I told you so!

Several of the Key West homes that I have suggested potential buyers should consider have sold. So I thought it would be interesting to look at the asking price and the sold price on those properties. If you are in the market to purchase a house in Key West this little exercise may give you some insight into how much individual houses have been selling for during the past few months.

I have suggested the Shipyard Condominiums at Truman Annex as a good property to consider purchasing because of the units are easy to rent year after year. There were 9 sales during the past year. The least expensive sale was listed at $500,000 and sold for $475,000. The median sale was listed at $590,000 and sold at $520,000.

The condos at 1800 Atlantic is another excellent property for second home buyers because the property has so many amenities and features that other properties do not have or that cost so much more. Many of the condos in 1800 Atlantic have transient rental licenses so they can be legally rented on a nightly basis. The property is 20 years old, so many of the units have been remodeled or upgraded. But not all. That means there is a disparity among the units offered for sale. And some units have transient licenses, and others do not. The existence of licenses and the location of the unit in the building do affect the sales price. There were 5 sales with the least expensive

603 Angela Street. This property has not sold yet, but the price has been reduced from $799,000 to $749,000. I think this is a very good buy somewhere in the low $700s. The owners really want to sell, and I believe a strong cash offer with a quick closing date might receive a favorable reply.

On February 14th I wrote about falling prices and suggested several houses to consider. 1191 Oliva was $610,000 and now reduced again to $575,000; 716 Olivia is unchanged; 814 Ashe unchanged; 804 Elizabeth has been reduced again and now priced at $1,495,000; 916 Washington (originally priced at $3.75 million and reduced to $2,999,000 on Feb 11 went contingent on Feb 25th--smart buy at whatever price); 727 Waddell unchanged; 1800 Atlantic C229 reduced from $404,00 to $350,000 on March 6th.

On February 12th I wrote about a wonderful home at 724 Ashe originally sold for $1,265,000 and listed as a short sale at $995,000. This house went contingent on March 3rd. This was a deal!!!

On February 9th I wrote about units at the Key West Beach Club. I showed 3 of the units last Friday. The next day the owner of one of the units received a very good offer but it required the sale of another property. The Beach Club owner did not accept the offer, but it is being negotiated. The unit was reduced in price and the new price is very competitive.

The grand old dame at 625 Eaton ( February 5th)is our listing and we received a very good offer last week, but terms could not be finalized. This is a property that could sell quickly to a buyer ready to close the deal. Call me.

301 Peacon Lane was listed at $1,349,000 when I wrote about it on February 1st. It has been reduced to $1,295,000. It is a sweet deal in the making.

On January 25 I wrote about a short sale at 627 Southard. It was a new listing and the seller immediately received a very attractive offer. He responded by increasing the asking price from $1,500,000 to $1,700,000. Several sellers have done the same in the past couple of months. Some think the market has corrected too far and that prices are on the upswing.

709 Windsor Lane was another short sale I wrote about on January 22. It is now contingent.

Back on January 15th I wrote about 630 Eaton which is a commercial property right in the heart of Old Town. It went contingent February 19th. Don't think that buyers are not buying. They are.

1236 Washington was my subject on January 13. It was priced at $1,649,000 and now is reduced to $1,499,000. Beautiful home!

710 Caroline was priced at $1,795,000 when listed in January 2007. It was reduced to $760,000 on February 28. Somebody buy this house. Terrific location overlooking the Key West waterfront.

On January 9th I wrote about a beauty located at 1108 Southard. It was listed at $1,495,000. The price was reduced to $1,385,000 and went pending on February 25. Another sweet deal I am sure. The house is sweet and the asking price was realistic.

I wrote about 1101 Fleming several times. It was listed March 1, 2007 for $850,000 by a realtor who did not understand the market in my opinion. The house is very nice, very good location, but it was way overpriced. She thought the location warranted the excessive price. She was wrong and I think she did her client a disservice in listing the property too high for too long. The absentee owner engaged a new realtor who listed the house for $599,000 on January 4, 2008. It sold for $570,000 on March 4th. That was the best deal on a 2 bed, 2 bath house in Old Town with a pool and a great location. Ya'll should shoot yourselves for missing this one. I told you so!

