For the Disbelievers

I like it when people make comments on the blog. I know people are reading that way. But I wonder how many individual commentators there are. Sometimes a post of mine will generate several comments that all agree we are in a world of doom and gloom and that only fools would buy in today's real estate market. They declare that asking prices are way too high, sales are way too weak, and that disaster is on the horizon.

I have heard many fellow Realtors predict that we only have a few more months of slow sales before the market turns around.

I do not believe in the doomsday theory of real estate. And I don't think we are nearly over the hurdle, at least nationally. I read the Monroe County Clerk's website and I can see that attorneys for foreclosing lenders continue to post lis pendens against borrowers every day. So I know that the foreclosures are not about to stop.

Some disbelievers argue that prices in Old Town, the area that historically drives the real estate market in Key West, are too high for locals to afford. That has been true for about two decades. It is not going to change. But the same disbelievers disregard the fact that a lot of houses that are selling are very well priced.

I just created a list CLICK HERE of single family homes in Key West with at least two bedrooms that are offered at $400,000 or below. Checkout the list. There are some nice houses there. And the offering price is just that. Any reasonable seller expects to negotiate a price or terms acceptable to both the seller and buyer.

At least six of the houses on the list are bank owned properties. That means that the emotion of selling is gone and that the person making the price decision is looking at numbers. Sometimes the bank asset managers get it right. Sometimes they don't. If property sits around too long, somebody is not doing their job correctly or there is something dreadfully wrong with the property.

Local buyers looking for a family home in Key West that want to take advantage of some of the perks some bank owners are offering should specifically look at these houses: 1026 12th Street, 1008 18th Terrace, 3041 Flagler Avenue (it's a great deal), 1617 Duncan Street, 2918 Flagler Avenue, and 309 Julia Street.

Most second home buyers prefer the Old Town, Casa Marina, and The Meadows areas over Mid Town and New Town. Let the second home owners pay more per square foot for a smaller home and a small lot. Locals can then buy the larger properties with bigger lots at cheaper prices. Prices are down and interest rates are now at about 5.5% or less for 30 year fixed rate loan. (Source: Quicken Loans Dec.3, 2008)

If you are thinking of buying a house in Key West, now is a good time to look. There are a lot of desperate sellers. Banks are looking to move assets off the books by the end of December. Remember, with banks it is only numbers. CLICK HERE to search the Key West mls and find the house that you want to make into a home, and then, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you find your place in Paradise. Remember, the Disbelieves don't believe in Santa Claus either.

Key West November 2008 Sale Report

Key West November Sale Report - 2008. That was not a typo. There was one single family home sale in the Old Town area of Key West in November. It was a cute little house on Southard Street that was listed at $599,000 and sold for $575,000. It has a pool and a great Old Town location. The price per square foot was $765. There are those who say a price that "high" is irrational in today's market. Hooey! There are only a few really cute well located single family homes for sale in Old Town. Now there is one less.

I did a quick survey of single family home sales in Old Town during November from 2004 through 2007 to see if the small number of sales this year was an anomaly. You decide: 2004 - 2 average price $710 per sq ft; 2005 - 2 average price $463 per sq ft; 2006 - 3 average price $678 per sq ft; 2007 - 4 average price $524 per sq ft.

I also did a quick survey of contingent and pending single family home sales in Old Town. This includes properties that are shown as "short sales". there are 10 homes in these classifications with an average price of $594 per sq ft.

I share the frustration of some of my readers about pricing. Some readers see the asking prices as being too high and out of touch with reality. Some criticize me for calling some properties good buying opportunities--especially houses in Old Town that may be priced high on a per square foot basis.

Most Realtors I know are showing properties and offers are being written. There are not any high end properties in the contingent or pending categories mentioned above (except for a sale of a U.S. government owned house on Sunset Key priced over $5 million that I excluded from consideration). Most of the high end properties are still priced high on a per sq ft basis. I went through the active and active short sale single family homes priced over $1.2 million. Some are price in the the low $400s per sq ft while some are well over $1100 per sq ft. There are 74 such homes listed for sale with an average asking price of $838 per sq ft.

The very recent reduction in mortgage rates to under 6% is making home purchasing even more affordable when you couple that reduction with the reduce prices we are seeing in Key West. People who are sitting on the fence waiting for the ultimate price/rate meltdown may mis-time the market and miss a great opportunity to buy when they can know exactly what they can get as opposed to waiting until some intervening event changes things again.

