The Real Housebuys of Key West

Summer is over. Fall is on the way. This is always the worst time of the year to sell a house in Key West. It is the same way every year. 2010 isn't special in that regard. Many shop owners and restaurants close for vacation. There's no reason to have a crew working if nobody is buying or eating or sleeping in hotel rooms. Five weeks from now, however, Fantasy Fest will be here and so will the tourists. Money will flow like crazy once again. The boat races follow and then Christmas ushers in season when the cycle starts all over again.

A few years back buyers wanted into the Key West market so bad that they would buy just about anything to get a piece of the action. So much of what was bought then at high prices is now offered as either a short sale or maybe it is already bank owned. I have heard of sellers who own too many homes in different locations that have decided they need to sell off unnecessary properties which in some instances means their place in Key West. Our inventory of homes is down from the past few years. That is a good thing. But the selection of homes is down as well. Fewer homes means fewer to choose from.

Most of the Realtors I know have buyers looking for "deals". I thought it might be helpful to list a few properties that I consider real housebuys in this market at this point in time. Here are some potential real housebuys.

2507 Linda Avenue in mid town is a short sale offered at $370,000 or $152 per sq ft. This is a four bedroom 3 bath home that looks pretty attractive. Photos of the kitchen are below. CLICK HERE.

Older photos of the Linda house

711 Georgia Street is a bank owned home located in the Meadows. It recently had a price reduction to $389,000. (This place used to be owned by a real estate agent who had it priced at $1,199,000. It had appliances then and kitchen cabinet handles. They are gone but they house is priced a lot better.) This is definitely worth looking at. CLICK HERE


721 Chapman Lane is a big house (1900 sq ft) priced at $469,000 which is located in Bahama Village. This place has big rooms and a good sized pool. It is bank owned and it has been actively market for 118 days. The house is in pretty good condition but it needs painted and cleaned. CLICK HERE.


3715 Pearlman Court in New Town is now a short sale which is offered at $495,000 or$295 per sq ft. This place is beautiful. The pool is magical. CLICK HERE.

The pool at 3715 Pearlman Court is magical

507 Frances Street is an odd duck. (I mean that nicely!) It is presently configured as three legal apartments but it could be converted into a single family home. It is one of the tiny few double gabled houses in Key West. This is not a short sale nor bank owned but it is offered for much less than the owner paid for the property. This Old Town property is offered at $599,000. Read the comments, this place generated $48,000 in income last year. CLICK HERE.

507 Frances Street is one of only a few double gable homes

3334 Riviera Drive is a very large waterfront home located directly on the Riviera Canal. This place is bank owned. The asking price was recently reduced to $689,900 or $244 per sq ft. The "bank" that owns this property is actually a local Key West credit union that itself is now in conservatorship. It has to sell this property. I think somebody can make off like a bank robber on this one. CLICK HERE.

The Riviera pool before it became bank owned

1012 Southard Street is located on one of the very best blocks in all of Key West. This home has a separate full guest cottage, a large pool, and off street parking. The asking price is $895,000 or $463,000. CLICK HERE.

1012 Southard Street: location, location, location!

If you are looking for a place in Key West now is the best time to look. Sales are slow, hopes are down, buyers who want or who need to sell may be receptive to an offer that they never thought they would entertain. If you would like to see any of the properties shown above (or anything in Key West), please contact me, Gary Thomas, 305-766-2642 or by email at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West.

1107 Olivia Street - Transient Licensed - Old Town Key West

The asking price on 1107 Olivia Street in Old Town Key West was just reduced again. Now this recently renovated eyebrow house with a pool and a City of Key West Transient License is attractively priced to sell at $725,000 or $644 per sq ft. CLICK HERE to see the mls listing data sheet and listing photos.

This property was originally offered for sale at $1,250,000 when it was first listed in May 2009. The asking price has been periodically reduced to the current price point. I think someone may finally make a serious attempt to purchase this property now.

1107 Olivia Street is located one half block east of the Key West Cemetery. CLICK MAP to see location. Duval Street is a five to seven minute stroll. The shops, restaurants, galleries, gyms and assorted local businesses in the Truman and White arts district are just five minuets away. The Historic Key West Seaport can also within an easy walking distance. A full time homeowner or a tourist in town for a few days often measure the convenience of a property by how long it takes to get to a particular destination. Nearness to gyms, restaurants, and bars makes a house with a transient license that much more desirable and marketable.

