"What door's will open for you?"

I host my pics for this blog on FLICKR. Sometimes I go there to borrow pics of Key West that help showcase this beautiful island I call home. A couple of days ago I saw a really sweet pic of a typical Key West home with a caption that read "What door's will open for you?" And then underneath the photographer added "I'll dream that one day a house in Key West has a door for me!" CLICK HERE to see her little dream home.

When buyers call me (they do) and when buyers send me an e-mail (they do), I ask them to tell me what their dream home would be. Most buyers want about the same thing: a nice house in a good location with a pool or room for a pool and a white picket fence. Almost all buyers want off street parking. Some are willing to buy a house that may require some work. And just about every last single solitary buyer wants a deal.

The price per square foot for a home in Key West is much higher than most locations on the east coast and mid west, the areas that most prospective buyers live. So once buyers get over the sticker shock they can start the search for their dream home. If they are like me, they fell in love with Key West on the second day of their first visit to Key West. They walked the streets lined with flowering trees and palms, beautiful old homes, beater cars (that was from another time - not many of them left), cats resting on front porches, mother hens escorting the little ones across streets, dogs riding piggy back on bikes, and trains winding their way down residential streets. What a place!

712 Southard Street is a listing of Preferred Properties (that's where I work but it is not my listing). The house was extensively remodeled a couple of years ago so everything is in very good condition in my opinion. There are shelves in the living room that display bottles and other discovered treasures that the current owners found buried under the house while doing their extensive renovation. I have hosted a few Open Houses at the property. The Lookie Lous loved it.

The listing Realtor describes this dream cottage this way:

"Location!Location!Location! Just two blocks from Duval Street, sits this beautifully appointed shotgun on the best block in Key West. Two nice size bedrooms and bathrooms, great new kitchen with cathedral ceiling that opens to the glass tiled kidney shaped heated pool surrounded by tropical landscaping."

The two bedrooms at 712 Southard Street are located in the front of the house. The living room is next and the kitchen CLICK HERE (a sawtooth addition with vaulted ceiling) is at the rear. The kitchen door CLICK HERE opens onto the large deck and very good sized pool. The pool area is beautiful and very serene. The pool gets plenty of sunshine (a lot of pools do not), and the neighbors cannot see the pool. So what happens in the pool area stays in the pool area. CLICK HERE to see the details on this home and view more photos.

Monroe County tax records show the house is 1026 sq ft that sits on a 2259 sq ft lot. The house is located just two blocks from Duval Street. There is no off street parking, but most of the other properties in the area are single family homes. There is no commercial business nearby. So finding a parking space is not that difficult.

712 Southard Street was originally listed at $1,200,000. It is now priced at $829,000 or $808 per sq ft. It really does have the primary things most buyers want: nice house, good location, pool, and that white picket fence. The house does not require any repairs. Everything inside and outside is pretty much new. The furnishings might also be available. Maybe all you will need to bring to Key West is your tooth brush and Coppertone. Bathing suit is optional.

If you would like to see 712 Southard Street and perhaps fulfill your dream of owning a home in Paradise, please call me, Gary Thomas, at 305-766-2642, to schedule a visit. You are gonna like this place!

CLICK HERE to search the real Key West Association of Realtors website to see all current homes and condos listed for sale. If you see something you like, please think about working with me. I am a full time Realtor at Preferred Properties Coast Realty in Key West. Some Realtors have other (real) jobs. My real job is selling real estate.

"What door's will open for you?"

Good things happen to people who buy from me. FOLLOW ME on TWITTER to see what happened to Chris & Jim.

731 Waddell Avenue - Casa Marina area - Key West

The asking price on the large and very lovely home at 731 Waddell Avenue in the Casa Marian area of Key West was just reduced to $1,649,000 or $589 per sq ft. CLICK HERE to read the detailed information on this home and see all the nice photos supplied by the listing Realtors.

The listing Realtors (my neighbors, in fact, live about two blocks away from this property) describe the property this way:

"Casa Marina Beauty...circa 2007, this solidly built home features impact windows, hardie plank siding, a custom kitchen, double decks off the front and back, first floor bedroom and bath, and a generous great room to stretch out and relax. The second and third floors all have bedrooms with bathrooms ensuite. Sitting on a large corner lot with plenty of convenient off-street parking, a heated pool and spa with an elegant water feature and a mature landscaping presentation all contribute to this terrific home and the Key West lifestyle."