Isn't It Romantic? 1717 South Street, Key West

Look at the pics to the right. The pics are of a house at 1717 South Street in Key West. Isn't it romantic?

The house is located in mid town. I don't write about that area much because it isn't where second home buyers typically want to buy. But when you can buy 1900 sq ft house with 4 bedrooms and 3 baths on a huge double lot (8531 sq ft) for the asking price of $1,100,000 (just reduced from $1,179,000) the house seems like attractive buy at $579 per sq ft.

Here is how the listing Realtor describes this property: "A beautiful lush tropically landscaped oasis lies behind the gate of this walled private retreat. Follow the steps from the entry around to the front of the house where you are greeted with a striking koi pond with water feature. This warm and inviting home has 3 bedrooms, 2 baths, living, dining and family rooms and a separate guest cottage. French doors from almost every room brings the outdoors in and makes this home perfect for entertaining. The gardens are spectacular with saltillo tiled patios, covered outdoor dining area, beautiful 15'x 22' heated pool with waterfall and a 15 person hot tub. Additional features are electric remote entrance gate, carport, off street parking for multiple vehicles & organic mist spray system." CLICK HERE for more detailed information on all of the fine features of this home and more photos.

When you live in Key West you spend so much of your time at home in the outdoors. Doesn't it make sense to have an outdoor area that is functional, inviting, and romantic? Old Town provides proximity to Duval Street, the theaters, restaurants, you name it. You can walk to everything. But to get this much outdoor area so nicely done, you would have to pay over $3 million. There just isn't anything like this at this price range in Old Town. Never will be either.

CLICK HERE to checkout similarly priced homes in the midtown area. I have written about a couple of them earlier. Click the photos and compare the size of the home, the lot, and the "feeling" you get about the properties.

So if you are looking for a home suitable for living and entertaining in style and don't mind not being in Old Town, call me. Let's go look at this spacious home on an even more spacious lot. Think of it as getting a $3 million home at 66% off. Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Won't You be My Neighbor? 1125 Washington Street Key West,Fl

I've told you before about the joy of living in the Casa Marina Area. The streets are wide, the yards are big, there trees are tall, the houses are usually much larger than those in Old Town, and most important the beach is only a couple of blocks away.

Some Realtors fudge and call the area from Truman to the Atlantic and First Street west to Duval the Casa Marina area, but I say it is South to the ocean and White west to Vernon. And don't think the location makes any difference, because it does. Just as Old Town sells more quickly than other areas, Casa Marina sells more quickly than any area other than Old Town. And it offers amenities Old Town does not.

The property at 1125 Washington Street is located in the middle of the block. It presently is configured as rental apartments. I dare not print the number of apartments because I do not know for sure. But I am suspect there are more units than there are licenses. This is how the listing agent describes this property:
"Fantastic opportunity for a conversion back into a large single family home in the fashionable Casa Marina area! Currently offering 3 separately metered units (with one stand alone 1 BR/1 BA cottage) and 2 lockout units, the property produces substantial monthly rental income with long term tenants. January 2008 appraisal on file showing list price is well below market value, and rent roles offered to qualified buyers."

The tax records show that this property has 6 bedrooms, 5 baths in a 3538 sq ft structure on a 4973 sq ft lot. The listing agent's mls data sheet says there are 8 bedrooms and 6 baths and three city non transient rental licenses. I think the value of this property is not in the number of licenses or bedrooms, but rather on its location and the ability to transform what I consider to be an ugly duckling into a cute Casa Marina cottage with pool.

The property is listed at $925,000 or $261 per sq ft. CLICK HERE for more information and pics.

The owner of 1125 Washington purchased the property in June 2004 for $1,150.000. Yet it is priced at $925,000. Something tells me there may be a bargain to be struck on this one.

But let's look further than the price and consider the upside of the location. The house next door to the west at 1123 Washington is also on the market. It is priced at $1,689,000 down from $1,849,000. CLICK HERE to checkout this wonderful Casa Marina home. A real beauty.

