Don't Say Cheap--Say Inexpensive

I have talked with several would-be buyers who think that the economic downturn has not hit bottom. They think prices will continue to fall and that they will be able to buy a second home in Key West at some future date for a lower price than is currently available. They may be right. But they could just as easily be wrong.

In an area where you have lots of similarly located, sized, aged, and comparable constructed homes I can understand how market events could cause prices on individual properties to fluctuate. And in locations that are dependent on one business or one industry, I can see where a downturn in a business segment (such as a plant closing) could dramatically effect prices across the board--not just in housing but in all segments of the local economy. But Key West is different from most parts of the American economy because of its particular location, the housing base, the tourist industry, and the significant military presence.

Some of the reasons people who visit Key West think about buying a second home here is the wonderful weather, the laid back lifestyle, the colorful locals, and the charming homes. There were stories on this morning's Today Show about the miserable weather in Michigan, snow in New York City, an earthquake in Nevada, and rioting in Europe. Our weather seldom changes and the front page of our paper, The Key West Citizen, usually deals local political news and human interest stories. We don't have riots or any serious crime as a rule. Our economy has taken a downturn because of the national emerging recession, but not all segments of the local economy are effected.

There are unique homes like the one I wrote about yesterday (409 William Street) that are very well priced by today's market and that I think will be deemed to have been a bargain just a few years from now. Some individuals who own numerous properties in Key West are hemmorhaging because they own too many properties that they have not been able to sell and have been forced to liquidate at below the now reduced fair market value. There are numerous properties in the foreclosure pipeline or that have been foreclosed that are now offered for sale at dramatically reduced asking prices.

Yet there is still a resistance by some buyers to buy because they think the markets will continue to decline. There are currently 17 condominium units at 1800 Atlantic listed for sale or less than 10% of the 172 units. They range in price from $398,000 to $1,698,000 (or $253 to $849 per sq ft) depending on location within the complex, extent of renovation, and the existence of transient rental license. There are several units that are in the process of foreclosure or that have been foreclosed. Those units have the lowest price points. A few weeks ago I wrote about ocean front and beautifully decorated unit at 1800 Atlantic that was being offered by the estate of the former owner at a very affordable price. It got snapped up immediately. I can understand hesitance or resistance at buying at the top end of a price range, but the units that are being offered as short sales or units that are bank owned are "buying opportunities". But that is just my opinion. CLICK HERE to checkout all current properties available at 1800 Atlantic. See for yourself whether there is a buying opportunity waiting for you.

Several of the properties that I have written about in the past couple of months have gone under contract and closed or are still awaiting closure. Most of the realtors I know are very busy right now showing properties and many are submitting offers. Many of those are There are opprotunites across the island in all price ranges and all types of properties. If you are seriously thinking about buying a property in Key West, it is time to get serious. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information.

Of course I understand that not everyone believes in the future the same way I do. Some will just hang around waiting for prices to fall. Others may dream of buying a luxury land yacht so they can travel the country in style. But maybe a few will act now and buy into the dream of owning a place in Key West--maybe a unit at 1800 Atlantic.

409 William Street Old Town Key West, Fl

I wrote about 409 William Street a few months back. I was hoping that some buyer with a few extra bucks would contact me and say "Let's buy that house!" But that did not happen.

For the last umpteen years it was the Gideon Lowe Guesthouse and later Whispers Guesthouse. The current owner bought the property in June 2005 for $2,000,000 and started an extensive renovation of the property. Everything is new and first rate. The owner/developer did not cut costs or corners. The house is 2850 sq ft and sits on a 4422 sq ft lot on one of the best blocks in Old Town. This 2 story historic landmark was originally built by the youngest son of one of the island's earliest Bahamian settlers (c.1845) and expanded c.1866. The latest renovaton was completed in 2007.

The newest incarnation has 4 bedrooms, 3 and 1/2 baths, state of the art amenities, razzle-dazzle kitchen, pool, off street parking, gardens, sunset views, and a killer location. After the home was completed it was initially offered at $2,999,000, but is now offered at $2,195,000--that is $770 per sq ft. Those that read this blog know I think price per sq ft is a useful tool in comparing properties to determine their present and future value. This house is currently under-priced in my opinion. The seller just has too many properties and wants to sell. This is an opportunity some bottom feeders dream about. I do not see the price going any lower, however.

