Aversion to Conversion

A few years back when real estate was king in Key West a lot of property owners converted existing large properties into smaller living spaces which they then sold at inflated prices. They called those smaller spaces condominiums. Some of the conversions worked. Others did not. The huge landmark property at the corner of Eaton and Elizabeth Street is an example of the latter. There was, to coin a phrase, an aversion to conversion as far is this property was concerned. In May 2007 this property was listed at $3,649,000. Today the asking price is $1,999,000 or $465 per sq ft for this very large 4292 sq ft home on a large 6151 sq ft lot.

703 Eaton Street Old Town Key West is a potential short sale that may be subject to third party approval. This listing Realtor describes the property this way: "Grand home on a beautifully landscaped corner lot in the heart of Old Town Key West. Currently configured as four condominiums (with docs) being sold as a whole. Beautiful kitchen with granite counter tops and stainless steel appliances, fireplace, glass doors opening to lush gardens and large pool. Hurricane shutters, generator, waterfall pond, privacy gates and two off street parking spaces complete this prime Old Town condominium complex just steps from Duval Street."


The property at 703 Eaton Street presently has 8 bedrooms, 7 1/2 bathrooms, kitchen(s), a huge pool, spa, parking. And a great location. You are a 5 minute walk to Duval, 5 minute walk to the Historic Seaport, and a 10 minute walk to sunset.
CLICK HERE for even more photos of this property and other info.

I used to own Eaton Lodge (511 Eaton) which is located two blocks to the west of 703 Eaton. I got invited to this property many times when Dr. John was the owner. It was here that I met so many of the locals who were friends of Dr. John, and those folk in turn invited me to their homes on occasion. I guess that is the way it works everywhere, you meet a neighbor and soon you get to meet lots of other people. It works that way in Key West. Oftentimes potential buyers express frustration over the idea of having to have their envisioned social life revolve around "Duval". I tell them only tourists go to Duval. Locals go to Duval to be with their guests or to cross the street on the way to somewhere else.

Some smart buyer with a wad of cash is going to snap up this prize. Maybe that smart buyer is you. Give me, Gary Thomas, a call at 305-766-2642 or e-mail me at kw1101v@aol.com to schedule a showing.

The house at 703 Eaton is now priced to sell. Look at the house just across the street at 708 Eaton. It is priced at $3,295,000 or $994 per sq ft that is $529 more per sq ft than the house at 703. CLICK HERE to see more info and pics on the house at 708 Eaton and you'll understand why I think a smart buyer will snap up 703 Eaton.

1800 Atlantic Condominiums

There has been a lot of sales activity at the 1800 Atlantic Condominiums over the past couple of months. Several units have either sold or are in the contingent or pending stage and are awaiting final closing.

And a few new units have also been added to the roster of units available including an a very attractive transient unit with great ocean views. Located one unit from the ocean front it has many custom features including an entire living room wall with built-in cabinets, book cases and custom window treatments on all 3 sets of sliding glass doors. There are terra cotta tile floors throughout except for the bedrooms and baths. This home shows extremely well. CLICK HERE. Priced to sell at $629,000 or $464 per sq ft.

The number of units available today is 17 or about 10% of the total number of units at 1800 Atlantic. CLICK HERE to checkout the 17 units now available. They range in price from $398,500 to $1,590,000. (The photos show the view from the unit priced at $1,590,000.) A couple are ugly ducks and more than a few are magical vacation homes with incredible ocean views. I think as tourist season starts to wind down we may see some more aggressive price reductions by sellers or we may see sellers more willing to consider low bid offers--not just at 1800 Atlantic but pretty much across the board in Key West.

I think there are deals to be made. My suggestion is that you obtain pre-approval from a local bank (or your hometown bank that will lend out of state) or come with cash in hand and make your best offer. If you want to get an offer accepted, don't complicate it by having lots of contingencies. Offer cash or the next best thing--pre-approved financing. Be willing to close within 15 to 20 days. Limit your contingencies to home inspection, survey (if necessary), and clean title. Be willing to either split the title insurance or better yet offer to pay for title. That way the seller may think a little better about your offer.

Want to look at any of these units? Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Steal this property from the bank!

***FORECLOSURE***Steal this property from the bank. Minutes from the beach. Great for vacation home or investment. Bank pays title insurance to choose title company. What are you waiting for??????