You can see the Atlantic Ocean from the third floor (5th bedroom) of the new house at 731 Waddell Avenue (at William Street)in Key West's Casa Marina area. CLICK HERE for a view of this really big home. It's only a partial view but that beats no view at all. CLICK HERE for a view of this home with a giant corner lot. The house is a one block walk to both public and private beaches in the area. The Casa Marina Resort has a private beach club, tennis, and gym that you can join so your second home could almost seem like living at the resort itself.

The newly constructed three story home with 2800 sq ft of living space that sits on a 5000 sq ft lot (50'x100'). There is a formal entry with an office/den/guest room and adjoining private bath that doubles as a guest bath. The huge living room (or great room) takes up the right rear half of the house and the kitchen takes up the balance. The kitchen is very large, open, and bright. It was built to accommodate more than two people at a time. You can tell that the architect designed the this home for some serious entertaining.

The master bedroom and en-suite bath take up the front half of the second floor. There is a second story front balcony where you can watch the world very slowly. Two bedrooms share the rear half of that floor. Both have en-suite baths and separate doors opening onto a large second floor rear balcony that overlooks the pool and gardens.

Then there is "nosebleed", the third floor bedroom with en-suite bath. There is even a lighted storage area as well.

The heated "auto clean" pool is 16'x12' and has a spa and waterfall. Mature plants and shrubs surround the pool, deck and patio. Other exterior features include Fencing, Irrigation System, Landscape Lighting, Outdoor Shower, Outdoor Kitchen, Patio, Storage, Water Display.

The nice thing about the Casa Marina area is that you are close to everything, but you are far enough away not to be on top of everything. You can ride your bike to just about any place in Old Town in 5 to 6 minutes. You can drive to the airport to pick up friends at the Key West International Airport in about 5 to 7 minutes. You are a couple of minutes walk to the beaches, public tennis, or join the Casa Marina Beach Club. I live about 4 blocks away from this home, and I love the area.

If you would like to schedule a private showing of 731 Waddell Avenue, please call me, Gary Thomas, 305-766-2642.

June 2009 - Key West - Real Estate Sales

A little over a year ago there were just about 1000 active real estate listings in Key West. The number of active listings reflected an over-supply of available properties. Few new properties have been built during the past year. Month by month the number of active listings has been trimmed due to sales of existing properties. There are now 833.

Key West had 23 single family homes sales in June 2009. CLICK HERE to see all the houses that sold in June. Three of those sales were listed as "short sales" and seven were bank owned properties. There is such a disparity among the properties that price per square foot is meaningless.

If you carve out the four large home sales CLICK HERE in Old Town and Casa Marina areas the average price per square foot was $628. These houses are the kinds of properties many dream of owning and few can afford. The buyers got great deals on these properties. In a couple of years people will be saying "I wish I would have bought that place when it only cost $$$$."

There were five smaller home sales in Old Town: 1209 Olivia Street, 1214 Knowles Lane, 405 Frances Street, 822 Eaton, and 1018 Thompson Street. Three of those sales were short sales. When you take the time to scour the active single family home listings for Old Town and the Casa Marina areas you begin to notice one thing: there are not a lot of listings anymore. They supply is shrinking.

Thee were 22 condominium and town home sales in June. Seven of those sales were short sales and another seven were for bank owned properties. The units sold at an average price of $298 per sq ft. The most expensive unit that sold was a corner unit at Harbour Place. It had a real water view and it sold for $670 per sq ft. I wrote about 809 Washington Street when our office had it listed as a short sale. This unit sold for $775,000 or $413 per sq ft. There are other units still for sale in this new complex priced well over one million dollars. The buyer got a real deal. Three units sold at the Key West Golf Club with the least expensive going for just $217 per sq ft. The over supply of Golf Course properties is "over".

If you have been waiting for the market to hit bottom before you make an offer to purchase your dream home in Key West, reconsider your strategy. I can't say for sure that we have hit bottom. But if you look at the few properties actually for sale in Old Town or the Casa Marina area you will see one thing: there are few houses on the market. The properties that are available are either total fixers, fairly expensive, or really expensive.

