January Real Estate Sales in Key West

I've been telling you that sales are picking up in Key West and advising you not to wait too long before you buy. Snoozers are Losers!

In January there were ten single family home sales in Key West (including a couple of properties that could be used as legal duplexes). Going either way is common in Key West, I guess. I have written about several of the homes that sold and I gotta tell you, I told you they were bargains to be had. Included were 701 Elizabeth, originally $1,579,000 and sold for $695,000 (Not a Short Sale nor a distress sale); 3 Pinder Lane, originally listed for $1,390,000 and sold for $900,000; 716 Olivia Street (originally listed for $2,895,000 and sold for $1,025,126 in one day). The buyers on the above referenced properties made excellent buys in my opinion. A major Key West house sold that was listed for $6,495,000 and sold for $5,700,000.

There were eight condo and townhome sales during January. Four of those were identified as either bank owned properties or short sales. Among the winners of that group are a unit at 1075 Duval with a real transient license. It sold for an incredible $439,774. A third floor bank owned unit at Sunset Marina with a terrific water view sold for $399,000. And a two story townhome at Windward Park sold for just $400,000.

Even, perhaps, more interesting is the number of contingent and pending single family and duplex properties in Key West. Fifty-three properties are now under contract. Of that number, 26 are shown as short sales and 11 were identified as bank owned properties. In case you think that all short sales are crappy little houses that could not be sold CLICK HERE. The incredible house at 811 Southard is a short sale and somebody snagged this big one. I wrote about 1212 Olivia CLICK HERE. It is a bank owned house on a really nice block. I showed that house twice within a couple of hours of when it was listed. (Just as in the case of the sold bank owned home at 716 Olivia CLICK HERE (scroll down to October 27th) mentioned above under single family sales, this unit reportedly went for a little more than the asking price just so that the buyer could seal the deal.)

Finally, thirty one condos and town homes are shown as contingent or pending sales. Of that number, 15 are short sales and 6 are bank owned properties. The most notable in my opinion is the gift at 1118 Olivia Street that was listed at only $359,000. CLICK HERE to see what I wrote about that property that went under contract just 4 days after being listed.

You need to be aware that there is some confusion about how to classify houses and condos that have signed short sale contracts. Not all properties that have signed short sale contracts are listed as such. I believe the number of actual contingent and pending sales is much, much higher. But that is just my opinion.

Buyers who are not in Key West have a bit of a disadvantage to those people who happen to be here when new properties get listed or when prices are reduced. But that should not stop you from using your computer to do some research and using your noggin to figure out if a particular property could work for you. You probably know what you want and what you can afford. I encourage potential buyers to search the real Key West Association of Realtors mls database CLICK HERE to see what kind of property they can buy for the money they want to spend. Always look at properties priced higher than you can afford and search properties with less space or amenities than you require. CASH is KING and you may be able to negotiate a real sweet deal, just like some of the lucky buyers mentioned above.

Let me, Gary Thomas, help you buy your place in Paradise. Please either call me at 305-766-2642 or 3-mail me at kw1101v@aol.com. Tell me what you want and how much you want to pay. You might own a place in Key West where you can snooze on the beach.

707 Washington Street - Key West - Short Sale

Big Short Sale, Price Just Reduceded: 707 Washington Street, Key West, Florida. This large property consists of a large main house and a substantial two story guest house. The property records show it as a legal duplex so the uses are many.

This property was designed by local noted architect Tom Pope and was constructed in 2004. I live a couple of blocks away and remember riding my bike past the property during the lengthy construction. I was excited to see the interiors once the houses were completed. Each property is distinct, but they share a common design theme. The rooms are large and the bedroom ceilings on the second floor of each residence soar. This property would be great for a buyer with a large family or lots of friends. There is plenty of room for lots of people. The guest house is the perfect place for guests, or maybe an aging parent, or perhaps a caretaker, or even a rent paying tenant.

707 Washington has 4 bedrooms, 5 baths, two kitchens, two living rooms, a big pool, and a great Casa Marina location. The houses have 3257 sq ft of living space and sits on a 5300 sq ft lot. The property is offered at the Short Sale price of $1,199,000 or $368 per sq ft. Nothing is certain in this world, and short sales breed an uncertainty of their very own. But I believe that an ALL CASH, QUICK CLOSE offer at a much lower price is achievable. This house is crying for a cash paying, aggressive buyer.