Down on the corner is one of the very best lots in Key West. CLICK TO SEE A PIC. The lot (no house included) is offered at the price of $3,000,000. CLICK HERE for the details on this lot and more photos. The property is spectacular. I hope it does not sell, because it is so beautiful as is. I live just a few feet to the south and I don't want my view impaired.

There is another potential development property at 1010 Washington Street. It is now listed at $1,395,000 down from $1,485,000. The property must be sold to settle an estate, so I suspect that one might be able to negotiate on this property as well. There is the possibility of getting two units off this site as there are two units there now. And the lot is very large. The house across the street is another Casa Marina landmark, so money spent here on location ought to payoff big time. CLICK HERE for more info and photos.

I live in this area and love it. It is quite. But I can be anywhere I need to be on bike or by car within a matter of minutes. I am away from the noise of Duval, but close enough that I can walk if I want. And I am close to the beach. If you would like to see any of the properties mentioned here or any others in Key West, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Thanks.

Do Overs

Remember wanting to get a "Do Over" as a kid? It had nothing to do with renovating a house. And it had absolutely nothing to do with the "do" or "sweep" some half-bald guy uses to disguise his very high forehead. But it had everything to do with achieving a better result because you knew you could do it better if you could just do it again. It was like instant replay, but with a different and this time winning outcome.

I've been selling real estate in Key West for 11 years and I've heard so many people tell me they wish they had bought a little house in Key West before the market took off and everything got so expensive that they got priced out of the market. If you are one of those people who wished you had bought but didn't, this is the chance for a "do over".

Most of the Key West real estate market has corrected itself downward about 35% from the highs of the year 2005. If you bought then you probably have lost equity in your property. People who purchased very high end properties in good Old Town locations lost the least or lost nothing at all. People who bought at the Key West Golf Club may have experienced up to a 50% decline in value.

What does the above paragraph tell us about the real estate market in Key West today? I think it says what it has said ever since I came here for the first time: good property in Old Town will continue to rise in value, and property that has locational issues or that needs repair will not rise in value at the same rate and may decline in value in some instances.

Does that mean a new buyer has to spend $2 million for a house to have a safe investment? No. But I do believe that a buyer should buy into a good location where the nearby properties have been redone. You limit your risk by buying wisely, not just by buying expensively.

There are many properties on the market right now that are cheap by recent Key West standards. But the old rule "location, location, location" still governs even when it comes to a down market. I recommend that you buy into a good location or buy at a very discounted price. Your upside in buying an inferior location may not be as great as if you were to buy a well located property, but you may still achieve parity by buying a bargain price. For example condos at Shipyard usually rent for about the same price per week, yet some units are being offered for sale at prices much higher than others simply because of their location or the extent and quality of any upgrades or perhaps have a tremendous repeat business. All things being equal I'd probably buy the cheapest unit. But if a more expensive unit had a tremendous rental history, I might elect to buy that one.

There are six units available at 1800 Atlantic that have transient rental licenses. They are priced between $669,000 to $1,698,000. They have their own locational issues within the complex and some are nicer than others. But I suspect they throw off just about the same amount of income. Again all things being equal I would look at buying the least expensive if all I was looking at is getting a good rental unit. But I would try to also buy a unit with a good rental history that is managed by a good rental company. A good price means nothing if you have a poor property management company. CLICK HERE for more info on the six units with transient licenses.

There are 21 single family homes available in Old Town priced under $700,000. CLICK HERE to see those properties. Some of those houses are still priced at ridiculous levels because of the cost of renovation. But a few of the houses may offer an upside if they are purchased at a fair price. An inferior Old Town location usually trumps a good location out in the boonies.

If you are considering buying a place in Key West there are still lots of places available in all price ranges. Give me, Gary Thomas, a call at 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to checkout all Key West mls properties currently available for purchase.

723 Catherine St, Key West, FL

I showed the truly unique home at 723 Catherine Street last week, and I was amazed by the property. There is not another home like it in Key West. It is truly one of a kind.