If you are looking to buy a place in Paradise, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you take advantage of today's bargain prices.

Memorable Moments in the Theater

My introduction to the theater perhaps should go unmentioned. But I'll throw political correctness aside to share a very innocent little boy's first appearance on the stage. I think I was in the second grade at Mountain View Elementary in Wheat Ridge, Colorado. (That's the lily white suburb I previously wrote about.) The year would have been around 1955. If I recall correctly I was playing an orphan at Christmas. I remember the play took place at Christmas because Santa was the main character and he was played by an adult.

My part required intensive practice on my dialect. I'm not sure who taught me the phraseology, and I cannot remember the line. I think I had only one line. But it brought down the house as I recall.

I also remember one of the teachers taking the time to apply my makeup. Yep, an eight year old boy wearing makeup.

The play took place right after school and the audience was filled with kids from each grade along with their parents. The play was short. My part was shorter. The teacher had applied burnt cork all over my hands, neck, and face. I was supposed to be a little black boy. I got my line out and the audience roared.

Key West has a very active theater crowd. There is always something going on at The Red Barn Theater, The Waterfront Playhouse, or The Tennessee Williams Theater. And there are occasional performances at The San Carlos Institute and the Key West High School. I just received a pamphlet in the mail announcing the 2008-2009 schedule at The Tennessee Williams Theater and was reminded of another memorable moment in the theater.

Like most towns and cities that have active theaters, The Nutcracker is a annual tradition in Key West. I remember a very special performance that will never fade from my memory. What I write is true. You can't make up a performance like this. It was 1994 or 1995 as I recall. The performance was the first night at The Tennessee Williams Theater and the Founders' Society party took place afterward. The Nutcracker's production company was from Miami.

The music began, the curtain went up, and several ballerina maids with feather dusters started "dusting" a sofa in the middle of the stage. They dusted and dusted for eons and eons. Tedium set they dusted so long. Finally, some other character appeared on the stage and the performance got started. But after a few minutes the music started to roll out as if in slow motion. You see, the music was on tape. And the tape recorder was not playing properly. The music eventually stopped and someone wearing a suit walked onto the stage and announced there was a mechanical malfunction that would require some time to repair. There was a break of maybe fifteen minutes or so.

The tape was repaired and the performance started anew, right from the very tedious beginning with all that feather dusting. Everything went like clockwork for the rest of the performance. That is until the very end. In the last scene the handsome prince lifts the principal ballerina up above his head. Well, he did. But he was standing on a piece of her costume. It ripped. And that brought down the house. It was like something in the movies, except it was not scripted or intended. It was just a most excellent end to a mediocre production of a Christmas tradition.

This has absolutely nothing to do with real estate other than the fact that if you live in Key West you can see great community theater and some wonderful road shows at The Tennessee Williams Theater all year long. CLICK HERE to see what's happening in Key West this season.

After Thanksgiving - Open House Saturday - 4:00 to 6:00 PM

Preferred Properties CRI is hosting an Open House on Saturday between 4:00 P.M. and 6:00 P.M. Stop by 416 Elizabeth Street and 712 Southard Street and 1110 Curry Lane to view four beautiful Conch homes with great Old Town locations.

416 Elizabeth Street is a rather unassuming property consisting of two houses and one cottage with six en suite bedrooms and seven baths. Built circa 1873, the historic main house features a peerless restoration, with details such as polished hardwood floors, with the original windows and doors restored. A veranda overlooking the swimming pool and lush grounds is carefully built around an ancient Spanish lime tree. A galley kitchen includes stainless-steel counter tops and appliances and custom cabinets. This historic gem is a classic example of the casual, yet elegant, indoor and outdoor living lifestyle for which Key West is famous. Thomas McGuane, known for his "92 in the Shade" and "Panama", resided at 416 Elizabeth St. CLICK HERE for more photos and info on this elegant property.

712 Southard Street is a beautifully appointed shotgun style Conch Cottage on the best block in Key West. The house has two nice size bedrooms and bathrooms, a great new kitchen with cathedral ceiling that opens onto the glass tiled kidney shaped heated pool surrounded by tropical landscaping. And it is located only two blocks from world famous Duval Street. CLICK HERE for more info and photos of 712 Southard Street.

