possible, no probably highly likely, that I missed some, especially since some Realtors are notorious for not obeying the rules when it comes to info they place in mls listings. But there are enough homes listed that anyone looking to make a deal on buying a distressed property has a good list of homes to consider.

Remember,I used to work in banks and I know how bankers think and act when it comes to walking away from money on the table. But since I used to sit on the other side of the table, I think I can help you negotiate the right deal and actually buy the property you want for a fair price--fair for you, fair for the bank, and acceptable to the Seller. My number is 305-766-2642. Call me before somebody else gets the deal you could have had.

It's Beginning to Look a Lot Like Christmas

Before I moved to Key West I imagined what it would be like to be here for Christmas. I even came down one time two weeks before just to get a sense of what being here would feel like. I'll tell you: it is magical.

This town gets excited about all kinds of things. We have bed races, and bartender contests, and boat races, and funny looking pet contests. We have a different events every week of the year. But Christmas is really special here.

I know most towns get all decked out for the holidays, but Key West really shines. There is much whimsy in the decorations here. But locals like to take their decorations to extremes. Some decorate their cars, and others their bikes.

And I know most towns have celebrations of various sorts, but the Key West celebrations are just a little bit better, and perhaps a little more odd. The Key West Women's' Club has its annual free cocktail party the week before Christmas, the Messiah is performed at the Old Stone Church, and the week before Christmas the annual Christmas Concert is performed at St. Paul's Episcopal Church. The St. Paul's concert is one not to be missed. Key West has lots and lots of very talented people that perform regularly at many different venues. But this one night they all get together and sing to high heaven. And it brings tears to your eyes every year.

Atlantic Shores is gone now, but I remember spending Christmas Day there a few years back. There I was getting a tan on Christmas Day and thinking about those poor folk up north in America freezing their butts off. Ain't life great. It is if you are fortunate enough to live here. Of course, you could live in Buffalo, N.Y., of Nutley, N.J., or Wisconsin....

CLICK HERE to checkout all Key West mls listings. The practice in Key West is different than most places. The listing Realtor usually shows his/her listing to the Buyer's Realtor and the Buyer. So give me a call and let me be your agent and help you make the right choice in purchasing a new home, a second home, or an investment property. Unlike those fortunate enough to be born here, we were all novices once. 305.766.2642.

News You can Use

Fresh off the Press. FLASH. Actually, it isn't even public knowledge yet. But it is now I guess. Last week a realtor at Prudential Knight Keyside Properties let the cat out of the bag when she started telling folks that Ed Knight (the former owner of Knight Realty which he sold in the mid 1990s that became Prudential Knight-Keyside Properties) and Claude Gardner had re-purchased the real estate company back from the current owner. I called a friend at Prudential who confirmed that the deal is going through and that things are going to change--soon. First, there will be local ownership. Second, there will be hands on management by the owner. Third, the present management will not stay. Sounds positive to me.

Ten years ago Knight Realty was the top real estate firm in Key West. It was the place to work. Ownership and management changed hands and things deteriorated--big time. I worked there and witnessed several exits that were not nice. I won't say any more.

The top sales people that left Prudential moved on to other offices including the Real Estate Company of Key West. That company was purchased and renamed a couple of years ago and the new management there had a bad time. Most of the former Prudential Knight agents that had moved there left and formed Truman and Company. The old RECKW building and parking lot is now deserted.

Now for some good news: A week ago I reported the sales up-tick for Key West during the month of November. I have been meaning to give you an update on Contingent Sales--that is contracts that have been signed by both buyer and seller that are proceeding along towards an eventual closing date but that are contingent upon certain conditions occurring. There are 36 such residential contracts pending in Key West as of this morning. CLICK HERE to see the properties that are contingent. They are in all price ranges and locations from Key West up to Shark Key. I deleted all of the developer contracts for condo sales down on the Key West Seaport.

CLICK HERE to checkout all of the real estate listings from Key West to Key Largo. I'd be pleased to schedule a showing of any property between Key West to Sugarloaf and I can even arrange to help you find a good Realtor up yonder. Call me at 305-766-2642.

Key West Cottage--Only $10,500

A Key West Cottage for only $10,500. There must be a catch, you say.

Every once in a while a deal comes along that just makes doggone good sense. This may be the time for you to expand your horizons by shrinking your expectations.

This lovely little cottage is painted in island colors and even has air conditioning. Granted, it is a bit smaller than most cottages (it is only six-by-eight foot). But it is truly a hand-crafted, Key West-style pastel blue cottage and is perfect for the fun-loving with a whimsical side. It comes fully furnished with a turquoise, yellow and white décor—complete with artwork, area rugs, a brushed suede couch, pillows, TV/DVD player, toys, front porch, electricity, air-conditioning, operable windows and a hand-built door that locks and features a shingled roof, designer ceramic tile floors, and custom-trim work. There is also a flat-screen TV with canine-friendly DVD collection, and designer toys by Hot Diggity Dog and Chewy Vuitton.

