January Sales Report for Key West

There were 12 Single Family Home Sales in Key West for the month of January 2008 with a sales volume of $11,838,000. I searched from Mile Marker One through Shark Key. The least expensive property was a 2 bed, 1 bath house listed at $249,000 that sold for $220,000 in 21 days. There were two very expensive homes that sold. One on that I mentioned here several times that was listed $2,995,000 and sold for $2,350,000. (This was not a forced sale.) The other was a Sunset Key home listed at $3,100,000 that sold for $2,850,000. The average home was a 3 bed, 2 bath with 1673 sq ft listed at $1,130,000 that sold for $986,500.

There were 2 bank foreclosures included in the January sales totals, and they were priced right and sold near the asking price. So folks who are looking to steal the property from a desperate bank may be in for a surprise. Properties that are priced correctly usually sell at or near their asking price.

There were 18 single family sales in 2007 totaling $15,471,500. There were 11 such sales in 2006 with sales volume totaling $12,033,000. But in 2005 there were 36 sales totaling a whopping $41,881,156. The least expensive that year was listed at $649,000 and sold at $655,000 in one day. That is not a typo. The most expensive was a house that sold for $3,775,000. In 2005 the average house sold at $1,163,365. So the number of sales and the sales volume for January 2008 is down as compared to each of the 3 prior years.

Condo Sales were disappointing as well. There were only 8 sales in January 2008 totaling $3,718,500. The most expensive sale was a unit that I wrote about CLICK HERE. It sold for $802.000. This was a giveaway in my opinion. This is an "I told you so!" of gigantic proportions. It was not a forced sale. The same owner has more property on the market, and I have written about those properties as well. The average condo was a 2 bed, 2 bath that sold for $464,813.

In the year 2007 there were also 8 sales in January totaling $3,434,000. But the highest priced unit only sold for $550,000. In 2006 we had 6 condo sales totaling $4,717,000. And in 2005 there were 26 condo sales with a sales volume of $19,365,800. The most expensive unit that year sold for $2,300,000. It was located at Harbor Place (the same location as the unit that sold this month for $802,000--but not the same unit).

There are 34 single family homes listed as contingent or pending. Three of those or multi-million dollar homes. (The highest is listed at $5.1 million.) Three others are houses I wrote about in this blog as being good buys. There are 19 condos listed at contingent or pending as well. They range in asking price between $265,000 and $2,825,000.

I have been talking with other Realtors, and everyone says they are busy showing. Our office is. We are writing offers, but not all offers are accepted. I think there is a resistance on the part of some buyers to act now because they believe the market has not "bottomed". So they prefer to wait until the end--whenever that may be. Others may believe that they can take advantage of the sluggish economy and snag a good property at a fraction of its current price--which is not the same as its value.

I'll just repeat what I said last week: Don't Miss the Boat! If you are looking to buy, there are sellers who want to sell and some who must sell. Now is the time to act. CLICK HERE to checkout all current Key West mls listings and then please call me, Gary Thomas, at 305-766-2642 or e-mail me at kw1101v@aol.com so that I can help you take advantage of the buying opportunities that now exist in Key West.

625 Eaton Street Old Town Key West

The picture at the top of today's blog is of a great old house located at 625 Eaton Street. She' really old--born in 1824. She needs some nice person who help her ease gently into the 21st Century.

The present owners started to renovate this property and then stopped. No financial woes here. But the old dame is sitting growing older each month. The house has 1734 sq ft and sits on a small lot of only 1725 sq ft. There is hardly any side yard or rear yard and as the photo above shows there is no front yard. The lack of land to expand the present house is bothersome to some buyers. But for the purist who wants to restore a beautiful home, this may be the buy for you.

CLICK HERE to read more info and see more photos of this house. It's been a while since I was inside, but I was captivated by this property the very first time I stepped inside. The rooms just take you back to another time. The rooms are gracious in their simplicity.

625 Eaton is priced at only $699,000 or $403 per sq ft. There are tear downs that are priced higher than that. For those seeking an Old Town renovation project but who want a little more land or a larger house, or a better price per sq ft, CLICK HERE for a few more properties to consider.