804 Elizabeth Street is a classic Eyebrow house with sawtooth additions has two driveways. It has been recently renovated with new kitchen, baths, ac/heating systems, and upgraded plumbing and electrical systems. The ceilings have been vaulted in the dining room and den and there is a new heated swimming pool. And there are two off street parking spots. CLICK HERE for more info and photos of this beautiful home.

1110 Curry Lane is located on one of Key West's hidden lanes between Fleming and Southard Streets and sandwiched between White and Frances Streets. The lane is only one block long and it has several ultra sweet homes like this one.

Please join me, Gary Thomas, at 712 Southard Street and my fellow Realtors at 416 Elizabeth Street to view both of these charming Key West homes just before the sun sets and the evening begins. You will get a chance to see how wonderful life can be in your own Key West Conch House, whether it is a cottage or a great house.

Another Missed Boat in Key West

I don't want to be an "I told you so!" Wait a minute, that's exactly what I want to be.

Back on August 28th I notified my dear readers about one heck of a house at 1601 Patricia Street that had been previously listed for $1,195,000 whose owner dropped the price to only $695,000 and was offering the house as a short sale. I showed the house the same day to two different potential buyers both of whom loved the house and the price. But they could not decide that day. READ what I wrote then.

Good deals do not last long in Key West. The house went under contract a couple of days later. Something went astray and the property went back on the market On September 29th. I notified everyone again that this particular house was a genuine buying opportunity. That was two weeks after the Wall Street "bailout" was the "crisis" du jour. However, there was one smart shopper who anted up and made an offer that the seller accepted. The beautiful house at 1601 Patricia closed yesterday for $650,000 or $378 per sq ft for a super clean 3 bedroom, 2 bath home, livingroom, dining room, office, new kitchen, separate pantry, beautiful landscaped yard, pool, spa, storm shutters, and a real nice neighborhood near the beach. CLICK HERE to see what you missed.

I know just about everybody is really nervous about the economy right now. The talking heads on TV do their best to keep everybody worked up all the time. They have to feed the need to watch their channel for "BREAKING NEWS". Fix the damned news, I say. Stop scarring the crap out of everybody. The world is not going to end. We will get through this mess.

Remember three years ago after Hurricane Wilma when us Key Westers all shared in the misery of our fellow neighbors. It's all better now. The junk got hauled away. The green came back. The island is more beautiful than ever. The weather is still great. And the tourists come back every year to give us their money.

Right around the same time the talking heads on TV were scarring us about Avian Flu. Remember? Whatever happened to the dire forecast? Why aren't we all dead, or at least sick?

Don't miss the opportunity to buy while prices are very low and some people are selling their places at sacrifice prices. CLICK HERE to search the Key West mls to find your place in Paradise. Then, please call me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com.

1209 Olivia Street - The Meadows - Key West - Short Sale

Back on the market: 1209 Olivia Street located in The Meadows Area of Key West, Florida. The new and reduced asking price is now just $749,000 for this 1522 sq ft story and one-half 2 bedroom 2 bath home with a pool and off-street parking. There is even a small pool side cottage to boot. The lot is 3589 sq ft. The house sits on a block with some very nice (and expensive neighbors). The house across the street is on the market for $4,490,000. CLICK HERE, HERE, & HERE to see photos of the neighboring homes.

This is how the listing Realtor describes the house at 1209 Olivia now: "Desirable Meadows single family home totalling 2 bedrooms/ 2 bathrooms plus small pool house. Heated concrete pool, off-street parking, resurfaced wood floors, new bathrooms, central a/c, Chicago brick patio, new decking around pool & recently painted both inside and out. Enjoy covered outdoor dining, laundry room/ pantry off updated kitchen and an open floor plan. Strong monthly vacation rental history at $6300.00 per month. Property needs some TLC as house has been vacant for several months."

1209 Olivia is priced at $492 per sq ft. I can report that a nearby bank owned house sold in August 2008 for $576 per sq ft. It was a smaller house and was nowhere as near as nice as this house. So I think the pricing on 1209 Olivia ought to entice some bargain hunter. CLICK HERE to see more photos and written info from the listing Realtor on this house.

If you would like to see 1209 Olivia Street, please call me, Gary Thomas, 305-766-2642 to schedule a showing. The house is vacant so it is easy to see. But please see it with me.

518 William Street - Old Town - Key West -Short Sale

The house at 518 William Street is offered as a Short Sale at the asking price of $875,000 which amounts to about $515 per sq ft. The listing agent (not me) shows the square footage as 1700 s.f. The County Appraiser's Office shows the square footage as 1485. An actual survey or appraisal should provide a better statement as to the true size of the house. I mention this because errors in the size of a building can lead to errors in valuing it, even in a down market.

