Beep! Beep! Beep! - The Sound of Key West Foreclosures...

So you are walking down one of the picturesque Key West streets or lanes and see a "For Sale" sign. (There are a lot of those signs all around Key West these days.) As you near the house you hear "Beep! Beep! Beep!..." emanating from inside the shuttered house. You instantly know the house is bank owned or soon to be bank owned. Instead of hearing the sound of silence, you hear the chirp of a smoke detector that transformed itself from a life saving appliance into a miniaturized public address system that continually announces to the world "foreclosure!", "foreclosure!","foreclosure!"...

That beep goes on, and on, and on. Neither the asset protection companies that the banks hire to look after and protect the foreclosed houses nor the Realtors that have the listings on the foreclosed properties have the sense or desire to spend a few cents either to disarm the smoke detectors or to replace the batteries so that the infernal noise stops. So the noise just goes on and on and on -- just like the Energizer Bunny.

1400 1st Street - MidTown - Key West

Preferred Properties, Christies Great Estates, has a new listing at 1400 1st Street in the Mid Town area of Key West that may appeal to the buyer that wants a very large and gracious home away from the hoopla of Duval Street.

The listing Realtor describes this property thus: "Unparalleled quality and craftsmanship in a new home in Key West. This property is superb in every way from the solid Brazilian cherry floors, the granite counters, the stainless appliances including a six burner Viking gas range, the custom tile in every bath, hand-built wainscoting and custom hand-built crown molding. Every detail was considered in the workmanship and design of this fine home. The exterior landscaping, spa and pool again reflect the care of this builder; two waterfalls surround a swimming lagoon connected to the whirlpool/spa by a 52 ft canal bridged by the fabulous gazebo. Two car garage and off street parking for five more cars; three in a secure, gated area. Not a property to miss for the sophisticated buyer."

This is my take: The property as a whole (both grounds and building) is enormous. The house is brand new (no renovation). It is 3708 square feet on two levels. The lot is 9766 square feet (11'x 97.66'). The lot is surrounded by a large privacy fence with an electric gated driveway and TV surveillance around the property for the utmost security. That's probably overkill for Key West, but it's a nice feature nonetheless. The front entry and drive are paved and the grounds are lushly landscaped.

Each room in the this house is large, but some are really large. But they are also built to human scale and were designed with ease of use and utility in mind. The kitchen is a cook's delight and features custom cabinets and Viking appliances. There is an opening onto the bayed dining alcove. This is where everybody hangs in most houses. But in this house, the hanging will be in comfort and style. Go back and re-read what the listing Realtor said about wainscoting and crown molding. I'll throw in the incredible pediments above each door. You walk from room to room and are just amazed at the detail and care that went into this house.

We Key Westers spend most of our time outside if we can. And this house is a place you and your friends will really enjoy. Each of the rooms on the ground floor and second floor have porches that overlook the pool and grounds. Understatement. The landscaping and water features look more like a posh Key West resort hotel than a normal backyard pool. Well, that's the point I guess. This place is not normal. It is extraordinary.

I was amazed at the waterfalls, fountains, the bridged swimming pool, the spa, the gazebo, and so on. The features do not end. This is the kind of house that a couple with a large family or lots of friends could really put to good use. The house is formal enough to impress, but it was built to be lived in. The outside has lots of places to relax, dine, or entertain. If there are any buyers out there that were not ripped off by Bernard Madoff this may be your place in Key West.

1400 1st Street is offered at $3,495,000. CLICK HERE for more detailed information on this large and impressive property and view all of the photos.

If you are seriously looking for a luxury home in this price range, please call me, Gary Thomas, 305-766-2642 to arrange an appointment. Buyers must be pre-qualified to view this property.

No Brainer Loans

A few years back when buyers were buying properties in Key West as second homes or investment properties, some of the local banks helped create part of the financial predicament we are experiencing today. They made what I like to call "No Brainer Loans".