CLICK HERE to search the real Key West Association of Realtors mls website. Your search will not be tracked and you will not be contacted by anyone. If you see something that interests you, please consider working with me, Gary Thomas. I am a full time Realtor at Preferred Properties Coastal Realty Inc. Give me a call at 305-766-2642 or e-mail me at kw1101v@aol.com.

Just Listed - 814 Carey Lane - Old Town - Key West

Just Listed (but not by me)814 Carey Lane. This is how the listing Realtor describes this new property:

"Ready, set, go! This is the home every buyer has on their wish list. A secluded 2 bedroom, 2 bath one level home plus a separate guest cottage located at the end of a quiet Old Town lane on a 6427(+/-) square foot lot with off-street parking. The open floor plan has many sets of French doors opening to the outdoors and a wonderful screened porch (21 ft. x 12 ft) overlooking the pool. Like new construction, completed 15 years ago, improvements include all new electrical, plumbing and newer roof, replaced approximately 5 years ago. Lush mature tropical landscaping surrounds this property which includes a 12 ft x 20 ft heated pool and adjoining spa. This is a very special property - a quiet retreat. Adjoining property possible too."

I have written about living on one of the slow lanes in Key West. This has got to be one of the "slowest" locations on any lane in Key West. That is for sure. Carey Lane is a real "dead end" lane as the photos at the top show. It is located at the intersection of Margaret Street and Angela Street. The Key West Cemetery is on the opposite side of that "intersection" and Margaret Street suddenly becomes Passover Lane. Confused?

814 Carey Lane is located at the far end of this little lane that maybe runs a total of 250 feet, if that. Some of the sweetest little houses in all of Key West are located on Care Lane. CLICK HERE. Neither Conch Trains nor Trolley Cars will ever make an on purpose or accidental trip to this hidden oasis. An occasional tourist with a camera may walk down and snap some shots. But for the most part, the lucky person that buys this property will be left pretty much alone.

If you have a few minutes checkout the online version of The Streets of Key West by J. Willis Burke to learn the name origins of the streets and lanes of Key West. But for quick reference, CLICK HERE to read about Carey Lane. Better yet, BUY THE BOOK.

I sent this listing to several buyers I am working with yesterday. Like the listing Realtor said, "This is the home every buyer has on their wish list."

814 Carey Lane is offered at $1,250,000 or $965 per sq ft. The house and guest cottage are 1296 sq ft and sit on a very large, very private, very lush, and most desirable location in the heart of Old Town. CLICK HERE to read more detailed information and view lots of photos of 814 Carey Lane.

If you have been dreaming about buying the perfect Key West cottage, please contact me, Gary Thomas, 305-766-2642. 814 Carey Lane may be your dream come true.

Watson Up, Doc? Ugh, I Mean Down!

Pardon my trying to be cute with a little play on words. But I wanted to get your attention. This is newsworthy. The really cute cigar maker's cottage at 1117 Watson Street has just been reduced in price to a point where it may make sense to you bargain hunters.

The listing Realtor describes 1117 Watson Street thus:

"This very attractive cigar maker's cottage is located in the Conch Grove Compound. The tastefully renovated home features pine floors, new kitchen appliances, vaulted ceiling and an open, airy floor plan opening through French doors to a large private landscaped garden. Note the large lot. Walk through the private L-shaped lot to a beautifully landscaped yard with heated pool and sundeck. Also note that the upstairs loft (26 ft. x 11 ft) is not included in the square footage."

1117 Watson Street is located two blocks west of White Street and two blocks south of Truman Avenue. The Conch Grove Compound consists of several cottages and single family homes that share a large sunny pool, gardens, and parking. The owner of each cottage or house owns the ground under the property in fee simple. But all property owners share ownership of all of the common areas. As I recall there are only nine units. The shared space seems more like a large private park than a typical condominium or town home pool. Each cottage or house is unique. So the place does not look like a Disney version of Key West. It is the real thing. And I mean that in the most positive way.

Writer James Kirkwood, co-author of "A Chorus Line", was one of the first homeowners in the Conch Grove Compound. Local author David Kaufelt used to live there as well.

You enter the cigar maker's cottage from a door on the south side, not the front door in the photo. Inside you move to the right and enter the shared kitchen and living area with vaulted ceiling. French doors open from the living room onto the privately owned and very cloistered rear yard CLICK HERE and CLICK HERE. That area is surrounded by tall and lush trees and vegetation. It is just too sweet. There is a little path that leads over to the pool. The separation is very marked. You would never know the pool exists unless you wanted to go to it. Likewise, the neighbors can't see what you are doing in your own private outdoor space.

