Prices are Falling! Prices are Falling!

Realization is sinking in for some would-be sellers: Selling Season is Quickly Expiring. As a result the asking price on many homes and condos are falling (being reduced). I thought it would be interesting to post a few examples of some good properties with new prices that now seem like bargains. At least bargains by Key West standards. Click on any address for a more detailed sheet and photos.

1119 Olivia This is a legal duplex located in Old Town that was totally renovated within the last two years. Originally priced at $1,275,000 and now $610,000. This is a potential short sale.

716 Olivia Street This is a new renovation that has not been lived in. Unique design, quality craftsmanship, and top of the line fixtures mark this extraordinary property. Originally listed at $2,495,000 and now offered at $1,995,000. This is a potential short sale.

814 Ashe Street New construction in Old Town. Three bedroom historic reproduction single family home with luxury finishes and features built by award-winning Key West builder. Originally listed at $2,149,999 and now priced at $1,395,000.


804 Elizabeth Street was the subject of a TV renovation project a couple of years back. The home is sharp and has a beautiful pool and garden area. Originally priced at $1,695,000 and now offered at $1,575,000.

916 Washington Street in the Casa Marina Area is a new home boasting a modern & innovative 4000 sq ft. Totaling 4 generous en-suite bedrooms and an outstanding display of luxury amenities including state of the art kitchen with pantry. Originally offered at $3,750,000 and now priced at $2,999,000.

727 Waddell Street is another newly constructed gracious home. This home boasts charming roof lines, wrap around porches & balconies located in the coveted Casa Marina Area. The home is 2800 sq ft and five en-suite bed/baths and a killer pool and garden. Originally priced at $3,300,000 and now offered at only $1,999,000 or $714 per sq ft. This home is a block from the beach friends and it is all new. Top of the line. Methinks there is a deal to be made on this one.

1800 Atlantic Unit C229 is a bank foreclosure and priced to sell now. Offered at $404,000. These CLICK HERE are the other 1800 Atlantic units. Judge the price for yourself.

There are lots of properties in all price ranges that are priced to sell. CLICK HERE to do your own search of the Key West mls database. Most of the properties are listed because the seller really wants to sell. Sometimes it takes an aggressive buyer and a good Realtor to craft an offer that gets a deal accomplished. Do your homework and find the home you think might work for you. Then give me, Gary Thomas, a call at 305-766-2642. Or e-mail me at kw1101v@aol.com.

Present Value

Yesterday I wrote about a house at 724 Ashe Street in Key West that I think is a very good value for today's real estate market. It is priced at $999,000. To many price would see very high. But in the context of the specific milieu of Old Town Key West of similarly priced homes, I think the value of 724 Ashe is very apparent. To help prove this point I did a search of the Key West mls database and came up with similarly priced homes in the same area. CLICK HERE to review the list of homes in the same price range. You will see a great disparity in both the price per square foot, location, and quality of features offered.

By the way the photos are of four of the houses contained in the CLICK HERE link. You can tell without even clicking the link that there is a disparity of quality and size. I'm not disparaging any property but simply commenting on the obvious.

I have written before about the fact that Key West locals know the price of just about every house down here. (I'm talking about what an owner paid for it and what it is worth today.) But price and value are not the same thing. "Cheap" rarely equates to quality. And "high price" does not insure high quality. Key West is unique in that many of our old homes are totally dissimilar--especially in Old Town. So it is really necessary to consider price per sq ft, location, features, etc. to determine the present value of a house in Key West. Buyers do that exercise anywhere. But here the dissimilarity of houses makes the valuation process more difficult.

There are six houses in the $950,000 to $999,000 price range CLICK HERE located in Old Town that vary between 1150 to 2300 square feet and that are priced between $420 to $864 per square foot. The individual houses vary as to year of construction and quality of construction (or renovation). In fact one is listed as a possible tear down. So it is really necessary to do your homework when looking at a property in the current market. I hate to be so blunt but sometimes it is necessary to take advantage of a seller's financial woes when making an offer on property. A smart buyer needs to craft a strong offer in order to take advantage of buying opportunities in a troubled real estate market. Strong offers are usually all cash, limited contingencies such as inspection and appraisal, offering to pay for the title policy, and quick closing. Don't lose your common sense when agreeing to a price and terms. If the house won't appraise at the "sales price" don't buy it. Sometimes appraisers find flaws with a property that cannot be reconciled with the agreed price.

If you are looking for a home in Key West CLICK HERE to perform your own search of the Key West mls database. Don't just look at price because that is but one element that helps determine the present value of real estate. I happen to believe the current market is very depressed (and it may go down further). But there are individual bargains out there just waiting for a smart buyer to purchase. And I really believe that the present value in those properties will increase as we make our way out of the present turmoil.