The house sits on a 2132 sq ft lot (20' frontage X 98' depth). The house has had several updates in the past few years and it appears to be in good condition, at least to my untrained eyes. The County property records show a new roof, new air conditioning, new floors in some rooms, and other improvements. There are two living rooms and two kitchens (that's odd!), two baths, three bedrooms plus a large sleeping loft. There is a great set of french doors that lead from the rear living room onto a deck. There is a spa and garden at the rear. There is no off street parking. And there is no room for a pool.

A Short Sale occurs where the seller tells prospective buyers that the seller may be willing to sell below the asking price of the house if the lender will accept less than payment in full of the mortgage held as security for the home and forgive any further indebtedness on the part of the borrower (seller).

I saw this property right after it went on the market. I have not been able to get anybody to go look at it. That's a shame. It is located on one of Key West's best blocks. The house across the street sold about 18 months ago for $3.5 million. The house across the street and down at the end of Pinder Lane is priced just under $4 million. Like many streets in Old Town there is a mix of condos, shotgun houses, and couple of great old Conch houses. I think the location would be great for a second home owner who does not need a car or a pool--just a place to relax and enjoy life. The home did not appear to need any repairs. If I am right on that, any extra money a buyer spends would be on fun stuff like Tommy Bahama Furniture or local art.

The listing agent is not located in Key West. But I can get interested folks inside to see the house at 518 William Street without too much advance notice. Please call me, Gary Thomas, 305-766-2642 to schedule a showing. You may be pleasantly surprised.

727 Waddell Street - Casa Marina - Key West

You can see the Atlantic Ocean from the third floor (5th bedroom) of the new house at 727 Waddell Street in Key West's Casa Marina area. It's only a partial view but that beats no view at all. The house is a one block walk to both public and private beaches in the area. The Casa Marina Hotel has a private beach club, tennis, and gym that you can join so your second home could almost seem like living at the resort itself.

727 Waddell Street is a newly constructed three story home with 2800 sq ft of living space that sits on a 5000 sq ft lot (50'x100'). There is a formal entry with an office/den/guest room and private bath adjacent to the right. The huge living room takes up the right rear half of the house and the kitchen on the left takes up the balance. The kitchen is very large, open, and bright and was built to accommodate more than two people at a time. You can tell that the architect designed the kitchen for some serious entertaining.

The master bedroom and en-suite bath take up the front half of the second floor. There is a second story front balcony where you can watch the world very slowly.
Two bedrooms share the rear half of that floor. Both have en-suite baths and separate doors opening onto a large second floor rear balcony that overlooks the pool and gardens.

Then there is "nosebleed", the third floor bedroom with en-suite bath and an adjacent ante-room. There is even a lighted storage area as well.

The heated pool is 16'x12' and it has a spa and waterfall. It is an auto clean pool. Mature plants and shrubs surround the pool, deck and patio. Other exterior features include Fencing, Irrigation System, Landscape Lighting, Outdoor Shower, Outdoor Kitchen, Patio, Storage, Water Display.

727 Waddell Street is priced at $1,925,000. That may sound like a lot of money. It is. The house was originally priced over $3 million. The builder has a house just like it available next door on the corner that is priced just a bit higher. I think the price is negotiable. In fact, I'm pretty sure of it. CLICK HERE to see the information provided by the listing broker.

CLICK HERE to see 32 photos I just took of the property. The house is beautifully furnished and the furniture and furnishings can be purchased separately.

The nice thing about this area is that you are close to everything, but you are far enough away not to be on top of everything. You can ride your bike to just about any place in Old Town in about 5 to 6 minutes. You can drive to the airport to pick up friends at the Key West International Airport in about 5 to 7 minutes. I live about 4 blocks away, and I love the area.

If you would like to schedule a private showing of either 727 or 731 Waddell Street, please call me, Gary Thomas, 305-766-2642.

Help! I need a Bailout!

I was a political science major in college. I considered myself liberal. I was a champion of human rights before it was vogue. I never really bothered myself with economics because money has never been the focus of my life. But I guess you could say I am conservative when it comes to money because I appreciate how money is made.

I grew up in one of Denver's western suburbs--a place built right after the end of World War II. Everyone I knew was lily white and most were Protestants. As I grew older I came to realize that some of the kids I went to school with were "richer" than I was. I figured that out by the size of the houses they lived in and the large new cars that their parents drove.

