1717 South Street, Key West - Bank Owned and Price Reduced!

If you have been hoping to  buy a fixer-upper, you might want to consider taking a look at  1717 South Street in Key West. It is Bank Owned. This is the third price reduction on this property.  The listing broker, not me, describes this home this way:

"Location, Location, Location! This oversized lot with a privacy fence that currently has a main house with 3 bedrooms and 2 bathrooms and a mother-in-law 1 bedroom with 1 bath. Property has a large pool and back yard great for entertaining."

The house and detached mother-in-law cottage total 1900 sq ft and sit on what used to be a very beautifully landscaped 8531 sq ft lot (93.5' X 94').  The grounds and house are hidden from view behind a tall privacy fence. imagine how beautiful this home once was and could be again.

The house has a pretty impressive formal entry for such a relaxed home. A pergola spans much of the front facade on columns of carved stone. Similar columns are located at the rear where there is an huge pool and gardens.

The master bedroom and bath are located to the left of the living room while the two guest bedrooms and share hall bath are located to the right side of the living room. This arrangement would work well for a family to provide privacy for the parents for a few moments of the day. Note the terrazzo floor  in the original parts of the house.

The kitchen and laundry room are the the target of most new home owners. There is a really sweet rear pergola off the dining room and kitchen. I am sure a creative mind could re-invent this space into something even more magical.

You can clearly see that a portion of the drywall was moved in that area. There are a couple of holes in other rooms were drywall was also removed. The bank owner has treated the house for termites. The dining room and adjacent den have saltillo tile floors. The front entry and the rear garden area also have saltillo tiles.

The garden area must have been breath-taking. It still is to some extent. The pool sits quietly under the canopies of several beautiful trees that have created a little Eden of sorts. I found an old photo of the pool in its glory days. The lush garden could be replanted. The gardens would thrive in no time. CLICK HERE to view more photos I took of this property.

There are two gated entrances for cars. The one on the right is electrically operated. The long driveway terminates where the mother-in-law cottage begins. The rear yard seems boundless from the west border. The former owners created an outdoor kitchen to the south of the what was the den. The pool equipment and A/C are hidden from view on the far side of the outdoor kitchen.

1717 South Street in Key West is offered for sale at the asking price of $499,900 or just $294 per sq ft. CLICK HERE to view the Key West mls datasheet. Then please call ma, Gary Thomas, 305-766-2642 to set up a private showing of this remarkable property.  I am a buyers agent and a full time Realtor at Preferred Properties Key West. Let me help you find your home in Paradise.

915 Windsor Lane, Key West

Just Listed, but not by me, 915 Windsor Lane, Key West. This 1541 sq ft home has multiple features that second home buyers covet when thinking about what they want in a home here including a very valuable City of Key West Transient Rental License.

The listing broker describes this home this way:

"Newly redecorated, transient licensed, 3 bedroom, 3.5 bath luxury townhome is part of a six home community, in the heart of the Old Town, just 3 blocks to Duval Street. The first level features an open floor plan living space with 10-foot ceilings, a gourmet kitchen, and sliding glass doors to a decked rear yard with private cocktail pool. There is also a guest bedroom with en suite bath and a half bath. The upstairs also features 10-foot ceilings with a large master bedroom retreat on the rear of the home with a small porch overlooking the pool. The master bedroom has a large en suite bath and a sitting area (with sofa sleeper). The second floor guest bedroom has a private bath with tub and another porch overlooking Windsor Lane. This desirable home boasts strong financial projections for 2016 and 2017. Off-street parking, a whole house generator and an X-zone flood location make this home an ideal investment."

The Windsor Lane Townhomes were built new and introduced to the market in 2006. These six homes replaced the old Sea Isle Court motel shown above. Since the site already had transient licensed units, the developer was permitted to retain six of the fourteen licenses which in turn make these homes more valuable than other properties built at the same time And the value will only continue to increase over the years. Let's look at 915 Windsor Lane starting from the main floor front entry.

When you enter the house you immediately sense that this is some big place. The first floor has ten foot ceilings. The floor is travertine marble. The wood trim is massive including extra large baseboards, crown molding, wood trim, and complimented by the elegant stairway to the second floor. High end Baldwin fixtures are everywhere. The first of three bedrooms is located just off the front door. Double pocket doors give this room the option of being used as a den or office. It has its own private bath.