From a bottling plant to a contemporary gem, this former cola bottling plant was converted in 1995 into a spacious, open, modern home and is a recipient of the prestigious Ceramic Star for Architectural Preservation Excellence. Lush gardens surround a beautiful pool with a waterfall, an outdoor shower and a large poolside loggia that is great for dining and entertaining. High privacy walls insure peace and quiet. There are three large bedrooms and two and a half baths equipped with elegant modern fixtures. Inside the ceilings soar in the first floor living areas. The gourmet kitchen opens over a breakfast bar to the great room. This property is in the low-flood-hazard x zone.

This home has 2356 sq ft of living space and sits on a 3939 sq ft lot. It was originally offered at $1,500,000, but is now listed at $1,249,000 or $530 per sq ft.
The property definitely has a New York loft type of feel to me. The building is concrete and the floors are decorative concrete. Even though the walls and floors and glass are hard surfaces, the house does not give off what I'll call hard vibes. The simple lines, warm colors, high ceilings, and spacious rooms make this home inviting, not harsh. The open courtyards and pool off the living areas remind you right away that you are not on the Isle of Manhattan but the Island of Key West instead.

This house had been on the market for quite a while and the price reflects both the difficult real estate market in general and the locational issues peculiar to this house. It is located across the street from the Suburban Propane tank farm and offices. There is a trailer court nearby and most of the neighboring homes are not priced as high. Plus the house is not your traditional Conch house. So those factors have had an impact on the pricing and they limit the universe of potential buyers. But for the buyer who wants value and size and a great place to display art, this is the place you need to see.

CLICK HERE to read more about 723 Catherine Street and view more pics. Then if you are really interested, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw11101v@aol.com to schedule a showing.

Season's Beatings!

Season's Beatings! may be a little extreme for a title, but it may help entice you to read about how the Key West real estate market fared so far this Season. Season is 2/3 over. Two months down and one to go. Then the buyers go back up north to live in the smoke and smog until next year. Sure we will continue to have lots of people who come to Key West after Easter (March 23 this year). But those visitors are usually cheap Floridians and or economical European tourists who come to enjoy the great Key West weather at discounted prices. The people who come after Season are usually not looking to buy but instead are looking for vacation deals. That means there are just 23 days left to determine how big a beating our real estate market endured.

Below you will find the Key West single family and condo sales results for the month of February for the years 2005, 2006, 2007, and 2008.

In 2005 (the year the bubble burst) there were 26 single family homes sales in Key West totaling $31,613,934. The least expensive was $545,000 that sold in 5 days. The median was $970,000, and the largest was a 6 bedroom home that sold for $4,300,000.

Condo sales for 2005 were thus: 27 sales totaling $18,176,750. The least expensive unit sold for $400,000, the median was $575,000, and the big boy condo went for $2,225,000.

There were 17 single family home sales in 2006 totaling $17,630,200. The cheapest was $450,00 and the most expensive was $$3,775,000 that originally listed at $4.2 million.

There were 12 condo sales during this period with the least expensive going for $295,000. The median sale was $602,500 and the most expensive was $2,000,000.


In 2007 there were 20 single family sales totaling $22,514,349. The least expensive was a single family that sold for $420,000, the median was priced at $1,125,717 and the most expensive sold for $5,800,000. There were only 7 condo sales during this period. The lest expensive was $245,000, median was $365,000 and the most expensive was a disappointing $830,000.

I can say that there were 8 single family homes totaling $7,817,000 since February 1, 2008. The least expensive house sold for $ There were two good upper end sales as well: one for $2 million and the other for $3 million. The median priced home sale was $541,500.

And February 2008 brought 8 condos sold. The least expensive unit sold for $235,000, the median sold for $402,000, and the most expensive sold at $1,649,000. (That was a resale at the Hyatt Beach Club.)

There has been a flurry of contracting activity during the past 29 days. There are currently 59 properties that are contingent (awaiting inspection, appraisal, survey, loan approval, etc.) and 27 that are shown as pending (contingencies have been cleared and property is prepared to close). All of the Realtors I have talked to are busy and are now writing contracts. And some are being accepted. The less expensive properties are outselling the more expensive, but some expensive properties are selling as well.