I included the photos of the before and after of a cute little renovation that is still in progress on Windsor Lane. I still marvel at some of the transformations that occur. It takes time and money, but in the end each little project is saving a part of our little island paradise. And to quote Martha Stewart, "That is a good thing."

Do you want a project house? Then please give me a call 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you find a sweet little old lady that needs to be saved.

1116 Seminary Street, Key West, FL

SHORT SALE: 1116 Seminary Street, Key West, Fl. This 1435 sq ft home sits on a 4107 sq ft lot. It is a renovated three bedroom two bath home in Casa Marina area close to beaches and Old Town. Amenities include bamboo wood floors, cherry cabinets, granite counter tops, tumbled marble baths, heated pool and off-street parking. This house has been identified as a potential short sale property that may require approval of a third party lender to effectuate a sale.

The property was originally listed at $1,450,000. It is now priced at $1,000,000 or $697 per sq ft for a good Casa Marina area location. It has easy access to White Street and United Street that make getting to Old Town or New Town very easy--except when Key West is overrun with tourists.

CLICK HERE for more information and additional photos.

This is our listing and I'd love to show it to you. Please call Gary Thomas, 305-766-2642 to arrange a showing. Don't wait, this one is finally getting some activity.

Paradise Harbor Redux

It was a year ago this week that I first wrote about Paradise Harbor located at 719 Eisenhower Drive on the Garrison Bight and at the water's edge of Old Town Key West. GO HERE to read what I wrote then.

I have been watching the development of this parcel for over 2 1/2 years. And this morning I decided to ride my bike over to the property for a better view. Wow. These buildings are beautiful. Right on the water. Each unit even has its own boat slip. I didn't get to go inside, but the view from the flyover at the Garrison Bight makes one sigh. This is a beautiful and tasteful addition to our "little" skyline. There is a lot of noise from locals about other projects. I have not heard anything negative about this one.

Each unit is different in size, price, and location. But they all share these common features: a huge master suite, over sized guest rooms, high ceilings, state of the art kitchen, spacious dining area, a third floor library/game room, garage parking, and private elevator. The yards feature a pool and foliage designed with water conservation in mind. Priced from $2,250,000 and up.

CLICK HERE to checkout all of the units currently available at Paradise Harbor.

Pleas call Gary Thomasat 305-766-2642 or e-mail me at kw1101v@aol.com for more information.

I was a Spudnut Man

Remember when you were a kid and you marked your age by half years or even quarter years? I just turned 61, and now I mark my age by decades.

But the good side of growing older is all the wisdom that comes with it. My life experiences help me judge the present by things I remember from the past. I grew up in Denver in the 1950s. My mom and dad got married in 1929 and had their first child, my sister, in 1930 and their second, my brother, in 1935. They raised two kids in the Great Depression. My mom never got over the Depression. And I was raised as a child of the Depression even though I was born at the very start of the Baby Boom.

I had odd jobs even as a kid to make money. I got an allowance, but not enough for my needs. Back then my needs consisted of candy and model cars and airplanes. In 1957 a friend and I talked the owner of the Spudnut Shop in the Lakeside Mall into letting us go door to door selling fresh Spudnuts. We made 75 cents each for selling a dozen bags of Spudnuts. One day I rang a doorbell and a woman's voice from the inside rang out "Whose there?" And I answered "The Spudnut Man." I swear this is true: she came to the door in a bra looking for a man and saw only a little ten year old boy. She bought a bag from me. I never saw a woman other than my mother in a bra before. It was amazing.

Sometime either before my Spudnut days or the winter after, I learned a valuable lesson about how to put a value on money and other things of value (like work). We had a horrible snow storm. On a cold and snowy Sunday I went outside with my snow shovel and got busy shoveling sidewalks. I think I charged 25 cents. The lesson came when I shoveled a particularly large sidewalk. It must have been a corner property. When I was done I went to the house to collect my money. The man asked "How much?" And I said something like "However much you think it is worth." The bastard only gave me 50 cents. I had shoveled my little tail off for this guy. And all I got was 50 cents. I wasn't so mad at him as I was mad at myself.

I put myself through college and law school. I paid for everything with money I earned and a few scholarships. I had to pinch pennies to get by. I went to the University of Denver College of Law and tuition was very expensive. But I managed to have all my college loans repaid within a year or so after graduating.