I first heard the term "No Brainer Loan" about 4 or 5 years ago. It was used by a local banker I'll call "Big-wig". I had called him to discuss a property my buyer had found that needed renovation. I needed to find out what kind of financing my buyer could obtain. Big-wig told me the bank had a program where the bank would loan money to purchase the property and renovate it. The bank would require two appraisals. One would value the property "as is" when purchased. The other would value the property after the construction was completed. (This appraisal would be done based on architect plans, budget guidelines, and appraiser assumptions. The bank would over-see the construction and pay the contractor and materialmen.)
Big-wig's bank would the convert the purchase-construction loan into a permanent mortgage and "save" the buyer-borrower from additional mortgage expenses later on down the line.) The buyer-borrower would still need some cash, but the amount of cash was diminished by the assumption that the finished property would be worth far more money later on. Everybody was supposed to get rich on this scheme. Big-wig said with assurance something to the affect "It's a no brainer for me."

I never had a buyer that took advantage of Big-wig's offer. My buyers always dug into their piggy banks and borrowed the rest.

The loan option proposed by Bib-wig was akin to the "bigger fool theory" of investing in my opinion. CLICK HERE to read short Wikipedia explanation of the bigger fool theory. Several local banks did the same type of loan or a variation thereof. So I'm not picking on any one lender.

I have seen a lot of properties either get foreclosed or offered for sale on a "short sale" basis that were or are owned by local Key West residents. Many of these properties were investments. The banks created the tools with which both locals and out of towners could buyer property and renovate the same. That is a good thing. But both the lenders and borrowers should have had their heads examined to find out before hand that neither party had any business participating in a "No Brainer Loan".

If you are hoping to find a place to call your own in Paradise, please consider calling me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to search the Key West mls database. If you see something you like, give me a call or send me an e-mail. Let's use our brains and make you dream come true.

825 Ashe Street - Old Town - Key West

A couple of years ago I purchased the right to use the image of the quintessential Key West Cottage from Kimberlee Clark, the artist who created it. CLICK HERE to see more of Kimberlee's art. She has a lot of great Key West images.

When I decided to write about 825 Ashe Street in Old Town Key West I thought, that's the house Kimberlee used as the model for my logo. Maybe it was; maybe it wasn't. You decide.

This is how the listing Realtor describes 825 Ashe Street: "This historical Conch charmer in the heart of Old Town Key West has been beautifully restored with great attention to detail. Located on a quiet street in a very desirable neighborhood this home has 2 bedrooms and 1 bathroom downstairs and 1 bedroom and 1 bathroom upstairs (with it's own private entrance). Dade county pine and bald cypress throughout, wood floors, guest cottage/art studio, two car off-street parking with carport, cocktail/dip pool and rear deck area are just some of the amenities you will appreciate." CLICK HERE for more detailed information and photos of this beautiful property. 825 Ashe is now priced at $699,000 or $567 per sq ft for this 1232 sq ft home on a 2530 sq ft lot on a quiet street in Old Town Key West.

For the uninitiated, Ashe Street is a small two-way street that runs between Olivia on the south and Southard on the north. It is one-half block to the west of White Street. And it is one block east of Frances Street, the eastern border of the Key West Cemetery. I feel the need to explain where Ashe Street is located, because many locals don't even know. And that means you probably won't see any Conch Trains or tour buses on the street. And I doubt that you will see many tourists on bikes or motor bikes. But Ashe Street is close enough for a short walk to Duval, the Historic Key West Seaport, or the neighborhood coffee shops, art galleries, gyms or small restaurants on White near Truman.

I have been warning readers for quite a while that they should not put off buying too long. Well, the number of really nice houses like this is shrinking. I urge serious buyers to take a look at this house as a potential dream house.

If you would like to see 825 Ashe Street or any other charming house in Key West, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Class Warfare - Key West

Class. As an adjective it means "of high quality, integrity, status, or style". I assume we all know class when we see it. I know that I usually prefer to spend more money to get a higher quality product rather than buying a cheaper product that may be of inferior quality,construction, or design. Objectivity gets skewed in favor of higher price. But then I try to find the highest quality product at the cheapest price and so that I can feel like I made money on the transaction.

