The Bank Grinch Who Stole Christmas - Part Two

Last December I wrote a blog about one of those Big Banks that was Too Big To Fail and Too Big To Play Fair. CLICK HERE to read what I wrote then.

The good news: my buyers (the young Key West couple and their little boy "O") finally were able to buy their Key West dream home. They were among 18 couples who were selected by lottery to participate in a special funding program through the Monroe County and Key West Housing Authority wherein qualified first time local buyers were granted funds up to $258,000 in non-interest bearing financing to purchase a new residence priced less than $400,00. There were lots of restrictions and limitation which sometimes seemed onerous. The intent was meritorious in that the Housing Authority did not want the grantee to get into a bad deal just because there was some almost "free money" attached. The Housing Authority imposed a time deadline which compliance critical.

I gave up counting the number of offers we wrote on various properties, but there were a lot. Last December we got a bi-lateral contract which I referred to in the "The Bank Grinch Who Stole Christmas" blog only to have an asset manager retract the bank's written acceptance because he found a sweeter deal. The bank I did not name then I will name now: HSBC.

After that huge disappointment my buyers got an approval on another property that was owned by a local bank. My buyers got it inspected, but the Housing Authority declined to accept that property. We found another property owned by another bank. The bank accepted my buyer's offer. This place would have been perfect for my them, the Housing Authority disapproved that property as well.

Finally, we found a house in Old Town that was not bank owned and who had a sweet seller, a sweet selling agent, a willing local bank to write a small first mortgage, and a lot of local Key West people who helped get this deal completed. Thank you Jean, Judy, Ron at First State Bank, , Marci, Marie, Rick, another Rick, and yet another Rick for helping.

I used to work for the biggest bank in Denver where I did commercial loan workouts. My supervisor was a former IRS tax lawyer. I respected that man a lot. One time we were talking about the lawsuits the bank would get into and the fights that bank would fight and the ones it would defer. He said something like "The bank spends a lot of money developing an image. We don't want to mess up that image by behaving badly or over-reaching in legal claims." We still managed to get sued but we chose who we went after very carefully. There were a couple of lender liability suits we would have preferred to have won, but didn't. But we really did try to act legally and properly and to protect the bank's good name.

I think a good trial lawyer could rip HSBC apart on what it did and in the way it breached its contract with my buyers. It's funny how some banks operate. They think they can make up the rules of the game and change them any time they want. Contract law is contract law no matter what some half-wit asset manager thinks it is or says it is. There is a big payday waiting for someone on this particular matter. There is major intentional wrong doing both individually and institutionally.

Enough. Little "O" no longer lives on a boat. He has his own house with lots of doors and rooms, and very high ceilings. He has a front yard and a back yard. He's got palm trees and a nice house in a very nice neighborhood. He has a pet hamster that he calls a "mouse". Someday soon he will have a cat. He's got a mouth full of white teeth and a great smile. He is happy little boy. At last.

"O" checking out his new digs during our final inspection just before closing.

The One That Got Away - Key West

628 Olivia Street - former home of Phillip Burton - Sold $1,225,000

Don't you just love the movie titles from the 1950's? The title tells you the entire story in six words or less. Titles likeThe Day the Earth Stood Still , Cat-Women of the Moon, It Came from Outer Space, Swamp Women, Earth vs the Flying Saucers, I Was a Teenage Frankenstein, and so on. Westerns were westerns, and sci-fis were metaphors for the U.S. being afraid of Russia, and the Abbott and Costello movies were just plain funny. Another Fab 50's movie was called The One That Got Away. And that is the subject of today's blog.

Conch Trains take passengers past the quaint little Victorian cottage at 608 Angela Street that was built during the last quarter of the 19th Century. It was the last home of Shakespearean scholar Phillip Burton, the adoptive father of American actor Richard Burton. While so many of the great houses and small cottages of Key West are painted white, the house at 608 Angela Street looks as if it had never been painted. Indeed, it almost looks run down. But you know that cannot be the case given its history.