The property is just a stone's throw to Louie's Backyard and Dog Beach. The newly renovated Reach Resort is within walking distance. Duval Street is just a 5 minute walk. The other houses in the 700 Block of Washington are quite nice. CLICK HERE, or CLICK HERE for photos of neighboring homes.

CLICK HERE for more information on 707 Washington Street. Then please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information.

614 Frances Street - Key West - Short Sale

This is how the listing Realtor at Preferred Properties describes 614 Frances Street:
"Three units on a wonderful block in Historic Key West. All units have private outdoor space. Rented on a month to month basis. Studio, a one bedroom loft, and a one bedroom with loft. Storage shed on back of property. Room for a pool. Live in one unit and allow the rents from the other two units to assist you in living in Key West! Hurry priced right." CLICK HERE for more detailed information and photos.

Let me add that this really cute sawtooth house at 614 Frances Street is offered at only $749,000. The lot is very large and totals 3627 sq ft (90.05' x 40'). The highest and best use for this house would be to renovate it, put in a pool, and live the Life of Riley. This place is just aching for some tender loving care. It has not been abused. It looks just fine "as is". And it is perfectly livable just as it sits. It had a 1970s'ish Hippie Renovation. Some far out stained glass was incorporated into the property. I do not believe every house needs to be dragged forcefully into the 21st Century by adding stainless steel and granite kitchens, vessel sinks in baths, and all of that other silliness. But a real nice and clean redo with the addition of a pool would seal the deal on this already sweet place.

Look at the surrounding houses in the two top photos above. I refer to these types of houses as "great houses". The grounds on these particular houses stretch all the way to Ashe Street where the guest cottages are located. No need to worry about those neighbors dragging your property values down. Off to the right of 614 Frances is Roberts Lane. It extends about 200 feet where it dead-ends. That translates into more quiet. Most of the other houses on this block are much larger than 614 Frances so this house might be considered by some as the worst house on the best block. And in a normal economy that usually translates into opportunity for property appreciation.

But we are experiencing a difficult time in our entire economy. 614 Frances Street is offered as a short sale. A short sale occurs when the lender permits the property to be sold for less than the remaining balance on the mortgage loan. The lender in this particular house (614 Frances)is a local bank, so the possibility exists for getting a quick response.

There is another multi-unit property also offered as a short sale that is located just a little over one block away and on the other side of Frances Street. I have shown it as well. CLICK HERE to see 719 Frances Street. It has been used as a monthly vacation rental. It does not have a pool. That house has great views of the Key West Cemetery. I am not being facetious. I love properties that face the cemetery. Frances Street is very wide at this location, the views are big and bright, and the neighbors are quiet. There are no parking struggles either.

If you are looking for an investment property in Old Town Key West or maybe looking for that "worst house on the best block", please call me to see either of the two houses mentioned here. (Or any other property!) Please call Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Don't wait too long, either. The listing Realtor told me he has shown this property five times in the past week. You snooze, you lose. P.S. the temperature in Key West was 82 degrees at 11:00 AM. Jealous?

The Grand Dame - 1307 Truman Avenue Key West

This is how the listing Realtor describes The Grand Dame at 1307 Truman Avenue: "This beautifully renovated Victorian home was built by a Cigar factory owner from Cuba in the early 1900's. The home was expertly renovated in 2002 to restore the original elegance while adding all the modern amenities. Spanning two lots from Truman Ave. to Albury St, where the pool is surrounded by a lush indigenous tropical garden . There is over 4000 sqft of living space plus 1500 sf of porches. Bedrooms are spacious with 12 ft ceilings. In addition separate guest quarters on second level with a private porch. Original Dade County pine floors are preserved as well as crown molding. Each floor has its own CA/C zone. Kitchen including soap stone counters and a large white marble island tops."

I know a Grand Dame when I see one, but I thought I best go to my Wikipedia just to make sure my context about 1307 Truman is correct. Wikipedia describes a Grand Dame thus: "In popular culture, the grande dame is usually portrayed as a slightly flamboyant woman, prone to extravagant and eccentric fashion, such as feather boas, large hats, and excessive costume jewelry. She may be overly pre-occupied with the concept of "acting ladylike" and expect all those around her to conform to her own high standards of etiquette." That definition fits 1307 Truman Avenue to a tee. The house has a prominence that cannot be denied. The wrap around verandas are her boa; the height is her large hat; and the impeccable gardens are her costume jewelry.