The Cottage that will have your neighbors howling at your real estate acumen. The price is subject to change, so act quickly. CLICK HERE and scroll down to get more info. Land not included, however.

And on that rare occasion you and your mate are on the outs and are fighting like dogs and cats, you could take refuge in your Key West Cottage. Or maybe you might just want to rent it out on the sly (I am sure you won't be able to obtain a non-transient residential occupancy license form the city). You could probably get $800 or $900 per month in rent. But you'll have to figure out something about the bathroom facilities.

If you are looking for a cottage that is a little larger than the one shown above, checkout the Key West mls CLICK HERE then give me a call to set up a showing. 305-766-2642.

1800 Atlantic Condo -- Let's Make a Deal

Just Listed: 1800 Atlantic Unit C129. These are the basics: List price is $469,900 or $358 per sq ft. It is the lowest priced unit at 1800 Atlantic with a transient license which means you can legally rent the unit on a nightly basis to help cover your mortgage cost. CLICK HERE for more info and photos.

The unit has 1357 sq ft of space so it is identical to about 90% of the other units there. A couple are larger because they are located directly on the ocean; one is a 3 bedroom, and there is a smaller unit with one bedroom. Otherwise, the units are the same. The difference is the location and whether the unit has an ocean view, street view, or mangrove view. But the units basically rent for the same price.

The unit is not furnished and the kitchen has not been updated since the unit was built. If you are not buying the unit to live in, that is not a big deal and it certainly is not going to effect the average daily rate you charge renters.

1800 Atlantic is located directly on the ocean and has a private beach, huge pool, spa, covered parking, and tennis courts. There is a good solid base of people who return to 1800 Atlantic year after year because it offers them value. Click the following links to checkout a few comparable units that are rented nightly to see their pricing and availability. Rent Key West has a couple of units: Unit 228 and Unit 435. I sold unit 435 a couple of years ago. The buyer paid just under $1million for it. At Home in Key West has several units are varying price points. Papaya Place is the cheapest. Or go to 1800 Atlantic webpage to watch a virtual tour and checkout a variety of units, availability, and pricing. I think you will see that the unit mentioned here has some real upside to it as a long term investment.

This particular unit is Bank Owned. The prior owner purchased it in April 2005 and paid $742,000. The unit is priced today at $469,900 and reflects the new reality. I have sold and listed & sold units there and I tell my customers that they must treat their investment as an investment to make money. They need to hire the right management company and keep the unit rented as much as possible. A lot of people buy a property like this and then spend valuable prime season time in the unit or let their friends or family use the unit for free. Wrong idea. The unit is there to pay for itself, not to give your friends a free Key West vacation.

So if you think you might be interested in buying a nice unit at 1800 Atlantic give me a call at 305-766-2642 to schedule a showing. Don't wait. I really think this unit will sell fairly quickly.

Won't You Be My Neighbor?

You have be an unsentimental and crotchy old curmudgeon not to remember the lyrics and more importantly the message of Mr. Rogers' opening song to his daily program: "Won't You Be My Neighbor?". If you have forgotten, however, CLICK HERE to jog your memory.

The message to me was that as a neighbor you belong to a place, a special place, that you share with people with common values. And when Mr. Rogers sang "It's a beautiful day in this neighborhood,A beautiful day for a neighbor" you just knew that he was singing to you.

I have written many times about the Casa Marina Neighborhood as an attractive alternative to the Old Town area of Key West. And each time I wrote about houses or condos for sale in the area. But today I am suggesting that you consider buying a vacant lot and build your own dream home in a great neighborhood. My neighborhood. The Casa Marina area.

The 1000 block of Washington is probably the best single lot in Key West. Look at the photo at the top right to see for yourself. It is the corner of Washington and Whalton and looks like a park. The lot is 12,700 sq ft and is priced at $3,000,000. There ain't another one like it on the island. CLICK HERE for more info and beautiful photos. I live across the street. So if you buy, please don't make too much noise when you build your new dream home.

Property number two is located at 1426 Reynolds just a stone's through from the famous Casa Marina Hotel and the Atlantic Ocean. The historic R.J. Reynold's home is across the street to the east and there are numerous multi-million dollar homes in the surrounding blocks. This property has HARC (Historic Architectural Review Commission) approval for a new residence to be built on the 11,500 sq ft lot that is priced at $1,350,000. A second ROGO building permit is available at additional cost. (This property was previously a legal duplex, so the lot can be subdivided into 2 parcels or a second home (guest unit) could be built together with the main residence.) Since a good part of the building approval process has already been completed, this lot could make the construction of your dream home even speedier. CLICK HERE for more info and photos on this property.