History it is for sure, as this truly is The One That Got Away. You see this house sold earlier this week for $1,225,000. Notice of the sale was posted in the mls for statistical purposes. The house had recently been listed for $1,790,000 or $1004 per sq ft. The listing agent only offered a 1.5% commission to a selling agent. It's hard enough to sell an expensive house in the current market. I had shown this house several times over the years and I loved it. But I never considered showing it at the $1,795,000 price point. But the actual sales price is a heck of a deal. The agent that did this sale, however, is not the same one listed it at the $1.795 price point.

There are other potential good deals still left, however. CLICK HERE to do your own search of the Key West mls database. If you see a place you like, please call me, Gary Thomas, 305.766.2642 or send me an email at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida where today it is 84 degrees under a hazy sky. There are thousands of college kids roaming the streets on foot, on bikes, on scooters and in cars. An expensive new Cadillac stopped next to the Gardens Hotel about an hour ago so that a coed could open the door and vomit. Mom, is your daughter in Key West in your Cadillac?

916 Fleming Street - Bank Owned - Millionaire Row

916 Fleming Street Key West Bank Owned $1,720,000

Master suite with separate sitting area followed by bedroom at rear

Dramatic master bedroom suite

Coffered ceiling in downstairs study with adjoining bath

Downstairs study with adjoining bath - could be guest room as well

Photo when house was price at $3.4 million same house today!

Photo when house was listed at $3.4 million

Photo when house was offered at $3.4 million - same house today- better price today!

Just Listed, 916 Fleming Street on Millionaire's Row in Old Town Key West. I wrote about this house before when it was offered pre-foreclosure at the original asking price of $3.4 million. That is not a typo! This property is now Bank Owned and it is priced to sell quickly at $1,720,000 or $652 per sq ft.

This is how the listing broker describes 916 Fleming:

"Bank owned & Drastically reduced! Designer Old Town Home with 4 bedrooms plus an office and 4 full bathrooms & 2 half baths. State of the art amenities include beautiful coffered ceilings, wood walls, sophisticated gourmet kitchen, wet bar, detached pool house/office & a full finished attic. Enjoy your pool & waterfall from your Indoor/outdoor living room finished in rich Ipe wood. Unsurpassed craftsmanship & custom designer materials grace this home including walnut countertops, built in's galore, bamboo & sea grass treatments, plantation shutters & wired for a generator. Home is currently vacant, not as photographed."

I acknowledge that the real estate market in Key West has changed dramatically in the past five years and that the prices some buyers paid then may not be reflective of what they would pay today, but the intrinsic value of certain houses and certain locations has not diminished. Location is always a critical factor in determining value. When I wrote about 916 Fleming Street way back in 2008 I said "The home two doors west at 908 Fleming recently sold for $3,600,000 ($1,158 per square foot) and is undergoing a massive remodel. That house is huge and sits on a huge lot. The house across the street at 911 Fleming sold in 2007 after 120 days on the market for $4,340,000 or $1401 per sq ft." The owner of one of those houses has been purchasing other houses in the immediate area after the initial purchase. That owner definitely knows the value of this particular block.

I have shown a lot of houses in the $1.7 million price range. The house at 916 Fleming Street has to be at the top of the homes in this price range. CLICK HERE to see the mls listing info and to view photos. The former owners put a lot of money into building this house. It has features you just do not see in a property priced at $1.7 million-and higher! Somebody is going to get a terrific deal on this.

If you are interested in discussing this house, please call me, Gary Thomas, 305-76-2642 or send me an email at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West. I may be really wrong on my prediction, but I think this house is going to sell very quickly.

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628 William Street - Old Town Beauty - Key West

628 William Street is a two story home located on one of the best blocks in Old Town

French doors on two sides of this beautiful living room

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Master bedroom with en-suite bath and wonderful custom made closets

Located on one of the Most Beautiful Blocks In The Historic District, you will find this adorable two story Key West house at 628 William Street. There are two bedrooms with en-suite baths plus an office. There is a recent Award Winning Artist Studio/Den addition. There is a 30 Foot Pool located adjacent to the covered outside dining/living area. Lush landscaping creates a very private atmosphere. Off-street bricked parking. And a white picket fence!