When the economy turns and lots of people start buying expensive second homes again, this is the type of house that ought to be in very high demand because of its history, architectural features, location, and up-to-the-minute quality renovation. Those features are future value which means this house will increase in value much greater than houses without the same qualities. At least that's my opinion. CLICK HERE for more photos and information on this quality home.

If you have the glue to afford a home like this, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw11001v@aol.com to schedule a showing.

1 Lowes Lane Old Town Key West, Fl

I've written many times about Life in the Slow Lanes of Key West. There is a new listing of a recipient of a Historic Preservation Star at 1 Lowes Lane in Old Town, Key West. This house is 1388 sq ft and sits on a 1305 sq ft lot on Lowes Lane. Lowes is a dead end lane that is accessed midway between Fleming and Southard Streets off of Grinnell. The end of the lane is the entrance to a carriage house of a home that sold two years ago for $5.5 million. The Chief of Staff of the President has a home across the lane. Get it. Good neighborhood.

The home has 2 bedrooms and 2 baths and lots of charm. It has a very comfortable lived in look. CLICK HERE for more photos and information on this home. It is priced at $749,000 or $540 per sq ft. That is a pretty fair asking price for a nice home in a very good area on a quiet little lane.

603 Angela Street Old Town Key West, Fl

Remember the Lennon/McCartney song All You Need Is Love? Well, this poor house at 603 Angela Street needs some luvin' real bad.

Unlike many of the houses in Old Town that need to be fixed up, this house is practically new. It was built in 1997, so it not yet even a teenager. But it has not been maintained very well. That is not to say it has been abused or damaged. I think it needs a thorough cleaning, a fresh coat of paint inside and outside, decks by the pool powerwashed (or better replaced), shutters replaced, and perhaps resurface the pool. The house should be tented for termites as well. Nothing I mentioned is really expensive or difficult to do, but doing all would immediately add value to the property.

The present owners have some issues that require the house be sold. So I think a prudent buyer would seize this opportunity to by a house so well located in a heartbeat. 603 Angela in the heart of Old Town and near the top of Solares Hill. It is one block to Duval. The Gardens Hotel is located caddy corner. (The rooms there go run between $300 to $680 per night.) And the former home of Philip Burton is across the street. CLICK HERE to read about the Philip Burton house.

The house at 603 Angela Street has two bedrooms and three full baths (in case you want your relatives or friends to sleep in the living room.) The two story house is 1440 sq ft and sits on a 2167 sq ft lot. It is priced at $749,000 or $520 per sq ft. That seems like a good price to me given the condition, but I think a real strong all cash quick close offer could take the property for even less. But that is just my opinion. I know the sellers really want to sell. CLICK HERE for more info.

The house next door that was built by the same builder and at the same time as 603 Angela is used as a vacation rental. CLICK HERE to the neighbor's cool pool. The property manager tells me he rents that home for $8000 per month. (It is used as a monthly, not transient, rental. So it is only rented to one renter per month--whether it be for a day or the entire month.) I think the house at 603 Angela could demand a similar price if the improvements I suggested were made.

All this house needs is love, and a fresh coat of paint, yada, yada, yada. Want to see it, call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Key West Hole in the Water For Sale: Not Cheap

I don't own a boat so I have no idea what I am writing about except that I have heard this phrase used many times: "the happiest day of a boat owner's life is the day they buy the boat and the day they sell it." I guess anything you love can end up being expensive if you do it right or do it up "big".

Two days ago I wrote about the new Steamplant Condos that overlook the Conch Harbor Marina on the Historic Key West Seaport. That area as a whole is referred to as the Key West Bight. Click the black and white photo to the right and it enlarge to provide a better view of all the marinas in that immediate area.

The dazzling moonlight photo is taken from the Galleon Marina looking toward the Steamplant. That photo is a couple of years old and shows the Steamplant's steel skeleton.