There are a couple of Old School Realtors that finally got the message that the market of 2005 is history. They have finally started to reduce the asking prices on properties that were very overpriced. Most of the sales that have occurred are a result price reduction. There is still a hesitance by many buyers who think the market will fall further, especially after Season ends. I agree. But bargain hunters may miss getting the plum properties just to save money. Homes in Key West are not like fungible goods. They are unique. So the smart buyers are buy location and value at a good price. Some people may make good money buying what is leftover at the end of the day. But leftovers are just that. You get what you get.

Look for more price reductions during the next couple of weeks as some sellers try to entice reluctant buyers to act now. Sellers who do not need to sell may not respond to low-ball offers. I wouldn't. Why tell some would-be moron buyer your bottom line if he is not willing to tell you what he really is willing to pay? But sellers who need to sell or who must sell must expect the worst. When the buyers leave, the party is over till next year. Want to buy? Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

831 Johnson Lane Old Town Key West, Fl

Are you tired of everything being just perfect? Everything "Up to the minute"? Want to go back to a quieter, gentler time when time did not matter? When perfect was not de rigeur?

When you open the white picket fence and cross the threshold at 831 Johnson Lane in Old Town, Key West you pass gently into such a place and time. It is magical.

The house at 831 Johnson Lane is actually a combination of three separate buildings plus a couple of out buildings. All of the living areas open onto the rear pool and gardens. And by "gardens" I mean gardens plural. There is a 33' lap pool framed by palms and orchids and myriad of other plants and trees. The buildings provide shelter from the elements, but it is the elements that make this house so inviting because the outside is a part of the inside. The living areas have vaulted ceilings and the walls are works of art in themselves. The Dade County Pine walls and ceilings have been artistically enhanced and the result is inspiring.

The tones and colors and textures compliment each other and blend so well with the environment. The rooms are built to human scale, so you won't feel like you are rambling around some big bawdy warehouse. But you also will not feel cramped. The rooms are proportional. The two bed two bath main house with an 11' x 11' studio was renovated within the past 5 years. The house and cottage provide 1977 sq ft of living space. And there are two off street parking spaces. There is a separate 780 sq ft artist studio with its own vaulted ceiling and bath. There are two wells to provide additional water for the gardens. You get all of this for $1,195,000 or $604 per sq ft. You can look around this island and find a lot less for a lot more. CLICK HERE for more info and photos.

I really don't think the cute will ever wear out on this place. It reminds me so much of what so many Key West properties used to be before so many got all gentrified. This little place is fine just as is. Want to see it? Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

5 Hunts Lane Old Town Key West, Florida

Are you one of those adventurous sorts that feels the need to leave your mark for posterity? Do you want to be the next Norm Abrams and redo a historic Key West home?
Well this little home at 5 Hunts Lane may be your dream project.

Here's the skinny. The house is located on Hunts Lane which is on the north side of Southard Street midway between Grinnell and Margaret Streets. Five Brothers is located at the corner of Grinnell and Mangia Mangia is located at the corner of Margaret. So you can walk to get your morning jolt of Cuban Con Leche and your evening fill of pasta and never walk more than 200 feet. But you are only a couple blocks from Duval to the west or the Historic Key West Seaport to the north.

The house has been in the same family since it was built around 100 years ago. The last owner occupant is in his early 90s and recently moved to mid Florida to live with relatives. The house is one of the more primitive homes in Key West. And I say that nicely.

The house was remodeled in the 1950s when a second floor and indoor plumbing was added. Those additions could make for some interesting expansions to the house. Since the house is in HARC a buyer will need to get HARC approval for changes, but I think a new owner with good "vision" and a local architect could find a way to convert the 1950's downstairs bath into a new stairway to the second floor. That would permit better usage of the 3 downstairs rooms and the elimination of the current interior stairway.

The second floor is quite tall and could be vaulted to provide a very dramatic ceiling. There are 3 good sized rooms that could be made much more user friendly. The views (and quiet) are quite pleasing. The rear of the property could be improved immensely. No room for a pool without a variance which I think is unlikely. But perhaps not impossible. But there is room for a nice rear living area, deck, and landscaping.

Renovation costs have dropped a bit so this is a project that might fit into your budget now more than it may have at an earlier time. The house is 1210 sf ft and is priced at $409,000 or only $338 per sq ft. That price is down from the original $499,000. If you spent $100,000 on renovations (which I think would be overdoing it, but what do I know?), you could be into this house for around $500,000. Just think about it: a six room house in the heart of Old Town for about $500,000. CLICK HERE for additional info and listing realtor's photos of the house and yard.