Those days of pinching pennies helps me compare the price of things today against what they cost back in the day. Its funny (no, it really isn't) that we managed to live through the Fabulous Fifties without a mortgage backed securities meltdown (they did not exist) or sky rocketing oil prices that are justified because we were in a war (I guess the Korean War didn't count as a real war).

The following are some of the benchmarks I used to determine if I am paying too much for something today as compared to what it used to cost. Way back in 1957 I had my first date. I was in the 5th grade and my "steady" and I double-dated with another couple and went to the Oriental Theatre at 44th & Tennyson in Denver. The "show" cost 25 cents. We bought a long paper bag of popcorn for a dime at the drugstore next door and Green Rivers in the theatre for another dime. Total cost for a Saturday afternoon $.45 each. Today the Regal Cinema in Key West charges $6.50 for a child to watch a movie. Popcorn and drink would be another $4 or so.

I had to buy a new car just as I started law school. I chose a 1970 VW and it cost me $2000. A 2008 New Beetle SE starts at MSRP $20,440 in Miami. My first studio apartment cost $125 per month. A studio apartment costs an average of $1100 in Key West today.

You could buy a Coke for a nickel when I was a kid. Later Coke came out with a King Size bottle for a dime. Today in Key West a can of Coke costs $1.50. I remember we used to have Crestridge Dairy deliver two gallons of milk twice a week to our house. Milk cost $.45 back then. Today in Key West the price is about $4.50. And nobody delivers milk. Way back in the 50s bread cost $.19. Last week I paid $3.39.

The summer before I started college I had a job at a small airport refueling airplanes. I was paid $1 per hour. I think I was paid minimum wage. A fellow employee who just got out of the Air Force made $1.10. He was a man, and I was still a boy. Today in Colorado the minimum wage is $7.02, but it is only $6.79 in Florida. A lot of illegal workers in Key West make more than that, but some don't make very much more.

Can you imagine working for a living at a minimum wage job and trying to house and feed your family? You couldn't do it in Key West.

I am so tired of MBAs that create justifications for their market manipulations. They are messing with our lives by driving up the cost of gas. Some smart alec MBAs got the idea they could do the same thing with corn futures because corn is being used as a bio-fuel. It worked just as planned. Now corn is gold, and everything related to corn is more expensive than it should be.

None of this has a thing to do with the price of real estate in Key West. But it does have a role in why things cost so much here. I wish we could all use the WAY BACK MACHINE and go back to the 1950s when all we had to do was worry about the Commies and duck under our desks at school in preparation for imminent nuclear attack.

If you want to buy a house in Key West please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

306 Peacon Lane--Old Town Key West, FL

306 Peacon Lane is located a hop skip and a jump from the Historic Key West Seaport and it is just a stones throw to Duval Street. In other words, this picture perfect little home is in the right location for the buyer who wants everything just right.

Beautifully renovated historic home on highly desirable Peacon Lane. Located in the Historic Seaport District near restaurants, marinas & nightlife. This 3 bedroom home, circa 1850, is a fine example of the best of Key West architecture. High ceilings, hardwood floors, Dade County Pine walls, hand-milled window & crown moldings. Huge master suite with large closets. Bright and airy family room provides an open and spacious ambiance. Fabulous chef's kitchen, granite counters, Bosch & Jenn-Air appliances. This Smart Home has CAT-5 wiring and state-of-the-art, integrated electronics system for 21st century living. Tropical landscaping, heated pool, waterfall and wrap-around porches complete this Luxury Oasis For Island Living.
There is even a patch of grass where the kids or grandkids can play.

This home is offered at $1,349,000 or $748 per sq. ft. CLICK HERE for more info and more photos of the house. There is also a virtual tour at the link. Open the virtual tour, enlarge the screen to full size, and hit slide tour. There you will see large high resolution photos of this beautiful home.

Everything about this house shows the love that the current owners have put into it. I can't imagine changing anything because everything is so perfect. The rooms are good sized, not cramped. The Dade County Pine walls and floors are what bona fide second home owners want. The wood trim and painted surfaces are crisp and clean. The kitchen is open, warm, and inviting. And the location, off street parking, and the equally charming cottages on this very private little lane just make you feel "I want to live here!"