I have written before about the great difficulty in comparing real estate in Key West based simply on price per square foot, yet I seem to mention that fact in almost every blog entry I write. Price is but one (very!) important element in evaluating real estate--especially in Key West. Other important elements are location, quality of construction, design, and livability. I am a firm believer that if you are looking to buy a house in Key West you must consider each of those elements. If the location sucks you better get the house for a really good price. If the house is in a good location and you can buy it cheaply, you may be able to remodel it and make it worth your while if you are willing to live through a couple of years of contractor hell.

A couple of months ago I wrote about the dramatic price reduction on the houses at The Meadows. Technically, the property is described as a condominium because each property shares in the common area maintenance, exterior building maintenance, building insurance, and pool maintenance. But each building is a free standing structure with one "party wall" which is only a second floor rear bedroom on either unit. Other than that, the properties are totally separate. The three bedroom units were reduced in price from a high of $1,795,000 and the two bedroom units were reduced from a high of $1,895,000.

CLICK HERE to checkout the single family houses, condos, and townhomes in Old Town and The Meadows area priced between $950,000 to $1,075,000. This price range is not entry level housing in most places in the U.S. but it is in the mid-range for second home buyers in Key West. I did not include houses south of Truman because I don't consider that area Old Town. And the fact is most second home buyers want to be in Old Town. (Many don't realize there are other very nice areas, but that's fodder for another blog.)

It is not appropriate for me to make negative comments about specific listings. But you can compare the prices, locations, architectural features and amenities between the properties and decide for yourself which properties appeal to your sense of class, style, value, or whatever.

I have shown about one half of the houses listed above. Some are listings of our office. If you are looking for an Class A property, I urge you to checkout the houses at 1509 Pine Street (CLICK HERE) & 1513 Pine Street (CLICK HERE) and 1502 Petronia Street (CLICK HERE) & 1506 Petronia Street (CLICK HERE)--The Meadows. I think these four houses kill the competition on quality of construction and amenities. I realize that some buyers will view the distance from Duval Street as a detriment. Well, that's why God created bikes, cabs, and feet. It's a 12 to 15 minute walk to Duval. If you plan on living your life on Duval, you should look for a place much closer.

But if you compare The Meadows houses to the nearby competition that is priced much higher, such as 719 Eisenhower (CLICK HERE) (across the street from 1506 Petronia) you will get an appreciation for the huge price difference. Granted Eishenhower is larger and has a boat slip, but it also costs and extra $1,350,000. Extra!!! Two other units cost more and one cost less. Also CLICK HERE to see the major Key West house directly across from 1502 and 1506 Petronia. It was listed for sale in 2008 for $4,975,000. Those houses would be your neighbors for sales comparison in years to come.

If you are in Key West or are coming soon and you are looking for a second home in the one million dollar price range, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com to schedule a showing of not only the houses at The Meadows but also some of the similarly priced houses listed above. Let the Class Warfare begin.

Key West Short Sales to Dream About

There are 85 condos and townhomes in Key West currently listed as "Short Sales" but there probably more because the listing agent may not have clicked the right button when adding the listing to the mls database or the owner does not want everyone to know his financial plight. Both of those happen. I went through the 85 and selected 13 (don't know if that's a good number or not!) for you to consider. Each unit is in a good location. Some units have transient licenses are are available for legal transient rentals on a daily basis all year long (except units in Truman Annex which have some limitations). All are units that one might actually dream about owning.

CLICK HERE to see the list.

Sunset Marina is on Stock Island across the street from the Key West Golf Club. It is about the same size as units at 1800 Atlantic and priced competitively. All of the units have direct marina views. There is a pool, covered parking, a small gym, and the place was built very well.

120 Angela Street is a small complex of only four units, two up and two down. Each is outfitted with beautiful kitchens and baths, attractive floorings, and comfortable living spaces. Each unit has one off street parking space and there is a beautiful pool and comfortable island landscaping. It's located next door to The Shipyard condos, priced lower, has more space, and much more private.

Two units at 1401 Simonton are included (Santa Maria Condominiums). Theses units are re-sales at a much lower price than the owners paid. The Santa Maria stays booked constantly. So these units might make more economic sense if they are purchased at a lower price (on a short sale) that actually has the potential to make money (or not lose money) for the owner.

1108 Duval is the Cuban Club. Great Old Town location and use of the pool at the Douglas House make this unit attractive to vacationers. The management fees are higher, but the units here seem to stay busy most of the year.