If you own a boat and want to buy a hole in the water in Key West I have prepared a short list of boatslips that are for sale. CLICK HERE to preview the list. There are numerous new boatslips available on Stock Island at Sunset Marina, the Pennisular Marina, and Kings Point Marina. There are only a few available at the Galleon or Conch Harbor Marinas. Location plays just as big a roll in the pricing of boatslips as it does in homes. The slips located at the Bight are the ones most in demand because of their prime location. And it seems that boatslips have held there value relatively well during the past two years.

Let me help you buy a hole in the water. Call Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com for more info on other boatslips or other property

High Society: Key West Steamplant Condos

Just before sunset there was a soiree at the new Steamplant Condominiums located at the foot of the Key West Seaport. Realtors only. But the public is invited for a look see on Sunday. Go take a peek and see what you think. Come back and leave your comments here.

The Steamplant is touted as an art deco building, but it was built in 1951 so I'm not sure if it would really qualify as art deco. It was the place where the Key West City Electric Company (now Keys Energy) made electricity. After Key West started getting its electricity from the mainland, the building was no longer necessary. The powers that be declared the building iconic and historically significant and demanded that it be renovated and not torn down.

Ed Swift took us on the tour yesterday and I asked how much of the old building remained. He said the front wall. He called what they did a "facadectomy". They built an entirely new building and retained the historic front wall as a skin. They do the same thing all the time on old houses down here. It makes no sense, and it's a con. But it is considered legal.

There are nineteen condos in the building. Each unit is accessed from covered parking by private elevator. Some of the units that face the seaport are called flats because they occupy just one floor. And the units that face the city are called townhouses because they occupy two floors. Each unit has its own rooftop pool where the owner can dip but not dive. CLICK HERE for a peek at a pool. That photo is for real. It is not a fake. That is the pool you get. The rooftop terraces that overlook the seaport have commanding views, but the terraces themselves are half the size of the townhouse side of the building where the views are less interesting. But that is just my opinion.

There is a huge public rooftop terrace that overlooks the seaport as well. That terrace has a permanent catering kitchen and bar. The developer said that the profile of the Steamplant owners is such that he expects many events and fund raisers will be held on that terrace. High Society indeed. I can just see Fred and Ginger dancing on the terrace.

The units are large--no huge by Key West standards. They range in size between 2072 to over 3500 square feet. When you add the floor level terraces and the rooftop terraces the combined spaces are between 2879 to 5477 square feet--depending on the particular unit. No two units are the same. However, all share the same quality finishes and amenities. Top of line across the board.

We toured several of the units on both sides to get a feel for the layouts. The owners of one townhouse have spent an additional $250,000 in upgrades the already expensive unit. And the developer told us of another happy homeowner who spent $450,000 on upgrades. (That is so typical of what a lot of rich buyers do when they buy an expensive home in Old Town or Casa Marina: they tear everything apart and redo it. Even if it is new and beautiful. They are like dogs who must make their mark.)

I won't bore you with the details but the building has a full time property manager, a concierge, and staff to maintain the individual pools and attend each property owner's rooftop terrace (garden). There's a car wash, gym, meeting rooms, you get the picture

We have a resale in the building. And there are a few buyers (speculators) who have resales available as well. And the developer still has a "couple" of units left. I would be happier than the dickens to accompany an interested buyer to tour this property. Units are priced $2,750,000 and up.
CLICK HERE for more info and more pics on the available units.

This property was built for the wealthy. If you have a yacht and want a permanent base to house your baby or a friendly port, the Key West Steamplant may be your second home. Or third or fourth. There are boat slips available at the Historic Seaport. And the City of Key West is at your doorstep. Give me a call if you're looking for a place like this: 305-766-2642.

Cheep Cheep--Not Cheap Cheap!

There are a few things that just about every first time tourist or seasoned traveler does in Key West: take pictures of the wild chickens, eat conch and or key lime pie, ride the conch train, and checkout the real estate listings outside local real estate offices.

Some folks return season after season and remark about how high the prices have risen. They say things like "I wish I would have bought that a house back when the prices were cheaper." These days they say things like "I don't think we've seen the end of it yet"--meaning the prices will continue to decline until some indefinite time in the future.

I prepared a short list of single family homes in Old Town priced under $650,000 CLICK HERE. There are a couple of very nice properties in the list. And there are a couple of dogs as well. I should not disparage dogs that way. I apologize.