If you see something you like please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information. You may find something you just can't live without.

724 Ashe Street Old Town Key West,Fl

The lovely home at 724 Ashe Street in Old Town Key West was purchased by its present owner in 2004 for the sum of $1,265,000 or $766 per sq ft. That was a good price for its time, but the owner did not pay a premium for it. The house has just about what most full time and second home owners look for in an Old Town home: 3 bedrooms, 3 full baths, Dade County Pine walls, beautiful interiors, an inviting pool, and a quiet location. Most of the surrounding homes are of similar vintage construction and most of those have been renovated. There are some new homes in the area as well.

The present owner put the house at 724 Ashe on the market in 2006 for $1,495,000 and has steadily reduced the asking price over the past two years. Yesterday, the listing Realtor dropped the price to $995,000 or $603 per sq ft. If you have been following the asking prices on various properties that I have mentioned you will see that the current price is very reasonable, even cheap compared to many properties with similar features.

This is how the listing Realtor describes this home: This is a potential short sale that may be subject to third party approval. Located on a quiet block in the Historic District, this house was built in the late 1800's and recently beautifully renovated. There are three bedrooms and three baths with an open living and dining area overlooking the heated pool and gardens through French doors. The beauty of the home is highlighted by Brazilian cherry and limestone floors. The stunning kitchen is open to the living area and features stainless steel appliances and slate counter tops. Adding to its historic appeal are multiple covered sitting porches. Relax and Enjoy!

The house has 1650 sq ft of very usable living space. There is no off street parking, but the area is primarily single family homes and many of those have parking. The home has a two inviting porches on the first and second floors at the front of the property. The living area opens onto the deck and pool area, and there is a covered veranda off the second floor master bedroom that overlooks the pool. The lot is narrow but deep (22.5' x 93'). CLICK HERE to see more info and photos.

I think somebody will act quickly on this house at this price. Persons interested in making an offer on short sale listings need to have all of their information ready in order to get the immediate attention of the lender. That means make an all cash (proof of funds required) with a quick close with limited contingencies (inspection) or proof of funds accompanied by loan commitment sufficient to cover the sales transaction. Complicated offers or offers with ridiculous prices or contingencies are futile.

Want to see this house before it is too late? Call Gary Thomas, 305-766-2642 and schedule a showing.

Room with a View, 401 Emma Street #D, Key West, FL

This exceptional waterfront 2 bedroom 2 bathroom condominium located in Key West's most beautiful residential areas, the Truman Annex, has it all! Located in the historical Mills Place complex, enjoy spectacular sunsets and outdoor living from 2 walk-out decks overlooking the ocean, the marina and beyond. This two story luxurious residence includes top of the line finishes: custom doors and mill work, travertine floors, granite counter tops, custom cabinetry, and beautiful fixtures and hardware. Private parking, a community pool, security, storage, storm shutters, and award-winning grounds are also included. This terrific opportunity is located within walking distance to Duval, beaches, water activities, shopping, dining and nightlife.

CLICK HERE for more info and photos of 401 Emma Street, #D Key West, Fl. The unit was just listed at $1,845,000 or $1131 per sq ft for the 1631 sq ft condo. It is located in the historic building, not one of the new Mills Place buildings. The building is one big solid structure. And the views are sun-sational.

If your needs are not quite as demanding, don't fret. There are many very nice single family homes and condos in the Old Town area well under the million dollar mark. Use the Key West Association of Realtors website and search for properties in your location or price range. CLICK HERE and then please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

612 Griffin Lane Old Town Key West

612 Griffin Lane is a throwback to the old days of Key West, before the invasion of the renovators. The Five Brothers Grocery sits at the corner of Grinnell and Southard Streets. Midway down Southard is the Southard Square Condominium development. Griffin Lane is immediately to the east of Southard Square. It runs about 250 feet to the south where it dead ends. To get to 612 Griffin Lane you must walk down a fence pathway an additional 150 feet or so. But when you get there, you are immediately transported to another era.

CLICK HERE for more detailed info and additional photos of this development property that the listing Realtor describes this way: This is a true 'Old Town Hide-away'. It's a 'Diamond in the Rough' with great location! Secluded, 4255 sq ft lot at end of walking lane in heart of Old Town. Residence is 1/1 with loft and open den/kitchen. Must see this one to appreciate location, lot size & seclusion. Sale subject to Court approval due to estate being settled out of a trust. Being sold AS IS. This is NOT an bankruptcy, distress sale or short sale.