Two units at Seaside at the east edge of Key West are included. Both are three story with private garages, private elevators, ocean views, lots of quality living space on three levels, and the buildings were new in 2005.

There is a cute little place on Windsor Lane located between the Key West Cemetery and the top of Solares Hill. It has its own little pool and 2 bedrooms and a bath.

I included one unit at 1800 Atlantic in the A building. Terrific ocean and nature preserve views.

The townhome at 809 Washington Street in Casa Marina was built in 2007. It has its own private pool and garden, custom floors, cathedral ceilings, and a beautiful kitchen. Off street parking, of course. And multi-million dollar homes all around.

514 Porter Lane in the Truman Annex President's Walk area is a comfortable entry level two story town house with two bedrooms and three baths.

3841 N. Roosevelt is the new (2007) Beachside Resort. Westin Hotels is now managing the facility and owners with transient licenses (such as this one) can use the Westin as the property manager or rent the unit themselves or with any other company. Other re-sales are priced considerably!!! higher.

I wrote about 1075 Duval in Duval Square a couple of days ago. This is a good price for someone looking for a transient unit in a good location.

If any of these units look attractive to you, please call me, Gary Thomas, 305-766-2642,or e-mail me at kw1101v@aol.com. You could be a Key Wester sooner than you think for a price you might never have imagined. Lay back, relax, and imagine your life in Paradise..........

HGTV Florida Keys Dream Home - Part Deux

Last year I wrote about HGTV's Dream Home giveaway in the Florida Keys. The dream house is located on Plantation Key near Islamorada, Florida. CLICK HERE to read what I wrote then if interested.

The Monroe County public records show the purchase price attributed to the property was $2,000,000 when title transferred in June 2008. I have been wondering whatever happened to the property but I was too busy to care enough to look. Until yesterday. I got an email asking about the house.

In my blog last year I said "Enter to win. Be careful, you may win and get to pay taxes on it. And be stuck owning a very expensive home in the wrong location." Well, that was partly tongue-in-cheek and partly how I really feel. Winners of big prizes like the HGTV Dream House have to pay income tax on the prizes and also get to pay the annual property taxes and other costs of ownership. It isn't cheap owning an expensive ocean front home in the Florida Keys. So it was no surprise to see that the Florida Keys Dream House is now offered for sale at $2,300,000 - down from the original asking price of $2,590,000. The house went on the market July 23, 2008, a little over one month after title changed hands.

CLICK HERE to see how the listing Realtor describes this property. If you are looking for a dream house in the Florida Keys, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. I'm not drivng to Plantation Key to find a dream house. There are plenty of them right here in Key West. But I can refer you to a Realtor that lives way far away up there...

Duval Square Townhome - Key West - Short Sale

Key West Townhome Short Sale. That's not news, you say. But take a look to see what might be a good investment opportunity.

The recently listed 1325 sq ft two story, 2 1/2 bath townhome located in the Duval Square Condominiums (1075 Duval Street in Key West, Florida) is offered as at the short sale price of $479,000 or $362 per sq ft. This is how the Listing Realtor describes this property: "Transient License - Turn-Key Income Condo on Duval St! This Mediterranean Style condo has Mexican Tile downstairs and oak floors upstairs. Downstairs features the kitchen, a half bath, laundry and a dining room with seating for six. French doors open to your own private outdoor patio. Upstairs, the master bedroom has French doors opening onto a private porch with seating. An in-suite bath with large Jacuzzi tub, vanity & skylight completes this spacious bedroom. The second bedroom features a bed, large walk-in closet and private bath. Secure covered garage with dedicated parking. Being sold fully furnished with an excellent rental history."

CLICK HERE for more detailed information on this unit and a lot more photos. The complex was built in 1987 and has undergone some cosmetic updates in the past few years. There are several restaurants and small stores on the ground level. All of the residential units are on the second and third floors. (All units are two story.) There is covered parking for each unit with controlled access. There is a lovely second floor rooftop pool that overlooks Duval Street.

This property may appeal to the second home buyer who is looking for a property that can be legally rented as a transient rental to produce income to offset the cost of ownership.