Some of the houses on the list are described by the listing offices as "potential short sale". That means the offer to sell at the price listed is conditioned upon the mortgage lender agreeing to accept less than the total amount due on a mortgage. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. And not all sellers nor all properties qualify for short sales, i.e., judgment liens, tax liens, mechanics liens, and other liens dead beats accrue.

5 Hunts Lane in Old Town could be a sweet renovation project for someone. It is a truc conch house that has been in the same family ever since it was built over a hundred years ago. It is priced at $409,000 or $338 per sq ft. The house is a two story and has 1210 sq ft according to tax records.

926 Southard Street is used as a vacation rental and seems to stay very busy. It has all the street charm a buyer could want. There is a cute little pool in the rear. The house has only one bedroom, so that is a bummer for people with friends or family. Or maybe it isn't. It is priced at $645,000.

Our office has the listing at 1011 Truman Avenue. It also is a potential short sale. It has two bedrooms, two baths, heated pool, off street parking and it's beautiful. Offered at $650,000 or $731 per sq ft.

Old Town is always the easiest location to sell. None of these houses is outside of Old Town, not even just across the street. Take a look at the list CLICK HERE and see if one of these little homes might work for you. It may not be cheap, but it could prove to be a good investment in your future.

Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com if you would like more information on any of these properties.

Prices are Falling! Prices are Falling!

Realization is sinking in for some would-be sellers: Selling Season is Quickly Expiring. As a result the asking price on many homes and condos are falling (being reduced). I thought it would be interesting to post a few examples of some good properties with new prices that now seem like bargains. At least bargains by Key West standards. Click on any address for a more detailed sheet and photos.

1119 Olivia This is a legal duplex located in Old Town that was totally renovated within the last two years. Originally priced at $1,275,000 and now $610,000. This is a potential short sale.

716 Olivia Street This is a new renovation that has not been lived in. Unique design, quality craftsmanship, and top of the line fixtures mark this extraordinary property. Originally listed at $2,495,000 and now offered at $1,995,000. This is a potential short sale.

814 Ashe Street New construction in Old Town. Three bedroom historic reproduction single family home with luxury finishes and features built by award-winning Key West builder. Originally listed at $2,149,999 and now priced at $1,395,000.


804 Elizabeth Street was the subject of a TV renovation project a couple of years back. The home is sharp and has a beautiful pool and garden area. Originally priced at $1,695,000 and now offered at $1,575,000.

916 Washington Street in the Casa Marina Area is a new home boasting a modern & innovative 4000 sq ft. Totaling 4 generous en-suite bedrooms and an outstanding display of luxury amenities including state of the art kitchen with pantry. Originally offered at $3,750,000 and now priced at $2,999,000.

727 Waddell Street is another newly constructed gracious home. This home boasts charming roof lines, wrap around porches & balconies located in the coveted Casa Marina Area. The home is 2800 sq ft and five en-suite bed/baths and a killer pool and garden. Originally priced at $3,300,000 and now offered at only $1,999,000 or $714 per sq ft. This home is a block from the beach friends and it is all new. Top of the line. Methinks there is a deal to be made on this one.

1800 Atlantic Unit C229 is a bank foreclosure and priced to sell now. Offered at $404,000. These CLICK HERE are the other 1800 Atlantic units. Judge the price for yourself.

There are lots of properties in all price ranges that are priced to sell. CLICK HERE to do your own search of the Key West mls database. Most of the properties are listed because the seller really wants to sell. Sometimes it takes an aggressive buyer and a good Realtor to craft an offer that gets a deal accomplished. Do your homework and find the home you think might work for you. Then give me, Gary Thomas, a call at 305-766-2642. Or e-mail me at kw1101v@aol.com.

Present Value

Yesterday I wrote about a house at 724 Ashe Street in Key West that I think is a very good value for today's real estate market. It is priced at $999,000. To many price would see very high. But in the context of the specific milieu of Old Town Key West of similarly priced homes, I think the value of 724 Ashe is very apparent. To help prove this point I did a search of the Key West mls database and came up with similarly priced homes in the same area. CLICK HERE to review the list of homes in the same price range. You will see a great disparity in both the price per square foot, location, and quality of features offered.