Here are some more pics that I recently took. The house was not "staged". This is the way the owner left the property. It just shouts Quaint!. The Dracula's Closets in two of the upstairs bedrooms. The lamp table in the front bedroom. The high ceilings and Dade County Pine walls in the middle bedroom (and throughout the house as well).

If that sounds interesting, please call me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com to schedule a showing. The house is vacant and relatively easy to show, but advance notice is required.

1411 Pine Street Key West, Fl

1411 Pine Street is a 2532 sq ft home recently built (2000) in the highly desirable The Meadows Area of Key West. The home 4 bedrooms and 4 baths, gracious interiors, high ceilings, beautiful warm interior finishes that include Brazilian cherry floors, a traditional staircase with walnut newel and rail, cherry cabinets, and granite counters throughout. At the rear there is a covered veranda that overlooks the secluded garden with heated pool. There is off-street parking for 2 cars.

The home was designed by noted Key West architect Tom Pope who also did the Marquesa Hotel and other notable commercial and residential properties. One word describes this home: sophisticated.

CLICK HERE for more photos and detailed information on this property. It is offered at the price of $2,950,000 or $1165 per sq ft. I would love to show this house to a buyer looking for a genuine quality home in Key West. This is one instance where the high price per sq ft is actually reasonable. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

The Value of Location

Way back in 2003 or 2004 I worked with one of the Key West real estate stars. She had a listing on White Street one half block south of Truman. The house had been totally redone. Three bedrooms, 3 1/2 baths, stainless steel appliances, granite, higher end kitchen cabinets, new3/4 inch solid maple wood floors, pool, and off-street parking. It was listed at $595,000. I hosted Open Houses there for weeks and weeks. I got business off the open houses, but no one would buy it. The feed back I got was that the house was great, but prospective buyers did not want to own a house in Bahama Village. I explained that the same house three bocks to the east would cost $300,000 more. And that is where people were buying homes, not in Bahama Village. Finally, the owner furnished the house and reduced the asking price to $500,000 during a rising market. It sold that same week.


My current office had a listing on 908-1 Terry Lane in 2005. That house and the one next door at 908-2 Terry Lane were basically identical. Our listing was priced at $1,850,000. The Historic Key West Lighthouse is located on just the other side of the lane. The lane runs north and south from Truman down to Petronia--two blocks only. Neither house sold and the owners went through a series of real estate agents in attempts to sell the spec houses.

The house at 908-2 Terry Lane just got listed again. Here are the details according to the listing Realtor: Newly constructed home that was built to the most current codes and finished with the finest materials inside and out! The minute that you look around this fantastic Old Town property you will be sure to notice the beautiful oak and slate flooring, top of line kitchen with granite counters, wood cabinets and professional series appliances. Luxury and function prevail throughout this incredible home with many thoughtful details, such as built in Yamo sound system, custom closets, Anderson doors and storm protection with hurricane windows and shutters. Custom built home situated on a quiet Old Town lane in a growing neighborhood that has been undergoing many recent changes and improvements. Walking distance to all that Key West has to offer!

The view from the second floor front balcony of the lighthouse is quite magnificent. The great room and kitchen open onto the pool and the rear garden area. The house has everything a prospectiv homeowner wants in a Key West home. The house is now listed at $995,000 or $711 per sq ft.

This property is now available for almost half of the original asking price back in 2005. If the property is purchased this go around, the buyer will get a very well built home with a terrific view at a good price. The negative aspects of owning a house in Bahama Village are changing. The City of Key West is redeveloping the huge tract of ground west of Truman Annex that was given to the City by the US Navy. That project will take several years to complete, but when it is finished the impact on the immediate area and the entire city ought to be as dramatic as the transformation of the Truman Annex property was 20 years ago.

I think properties in Bahama Village are undervalued. And I think the house at 908-2 Terry Lane is specifically undervalued.

CLICK HERE for more info and photos of the house. Want to see it, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.