CLICK HERE for an aerial photo that shows the location of the house in perspective to its location to the Historic Seaport.

The listing agent says the Sellers have identified a larger home that they want to move into as soon as this house sells. They are anxious to move onward and upward to a larger home. If this little charmer sounds like the kind of place you want to own, please call me, Gary Thomas at 305-766-2642.

If the attributes of Peacon Lane seem appealing but your needs require a larger home, CLICK HERE to view 315 Peacon Lane which is listed at $2,250,000.

Distress Sale: 1800 Atlantic

Distress Sale: 1800 Atlantic Blvd #C122, Key West, FL
This is how the listing Realtor describes the offer: "PRICED TO SELL!!! Take advantage of the best priced 2 BR & 2 BA at 1800 Atlantic Condominiums. Located on the tropical courtyard of the complex, the unit offers a 1357 sq. ft. floor plan. Amenities feature a secure covered parking garage, heated beach side Olympic size swimming pool, hot tub, 3 lighted tennis courts & 24 hour. security. Condo fees cover water, sewer, extended basic cable TV, monthly exterminating, exterior building insurance & maintenance."

Owners at 1800Atlantic have a 15 day first right of refusal period for any resales. Tenant in place through March 2008 at $4600 mo. The monthly condo fee is $887.71.
CLICK HERE for more info on this specific unit.

The unit is located on the first level above the parking garage and has a courtyard view. It sits just above the trees so it is about as far back from the ocean and pool as you can get. CLICK HERE site plan and CLICK HERE for layout of unit. No interior pics are available. CLICK HERE to see the master bedroom of a similar unit. This is NOT a SHORT SALE. Make your best offer.

The property was purchased in June 2004 for $540,000. It was listed for sale in December 2007 at $478,000. The asking price was just reduced to $398,500 or $294 per sq ft. The unit does not have a Transient License and you cannot transfer a license to this unit. But you can rent the unit on a long term basis, do monthly rentals, or use it as your own private residence or second home.


CLICK HERE to checkout all similarly sized units without transient licenses so that you can compare the prices, views, interior finishes, etc. to determine if the unit listed here is a value to you. If it is and you would like more info or want to schedule a private showing, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Don't wait.

Don't Miss the Boat

This is a True Story! A few years ago a husband & wife team at a real estate office where I used to work went to the Ft. Zach Taylor beach to have a picnic lunch. They saw this woman wearing only a bathing suit running around frantically waiving to a cruise ship as it was sailing away from the Mallory Square Pier. The woman and her husband were passengers on the ship and had rented a scooter to see the island. They went to the beach and let time slip away. All of their clothes were on the boat, and it was headed toward Mexico. They asked the Realtor couple what they should do. My friend suggested that they stay in Key West a few days and then rent a car so they could meet the boat when it returned to Ft. Lauderdale. He said hey had missed the boat, and the cost of flying to Mexico would defeat the purpose of a cheap cruise.

The moral is pretty simple: Don't Miss the Boat! If you wait too long, the boat will probably have left the port and the cost for you to catch it may be more costly than if you had just played things safe. In other words, don't gamble on time or time may cost you more money in the long run.

How did you do in the stock market last week? Were you among the few that made money? Or did you lose some? Or a lot? I got out of the market because I could not stand the constant worry about what others were doing with my money. Real estate has traditonally been a safe investment because the market normally only goes up. Not down. Sometimes it goes at a slow pace and sometimes the pace is aggressive. Right now the market it Key West is going sideways, down, and up depending on the property type and location. Some very expensive properties are selling, several very low priced properties are selling, and a few moderate properties are selling. Most of all sales are negotiated prices, however.

We are seeing buying activity spurred on by short sale opportunities. I don't know how many of those will translate into actual sales that close. The lenders are now requiring short sale contracts be accompanied by proof of funds and a pre-qualification letter for any contract that is not all cash.

I just generated a new list of the homes that are always in top demand: Old Town under $1,000,000. CLICK HERE for the list. The list is real Old Town and covers only homes West of White to Duval and North of Truman to the Gulf. No Bahama Village, Meadows, Casa Marina, or any other area. This is the area that is always in highest demand. Checkout the list. There are a couple of well located houses at good prices. And there are some houses that are growing stale because they are over-priced.