That is how the listing Realtor describes the 900 square foot s bedroom 2 bath condo at 1419 Atlantic Boulevard. It is priced at $379,000 or $422 per sq ft. CLICK HERE for more pics and a scant little more info. The listing Realtor is short on info and if I were the asset manager, I'd can her for the way she is promoting this property. It is one thing for someone like me to urge the public to take advantage of the ton of foreclosures in the marketplace. But I think it is totally wrong for the listing agent to urge potential buyers to "steal this property form the bank." The listing agent is a single agent, and I find her comments wrong.

The listing Realtor fails to mention that this property is located directly across the street from the Atlantic Ocean. The inside is rough. Needs work. Buy for a lot less than th easking price and walk one block to the sandy beach. Not bad for only $379,000. Better at $299,000 or less.



On a lighter note, how about the fall of Bear Sterns! Actually all of that is way over my pay grade. But I am really perplexed as to how the Fed stepped in and helped fund $30 Billion of Bear Stearns assets that would be difficult to sell quickly, raising the possibility that taxpayers could be on the hook for part of the bailout. I think this is a first. And I think the Fed may have acted without legal authority to do what it did. Like, when and where was the public comment and Congressional debate over whether the US government should help bailout an investment bank that made really bad investment choices.

It riles me that the investment bankers who made millions each year in bonuses and options have not been made accountable for their part in creating this damned housing crisis by devising neat little ways to lend money to people who had no business getting a loan to buy a house, or second home, or an investment property. The investment bankers got their bonuses and are now sticking the taxpayers with the cost of bailing out their worthless investment house. How many more investment banks is the Fed going to prop up. There was great debate in 1990 about how much taxpayer money would be spent to bailout the failed savings and loans. But there has been no debate on this government bailout of the ultra rich. It stinks.

On second thought, steal the foreclosure listed above from the bank. Give me, Gary Thomas, a call at 305-766-2642 or e-mail me at kw1101v@aol.com.

Knock, Knock!

Expect the unexpected if you are looking to buy a place in Key West. And I'm not referring to prices or structural problems. Here are some examples of what you may encounter when you look at property. All examples are true.

Newton Street Station was an all male guest house located in the Meadows Area of Key West. I mentioned to an agent in my office that I was going to show it. She told me to warn my customers to expect to see the manager open the door and assist in showing the property in the nude. She was serious. So I told my customers. They were gay and took it in stride. And I showed it several more times to gay and straight buyers. The guy was always nude. I had a listing on another guest house and was showing it when the buyers' agent mentioned he was going to show Newton Street Station next. I warned him about the naked manager. A few days later he saw me and thanked me. He had warned his straight Midwest couple and they took it is stride.

I remember showing a little cottage home owned by two older gay men in the Meadows Area. It looked as if every single foot of the house had a picture of a naked man or a sculpture of the male form. Each of the tiny rooms was filled with male art. The listing agent finally convinced the owners to remove some of the art so that potential buyers could see beyond the clutter. He told me he removed boxes and boxes of it. I showed the same house about a year ago and remember never having seen that the house was in such bad condition.

A guy I knew from my gym asked me to discuss listing his condo. When I walked into his living room the first thing I saw was a huge oil painting of him in the nude. I suggested that he remove it so that buyers would focus on the room rather than on his body.

A couple of weeks ago another agent was showing my clients and me around his listing in Bahama Village. The house is tenant occupied so we had to look in the late afternoon. One girl was still asleep in one bedroom. (That happens many times.) The agent knocked on the other bedroom door. No answer so we went inside and looked around and talked for at least two minutes. Then he opened the door to the bathroom. The startled European boy had just gotten out of the shower. Oops.

If you are looking at a house or apartment that is inhabited by long time locals you will probably see Fantasy Fest beads and cute photos that adorn the walls. And every once in a while you may find some awfully large sized stilettos and wigs.

If you are looking for a home in the Old Town area of Key West CLICK HERE to checkout several homes priced under $999,000. Several are under $600,000. The market is in a state of flux right now and sellers are anxious to sell. You might find something you actually like and want to buy. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com to take a look. I'll be sure to Knock three times before we enter.