The cottage has just one official bedroom. It is located at the front. The door in the photo does allow access to the front porch. You can sit on the front porch CLICK HERE and watch neighbors walk their dogs or see an occasional tourist riding a bike. There is a loft that can be used as a second (unofficial) sleeping area. It's a bit tight for full time use, however.

1117 Watson Street was originally offered at $599,000. The new asking price is $499,000 or $730 per sq ft. CLICK HERE to see more info and view all the photos of this really cute cottage. This place is not a fixer. It is in move-in condition. It has all the attributes of a single family home plus the partial ownership of that really big sunny pool.

If you are looking for a single family home in Paradise that is priced under $499,000 CLICK HERE to see the other 23 houses in the Key West Association of Realtors database. Do your own comparison shopping. I have written about a couple of those houses. If you would like to schedule a showing of 1117 Watson Street (or any other house for that matter), please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in Key West, Florida.

Key West Florida - Casa Marina area Deals

I feel the need to crow about a sale occurred late Friday afternoon. I guess you could call it an "inside job" because the Listing Realtor and Selling Realtor are both agents at Preferred Properties in Key West. Congrats Cory and Dan. That's where I work.

1021 Johnson closed Friday afternoon at the sales price of $1,800,000 or $592 per sq ft. There are two factors that make this particular sale noteworthy. CLICK HERE to see 1021 Johnson Street.

I first wrote about this property in March 2008 when it was then a bank owned asset. CLICK HERE to see what I wrote then, if you care. I showed the house several times and I told people the place was a good deal at the "then" asking price. It was. It got purchased. It got improved. It was re-listed on May first, this time by Preferred Properties, for the asking price of $1,995,000. It went under contract within a couple of days. And there were people wanting to show it even after it went under contract. The Selling Agent told me "It was like real estate in 2004" all over again.

That is pretty amazing when you consider the amount of other large properties on the market in Key West. Yet, when you consider what the buyer got for his money, he got a really good deal. The houses is all nice and new on the inside. The outside is pretty, lush and green. The pool is huge and inviting. You cannot beat the outstanding Casa Marina location where there numerous similarly large homes with big lawns, big pools, and big price tags. The streets are wide and the neighbors are far enough removed that you don't hear them sneeze (or whatever!).

The Casa Marina Resort is a block away. (It has a very luxurious beach, gym, spa, and all the hoopla of a major resort.) And then there is Higgs Beach just next door to the east. Actually, there are three beaches within a two minute walk. I drove by this morning and saw the sand maintenance guy grooming Higg's Beach. It has a recently refurbished pier where you can walk out and dive into the ocean. There are nearby public tennis courts and parking. Higg's Beach has chair rentals and volleyball nets. But beaches are free so bring your towel and watch the sights. The Astro Land kiddie playground is located across the street. Salute Restaurant, now managed by the same people that run Blue Heaven is located just to the rear of the volleyball nets. The view at Salute is so damned great! A minute east is the Key West Garden Club. (If you love gardening, this is your new place to hang.) Just a few steps to the east is yet another beach, then the Key West AIDS Memorial. Down at the end of the White Street Pier there is fishing. Yep, I've been out there fishing at 11:00 PM. Caught an eel there once just around that time. Should have gone fishing earlier, I guess. And if you walk just a few feet further to the east there are even more beaches and sandy dunes. There are beaches with tourists and private places as well. All are within a few minutes of any house in the Casa Marina area.


All is not lost, dear reader. Preferred Properties has another Key West treasure located at 906 Johnson Street that was recently reduced to $2,695,000 or $724 per sq ft. CLICK HERE see all the features of this 3720 sq ft estate type home that sits on a commanding 10,750 sq ft lot on one the best streets in Key West. This is one of the most beautiful homes in all of Key West. It has everything a buyer that wants the very best demands. The architecture is stunning. The rooms are large and livable. There is space for live-in help. There is a separate writer's cottage and also a separate guest house with its own small kitchen and bath. The master bedroom on the second floor has a partial view of the Atlantic Ocean that is just one block to the south. Not everybody can afford a grand home like this. But it you are one of the few that can, you really ought to look at 906 Johnson Street. It is priced to sell.