Finally, there is an opportunity to buy a 5376 sq ft lot with approved plans for the construction of a 2572 sq ft home at 906 South Street. This property is now listed at $595,000. The owner bought this property in May 2004 and paid $1,200,000. So this property is on sale. CLICK HERE for more info and pics.

I love this neighborhood. I am close to the beach and Old Town. I can be at the shopping centers in about 5 minutes--even when the tourists are in town. The area has big streets, big skies, beautiful yards and mature, lush trees. And it is quiet. Won't you be my neighbor. Give me a call for more info on any of these properties. 305-766-2642 or email at kw1101v@aol.com .

728 Love Lane

Just Listed: 728 Love Lane, Old Town, Key West is located down a quiet lane in the heart of Old Town and is an exceptional 3 bedroom, 3 bath home. The locations is an easy stroll to the center of Duval Street. This residence is a must see for anyone who desires the best in location, privacy, security, top notch construction, and superb attention to EVERY detail. Some features include: Off street parking, heated, custom reverse infinity edge pool, two zone A/C, whole house back up generator, professional chef's kitchen built by a custom furniture maker with Wolf/SubZero/Bosch Appliances, spacious loft to accommodate extra guests, extensive storage, covered veranda with wet bar, ice maker and under counter refrigerator, impact windows and skylights, floor to ceiling marble and decorative tile in all baths.

Anyone who has read my blog knows how fond I am of homes located on almost any of the Old Town lanes. This particular lane has the added pizazz of being Love Lane. Now what kind if passionless and frigid individual would not want to live on Love Lane?

This house is a re-do of a re-do of a re-do. But from the pics, I think this renovation got it right. The renovator is also a Realtor who has done several projects in Old Town. And he uses top quality materials and lots of imagination to achieve a project that is both practical and romantic.

CLICK HERE for more photos and additional info on this cute little abode. The home is 2100 sq ft and is priced at $2,250,000 or $1.071 per sq. ft. Now that is quite a bit in any market but when you consider what you are getting for your money, this house is just plain practically magic.

Let's go take a look together. Call me, Gary Thomas, 305-766-2642 to schedule a showing. If you have the money, this really is a house to consider. And if you can't quite afford this property, CLICK HERE to checkout the other homes available in Key West. Again, give me a call to help you find your new home in Paradise. Just think, if you bought now, you could be at home in Key West for Christmas.

November Sales Report

The November single home sales report for Key West improved over the prior month. But more importantly, there is a perception that the real estate market in Key West is on the up-tick.

There were 9 single family homes sold in Key West in November 2007 with a total sales volume of $8,615,000. The least expensive home was a one bed one bath listed at $390,000 and sold for $380,000. The most expensive home was a massive two home assemblage in the 1200 block of Washington Street that had been on the market for several years. It did not sell during the boom years but surprisingly did sell in November. Asking price was $2,990,000 and sold for $2,655,000 to an English buyer. My sources told me that the devalued dollar played greatly in the purchase price. And even though the home had a fantastic kitchen, the new owner is going to put his touch in a new one. (Perhaps the old days really are returning!)

Eleven single family homes sold in 2006 totaling $8,081,000. The lowest priced home sold for $359,000 and the highest priced was listed at $1,850,000 sold for $1,630,000. In 2005 there were 5 single sales total $5,135,000 with the lowest $485,000 and the highest asked $2,875,000 sold at $2,687,000. But in 2004 there were 19 single sales totaling $15,321,500 with the lowest selling at $490,000 and the highest selling at $1,450,000.

Eight condos or town homes were sold during November 2007 with sales totaling $6,645,800. The least expensive unit sold for $285,000. This sale is most troubling because the owner bought the unit in 2005 for $585,000. That is a $300,000 loss. The unit was located at Santa Clara and was a 2 bed one bath unit with 980 sq ft. That sale is very depressing. The highest price sale was at the Beachside Condos sold at $1,711,000. In 2004 23 condos sold totaling $14,464,706 with the lowest priced unit selling at $362,690 and the highest at $985,001. In 2005 only 6 condos sold totaling $5,315,500 with the lowest selling at $299,000 and the highest at $1,650,000. And in 2006 3 (yes only 3)sold totaling 2,199,000 with the lowest at $520,000 and the highest at $1,000,000.

So it appears the sales reports support the positive and upbeat feeling I am getting from fellow Realtors that the market is on the upturn, be it ever so slight. The summer and fall market are always the worst for Key West. But the sales for November 2007 were the best since the banner year 2005. So even though the numbers in total sales or dollar amount are not as high as me might want, they are certainly better than they have been for the prior two years.

If you are thinking about getting into the Key West real estate market before it goes on the rebound, you can checkout all of the mls listings by CLICKING HERE. Then please give me a call at 305-766-2642 so I can set up a showing for you. There is mortgage money available and the market is still a buyer's market. So don't procrastinate.