Bank Foreclosure -- 3364 Pearl Avenue Key West

There are two town homes in the 3300 block of Pearl Avenue for sale. They are located next door to each other. The one at 3364 Pearl is a bank foreclosure and is listed at $299,000 or $231 per sq ft. It is a 2 bed, 2 bath unit on two floors. It has off street parking and it's own private pool. Yeah! The townhouse is 1294 sq ft and sits on a 2144 sq ft lot. CLICK HERE for more info on this property.

Next door at 3366 Pearl is a 2 bed, 2 bath unit on two floors with a private pool and lot of amenities including: Solid Wood Cabinets and Granite Counter Tops in Kitchen and Both Baths. PGT Impact Resistant Windows with Custom Awnings and Window Treatments. Large, Deep Closets. Lots of Storage and Extra Space. Outdoor Trex Decking, with Landscaping and Lighting. Pool with Special Water Features. Two Deeded Off-Street Parking Spaces. It is priced at $499,000 or $386 per sq ft. Without a doubt this property will look better and show better than the house at 3364 Pearl. But it is also priced $200,000 higher. The pretty pictures are of 3366 Pearl. CLICK HERE for more info and more pics of 3366 Pearl.

There are no homeowner association fees with either property.

If you are looking for a starter home in the $300,000 to $500,000 range you owe it to yourself to look at both properties so that you can make your own price and feature comparison. Looks are free. Want to see either or both properties, then please call me, Gary Thomas, 305-766-2642 to schedule an appointment. 24 hours notice required on 3366 Pearl, but I can show 3364 Pearl anytime. It is raring to get sold.

This property has only been listed for a few hours and already we have had a bunch of phone calls and a couple of showings. This will not last. Don't wait. Call me now.

Value Buying in Key West

I have written many times about Old Town being the place to buy if you are looking for top value both short term and long term. And I've said that certain blocks within Old Town are more valuable than others. Proximity to certain locations or the "look" of certain blocks seems to create or enhance value among nearby homes. But most properties in Old Town are priced higher than many would-be buyers can pay or are willing to pay for a second or third home. So what's a prospective buyer to do?

I suggest that you Buy Value by purchasing the best property in an area that is not as popular as Old Town but is located nearby! Or Buy Value by buying top quality property that is under priced even though the price is higher than you think you can afford.

CLICK HERE for some examples. I picked properties priced between $1.8 - $2.3 million, but you can use our Key West Association of Realtors mls search engine CLICK HERE to search properties in your own price range to find properties that may meet your needs. I always suggest that you search prices higher than you think you want to pay (sales prices are usually lower than asking price) and reduce your size requirements. Be flexible. Be forward looking. Believe that America will comeback.

823 White Street is a large renovation on a busy street during the daytime, but generally quite in the evening and on weekends. This large property is priced at $568 per sq ft compared to similar properties around $900 - $1000 in the heart of Old Town.

822 Washington is in Casa Marina and for blocks to the Atlantic Ocean. Very large contemporary property and value priced at $636 per sq ft. Other area homes are in the $800+ per sq ft range.

727 Waddell is new construction also in Casa Marina area near the Casa Marina Hotel and beach. This house is new and has everything. Priced at $714 per sq ft. This house should be in the $1000 per sq ft range.

806 Truman is obviously located on busy Truman Avenue. This gracious early 20th century historical home has been tastefully updated and is a real beauty. Two guest guest houses make this a great retreat for some buyer with lots of friends and family. Priced at $805 per sq ft. This house is priced right for size and location, but the house has way more going for it than just about any similarly priced house. The location is killing the value, not the house itself.

410 Simonton is a dollhouse right in the heart of Old Town. What a beauty. Price at $388 per sq ft. Busy location during the day, but generally quiet at night.

315 Peacon Lane is priced at $828 per sq ft for a beauty on a very quiet lane in a dynamic location very near the Historic Seaport yet far enough away not to be part of the noise and hubub. This house is probably priced about $100 per sq ft under market.

716 Olivia is a stunning renovation that got derailed by the downturn in the market. Short sale offered at $844 per sq ft. Custom everything. You will get total quality and beautiful design on this babe. I think a sharp buyer may be able to swing a good deal on this one.