I would suggest potential buyers compare this property to others similarly priced at 1800 Atlantic and The Shipyard in Truman Annex. 1800 Atlantic has that oceanfront location and tennis courts and the units are similarly sized. The Shipyard units are about half the size of either 1800 Atlantic or Duval Square but have a popular location with tourists. This unit is definitely worth a look. It will not last long at this price.

If you are looking for a condo or townhome with a transient license that permits you to rent the unit on a daily basis every day of the year all year long, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. CLICK HERE to search the Key West mls database to find comparable units and prices to do your own comparison shopping.

Bank Owned Properties - Key West

It's that time again to list the current single family houses and multi-units that are bank owned and offered for sale. CLICK HERE to checkout the current inventory. If you have been following my little blog for some time,you will note that some of the properties are no longer available. Some actually get sold. Some sales take forever to occur, and others can occur very quickly. You may see that several of the properties have had the asking prices reduced.

Some buyers mistakenly think banks are so over-whelmed with the inventory of foreclosed homes that the banks are aching for offers just to sell the houses. Not true. I used to work for a couple of major Denver banks and one of my duties was the management and sale of bank owned real estate. Banks are methodical and make business decisions based on appraised value of the asset, holding costs (taxes, utilities, fees, etc.), real estate commissions, final closing costs, and date of closing. All of those factors are used to determine the "bottom line".

Banks rely on Broker Price Opinions and appraisals to set the asking price and to determine the acceptability of an offer. Appraisals are backward looking. The appraisal uses sales data from prior sales to help determine the present market value. This can be really difficult in a declining market such as the one we are experiencing in Key West.

Banks are adverse risk takers. I recommend that buyers write simple offers with limited contingencies. The less complicated the offer and the quicker the closing, the more likely the offer is to be accepted or countered. Ridiculous offers (price, terms, delayed closing, contingencies on selling other properties, etc.) generally will not be considered.

A lot of the properties banks acquire through foreclosure end up in the bank's portfolio because the prior owner could not sell the property. Key West buyers know that some blocks or areas are not as desirable as other areas. Busy streets are almost always a hard sell. Some houses have structural issues, deferred maintenance, prior flooding, bad neighbors, etc. Those factors can significantly impact the ability to sell in any market but make sales in a depressed market really difficult.

There are two commercial bank owned properties currently available. One is a combination of commercial Duval Street frontage and transient rental accommodations. The second property is a condominium development on Stock Island that went astray. CLICK HERE to checkout those two commercial properties.

Some bank owned properties come with sales incentives or even bank financing offered by the bank owner. Read the fine print on each listing shown on the links to see what incentives may make your purchase more attractive.

If you see a property you like please cal me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com to arrange a showing or to request more information.

Just Listed 1212 Olivia Street - Key West

Just Listed -- well, last week it was. This unusual property was the carriage house that was part of a much larger home adjacent to the east. This property was listed in 2008 at $1,375,000. CLICK HERE to see what it looked like then. It did not sell. The bank foreclosed and now this property is Bank Owned. The new asking price is $599,900 or $358 per sq ft.

The property is located at 1212 Olivia Street in The Meadows Area. It is just a step away from White Street to help out of town buyers place it. The house has 1676 sq feet of space and sits on a large lot of 4275 sq ft. The house has 3 bedrooms (none of which are large, but they are not small either). There are two bathrooms, but they are definitely not as large as we are custom to seeing in new renovations. The kitchen pictured above in the photos when the house was listed last year is missing. Somehow the the appliances went away. The bathroom vanity is gone from one bath and the sink is missing from another. The pool pump and air conditioner and all of the light fixtures are missing as well. Some of the exterior shutters are gone for good.

But if you get past the things that are wrong with the design or things that are missing, you still see a good sized house in a very good location with a terrific pool and rear yard, an interesting design, and a cute front yard with off street parking. The house next door is for sale and it is offered at well over $4 million. The neighbor to the west is an apartment building that fronts onto White. But the block and location is great nonetheless.

This property would be a good project property for someone with design and construction skills. CLICK HERE to read what the listing realtor says about the house and view more photos.

It is easy to see this house at 1212 Olivia. Please call me, Gary Thomas, 305-766-2642.