If you would like to schedule a visit to 906 Johnson Street (or any other house in Key West, please give me, Gary Thomas, 305-766-2642, a call. Or contact me by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty Inc. We are an affiliate of Christie's Great Estates. I live in the Casa Marina area. I love it. You will, too.

Going "Realtor"

We are all familiar with the slang term "Going Postal". It originally referred to postal employees that suddenly exploded with workplace rage and committed horrible acts of violence. But it evolved into a description of ever more common sudden, extreme, and uncontrollable acts of rage and violence towards people in the workplace and to fits of rage inside or outside the workplace.

Please understand I am not making light of the awful deaths and personal tragedies that have become a part of the term "going postal". But I am concerned that there is so much distrust of Realtors, bankers, mortgage companies, short sale negotiators, appraisers, Congress, and "investors", that the distrust and frustration will turn into similar acts of violence towards this group.

One Monday many years ago when I was a young lawyer working in a suburban Denver law firm, I arrived at work very early only to find that the glass front door to our office had a shotgun blast through it. One of the partners had been representing a woman in a nasty divorce. Her estranged husband had called the partner's house and warned that he was going to kill the lawyer. I surmise the shotgun blast was meant as proof as to how much the husband hated his wife and his wife's lawyer.

The economy is in a mess. People get crazy and do things that are completely out of character when they feel powerless. Lives are falling apart. Men may lose their self-esteem and see themselves as failures. Women have to work harder and longer and fear more for the well being of their children. Nobody knows how it all will end and everybody is fearful of what horrors may befall them. They get a legal notice posted by the Sheriff that reads "Lis Pendens". Foreclosure has been started. Consider the following.

Seller owns a property he cannot afford. Seller can no longer afford the mortgage payments, insurance, taxes, and utilities. Why should he even try because the property is not worth what it cost a few short years ago. Many neighbors are losing their houses in foreclosure or are trying to short sell them. Seller finds a Realtor to short sell the property.

The listing Realtor enters the Seller's property into the mls database as a potential short sale. The term potential short sale conjures up the image of a "deal" to many potential buyers.

Buyer looks at the property and makes an offer on the house. The Seller accepts the offer which is conditioned upon the formal approval of Seller's lenders. The contract normally requires the lender to accept less than face value of the amount Seller owes to lender and precludes the lender from pursuing Seller for a deficiency.

The contract is delivered to a short sale negotiator hired by Seller to persuade the lender to accept the short sale offer. Weeks and often months pass. Nothing happens.

Time passes and e-mails and phone calls go from principal to agent, from agent to negotiator, from him to her, and all go nowhere--slow. Very slow.

The mortgage company negotiator complains it did not receive all the documents that are needed. The short sale negotiator goes back to the Seller or Seller's agent requesting more information. Days pass. Documents get prepared and faxed, and paper trails of the financial affairs of Seller get traded back and forth between agents and negotiators. Documents get "scanned" onto the computers of the mortgage lender far away. The mortgage company is all powerful and demands its procedure be obeyed on its timetable. Piss off one peon at the mortgage company and get screwed for life. So do what they demand and shut up. You can't complain to the supervisor because everybody there is anonymous. Or so it seems.

Procedure for approval of a short sale contract includes obtaining a broker price opinion ("BPO") which is ordered by the lender. Supposedly a disinterested third party Realtor will do a drive by appraisal of the property and send an opinion of value to the mortgage lender. If the BPO amount seems reasonable, a formal appraisal is ordered. (Consider this, however. If the party doing the BPO also happens to regularly "list" bank owned properties, could that party be giving mis-information to the mortgage lender that would cause the lender to disapprove the short sale and thus permit the foreclosure to ultimately occur? Does this procedure ensure confidence or distrust?)

Mortgage lender is being asked to forgive thousands of dollars in debt. It then engages an appraiser to determine the current market value. Appraisers have their jobs on the line and are busy chasing values in a declining real estate market. Fannie Mae has drawn up new guidelines that require lenders not to have direct contact with appraisers. Third parties now select "random" appraisers. (Another level of intrusion into the process because of governmental distrust of the players.)

Key West is known for its quirky houses and neighborhoods. Out of town appraisers often have to travel here from Miami and Fort Lauderdale to appraise potential short sale properties. Makes a lot sense, I know!