Finally, I need to strongly recommend that buyers look at 409 Williams Street. Priced at $769 per sq ft but should be priced around $1000 - $1100. This is a prime example of my recommendation to "Buy Value by buying top quality property that is under priced even though the price is higher than you think you can afford." There are too many homes in the $1000 and up price range. The seller really wants to sell. And the as offered now is basically what the seller paid for the house before all of the dramatic renovations were made. The seller did not pay too much for the property. But he really wants to sell it now. This is a deal not to be missed.

Give me, Gary Thomas, a call to see one of these houses, 305-766-2642 or e-mail me at kw1101v@aol.com. A few years from now people will be kicking themselves in the rear end for not having bought some of these homes at the value price offered today. That's my story and I'm sticking to it.

Huge Price Reduction --421 Simonton -- Commercial

The asking price just got a lot better on 421-423 Simonton Street in the very heart of Old Town Key West. This property is the ugliest of ducks in Old Town. But the location is just about as good as it gets. The property is ripe for renovation and the new asking price makes that prospect of renovation more realistic.

421 Simonton was originally listed in April 2006 at $2,299,999. It didn't sell, and the price has been sporadically reduced on March 4th. The new price is $1,350,000. This is what you get for the money: 3766 sq ft building on a 3520 sq ft lot. There are 5 ROGO UNITS WITH TRANSIENT LICENSING plus 2 retail stores on the ground floor located one block from Duval. Possible Guesthouse or Condo conversion. Renovation project with lots of potential. Room for a pool. CLICK HERE for details offered by the listing realtor.

The current facade is hideous and probably dates to the 1950s. But behind the facade is what appears to be a big old Key West conch house. I say "appears" because I have only been inside the front building which housed an antique store. But the property behind the facade is what restorers want. This property will take some digging and investigating. But my suspicion is that you will find interesting photos of the building at the Monroe County Library. You can then develop a plan to renovate the building and make maximum use of the land and space. Perhaps you can use the 5 transient licenses to create a small boutique guest house with a pool. If you are a repressed innkeeper at heart this may be your opportunity to create your own very special guest house. And that location would be a killer!

I think a serious renovation project would also get the cooperation of the Historic Architectural Review Commission (HARC). The building next door to the south is an antique store and just underwent a restoration of its facade. Its picture at night is featured above.

Want to buy commercial space in Key West? CLICK HERE to do your own personal search of the Key West mls website. If you see something you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me know the mls property number and let me know how I can help you. Even if what you want is not listed does not mean it may not be available. Let me know what you are looking for and maybe I can find it. Commercial sales have not been going very well and there may be a willingness on the part of some sellers to negotiate now more readily than they would have done in the past. You never know until you try.

Snow Place Like Home

When the weather up north makes the evening news I always thank God I moved to Key West. The snowstorm and tornadoes that hit the Midwest last week were devastating, and I make no joke about that.

I lived in Colorado for all of my life until I moved to Key West in December 1993. I remember many times when the thermometer hit 20 below zero and I would have to get up a couple of times during the night to start the car just to make sure it would start the next morning. I had a huge front sidewalk that I got to shovel. The heavy Denver snowstorms started to take their toll on me.

It started snowing like hell the afternoon before I left Denver to head to New York City in passage to Key West. (I had to be somewhere while my furniture was in transit to the Keys.) New York City was just as cold as Denver, but there wasn't any snow.

Three days after I left Denver and three days before Christmas I arrived in Key West. It was like 80 degrees and sunny. You know you're here when you get off the plane and walk into the humidity. Even if it isn't humid, the air smells different. And if you have ever been to Key West before you immediately feel "I'm back!" And you thank the Lord for Key West.

Key West has changed in the past 15 years, mostly for the better. Things have certainly got more expensive. Of course real estate has gone up, gone down, and gone sideways. The cost of rental housing has just gone up. The cost of a beer in the bars on Duval has zoomed way out of proportion. The cheap meals at Wendy's do not exist in Key West. But the cheap meals at TGI Fridays do exist. Gas costs way more here than it should, but the gas companies get away with it because they can. I hardly ever go shopping because stuff doesn't matter any more. I have what I need. Besides shopping at Ross isn't exactly like going to Bloomingdales or Macys. Heck, we don't even have Target or a GAP.

But in spite of the high prices and lack of shopping, life in Key West is much simpler and easier than it was up north. And when the need arises I can always get in a car or take an airplane back to reality.