If you see something that interest you pleas call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Thanks.

Money Makers?

There was a segment on the TODAY SHOW last Friday about a San Diego couple that is suing their former Realtor for professional negligence among other claims. Buyer claimed "the agent was negligent in not telling them about other houses that sold for less, including one three doors away that has a pool and sold for $105,000 less and another that was considerably bigger that sold for $175,000 less." GO HERE to read the story or watch a clip.

We have a Realtor in Key West that advertises himself as a "Real Estate Expert". Even before learning of the above referenced lawsuit, I thought our local "expert" is setting himself up to be sued. I think he is telling the world that he is more competent, experienced, and able than other Realtors. If the "expert" Realtor makes an error, is he not subject to a higher standard of conduct and conversely subject to a claim for higher damages than a plain old garden variety Realtor?

I am not an expert and don't claim to be one. Period. That being said, CLICK HERE to checkout a few of the 77 duplexes and 3-t0-4 family units available on the Island of Key West. I went through the mls and selected these properties generally because of their price per sq ft, location, special features, or possible SHORT SALE (in some instances). If you are looking for an investment opportunity, now is a good time to consider buying a property in Key West. The fact is that most of these properties have not sold because the market is still very cautious. The price per sq ft is down considerably now from what it was back in 2004 and 2005. That could mean that the prices then were too high, or that the market in general is depressed now. Some of the units were purchased at prices higher than the current asking prices. I think some of these units are buying opportunities today.

Some of the properties would be great for an owner plus tenant situation. Others are just income producing units. But I invite you to checkout the list and see if one of these units interests you. If so, please contact me for more information. Gary Thomas, 305-766-2642 or e_mail at kw1101v@aol.com.

Dirty Deeds

Dirty Deeds

I attended seminar last week dealing with Short Sales. During the seminar the conversation eventually wandered to the topic of foreclosures and things foreclosed property owners can do. She told of borrowers who put bags of concrete down the drain just before they vacate their homes. The dry mix turns hard after a few days and the bank gets a huge mess. And her story reminded me of my own experiences and dirty deeds that I encountered during my years in banking. Here are a few:

Paper Widow: the widow of a major Denver newspaper publisher refused to pay her loan to the bank. I commenced foreclosure on her very expensive home. She called the president of the bank and asked him to intervene. I got called to his office and explained how far delinquent she was and that she refused to pay anything. I related how she told me she would drag our bank's good name down on the front pages of the paper. I was told to continue. Then I got a phone call from her son with whom I went to law school. He said his mother was "nuts" and asked for a small delay so he could repay the loan. I agreed and the loan was repaid.

Mr. Green the Vet: a Viet Nam paraplegic had a home loan that funded renovations to a 1960's era ranch home to make it suitable for the wheelchair bound vet. He refused to repay the loan, or any part of it. He threatened to go to the news media and plead his case about the big bad bank taking his home. I told him he had to repay the loan and could not live there for free. He dared me, and I foreclosed. When we got the house this person had managed to remove all the kitchen cabinets, appliances, all light fixtures, light switches and plugs, all bathroom fixtures except the toilets which were filled with ****.

Your the meanest man I ever met: I foreclosed on the house of a former bank co-employee (I did not know him). His wife cleaned her southeast Denver home so that it would shine and no one would think ill of her. But as she handed me the keys to her home she told me that I was the meanest person she had ever met. I had not made the loan to him, and I had tried to figure out a way to help him find a way to get it re-paid. But things did not work out.

I hate you Gary Thomas: we had a huge loan to a farmer in Western Kansas. He had several square miles under cultivation. He had loans with several different banks, but we had the mortgage on the home place, the barns, several sections (square mile sections of farm land), and UCC liens on his farm equipment. When he reneged on paying his debts, we started foreclosure. We held an auction on the home place and sold all of our collateral. Now the borrower had managed to keep his Beechcraft Bonanza away from my clutches along with some other toys. But his wife blamed the loss of the family farm on me instead of him.