This house has two bedrooms and two bathrooms. The master bedroom and primary bath are located on the first floor. The second bedroom and bath are on the second floor. The second floor has an unconventional floor plan that is more "loft like". It does not offer traditional privacy that some might require. I'm not being judgmental. But this may be part of the reason this house has not sold. A buyer who requires traditional enclosed space could fix this house without spending too much money in my opinion. But some money will need to be spent. The furnishings are not included in the offering but could be purchased separately. It might be more fun to decorate the place yourself and get exactly what you want anyway.

The pool is small but it is a real pool. There is a great second floor sundeck that provides great views of the immediate area. I think this feature is really neat. I wish I had taken photos of it when I showed the property.

The property does not have off street parking. However, there is an abundance of off street parking nearby. I don't see that parking would be an issue for a full time owner.

If you would like to see 1107 Olivia Street, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. Our office is the Exclusive Lower Florida Keys Affiliate of Christie's Great Estates. Let me help you find your place in Paradise.

1200 Varela Street - Just Became a Better Compound Investment

Talk about "compound investment", checkout the legal duplex at Varela Street Compound (located at 1200 Varela Street) in the SoTru area of Key West. SoTru is South of Truman.

The listing agent describes this property thus:

"Charming Key West Compound consisting of 7 homes and a shared pool. Completely fenced and very private. Lower unit has large covered deck and upper unit has large covered balcony.Both units are 902 Sq Ft under air w/dishwashers and stack W/D. Upper unit has vaulted ceilings & stained glass transoms. Entrance to compound and duplex off Catherine St. through secured gate."

Entrance to the Compound shown above

Notice the palladium windows in the lower level unit

The photos above show this two story unit that sits at the corners of Catherine at Varela Streets. CLICK MAP The duplex is equally divided into two floors of 902 sq ft each. Each unit has two bedrooms and two baths. The asking price on this short sale property was just reduced to only $374,900 or $208 per sq ft. CLICK HERE to see the mls listing info and to view photos of this unit. Checkout that pool!

This duplex might be the perfect property for a buyer that wants to have his cake and eat it too. A new owner could rent one unit long term and use the income to help make mortgage payments. The new owner could alternatively live in the other unit full time, use it for extended owner visits, or rent both units.

These units are spacious. The second floor unit has great vaulted ceilings. Both units have palladium windows which create dramatic interior spaces. Both have large rear balconies that open onto the private courtyard. I think there is plenty of room for a private pool inside the private courtyard. The interiors are a little dated but they do not require anything that I could see when I showed the property.

This compound has historically had a low turnover of units. Most of the other units are owner occupied. The neighborhood has a mix of expensive to moderate priced homes and condos. There are many rentals in the area as well. This is a very stable "community".

Corner of Catherine and Varela Streets in the SoTru area of Key West

The shops and galleries on White Street are just one block to the east. The Atlantic Ocean and beaches are about six blocks to the south and Duval Street is and equal distance to the west.

If you are looking for a place to stash your cash, please call me, Gary Thomas, 305-766-2642. Let's take a look at 1200 Varela Street to see if it will meet your investment needs. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West.

1304 Atlantic Drive - Bank Owned - Key West

I wrote about 1304 Atlantic Drive right after it was listed for sale as a BANK OWNED property six months ago. The asking price then was $695,000. The asking price was just reduced on this large recently constructed (2008) single family home to $550,000 or $282 per sq ft. This house at this price deserves a return to the blog. This is how the previous agent described this property just weeks ago when it was still a "short sale":

"Gorgeous top of the line new construction! Stainless steel Thermadore appliances, wood floors through out. Wired for sound system. Hurricane lock windows and doors, with storm shutters to boot. This home has it all with French doors opening to deck and pool. Less than a block to the ocean and a short walk to the Casa Marina. In area of multi-new homes. Does not get better than this! Owner is a FL Lic RE Broker."

I need to point out that the stainless steel appliances were removed. So a new purchaser will have to spend additional money to replace the missing appliances.

The current listing Realtor describes the property this way:

"Spacious three bedroom three and a half bath home with all the fine finishes. Granite countertops, wood floors and French doors leading out to the pool and deck. Great home for entertaining! This home is located in a very quiet neighborhood that is a short walk to the beach and the Atlantic Ocean."

Two other homes are also available in this development. Each is the same size, construction and amenities, except these houses have appliances. One is offered at $995,000 and the other at $1,099,000. CLICK HERE to checkout the mls listing information and view listing photos on all three units.