And that reminds me that almost every night there is some story about some horrible event or odd thing that occurred somewhere in Florida. Thank God Key West is not part of Florida. Our weather is different than the weather in Miami. Our people are most certainly different. We don't have home invasions and murders at convenience stores. Most people don't lock their doors. Really.

My only regret about moving to Key West is that it took me so long to do it. So those of you coping with the bad weather up north just remember there's snow place like home. Want to move here, call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to checkout these single family homes in or near Old Town for under $699,000.

709 Bakers Lane Old Town Key West, Fl

Two of my friends from my former office are multi-million dollar real estate agents year after year. During their time off from their busy real estate practice, they renovate homes for fun and profit. They design each property for a discerning buyer and oversee all of the construction to make sure the work is done to their standards. The home at 709 Bakers Lane was their crown jewel in Key West.

This property at 709 Bakers Lane is just two blocks from Duval on Solares Hill--the highest point in Key West. The compound is actually two homes plus a guest cottage that is hidden away on the one block long Bakers Lane in the mid 600 block of Elizabeth Street.

Each building was thoughtfully renovated to provide separate living spaces for the owner and family or friends. The great room in the main house has a vaulted ceiling that features two chandeliers from a historic Chicago theatre. The adjoining kitchen has all the bells and whistles one would expect. The second floor is devoted to the master bedroom and bath plus a second floor terrace overlooking the pool below.

The guest house features a living area, kitchen, and two bedrooms and two bathrooms. James Leo Herlihy wrote Midnight Cowboy in the guest house. On the other side of the pool you will find another guest cottage with two sets of French doors that overlook the pool and garden. It has a butler's kitchen, huge bath, and laundry room.

The new pool and swim under waterfall are truly inviting. The balance of the courtyard is paved with Chicago brick and handsomely landscaped.

The house was originally designed and built to sell for $2.8 million. The real estate market took a nose dive and the owners decided to leave Key West for a variety of reasons. The home is now priced at a very reasonable price. The home is not for everyone because the main house has only the master suite for sleeping. But an individual or couple with no small children might find the two separate guest houses just the ticket. The house is priced to sell at $1,749,000 or $760 per sq ft.

There are two ROGO units on this property meaning that the owner could legally rent one or both homes as vacation rentals. (Lots of rules--not discussed here.)

I truly believe that now is the time to buy quality properties in Key West like this jewel, because most are under priced and way undervalued. When the real estate market makes its next correction, this property will not be affordable by many who can afford it now. The spike in value will be appreciable.

I would love to show this property to you. CLICK HERE for more info and pics on this property. And then call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. We need 24 hours advance notice to show. Thanks.

826 Olivia Street Old Town Key West

First time to do this. Two blogs entries on the same day. So it must be important.

A local Realtor (who is also the owner) just listed 826 Olivia Street in Old Town. The house has been tastefully updated and is priced to sell quickly at $695,000 or $690 per sq ft for this 2 bed 1 bath home of 1007 sq ft on a 1731 sq ft lot. This property was listed for sale at $749,000 in 2007.

Old pic shows the house in 2005 before the fairy dust was applied. The other pics are of its present incantation. It looks like something out of a 1940's movie--it oozes charm.

This is how the listing Realtor describes this property: "This charming home, with extraordinary ambiance and comfortable, convenient floor plan, is located on historic Olivia Street, in Old Town Key West. Upon entering the large Great Room, with soaring wooden, beamed Cathedral ceilings and wood floors, you view the beautifully landscaped yard with deck, patio and Jacuzzi. The five windows, and the French doors on 3 sides, make this space spectacular! The kitchen, which is open and airy, and lends itself perfectly for entertaining, is all new with wood cabinets, stainless steel appliances, granite counters and tile floors. The bathroom, also all new, features granite counters, neutral tile and new cabinetry. Come live the Key West Dream, in a great home, on a great street!" This house is so sweet you'll need to see the dentist after you look at it. It is what everybody wants. It does not have a pool and I don't think there is any way to put one in. CLICK HERE for more detailed information on the house and some very beautiful photos.

This is the deal. The owner/Realtor purchased this property in 2005 for $693,000 and put a lot of time and money into the renovation. He's losing money if he sells at the asking price. The owner is not a personal friend. Just so you don't think I'm trying to help a friend out. This house is definitely worth taking a look at. Want to see this house? Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Don't wait.