As you move forward into the living area you may notice the guest bath tucked away under the stairway. That means all the private baths remain private no matter the time, day, or need. Then you see how well designed this space is. There is a built-in bar located opposite the kitchen which features Greenfield cabinets, Viking stainless steel appliances, and granite counter tops which are also located in all bath rooms.  The breakfast bar offers informal dining space where the guests and the chefs can discuss the events of the day and make plans for tomorrow. The private pool can be seen to the rear.

The second floor has a nine foot ceiling. The stairs and floor are engineered Teak. Two louvered doors hide the laundry. The master suite is located at the rear of the second floor. It has a small balcony where guests can site and pontificate about the problems of the world which they probably won't do. They are more than likely want to buy a place like this when they get the chance. The master bath is extra large as is the bedroom chamber itself. You won't find digs like this at the Holiday Inn.

The guest bedroom is located at the front. It has a small covered front porch where occupants can watch the world go by. And it has a great view of St. Mary's Basilica upon the corner of Truman and Windsor Lane. The room is quite large and has it's own private bath.

These homes were built with numerous long term money saving features including Hardie board siding which is buy and fire resistant and which stands up to our hot and humid weather. It requires less painting. The home includes PGT and CGI windows and doors which are hurricane impact resistant. These plus the new construction means your wind insurance should be 30% lower than stick built homes with regular storm shutters. And the X zone flood location means your lender will not require floor insurance.

Guests will love this location which is just three blocks from Duval Street. The Key West seaport is about a ten to fifteen minute walk to the north.  St. Mary's is up at the corner. There are several gyms and yoga studios within a five to ten minute walk in either direction on Truman plus there are dozens of eateries from Sandy's to the Cafe Marquesa all within easy walking distance.

CLICK HERE to view the Key West MLS on 915 Windsor Lane which is offered at $1,750,000.  Then please call me, Gary Thomas, 305-766-2642, to set up a private showing. I am a buyers agent and a full time Realtor at Preferred Properties Key West.

Wrestling with Buyers in Key West - Part Deux

Two years ago I wrote a blog post titled "Wrestling with Buyers" where I related some frustrations I have had in selling real estate. I wrote  "I sell houses in Key West. I get most of my buyers and an occasional seller from what I write in this blog. People read what I write and ... probably judge me. Some buyers contact me to look at houses. Some buy houses.  Some do not. Some buyers ... are able to look at several properties and make a decision to buy and then negotiate a deal that is acceptable to them. Others struggle. Sometimes I get drawn into that struggle which can seem like I am wrestling with my buyers." Two years later the struggle continues. My purpose today is to share more examples of wrestling with buyers.

I meet most of my buyers for the first time when I pick them up at their hotel. Our day starts when they enter the car and introduce ourselves to each other. We share some small talk on the way to our first showing. After we have seen two or three houses and their resistance to me as a salesman starts to diminish, they start to ask a lot of questions about issues Key West - how long I have lived here, what do I do when a hurricane comes to Key West, what do I think of Cuba opening up. Then they ask about the cost of owning a place here - how much does insurance cost, what does it cost to renovate a house, are there good contractors here, why is a seller trying to sell his house - all questions that could have a myriad of answers. I'm not so sure that these buyers really care about the answers as much as they may be sizing me up. Or to put it differently, can they trust me.

Many of my buyers come to Key West with notebooks filled with printed copies of MLS listings accompanied by fact sheets they prepared. The reason these people can afford to spend $500,000 or more for a second home is a testament to how successful they have been at life. Super-achievers don't give money away. They are methodical and need to verify the worth of any property. I think that some buyers rely too much on data as a justification not to buy a property because the metrics don't work. Let me share a couple of examples.

TOO SMART FOR THEIR OWN GOOD  Back in 2010 and 2011 I worked with a couple who wanted to purchase a B&B. The gent had an MBA from the Wharton School of Finance. He shared that fact frequently - not so much to remind me how smart he was, but by creating voluminous business plans projecting how the business would fare five to ten years down the line. He used his data to prove that none of the properties was worth the asking price. Over 18 months the couple made offers on several properties, but were not able to purchase any. I looked back at the MLS to compare their offers to actual sales prices. All of the guest houses sold at higher prices than the offers they made expect one. And it did not sell. They refused to negotiate beyond what his analysis "proved" the value to be on each property. They decided to buy a small place in northern Florida where the weather is colder, the prices are lower, and the income is not as great. They settled for less.