The color tones are just perfect. The living area is formal without being stuffy. The floors in the living area are just plain beautiful. A few steps off the living room is the artist studio / office that is elevated over the 30 foot pool. That is not a typo. What a glorious way to incorporate functional living space and provide a large lap pool at the same time. A set of French doors looks down to the pool from the studio. There is no Romeo & Juliet balcony so look before you leap! The artist studio could inspire all kinds of creativity, of that I am certain.

Artist studio with French doors on the right. Part of the 30' pool is located under this space

There are two real bedrooms and a third room large enough to be a guest room, but it doesn't have a closet so I won't call it a bedroom. That's a nice feature actually. Your guests can't hang their clothes. Maybe they'll stay in a hotel and not eat and drink you out of house and home. CLICK HERE read more detailed info on this house and view more photos.

The house is 1630 sq ft and sits on a deep 2931 sq ft lot. The home is priced at $1,095,000 or $672 per sq ft. William Street is extra wide in this block, and there are no guest houses or commercial spaces to compete for off-street parking. The location is only a short three block walk to the Historic Key West Seaport and a five minute walk to Duval Street.

628 William is a listing Preferred Properties Coastal Realty Inc. (Christie's Great Estates) listing. Please call me, Gary Thomas, 305-766-2642 to schedule a showing of this really beautiful Old Town home.

"Sup? in Key West

I know I am getting old. Really old. During the opening bor-a-logue at the Academy Awards last night I realized that I am older than almost all of the presenters, nominees, and recipients of the Oscars. Steve Martin mentioned teen stars Zac Efron and Taylor Lautner and warned them of the pending reality of their growing old. (Neither of the boys looked like they understood what Martin was talking about.) I realized then I would never see either of them with gray hair (or bald) or becoming over over weight like what happened to "real" stars like Jack Nicholson, Mel Gibson, Kevin Costner, and John Travolta. Age teaches a few of us. It demoralizes some. It conquers too many.

"Sup?" is part of the new American vernacular. It is the shortened version of What's up? or How are you doing? For my purpose today "Sup?" refers to how the Key West real estate market fared in February 2010. (Long way to explain my title for today's blog.)

There were 25 single family homes that sold in Key West during February. Eleven of the single family homes that sold in February were located in the Old Town, Meadows Area, and Casa Marina Area. Interestingly, I wrote about 8 of the those houses in my blog. The sales prices ranged from the low at $325,000 for the purchase of a cute small house at 315 Eaton Street to a high of $2,062,500 for a large house at 516 Emma Street in Truman Annex. The lowest price per sq ft was a fixer at 701 South which went for $313 per sq ft. The highest price per foot was 516 Ema St that sold at $884 per sq ft. The average -er sq ft was $504. Ten of the sales were shown as "short sales" by the listing Realtor and one was a known bank owned property.

The month of February 2010 had 19 condo and town home sales in all of Key West. Six of the units sold were shown as "short sales" and three were noted as bank owned properties. The average price per foot is totally useless when it comes to condo and town houses. That price is $344. I say that price is "useless" because of the disparity of properties and locations. The people that want luxury waterfront like units at Harbour Place that sold at $696 sq ft and 1500 Atlantic that sold at $761 per sq ft have nothing in common with the units at 1318 Duncan Street (which I wrote about). Duncan Street sold at $164 per sq ft. The place was bank owned and was showing real signs of distress when I showed it a couple of months ago. The bank was "lucky" to find someone to buy it.

We are fast approaching the end of season. The weather this year has been horrible. I have been in Key West for 17 years. We normally have a few (and I mean like 3 or 4 days) of chilly weather where I need to find my one and only sweater. This year I had to dig out my jacket as well. I found it necessary to apologize to prospective buyers telling them all "It is not normally like this in Key West!"