This house on millionaires row was built circa 1900. From Eisenhower Drive on the east all the way west to Duval only a few of the old dames on Truman survive today. They were built in sizes and to standards (and lifestyles) that are no longer current. Many of the houses that do remain have been converted into guest houses or re-configured into a combination of commercial and/or retail with some residential. This house has not been messed around with and sits almost like a virgin, albeit an old virgin.

This house is in beautiful condition. Everything I saw looked great, clean, and well maintained. I did not see any deferred maintenance. The baths are nicely appointed with new fixtures with classic lines. They fit the style without being gimmicky. There are two large formal living areas on the main floor. The kitchen sits at the rear. The kitchen is huge and would make a great gathering place for modern living in an old house. The wrap around verandas at the front and rear seem to envelop the house. Each of the rooms on all three levels of the house (including the third floor) have very tall ceilings, crown molding, and exude a sense of formality we don't see in current architecture. For readers who have been in dozens of Key West Conch houses, this isn't one. You have not been in a house like this before in Key West.

The house has five bedrooms, each of which is quite large. And most have en-suite baths. The third floor has a sitting room off the bedroom. The ceiling up there must be 15 feet tall. There is a small porch off the front of the third floor where you can see the treetops and rooftops of much of the southern end of the island. Bayview Park is just across the street. What a view! There is a rooftop deck at the rear with an amazing view of the north. I could see water on the Gulfside. You could not build a house of this height in Key West today. But if you buy it, you have the view forever. CLICK HERE for more details and photos of this one of a kind properties.

This house is listed by Preferred Properties Christie's Great Estates at the asking price of $1,998,000 or $451 per sq ft. The house has 4426 sq ft of living space under roof and sits on a large 7418 sq ft lot. The rear veranda overlooks the garden and pool area. Off street parking is provided as well. There is even a small apartment off to the west side of the house which could be used by a caretaker for an owner who would use the house as a second home.

But I have an alternate use suggestion. I think this house would make a one of a kind guest house with grand rooms and a sense of elegance missing from other guest houses in Key West. Zoning is HMDR which may permit such a usage. But a buyer will have to move heaven and earth to get the property converted to such a use.

Please call me, Gary Thomas, 305-766-2642 to schedule a private showing of 1307 Truman Avenue. Buyers looking for a big house ought to take a look and compare the size and features to other similarly priced homes. The Grand Dame of Truman Avenue will put them all in their place.

628 William Street - Old Town - Key West Elegance

Located on one of the Most Beautiful Blocks In The Historic District you will find this quintessential two story Key West house at 628 William Street. There are two bedrooms en-suite baths plus an office. There is a recent Award Winning Artist Studio/Den addition. There is a 30 Foot Pool and an excellent outside dining/living area. Lush landscaping creates a very private atmosphere. Off-street Parking.

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. That little location could inspire lots of creativity, of that I am certain.

There are two real bedrooms and a third room large enough to be a guest room, but it doesn't have a closet so we can'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 you out of house and home. CLICK HERE to 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 $1,295,000 or $794 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. Yet, 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.

Cigar Maker Cottages Galore - Key West

I've told this story before: I tried to buy a guest house in Key West for several years and was never able to get the deal I wanted. I always tried to lawyer the deal to protect myself and also to get the very best possible deal. I failed time and again because sellers in Key West will not make warranties about old houses and the improvements they may have made (legally or illegally) over the years. In good times sellers want more and more money. In bad times sellers want as much money as they can possibly get. So I wasn't all that successful as a buyer back then.

In late 1989 or 1990 I came to the conclusion that it might make more sense to simply buy one of those cute little cigar maker's cottage (Conch house) I had seen that was priced around $100,000 way back in 1987. My Realtor (Mitzi) told me "They are all gone Gary" or words to that effect. My heart sank again. My stupidity and greed had again prevented me from getting any deal--not just the best deal.

I eventually got a terrific property at bargain price, but it was with the advice of my Realtor, Mitzi, and my determination not to be stupid any longer. It was a big and beautiful guest house in a great location. I was able to leave the snow and cold of Colorado and move to Key West.