The process can seemingly go on forever. Some short sale properties permit the seller to accept multiple offers on the same property which are then all submitted to the mortgage lender. That process really creates distrust by Buyers towards the Seller, the Realtors, the appraiser, the mortgage lender, and everybody else that has anything to do with the process. The process is viewed as imperfect and corrupt, and all of the players in the process may be viewed as being corrupt. And in real life there are can be some really corrupt people involved in this imperfect process.

Realtors can, likewise, be distrustful of each other. Snips and sales and unreturned phone calls, unanswered e-mails, inability to show a property because a tenant won't allow it, excuses for days and more delays--that's what little ploys are made of.

Most buyers want a deal anytime they try to buy something. That normally means that the buyer intends to gain an advantage over the seller. When you consider it, buying real estate sometimes brings out the worst in people. I just Googled the terms "real estate" and "seven deadly sins" and voila I found THIS BLOG.

I've said enough. You get my point. Like I said, I hope "going postal" does not become "going Realtor".

P.S. Interesting things happen to people who buy from me. Follow me on TWITTER today to see what just happened to one.

710 Chapman Lane - Old Town - Key West

Think quick. Be prepared to act quicker. This property is so cute, so well done, and so affordably priced it likely will be under contract within a couple of days. The new listing (but not mine) at 710 Chapman Lane in the Bahama Village section of Old Town Key West was just listed at the incredible price of only $400,000 or $333 per sq ft.

CLICK HERE to see the listing info provided by the listing Realtor.

You can tell a lot about a property by a picture. I wish I were a better photographer. The pics I took do not do this house justice. But you may help you to appreciate all of the love that went into creating this house.

CLICK HERE to see the bricked courtyard entryway with a gurgling fountain CLICK HERE surrounded by hibiscus and other plants. Look up at the CLICK HERE custom shutters that set off the front porch so smartly.

The listing Realtor allowed me to take photos for a potential buyer who decided he could not make an offer. But I have to tell you that when I saw the outside I was really excited to see the inside. The listing Realtor opened the door and I saw a really bright, cheerful, and super clean entry hallway CLICK HERE. Off to the immediate right is the large master bedroom CLICK HERE and master bath. Unlike so many vintage Conch houses, the bedroom here was large and actually livable. I looked quickly at the master suite, but I was so captivated by the entry that I was like a kid at Christmas: I wanted to see what was at the back of the house.

There is a large dining area located at the end of the entry hallway. It shares space with the open and inviting kitchen with the living room just to the rear. There is an open stairway at the far side of the dining area that provides access to the two bedrooms and bath on the second floor. Every inch of the second floor is used creatively. The result is pure charm.

Just off the rear of the house is a good sized yard that I think is large enough for a decent pool. And I don't mean a cocktail pool. I can't guarantee anything, however.

Almost all of the neighboring houses have been redone. Chapman Lane runs just one block and is accessed off Petronia and Angela Streets. It's an easy two or three minute walk to Duval Street. The new Key West boardwalk will be a two or three minute walk when it is completed.

I hope I've got your attention. This place is really sweet. If your "other" Realtor didn't tell you about this, forget him or her. Please call me , Gary Thomas, 305-766-2642, to schedule an appointment.

1209 Olivia Street- SOLD - Short Sale that Happened

I probably showed 1209 Olivia Street to just about as many people as the listing Realtor. I think the property was a real bargain at the asking price of $610,000. It sold and closed this week at an even better price of $590,000. That is $387 per sq ft for very nice 2 bed, 2 bath house, "recently updated", with a pool and guest cottage, off street parking, located in a very good neighborhood, in Old Town Key West. CLICK HERE to see the details.

Getting a short sale actually accomplished can be very time consuming and bothersome to everybody involved. If you are a potential buyer of a short sale house, my advice is to make sure you have True Grit. I think the buyer on this house got a great property. Congrats!

CLICK HERE to search the real Key West Association of Realtors mls database. If you see a place you like, please contact me, Gary Thomas, 305.766.2742. I am a full time Realtor at Preferred Properties CRI in Key West,Florida. If you lived here instead of New Jersey, you would see blue skys almost every day of the year.

Bank Owned in Key West - My Thoughts

I'll probably get yelled at for writing this, but I don't care. I'm as mad as hell and I'm not going to take this anymore!