My parents were almost kids themselves when my sister was born in 1930. I came along 17 years later. My dad had to get whatever work he could find during the Depression to support my mom, my sister and my big brother. Like so many people that endured the Depression, my family came out of it with a fear of ever having to live through anything like it again. So my roots are humble and I have a respect for people who work for a living and who know the value of saving and earning what you get in life.

As an attorney that worked in a couple of Denver banks managing problem loans, I learned that sometimes the rich people that live in big houses and drive big cars are not exactly the nicest people around. Sometimes those people lie and cheat and deceive other people (and bankers) into giving them money they do not deserve and cannot pay back. Oh, they will pay it back if things workout alright for them. But if things go bad, there is always an excuse or a defense.

Back in September when politicians and the media started beating the drums for a bailout of Wall Street, I raised my voice in opposition. I wrote my Congresswoman and my two Senators. A lot of good that did. Congress approved the $700 Billion bailout with no bona fide strings attached. Can you believe they got taken again?

So now DETROIT wants a bailout as well. The apologists are on TV talking up the end of the American way of life if the Detroit automakers have to file bankruptcy. I find myself siding with Republicans like Senator Dick Shelby on this one.

Mitt Romney was all over the morning TV programs today discussing his OP ED piece in today's New York Times. CLICK HERE to read. It's short and to the point. Read it.
I agree. With a Republican. My dad would disown me.

One of Romney's major points is that Detroit can use a Chapter 11 Bankruptcy to get out of many of the costly and burdensome obligations that will continue indefinitely unless they are disgorged by bankruptcy. Romney and others are calling those costs "Legacy" costs. Those costs are primarily health care and retiree benefits. In government speak those costs are referred to an "entitlements" because the demand is always present and everlasting.

Romney also calls for the ouster of the geniuses that have been running Detroit that created the current mess. Again, I agree. In a Chapter 11 Bankruptcy the new companies could use the law to avoid all kinds of burdensome contracts (including the costly executive compensation packages) that have added thousands of dollars in unnecessary costs to autos produced in the United States.

Yesterday afternoon one of the guest commentators on MSNBC blamed Congress for the fact that American automobiles get less miles per gallon than most Japanese cars. Wait a minute, buddy. It was Detroit that lobbied Congress for the lower standards. I am old enough to remember that we went down this same road back in the late 1970s. Detroit was going to build cars that got better mileage. But they didn't.

Lately it has been the Bush White House that objected to the efforts of states like California to enact higher miles per gallon requirements that would limit pollution. The talking heads always seem to blame someone else for the problems that their industry created. This time its just the blame game on wheels.

If Congress gives Detroit a bailout the executives keep their lucrative executive pay and all the trimmings that go with it. That includes deferred compensation plans, bonuses, stock options, etc. Forget that the stock prices are low right now. The executives are probably buying as much of it as they can. Because if the bailout comes, the stock will go back up, and the executives will make out like bandits again.

This is how Romney ends his OP ED: "The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk."

"In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check."

2301 Linda Avenue -- Bank Owned -- Key West

You know the house by the photo to the right. It's that Big "A" Frame house at 2301 Linda Avenue -- just one block east of the Key West High School on Flagler. This 4 bedroom, 3 bath house has 2980 sq ft of living space and sits on a very large, if oddly shaped, lot of 11,930 sq ft. This huge property is BANK OWNED and PRICED TO SELL. The asking price is only $459,900 or $154 per sq ft. CLICK HERE for more info and more photos of 2301 Linda.

Forget about the architecture. Look at the price. This is one of the largest building lots in Key West. My suggestion: buy the property, tear down the existing structure, and redevelop the site. Better yet, buy the adjacent building lot at 2303Linda and redevelop both parcels at the same time. Buyer will need to verify that 2303 Linda either has existing building rights or that Buyer can acquire rights and transfer those rights to the property. 2303 Linda is a 7048 sq ft lot and it is priced at $349,000 or $50 per sq ft. CLICK HERE for more Info on 2303 Linda. The property at 2303 Linda is not bank owned.

The combined square foot on both parcels would be 18,978 square feet. That could make for an impressive development. CLICK HERE to view other building lots currently available for sale in Key West. Compare the price per square foot among other features to determine the best buy for you.

It is very easy to show both properties. Please call Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.