With season coming to a end just after Easter, we will probably see many more disappointed "sellers" begin to reduce the asking price on their properties. This is still a buyers' market, but the number of reasonably priced single family homes in Old Town, the Meadows, and the Casa Marina areas is dwindling. There are still many houses priced above one million dollars. It is like we are having a tug-o-war between sellers who still demand high prices and buyers who think that if they can outlast the seller, that they will be able to win the tug of war. "Sup?, guys".

If you are looking to purchase a place in Key West, please consider working with me, Gary Thomas, 305-766-2642, or contact me by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida where today the town is filled with thousand of college breakers and seasonal tourists enjoying the radiant sunshine and fresh air.

Open House - Sunday - 1412 White Street - Key West

1412 White Street -1:00 to 3:00 - Key West

On the off chance it isn't hot and sunny on Sunday, March 7th between 1:00 to 3:00 PM. please come over to 1412 White Street to view this really charming two cottage compound. But if it is hot and sunny, stop by anyway. The property is located five blocks from the Atlantic Ocean the three of the city beaches.

I wrote about this really charming property a couple of weeks ago. Here is a brief re-cap:
The cottages are separated by an expansive deck and a large pool. The main cottage contains the combined living, dining, and kitchen with vaulted ceiling. There is a bay window at the south end of the living area that looks onto the orchid garden. A second floor loft on the north side looks down onto the living area. The loft can be used as a third bedroom or office. The master bedroom and bath are located on the ground floor.

The guest cottage is located on the opposite side of the pool. That cottage has soaring vaulted ceilings as well. French doors look out toward the pool and the main cottage beyond. The entire compound is enveloped by clusters of large palms and two Royal Poinciana Trees. There are multiple plantings around the gardens, all of which are irrigated. There is even an ORCHID GARDEN. And there is a very unique OUTDOOR SHOWER. Decorative outdoor lights provide just the right light to make the night scape just magical.

1412 White Street is offered at $825,000 . The two cottages have 1332 sq ft of living space and sit on a 4207 sq ft lot. I live just a block away. I love this part of town and the relaxed way of life. Just imagine how neat it would be to walk to Salute` for a meal at sunset. The food is good and reasonably priced. And the laid back atmosphere and the scenery is just so relaxing. The location is convenient to everywhere you want to go.

Higg's Beach is just five blocks to the south

Salute` Ristorante is located at Higg's Beach
It's a great place for a simple meal and an incredible view

1412 White Street is listed by Preferred Properties Coastal Realty, Inc. I will be hosting the Open House. Stop by and take a look. You may find the reason to quit your job in New Jersey and move to Key West. And it won't be me that will cause you to want to leave New Jersey.

You're Gonna Howl with Laughter at this New Bank Owned Key West Property

From Dale McDonald Collection showing a funeral march through Old town

I have written before that in a prior life I did commercial loan workouts for a couple of big national banks in Denver. Part of my job responsibilities included the sale of bank owned properties. I got pretty good at doing my job. I tried to get the last nickle out of every deal, but I knew that when I had a problem property I had to sell it and get rid of it. I only "fell in love" with a couple of properties that I refused to sell at give-away prices. One such property was a big two story house on the golf course in East Vail. We had lots of offers from greedy buyers that thought they would steal the place. They lost.

When I had a dog foreclosure, I got rid of it. Sometimes we had to fix the dog up and make it pretty enough to attract a new buyer. You must understand that all dogs are not ugly. Some look perfectly normal. But location and previous usage can make a once viable property a pretty difficult sale after a property has been foreclosed upon. One such property was a small house that had been converted into offices near City Park in East Denver. Nothing 0dd about the conversion except the neighboring property had become an abortion clinic which was being picketed all the time. Another time I took over a medical building in North Denver. That building had been used as a pill pushng clinic where the doc pushed diet pills and Valium. The building had creepy old medical devices and lots of pills stored in boxes in the basement. We could not sell the drugs and absolutely could not throw them out. I ultimately found another doctor to purchase the building and he took responsibility for disposing of the furniture, fixtures, equipment and drugs. Yet another time I took over a gun store filled with weapons and ammo. I have never fired a gun in my life and being in that place scarred me. I found a buyer with the proper license to take all of the inventory and we were out of the gun business in a hurry.