This property is being offered at $716,800 or $553 per sq ft. The lot is 4255 sq ft which is roughly 70' x 60'. The pathway to the house is deeded: it is not an easement. One of the negatives about this property is also one of its major features and that is its secret location. Any renovation will necessarily require the renovator to carry all demolished items out and carry all tools, lumber, fixtures,etc. down that little path. But once the renovation is done, the place reverts back to an exclusive enclave. I think there is more than adequate land to permit a good sized pool and gardens. This could be a really neat little project house.

Want to see this house. Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more info.

Key West Beach Club Oceanfront Condo $899,000

Not everybody wants to own a place directly on the ocean where you can wake up in the morning to sound of gentle surf rolling ashore just below your bedroom window. But a whole lot of people would love the opportunity to own such a property. Especially if it were affordably priced and located in Key West, Florida. Well this is your opportunity. CLICK HERE for more information and photos.
Key West Beach Club unit # 105 is now priced at $899,000 or $642 per sq ft. The unit is a 1401 sq ft condominium with living space that includes the living room, kitchen, dining area, two bedrooms and two baths at the exclusive Key West Beach Club. This spacious home features formal entry opening onto the living/dining room with spectacular views of the Atlantic Ocean through a wall of sliding glass doors opening onto a 344 square foot balcony. The master suite with walk-in closet and bath also enjoys Atlantic Ocean views. This home is perfectly located at the end of Building A with garage parking and storage directly underneath with easy access to elevator or staircase. Luxury amenities at the Beach Club include two oceanfront pools, tennis court, gym, outdoor entertaining areas with cooking facilities and gated entry.

CLICK HERE for a preview of each of the seven units currently available at 1500 Atlantic Blvd in Key West. Prices range from $899,000 to $3,995,000.

If you would like to see this unit or any other Key West real estate listing, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Same Time, Next Year

Same Time, Next Year is a play by Bernard Slade which tells the story of a couple, married to others, who develop a relationship in which they meet each year at a country inn and spend a weekend together. The relationship evolves into emotional intimacy over the course of 24 years, and they become much more than clandestine lovers. Though they only meet once a year, they become important parts of one another's lives.

I'm a firm believe that people are creatures of habit. They go back to the same place to year after year because of the good times they once had. And so when would-be second home buyers ask me about buying a place they could legally rent to help pay for the cost of purchasing their little piece of Paradise, I always suggest the Shipyard Condominiums at Truman Annex.

All but a few of the units are basically the same: Your basic 680 sq ft 2 bedrooms with one bath and two sets for French doors that open onto a downstairs deck or an upstairs balcony, assigned off street parking, and a large community pool. The units are an average 12 years old, and many have been part of a rental pool for several years. So many of the units have undergone individual upgrades or renovations over the years. On the outside the units look today liked the way they looked 12 years ago. But inside each is surely different.

Owners in Shipyard can obtain a vacation rental license to rent the units for a week at a time. Several property management companies manage and rent units for absentee second home owners. They typically charge a management fee of 20% of the rental income plus pass along cleaning and other charges as agreed between the owner and the property manager. Some owners have their own websites and manage their properties and have a local person take care of the check-in and cleaning. Different owners have different ways of handing their investments.

Shipyard has always been a successful rental operation because of the amenities it offers (size, pool, parking, close to Old Town and a walk to the beach, and value).
Renters know what they are getting and return year after year. And if they like a particular unit or location, they are inclined to want that unit every year.

I always suggest that buyers keep an existing property manager in place if the company runs a successful program with respect to the property being purchased. A good website, promptness in repairing any problems, promptness in remitting income to the owner are key issues to consider. But if they exist, don't mess with something that works.

The condo fee on a 680 sq ft units is $550 monthly (fees vary based on sq footage) and includes Cable, Exterior Building Maintenance, Building Insurance, Common Area Maintenance, Pool Maintenance, and Security. The Security is a big selling feature to absentee owners. The condo owner needs to purchase liability insurance and contents insurance for the inside of the unit as one would for renting an apartment.

CLICK HERE for a more detailed list of each unit currently available for purchase along with many photos of the respective properties. The asking prices vary greatly on because of size, location, quality of upgrades or renovations. These units can be a good investment if purchased at a realistic price. They have to be treated as an investment in order to throw off the income to service any debt. (That means no freebie stays for your friends and relatives--especially during Season, Christmas, Fantasy Fest or the Boat Races. Mark my word: after you tell your friends and family you own a place in Key West you are going to be soooooooooooooo popular!)

Since these units are typically rented, it is necessary to have an advanced appointment to see them. Most companies require at least 24 hours notice, and sometimes that is not enough. If you are planning to come to Key West and want to see one of these homes, make a call ahead of time so that appointments can be scheduled.

Please call Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more info. If you buy one of the Shipyard Condos you can tell your Key West neighbors "Same time, next year" and mean it.

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.