1304 Atlantic Drive has the same square footage and lot size as the other, higher priced units. All units have 1950 sq ft and have 3 bedrooms plus 3 1/2 baths. Perhaps 150 feet separates the three properties. All of these units were built in 2008. 1304 Atlantic Drive has been used as a vacation rental. The Atlantic Ocean is a five minute walk even though it is located only one block to the south. There is no direct access so you will need to walk a block out of the way to get to your favorite new beach spot. If you don't like sand in your toes and the sting of salt water on your skin, you can swim in your own pool instead.

The beach is just a couple of blocks to the South

Your private pool is just outside your back door

Your private pool is on the other side of the French doors

The bank that owns this property is a local bank in Key West. I think an offer should get prompt and fair consideration. If you want to see this home, or any other property in Key West, please contact me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc.

1025 Thompson Lane - Old Town - Key West

1025 Thompson Lane as it appeared in a 1965 photograph

If you have little kids and live on a through street more than four or five blocks long, I'll bet you live in mortal fear that someday some sixteen year old boy will be dragging down your block and possibly run over your child. Who reading this blog hasn't seen some teenager (0r young adult) drive way too fast down a long suburban street? Few, if any, I'll bet. That is one of the charms of the slow lanes of Key West: they are so short, narrow, and hard to find that teenage boys (and Conch Trains and Trolley Cars) avoid them like the plague. There are some folks who need to live on a big street in a big house so that everybody can see how grand they are. But others are quite content living life on a hard to find and very quiet lane. The house at 1025 Thompson Lane in Old Town Key West is an example of the latter.

Thompson Lane - one of the slow lanes of Key West

The first day I arrived in Key West some 25 years ago was amazed by all of the neat old houses in Old Town. I only ventured to Casa Marina for a party that first trip. And other than driving past New Town, I don't think I really ventured out there until a trip in 1987.

Back in 1984 many of the houses that look so damned wonderful today looked like a lot of the still "undone" or "non-restored" houses that still exist all over Old Town. There just are not as many of them today. And I have seen enough of the houses that were "renovated" or "remodeled" back in the 1970's and 1980's to safely say they may need a bit of updating now. Back in 1984 it was the simplicity of design and the sturdy construction that endeared the houses of Old Town to me. That has not changed.

The house at 1025 Thompson Lane is a good example of an old house built circa 1891 that has been updated over the years. The rooms are colorful and cozy. I find the place absolutely charming. There is a fake fire in the livingroom that reminds you why you chose to move to Key West. (Fireplaces are unnecessary. We live in a frost free zone.) The dining area is located at the rear. The kitchen is to the right rear and an unusual stairway at left leads to the second floor bedrooms. The master bedroom and bath are to the right of the livingroom. The house is very livable. None of the rooms are really large, but they work. The upstairs is presently divided into a sitting room, a bedroom, and a bath.

There is presently a small second floor deck and spiral staircase (CLICK HERE) that are not historic to the house. I think it should be removed. That would allow the homeowner to utilize the ground area better. I think there is room for pool and still comply with the Key West building code set back requirements. Any serious buyer will need to verify the ability to add a pool and should not relay what I say.

1025 Thompson Lane has 1341 sq ft of living area and sits on a 1600 sq ft lot. The house has two bedrooms, two baths, a lovely living room and an open kitchen. This house has been on the market several months and the asking price was recently reduced to $475,000 or $354 per sq ft. CLICK HERE for more mls information and to view mls photos of the interior and exterior.

Thompson Lane is similar to many of the other slow lanes in Key West: quiet. It runs one block long from Frances Street on the east to Grinnell Street on the west. Finnegan's Wake is located on Grinnell Street and just a few feet past the exit from Thompson Lane. The City of Key West parking structure is located across the street from Finnegan's Wake. And the Historic Key West Seaport is a minute walk further to the north. You can walk to the Schooner Wharf in less than five minutes. The house and its location are very quiet but the property is located within easy walking distance to so many things that make Old Town Key West so vibrant and fun.

1025 Thompson Lane is a listing of Preferred Properties Coastal Realty Inc. Please call me, Gary Thomas, 305-766-2642 to set up a showing. No need to worry about getting run over by a teenager on this little slow lane.

2020 Fogarty Avenue - Key West - Short Sale

If I were driving down Fogarty Avenue and saw the for sale sign at 2020 Fogarty, I probably wouldn't give the property a second look. A big old wood privacy fence dominates most of the yard except for the space occupied by the unsightly homemade carport. But I would be wrong to do so.