Well, maybe that is a bit of an overstatement. I do want to share my thoughts about local banks in Key West and how they are selling bank foreclosures. I'm not singling any one locally owned bank (local as to South Florida) because they all do pretty much the same thing.

Banks sponsor different events in the community to build up good will. Both lenders and operational employees in banks are members in all kinds of service groups and organizations. They make donations of time and money to put a good face forward in the Key West community.

Banks sponsor events for Realtors in Key West such as monthly Realtor luncheons, educational seminars, Realtor caravans, Chamber of Commerce and the Key West (gay) Business Guild functions, etc.

Banks and bankers everywhere do the same thing. They do it to court business and to make money.

Banks woo Realtors to bring customers to their bank so that bank can make new loans. I encourage my buyers to work with Key West lenders to get a loan. Local bankers know the Realtors, appraisers, attorneys and/or title insurance companies, insurance agents, surveyors, and home inspectors. Local lenders may know some of the history (Key West drama)that goes with the property or contractors that may have worked on the property. That knowledge can be a good thing or a bad thing depending on who the contractors were or what kind of event may have occurred at the property. A local lender can very often speed things up and make things happen a lot more efficiently than some mortgage broker sitting behind a computer screen far away.

I appreciate the ability to call a local lender on the phone or to walk a potential borrower into the bank to discuss financing availability. That access can often make a deal occur that might not be possible with an out of area lender. The Key West real estate market (especially Old Town properties) is truly unique, and local lenders are essential to getting many deals done.

The symbiotic relationship between Realtors and bankers is essential in making real estate transactions work smoothly.

Yet, when Key West banks foreclose on mortgages and become the reluctant owners of houses or commercial properties that could not get sold, many banks try to sell the foreclosed "assets" on their own. Most local banks have Special Assets departments that market the distressed properties.

Some banks do not set an asking price. Instead they solicit offers. The banks want buyers to make the first move. Banks usually will not make a counter-offer. Rather, banks will request the buyer to make a "best and final" offer.

Some banks have bank owned foreclosures listed on their website. Banks may even offer "bank financing". One local bank offers "95% Financing Available" on its website. I recently discussed a bank owned property with a bank officer. I specifically asked about the 95% financing and was told something to the effect that the offer of 95% financing did not apply to "that" particular property. I then asked what amount of a loan the bank would finance and what the interest rate would be. I was told the amount, rate, and terms are negotiable. The bank officer would not disclose the "asking price". I was told my buyer shuuld just make an offer.

Banks are required to comply with the TRUTH IN LENDING laws enacted by Congress. Just because a bank is a seller does not give the bank an excuse for not obeying the law. Disclosure is required and failure to disclose is a violation of the law. Advertising an interest rate that is not available is actionable in my opinion.

I used to manage the special assets department for a big bank in Denver. Part of my job involved the sale of bank owned properties. But my primary job was to minimize bank loss through doing loan workouts and managing bank litigation. I had to use the bank's money to avoid losing more money. I had to use my time efficiently and allocate the bank's resources wisely.

I was never known for giving anything away in litigation or in selling bank owned properties. But I knew this much: the bank's good name is at stake in every deal I made and in every action I took. You do not litigate to teach borrowers lessons. You do not foreclose on real estate to create an empire or preserve your job. You foreclose when other solutions are not available. Then you go after the bad guys.

Banks are required to have a current appraisal on file that supports the book value of each bank owned asset acquired through foreclosure. (A six month old appraisal in Key West is outdated.) Banks should market foreclosures at book value and not play games with the public. Banks should market bank owned assets by listing properties with local and knowledgeable Realtors rather than "in house". Marketing properties widely and openly avoids the appearance of impropriety. Banks should not give preferential deals or treatment on the sale of bank owned properties to insiders or customers of the banks. Instead, banks should to do everything possible to keep the bank's name and reputation above reproach in the sale of bank owned assets. I am not suggesting that any local bank is doing anything like that. I am saying that banks ought to do the right thing and not take actions that are self-serving.

Local banks in every town across the country have boards of directors that supervise the governance of local banks. Just as Wall Street investment bankers came under fire for big bonuses, local bank directors should insist that their particular bank should dispose of bank owned proprieties openly and honestly. They should insist that bank assets be listed with local Realtors and that asking prices and financing packages are clear and unambiguous.