All of this leads up to a new Key West listing of another key west real estate company. The property in question is located at 325 Julia Street in the Bahama Village area of Key West.

The listing Realtor says

"Presently licensed for use as Evergreen Mortuary and Conch Conquering Lion Construction. Second story has one bedroom residential unit."

I started to howl when I read that line. But then I looked at the pics of the listing including the viewing parlor, the embalming room, and that special room with the big table saw, I doubled over in laughter. CLICK HERE to checkout the mls listing info.

325 Julia Street back in the day. Now Bank Owned!

The Parlor at 325 Julia Street

The Embalming Room I guess

The room with the table saw! I hope we never see this place on America's Most Wanted

A few weeks ago I was showing property near the Key West Cemetery. We were in my car driving on Windsor Lane where I intended to go south to my next appointment. I had to hold-up a bit as there was a funeral procession (march) making its way slowly down Windsor Lane toward the cemetery. (Just like the one in the black and white photo taken in Key West in 1934,) When we managed to reach Galveston Lane I took a sharp right and made my getaway.

We don't have that many funerals in Key West because Key West isn't all that big a town. I understand that there are few if any remaining unsold burial plots at the cemetery. I kinda fear being taken to anyplace else in Florida. You must have seen the horror stories about Florida cemeteries and bogus burials. It is comforting to know that people in Key West still have reverence for the recently departed. I mean that in all sincerity. But since there are not a lot of burials, it is nice to know one could use the none mortuary space for other uses such as construction.

The 2460 sq ft mixed use building at 325 Julia Street is offered at $489,000 or $199 per sq ft (50.25' x 79.33'). A couple of other funeral homes have been sold in Key West in the past few years. This could be a fun project for someone in need of Hmdr (Historic medium density residential) permissible zoning space.

I would be happy to show this property to serious buyers. I make light of the listing because of the incongruity of use between mortuary and construction office. But let's not waste someones time for a laugh. Please call me, Gary Thomas, 305-766-2642 to schedule a showing. I am a full time Realtor at Preferred Properties Coastal Realty, Inc.

1217 Grinnell Street - Key West

Preferred Properties just listed an absolutely wonderful two bedroom stand alone home with private pool and spa in Grinnell Gardens. This is how the listing Realtor describes this home:

"This fee-simple unattached townhome in the Grinnell Gardens Compound has it's own private, heated swimming pool and spa. In addition it has access to another heated compound pool shared with the six other homes, so you can follow the sun around. The home has a surprisingly large rear garden and an assigned parking space. The spacious, sunny house has large open rooms with many windows and French doors and four covered porches -two up and two down. The new designer kitchen was recently featured in the newspaper."

A picture is supposed to be worth a thousand words. Here are some pictures I took on Tuesday of this ready-to-move-into home. I had been here before many years ago when a friend lived there. I remembered the place being really neat back then. But, baby, look at it how.

The main entry to 1217 Grinnell Street

The private pool and spa are located just off the livingroom at 1217 Grinnel Street

The spa

The new kitchen is incredible

A room with a View!

French doors open out to the private pool at the rear of 1217 Grinnell Street

French doors in living room also open onto front porch on main level

Master bedroom on west side has French doors and private balcony off sitting area

A separate master bedroom has a sitting room with French doors opening to private balcony

Shared pool with privacy entrance on the left

CLICK HERE to see the mls listing info and view numerous photos. 1217 Grinnell Street is offered at $725,000 or $465 per sq ft for this 1560 sq ft home. The home sits on a fee simple lot of 3945 sq ft. The lot includes a separate cottage the houses the laundry; the private pool and spa are located at the rear ; a lush side yard to the east offers a private sanctuary for the contemplative types; and the deck just off the kitchen provides a nice place for al fresco dining.