The house at 2020 Fogarty was just listed as a short sale, but not by me. I decided to take a look at the mls listing photos and saw something I did not expect, a really charming indoor-outdoor space and a beautiful pool. I then compared the house to what it looked like when it sold a few years back and said to myself "Self, this looks like a great little house."

Today

2004

Today

2004

CLICK HERE to checkout the current mls short sale listing information sheet on 2020 Fogarty Avenue. I don't want to confuse you, so blink your eyes and also CLICK HERE to view the mls listing data sheet and photos when this same house sold in 2004 for $650,000. I think a side by side comparison may help those with poor vision to decide maybe they should take a personal view of this property. Even the old comparison photos show the ugly fence can look great. Who would have thunk!

This house was built in 1953 and is typical of other houses on the same block (in fact on other blocks in this mid town neighborhood). Some of the houses look pretty much today like they did when they were built. But others have been dolled up and look really nice.

I guess houses sometimes reflect the personalities of the people who live inside of them. Some are well maintained and have a very charming facade just like the one next door at 2016 Fogarty CLICK HERE. Others like one across the street CLICK HERE look a little unkempt.

You pretty much need to look at each house individually. I guess these houses are like the people who live in them. Some are fancy and some less so. They all provide shelter. Some are in better shape. Some like the house at 2020 Fogarty might get overlooked simply because of the ugly fence. Like I said, that would be wrong. I often refer to "the vision thing" and suggest to buyers to conjer up a vision of how a house would look if they owned it. I think the house at 2020 Fogarty Avenue would look a lot more inviting if that fence and bricked front yard were removed and a new lush green lawn and some delicate palms framed the yard instead. Replace the gravel driveway with brick pavers and maybe put up a white picket fence.

The house at 2020 Fogarty Avenue is 1496 sq ft of living space comprised of 3 bedrooms and sits on a 5000 sq ft lot (50' x 100'). The star feature of this house has to be the indoor-outdoor living space. Look at the photos above to see how Key Westie this house feels where the outdoors appears to be part of the indoors and vice-versa. This is what Key West living is all about. And when you consider the asking price is just $329,000, you just might want to look at this property to see for yourself how you might enhance this property.

If you are looking for a nice Key West family home at a modest price, please call me, Gary Thomas, 305-766-2642, to schedule a showing of this property. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. Invoke that vision thing.

Dirty Rotten Scoundrels

I heard a story yesterday that really pissed me off. I feel the need to share it with you. It involves a local guy who wanted to buy an investment property, a local builder who had several very high priced houses to sell but no buyers, and a bank with money to lend. The story takes place just a few years back when real estate sales in Key West were still go-go.

We now know that a lot of people bought a lot of properties in Key West at what now seems very inflated prices. Up until the mid 1970s when Key West was "discovered" by gays and hippies, prices for real estate were low. A few years back I sold a small house on Stock Island to local woman who told me of the time when her father passed up the chance to buy an entire block on upper Duval that would have cost him $70,000 (which was a lot of money at that time). She implored "Gary do you know how much that would be worth today?" I did.

As Key West became a destination for gays, lefties, and counter culture types, prices for real estate started to tick up. More people came and saw how wonderful this little island is and decided they wanted to own a place in Paradise. The more people came, the higher the prices rose. A broader spectrum of visitors started to travel here when big cruise ships made daily voyages to the city. The allure of Key West became known around the world in magazines, TV shows, and movies. A new group of buyers who were more Wall Street than Duval Street types started to eye Key West as a place to invest. And prices for houses of any type went even higher. There was not enough supply of old homes to go around. New places were built so that more buyers could buy more new places in Key West. The new properties weren't cheap; most of the new properties were trophy houses.

The local guy had saved some money which he wanted to invest in Key West real estate. The problem is his wad was only large enough to pay a pittance of the asking price of a particular new Key West trophy house. He and a lifelong acquaintance pooled their funds and came up with just about 11% of the purchase price which they planned to use as the down payment. Since the property was classified by the bank as an investment, the buying duo would need to come up with a total 25% of the purchase price - or its equivalent. The builder had not sold any of his units at this point and really felt the need to get one sale under the belt. That sale was critical to his marketing plan for his properties since it would establish the bona fides of the asking price. One high priced closed sale would be proof to the world that the trophy house development was worth the trophy asking price. The builder offered to carry back a soft note (non interest bearing with principal deferred far into the future.) The builder even "advanced" over $300,000 in real cash money to the duo which was placed in a "reserve" account at the bank where the new purchase mortgage was made. The reserve funds were to be used to pay the principal and interest payments, taxes, insurance, and operating costs of the property as long as the funds held out. The $300,000 payment from builder to buyers was treated as a gift for federal income tax purposes and the buying duo used some of the reserve fund to pay their individual taxes. The bank (the mortgage lender) was fully aware of all this. Everything.