A lot of potential buyers do the same thing. And so do a lot of locals who talk to strangers and give them an earful of opinions. I had a lady Realtor from up north who sought the counsel of her hairdresser to tell her what he thought about properties I showed to her. Not making this up, folks. She bought and sold three properties from me, but she listened to him. 

CAN'T KEEP A SECRET  Another buyer who bought a big house from me several years ago recently retired from a really big Wall Street firm. He decided he wanted to move here and live here full time He was from New Jersey and approached every investment with suspicion. We looked at many possible properties and found a few that interested him. Nothing ever worked out. That was until a specific property became available. He made a substantial cash offer on this property. When I learned there were several offers on the table, I told him his offer was too low. I also told him to never talk to anyone in town about his offer. He couldn't help himself. He told me he met a guy in a bar and the two started to discuss real estate. I wasn't there and don't know all that was said except that the guy he was talking to bought the business my guy made the offer on. Men should not cheat on their wives nor their Realtors. They shouldn't, but they do. 

BUDGET SHOPPERS  Some buyers set a budget (price limit) on how much money they are willing to spend. For some reason $500,000 is now the typical budget of most of the people who contact me about buying a home. I realize that you can buy a pretty fine house up north in America for $500,000 or less.  Many say they are willing to so some work so that they can build the house they want. They probably have watched too many shows on HGTV which promote that kind of thinking. These buyers have no idea how difficult it is to build or remodel here. They would save money by spending a little more up front or by looking in other less expensive parts of town or a few miles outside of Key West. 

CASH IS KING  I love it when I am working with a cash buyer because cash can make a sale go much more smoothly. When there are multiple offers on a property, the best offer may not be the highest priced.  A cash offer with few to zero contingencies may be preferred over a higher priced offer subject to mortgage loan approval, inspections, and so forth. Sellers expect buyers to come back after inspection with a list of issues they want fixed or given credit to accept. This often creates dynamic tension between the parties and sometimes between the agents.

NICKELS AND DIMES  A few months ago an agent in my office was a couple of days away from the closing of a pretty expensive home. Then the cash buyer announced he wanted the house delivered completely furnished. This did not go over well with the seller who had things all boxed up and ready to go. Threats to walk away and sue and so forth were made. The seller finally said okay you can have my sofas, chairs, beds, lamps, artwork, dishes, bedding, etc. But it was too late. The deal failed. 

One of my favorite stories involved a couple who owned a storybook house on a quaint Key West lane. The house was tiny but it had the requisite charm, parking, and pool. A completely acceptable cash offer was made with the condition the seller convey one piece of furniture that fit ever-so-perfect in that little house. The seller said no because of one piece of furniture that some aunt gave or whatever. That stopped that deal. It took a year later to find a new buyer who ended up paying $100,000 less.

WHATEVER WILL BE, WILL BE  Some buyers approach a negotiation as if they are Doris Day singing Que Sera, Sera - whatever will be, will be. I think that if you want to buy a property, you should actually try to buy it. Approach a negotiation to win it, not to set up conditions that make success unattainable. Buyers who watch the market have a rational basis to determine the worth of a particular property. If it is over-priced they may not want to even look at it because they know the seller is irrational and they don't want to waste time and money on something they cannot buy. (Buyer are often correct in these situations.)  When a price is reduced, word spreads across the internet and a lot of buyers pop out looking for bargains. I have numerous instances in situations like this when buyers make offers but then refuse to get into a "bidding war," Buyers see the the other potential buyers as bullies. They retreat even before a punch is made. You must engage to win. Retreat is not an option. The worst thing that can happen is that you don't get the property which is exactly the same thing that will happen if you walk away.