1217 Grinnell Street was built new in 1990 as were the other homes in this compound. Some of the other homes also have private pools but others do not. Beside the shared community pool, the compound provides lush gardens and a share off street parking area. Each unit has its own dedicated parking spot. I know a lot of potential buyers want a place of their own and have never thought of living in a compound. I "get" the resistance argument. But there is also a group of potential buyers that do not mind having nearby neighbors that live in close proximity to keep an eye on the place when the owner is not in residence. The people who live in compounds pretty much love it. Compound living may not be for everyone, but it is easy peazy with others.

This home is located at the southeast corner of the compound. There are French doors located off of each room downstairs and on the second floor. So each room has beautiful views from every room, and every room has immediate access to the beautiful outdoor spaces. The two master suites on the second floor have adjacent sitting areas and en-suite baths. There is nothing confining or claustrophobic about the separation between this home and the rest of the compound, but the separation is there just the same.

Click MAP to see where 1217 Grinnell Street is located if you are unfamiliar with the area. This property is located in the area knows as South of Truman-Old Town by Key West Realtors. It is a stones throw to the Casa Marina area. The beaches are about six blocks to the south. Upper Duval Street is a five minute walk to the west. The shops and restaurants in the arts district are a five minute walk to the east.

If you would like to schedule a visit to see this terrific home, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.

810 Carey Lane - Old Town - Key West

I have written about Carey Lane before. It is just the dreamiest of the lanes in Old Town. The lane is only one block long and is accessed at Margaret Street across from the north entrance to the Key West Cemetery. The lane is narrow and is enveloped in lush foliage and flowering trees. All of the little houses have white picket fences. There aren't any straggler houses here to bring property values down. Each of the houses is perfect in its own right. The location looks like a Hollywood set designer created it.

Carey Lane - The Dreamiest of the Old Town Lanes

810 Carey Lane

The asking price on 810 Carey Lane just got reduced to $895,000 which means this cutie just became a lot more affordable to a wide universe of potential buyers.

This is how the listing Realtor describes 810 Carey Lane:

“Perfect! Beautifully remodeled cottage on a quiet Old Town Lane with pool and parking. The master bedroom and living room open to a deck, pool and covered dining area. A third bedroom space can be easily created by closing a set of pocket doors in the guest bedroom. The kitchen is a cook's delight with lots of open space, convenient island work space, wolf gas stove, and more. This property has been well cared for and is easy to show.”

The house at 810 Carey Lane is a bit deceptive because what looks like the front entrance is actually a sitting porch located off of the front bedroom. The front porch as an old fashioned swing hanging from the ceiling where you can sit and watch absolutely nothing go by except maybe the clouds. The real entry is located at the rear end of the bricked parking space. That doorway leads you inside and into the beautiful kitchen located in a sawtooth addition. It has a vaulted ceiling which adds lots of volume to the room and makes the room seem so very spacious. That kitchen is so sweet you won’t need sugar to make cookies.

The original front porch is now a sitting porch off the master bedroom. The master bedroom has an adjacent sitting area on the east front of the house. The neatest feature in the master bedroom is the loft above the which has a ladder that hangs from a rope that permits occasional entry for good little boys and girls. When I first saw that space I immediately thought "FORT". What kid doesn't want a FORT? If you have grand kids, this is the place they will always remember. Forever!

The rear bedroom has French doors that open onto the secluded pool. The living room shares the rest of the rear side of the house which is a second sawtooth addition to the main house. The pool and outdoor kitchen are located at the very rear of the property. The area is very private and the only things you see are the blue skies and neighboring trees. Lots of sunshine in this place. CLICK HERE to see the mls listing info page and to view more photos.

If you have ever dreamed of owning what some Realtors call the quintessential Key West Cottage, you owe it to yourself (and your grand kids) to look at 810 Carey Lane. This is the kind of place that could stay in your family for generations. Please call me, Gary Thomas, 305-766-2642 to see this really special home. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.