Key West is peppered with cigar maker's cottages in all areas of Old Town, Bahama Village, and The Meadows. There are a few cottages in the Casa Marina and Mid Town areas as well. Many of the original structures are gone, and most of the surviving structures have been renovated in some form. I created a sampling of such houses that may appeal to second home buyers. CLICK on Any Address to see the house at that location. 622 Southard Street,525 Louisa Street, 814 Simonton Street, 711 Elizabeth Street, 712 Southard Street, 610 Olivia Street, and 412 Louisa Street.

Please note that although the houses look quite alike, each is different is size, location, land size, and degree and quality of renovation. Some are "cherry" and others are just average. I did not include all cigar maker's cottages because not all interest me.

If you are in Key West or are traveling here in the near future, you need to go by new Gato Village Pocket Park behind First State Bank on Simonton Street. A group of residents is constructing a replica facade of a historic cigar maker's cottage. The facade will be the same as a small frame house that stood in that location from 1897 until 1945. Local contractor Bruce Neff (pictured above) and his wife, Patricia Madiedo (descendant of the owner of the original cottage at that location) are constructing the facade together with the assistance of various individuals and businesses in Key West.

If you a looking to purchase a home in Key West and think that a cigar maker's cottage might meet your needs, please call me, Gary Thomas, 305-766-2642 to arrange a showing. Don't let this current buying opportunity pass you by.

The Road to Recovery

I've mentioned many times that I grew up in one of Denver's suburbs in the 1950's. Life was much slower way back then. I don't have any access to old family photos of driving through the Colorado Rockies in the 1950's. The photo of the antique car isn't back in the 1950's. But it is illustrative of what our lives would be like if Interstate 70 had not been built.

During the summers of my youth my parents and I would drive up to the mountains to go fishing. We would either go over Berthoud Pass toward Grand Lake, Loveland Pass toward what is now Vail (Vail did not even exist then), or over Monarch Pass toward Gunnison. There were no interstate highways. There were very few four lane roads for that matter. There wasn't any need for four lanes because travel over the Rockies took so long, especially on a cold and snowy day. There was some skiing atop each of the passes mentioned and in small towns like Aspen (back then Aspen was just a small town without any big ambitions). So there was no compelling reason to get anywhere very quickly.

The interstate highway started to get built in Denver in the 1950's. But it would take more than four decades to complete the Interstate 25 and Interstate 70 and the loops that encircled Denver and the suburbs. But the major marvel was the construction of Interstate 70 through the Colorado Rockies. And I specifically refer to the construction of the Eisenhower Tunnel and later the elevated roadway through the Glenwood Canyon, one of Nature's Wonders.

When I was a kid and cars regularly overheated trying to cross the great Colorado passes, it would take hours and hours to get from Denver to any place on the other side (western side) of the Continental Divide. And like I said, there wasn't any particular place to go back then because we didn't have ski resorts and condominiums and golf courses in the mountains. Oops! Maybe the interstate highway wasn't' such a good thing after all.

What once took so much time now takes very little. The drive between Denver and the western slope now takes a little about three hours. And the life and vitality of the Colorado economy owes so much to that divided highway.

When I was going to law school in the early 1970's the construction of the Eisenhower Tunnel was in full bore so to speak. That construction project was massive and it created jobs throughout the Denver area and on the western slope as well. Two crews worked simultaneously to bore the holes that would one day unite the state like never before and that would make travel so easy. Nobody in the 1950's could have imagined owning a condo in Vail Colorado where they could ski in the winter and play golf in the summer. But that is just what happened. Little towns like Breckenridge, Silverthorne, and even Aspen experienced tremendous growth in terms of size and property appreciation. And I can tell you that the growth has been sustained over the past thirty years.

I am not afraid of public works projects to help jump start our failing economy. The TVA changed much of the South after the Depression. The Eisenhower Tunnel helped keep Denver from utter ruin during the Recession of the mid 1970's. Perhaps the Economic Stimulus Package that is working its way through Congress will create a project or two that can have as dramatic an effect on our economy and way of life. We won't know if the package gets derailed and money is spent instead on tax rebates.

I am not afraid of government spending to help create jobs. Jobs keep real people working. The dollars get passed around and around and around. When people work, they spend money. And when they spend money, that creates more opportunities for everyone.

You may or may not agree with me that money spent on public works may help pave the road to recovery for our country. If you do or if you don't, you can let your Senator or Congressman know your feelings just by sending a email. CLICK HERE to access the contact links for the US Senate. And CLICK HERE to contact your Representative. We are all in this mess together. Make your voice known no matter what you think.

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.