When I heard this story I asked "Why would the builder do this?" "He had no sales" I was told. This sale was the builder's first for this development, and it was done to entice others to close on existing contracts and to entice other new buyers. It worked. I asked if the bank knew what was going on and the buyer named the bank officer who was involved in the planning.

Over the following few years real estate property values sank across the board from their inflated highs. Some of the subsequent buyers in the same development have already lost their properties through foreclosures or short sales at new sales prices less than half of what they paid. The local builder forgave the soft loan to the local duo. The reserve fund is now depleted. The local buyer and his investment pal have no funds to repay the mortgage. The bank recently offered the defaulting duo a loan modification which would include reducing the on-book mortgage to a set amount (about a 50% reduction form what is owed) but would also require the duo to sign a new soft note for the balance. I assume the bank is trying to defer taking a present write off of the difference.

Do you remember the movie DIRTY ROTTEN SCOUNDRELS? It is about a pair of con men that set out to take other peoples money. In the movie the cons con each other and get conned themselves. It seems in con games nobody is safe, nor pure. I found this short treatise on The Art of the Con - CLICK HERE. It will only take a couple of minutes to read. Substitute "real estate" for "stock". The con is the same.

In the movie Dirty Rotten Scoundrels the con men were suave and funny, and even though everybody got screwed a little, it was all just fun in the end.

718 Olivia Street - Short Sale - Old Town - Key West

718 Olivia Street - Old Town - Key West - Short Sale - September 2010

718 Olivia Street as it appeared in the 1960s

The asking price on the large Old Town home located at 718 Olivia Street just got a lot more attractive. This property was previously offered at $1,149,000 then reduced to $849,000. Now the property is listed with a new company as a short sale at $679,500.

This is how the previous broker described 718 Olivia Street:

"Beautiful historic home on a huge lot in great Old Town Key West neighborhood. Nearly 10,000 square foot lot with huge potential for mini Old Town Estate. Handsome conch house with high ceilings, large rooms with bright, open spaces. Great front yard with potential for off-street parking. Home has been in the same family for several generations. A Must See for the buyer who values a great Old Town location and an estate size lot with potential for large pool, tropical gardens and large entertainment areas."

I found the above black and white photo taken of this property in the 1960s by the Monroe County Tax Appraiser. The Monroe County Appraiser notes that this house was built in the 1920s on one website and in 1938 on another. It's old either date. But the character of this old house still shines through. A huge Royal Poinciana tree dominates the front yard today. The front porch today still has the same wrought iron posts as shown in the 1960s vintage photo as well as the jalousie windows and the concrete block front fence. I would advise a buyer to check with HARC (Historic Architectural Review Commission) to verify that the 1960s additions could be removed and replaced by historically correct architectural elements. I think this house would make for a stunning renovation project.

Gated entrance to back yard

CLICK HERE to checkout the mls listing data sheet and current mls photos of this home. You will note that the listing states this house has 1538 sq ft of living space. The property site is much larger than it looks in the photos. The front parcel where the house is located occupies only about 2600 sq ft of the entire 9401 sq ft lot. The remaining lot is located at west rear of the front parcel. That is the space where one would likely put in a pool and/0r guest quarters. An adjacent property to the east presently could provide vehicle access to the site but some easement or other arrangement would likely be required.

CLICK MAP to help locate 718 Olivia Street. If you click the STREET VIEW you will see a mix of old cigar maker cottages, gentrified cottages, and the house next door CLICK HERE which is one of the prettiest homes on the Island of Key West. Duval Street is a four to five minute walk to the west on Olivia Street. Seven Fish Restaurant in only one block away. A small neighborhood convenience store is one block to the east. Olivia Street is a one way street that goes east. I don't recall having ever seen a Conch Train or Trolley car on this portion of Olivia. A lot of the neighbors have lived in the nearby houses for decades. This area really is a Key West neighborhood.

If you are looking for a renovation project in the Old Town Key West area this may be the house you have been searching for. The house certainly has street appeal and the yard space is just huge. Creating a viable plan for the property as a whole is the key to making a project like this work. We have lots of great local architects such as Matthew Stratton, Tom Pope, or Bert Bender that could help a buyer develop a winning concept for this one of a kind property.

Please call me, Gary Thomas, 305-766-2642, to schedule a view of this property. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. This is a short sale buying opportunity.

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