Political Ever-Green Loans: big banks make "evergreen" loans to politicians. An Evergreen Loan is a loan that is continuously financed by the lender rather than repaid. No Clean-Up requirements are usually associated with Evergreen Loans, meaning there are no contractual obligations requiring periodic payments on the outstanding debt. Typically made under specific terms, it is also a de facto condition in renewing short term loans, where the loan is renewed without any reduction in the principal amount. They were made to both political parties and to the highest elected officials in the state. I filed suit against the former director of the regional transportation district, the former lieutenant governor, the former director of the Denver Symphony, you get the picture. My experience was that lots of politicians like to use other peoples money for their own ends. Just you try to get one of those loans. I dare you.

I feel the earth move under my feet: I foreclosed on single family home at the base of Lookout Mountain just west of Denver. Lenders usually don't get to see the inside of a property prior to foreclosure so the banker uses his best judgment to decide how to handle each case. This foundation of this house was also a retaining wall for the mountain and the foundation had slipped and caused the house foundation to shift downward. I was able to trade the banks interest in this house for another property without any structural problems and everyone ended up okay in the end. But that was pure luck.

California One Action Rule: a California resident and borrower had borrowed money from our Colorado bank. He defaulted on loan and we foreclosed our security interest on the loan (a hotel in Palm Springs, Ca.). But we had a deficiency amount still owing so we sued our borrower in Denver District Court. He appeared and defended. We got judgement. He appealed and the Colorado Supreme Court upheld our judgment citing language in our loan documents stating that Colorado law would govern the documents and transactions. I then sued him in California to enforce our foreign judgment. He defended and lost. I remember the California Supreme Court ruling stating that we did what seemingly could not be done under California law: we got two shots at the apple so to speak. He got clever and bought a house in Coos Bay, Oregon. I sued and foreclosed his interest in the house.
The borrower was a former attorney who thought he could use his wiliness to avoid paying his debt. He lost.

The Usual Suspects: our borrower was a home builder who defaulted on loans to several big banks. He did not pay a lot of subcontractors, and he had lots of enemies. He and his wife divorced. I was convinced that the divorce was a sham. I later learned it was anything but a sham. I got an anonymous phone tip that he was going to receive $100,000 in cash on a Friday at his attorneys office in Lakewood, Colorado. I had our outside counsel get a writ of execution issued and got the sheriff to appear at the attorneys office on the day and time. Sure enough the money was there and the sheriff took it. Our borrower went ballistic. No one ever did that to him before. We spent 4 or 5 days in court arguing over what we did, but we won. A few months later the cover story in WESTWORD, a Denver weekly newspaper, was about the murder of our borrower and the discovery of his body at the Cherry Creek Reservoir. My bank was the only lender to get any money out of this crooked builder.

The Crying Game: another attorney I knew from my days practicing law became the owner of a bunch of industrial banks in the Denver metro area that were known as the Presidential Banks because each bank was named after a former President. The attorney borrowed money from several commercial banks in Denver including ours. He defaulted. He made a quick trip to Florida where he got a drivers license, registered to vote, bought a house and declared his homestead. He returned to Colorado and filed Chapter 11 Bankruptcy. We took him to task and objected to the fraudulent bankruptcy filing. We had him in tears on the witness stand during one of the hearings. He eventually found some money he forogt he had and paid us off.

I didn't inhale: a Mexican national pulled a big kite on our bank--about $500,000 in 1982. I got a prejudgment writ of attachment on his penthouse condo that he owned free and clear in Vail. The court appointed me a receiver for the property, and I took an itemized inventory of all personalty found in the unit--including a stash of marijuana. Later we entered into a settlement with him through his attorneys and got ownership of the condo and the contents. But the attorney made sure to disavow any ownership of the marijuana that was listed in the inventory filed with the court. We sold the condo very quickly. All cash. Total recovery of our loss.

My favorite story is about the REO I called Cujo Oreo. READ IT HERE.

Borrowers do some crazy things when they cannot repay loans or unsecured debt. I found it much easier to deal with people who were open and honest when they fell on hard times. I was even able to get my bank to lend new money to good people if they had a way to use it to earn money to pay us back. It worked on several occasions. But most borrowers get scarred and run away and hide or blame their banker for their woes.