1030 Fleming St 2009

1030 Fleming St 2016

1030 Fleming Street was listed as a Bank Owned Property in late 2009 for $600,000. It appeared in my blog. The former owners made a lot of illegal renovations without obtaining building permits and caused substantial structural damage. But it had a killer location and a lot of street appeal. The damage could be fixed. The location was about as good as it gets here. I had a buyer who was a general contractor from a northern state. He measured the house room by room and knew how much he would spend to fix. My guy offered $500,000 cash. Several other offers were made. We were asked to make our best offer. His wife thought this property was too big a risk. They refused to offer anything more. They took the Que Sera, Sera approach. Another buyer got it for $530,000. That buyer hired a good general contractor, fixed the problems, and ended up with a really nice home in a AAA+ location. It is probably worth near $2 million today. You will find it difficult to find a one bedroom condo in Old Town for $530,000 in 2016. My buyer lost this house for $134.71 per month based on a 3.5% 30 year mortgage. That's the cost of a nice dinner in Key West for two people.

RISK AVERSE BUYERS  Risk averse buyers are often very analytical personalities who favor a known return which can be relied upon for years to come versus a potentially greater reward with a potential for loss. Some of these buyers approach buying a home as an investment.  I had one buyer who made offers on several properties over the years. He had a bunch of cash with which to buy the perfect dream home - a place on a good street with a pool and parking. He still has the cash that produces a 5% tax free return each year. The Key West market has grown way beyond his willingness to buy. He gave up his dream so that his heirs can enjoy his cash in their future. 

LOCATION VALUE Sixteen years ago a friend of mine who was a real estate developer from Denver came to Key West looking to find a place to retire. He considered houses in Old Town and Casa Marina areas. I told him not to buy a couple of different locations. He pointedly told me he thought I overstepped my job as a Realtor.  He said buyers can figure out for themselves what works for them. But I saved him from buying a vacant lot which had been on the market for years and that had not sold because of its location. I convinced him to buy an existing property just east of the Casa Marina. He tore down the original house on a beautifully landscaped lot. He built a new house. He ended up getting divorced. He moved away a million dollars richer. Someone else bought the lot he liked. They build a huge spec house there that took a long time to sell. The person that bought put it back on the market soon afterward. It has sat vacant and for sale for years. We all know this house and please don't comment on it. Location does matter. Bad locations matter a lot.

A lot of potential buyers refuse to look at houses located near the Key West cemetery.  Some of the best deals in town are for houses that are in this area. I don't know what they expect to see.

Other buyers refuse to consider houses on certain streets, or to look at homes near a church or school, or to even consider a house in a neighborhood or area such as the Key West Golf Club. Some buyers say they don't play golf implying that playing golf is either a requisite for buying there. Others say the ten minute drive to Old Town is too long - that they would prefer to be located closer to Duval. But most do not have the extra hundreds of thousand dollars to pay for that location.

If you are looking to purchase a place in Key West please call me, Gary Thomas, 305-766-2642 or send me an email at kw1101v@aol.com I am a buyers agent and a full time Realtor at Preferred Properties Key West. I have been representing buyers and sellers here since 1996. I have the knowledge and experience to help you find your place in Paradise.

German Class Cheater

I was never a super-achiever in high school. Nor was I super-achiever in college or even law school, although I did much better in law school.

During our office sales meeting a couple of weeks ago I was discussing agents in my community that are posting their new soon-to-be-listed properties on ZILLOW, TRULIA, and FACEBOOK. Our mls rules require that listings be posted immediately in our mls and they do not recognize anything like a future listing. The point of having an mls system is to share information and to provide an even platform among agents.

I then recounted an incident in my German class in 1964. We were taking a test and the girl who sat in front of me took out a crib sheet to answer some of the questions. She reached down toward her right foot and pulled a piece of paper up to her desk. She looked toward the teacher who was reading a book or something. Realizing she would go unnoticed, she cheated. I know a lot of people cheated in high school. This incident occurred more than fifty years ago and you'd think I wouldn't remember one person out of the many that I know who cheated in school. But I remember it clearly because she was a member of National Honor Society.

I took my time leaving class. I went up to talk to the teacher. I told her that I saw someone cheat, but did not say who. I told her it wasn't fair that people cheat to get good grades.  I don't know if I was making excuses about myself for not being a better student or that I was blaming the teacher for not watching the students better so that they could not cheat. I knew I didn't cheat, and I got mad when others got better grades by doing so.

A year ago when I was preparing to go home for my 50th high school reunion I looked through my old yearbook and saw her picture. I went to CLASSMATES dot com site and looked the cheater up. She is a REALTOR. I told the agents in my office "Once a cheater, always a cheater!"