By the way the photos are of four of the houses contained in the CLICK HERE link. You can tell without even clicking the link that there is a disparity of quality and size. I'm not disparaging any property but simply commenting on the obvious.

I have written before about the fact that Key West locals know the price of just about every house down here. (I'm talking about what an owner paid for it and what it is worth today.) But price and value are not the same thing. "Cheap" rarely equates to quality. And "high price" does not insure high quality. Key West is unique in that many of our old homes are totally dissimilar--especially in Old Town. So it is really necessary to consider price per sq ft, location, features, etc. to determine the present value of a house in Key West. Buyers do that exercise anywhere. But here the dissimilarity of houses makes the valuation process more difficult.

There are six houses in the $950,000 to $999,000 price range CLICK HERE located in Old Town that vary between 1150 to 2300 square feet and that are priced between $420 to $864 per square foot. The individual houses vary as to year of construction and quality of construction (or renovation). In fact one is listed as a possible tear down. So it is really necessary to do your homework when looking at a property in the current market. I hate to be so blunt but sometimes it is necessary to take advantage of a seller's financial woes when making an offer on property. A smart buyer needs to craft a strong offer in order to take advantage of buying opportunities in a troubled real estate market. Strong offers are usually all cash, limited contingencies such as inspection and appraisal, offering to pay for the title policy, and quick closing. Don't lose your common sense when agreeing to a price and terms. If the house won't appraise at the "sales price" don't buy it. Sometimes appraisers find flaws with a property that cannot be reconciled with the agreed price.

If you are looking for a home in Key West CLICK HERE to perform your own search of the Key West mls database. Don't just look at price because that is but one element that helps determine the present value of real estate. I happen to believe the current market is very depressed (and it may go down further). But there are individual bargains out there just waiting for a smart buyer to purchase. And I really believe that the present value in those properties will increase as we make our way out of the present turmoil.

If you see something you like please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information. You may find something you just can't live without.

724 Ashe Street Old Town Key West,Fl

The lovely home at 724 Ashe Street in Old Town Key West was purchased by its present owner in 2004 for the sum of $1,265,000 or $766 per sq ft. That was a good price for its time, but the owner did not pay a premium for it. The house has just about what most full time and second home owners look for in an Old Town home: 3 bedrooms, 3 full baths, Dade County Pine walls, beautiful interiors, an inviting pool, and a quiet location. Most of the surrounding homes are of similar vintage construction and most of those have been renovated. There are some new homes in the area as well.

The present owner put the house at 724 Ashe on the market in 2006 for $1,495,000 and has steadily reduced the asking price over the past two years. Yesterday, the listing Realtor dropped the price to $995,000 or $603 per sq ft. If you have been following the asking prices on various properties that I have mentioned you will see that the current price is very reasonable, even cheap compared to many properties with similar features.

This is how the listing Realtor describes this home: This is a potential short sale that may be subject to third party approval. Located on a quiet block in the Historic District, this house was built in the late 1800's and recently beautifully renovated. There are three bedrooms and three baths with an open living and dining area overlooking the heated pool and gardens through French doors. The beauty of the home is highlighted by Brazilian cherry and limestone floors. The stunning kitchen is open to the living area and features stainless steel appliances and slate counter tops. Adding to its historic appeal are multiple covered sitting porches. Relax and Enjoy!

The house has 1650 sq ft of very usable living space. There is no off street parking, but the area is primarily single family homes and many of those have parking. The home has a two inviting porches on the first and second floors at the front of the property. The living area opens onto the deck and pool area, and there is a covered veranda off the second floor master bedroom that overlooks the pool. The lot is narrow but deep (22.5' x 93'). CLICK HERE to see more info and photos.

I think somebody will act quickly on this house at this price. Persons interested in making an offer on short sale listings need to have all of their information ready in order to get the immediate attention of the lender. That means make an all cash (proof of funds required) with a quick close with limited contingencies (inspection) or proof of funds accompanied by loan commitment sufficient to cover the sales transaction. Complicated offers or offers with ridiculous prices or contingencies are futile.

Want to see this house before it is too late? Call Gary Thomas, 305-766-2642 and schedule a showing.