The Key West Bank Dick

I've complained before that the Key West Association of Realtors mls database does not automatically show bank owned properties. Some Realtors believe that lender-owners do not want to disclose to the public that a bank owns a piece of property. I guess that is possible, but having worked in the Special Assets division of two banks, I know that we advertised we were selling bank foreclosures. There is a segment of the market that wants to buy bank foreclosures: they think they are going to get a deal. They have watched those late night info-mercials on how to buy real estate in a down market.

I decided to do my best imitation of W.C. Fields as The Bank Dick and went through the mls database and found the properties LISTED HERE that are bank owned. These properties are primarily single family homes in Key West. A couple of the properties are very nice. So there may be a real bargain if you play your cards right.

Most of the bank owners periodically reduce the asking price on properties that do not sell. Some of these properties are getting stale. They have been on the market a long time and nobody wants them. A couple actually look pretty interesting. Checkout the list and if you see a property that you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me be your Bank Dick and let's find a deal.

CLICK HERE and be your own detective and search the Key West mls database for active real property listings. Again, if you see something you like, please give me a call.

Architectural Icon - 1415 Alberta Street - Key West

The French Polynesian style home at 1415 Alberta Street in Key West's tony Casa Marina area was just listed for sale at $1,275,000 or only $504 per sq ft. The property was built in 1963 and it was featured in Architectural Digest in 1968. To read the article and view the photos of the 1415 Alberta Street as is appeared in Architectural Digest in 1968. It may take a couple of minutes to download. CLICK HERE.

This property is not our listing. I met with the listing agent two days ago so that I could preview the house for a client. I sent my client photos and decided this house is just too interesting not to pass on to the public.

The house has been updated over the years, and in my opinion, it needs to be updated again but in a way that maybe takes it back to its original design. The house was built to take advantage of Key West's temperate climate. The rooms opened to tropical courtyards. The house was not closed and air conditioned. Read the Architectural Digest article for more info on the design and function. The renovations must go. The property needs help. I'm not being mean. I am being realistic.

But when you consider the unique structure, the huge lot by Key West standards (10,000 sq ft), and the premium location just a block from the beach in an area of equally expensive properties, you will share my enthusiasm for this property. There is only one property like this in Key West. And that makes it very valuable in my opinion. If you watched Bravo TV's premiere episode of Million Dollar Listing this past Tuesday you saw a prime example of a Realtor trying to get a client to tie-up a unique property before someone else grabs it. The Realtor was Josh Flagg and he got a listing on the home of the late Jay Bernstein. That house was once owned by Carol Lombard. The house had fallen into deep disrepair but it had (to quote a line from Bill and Ted's Excellent Adventure)a "most excellent" location. Josh hosted an open house and tried to get some of his well healed buyers to look at the property. One such buyer was his dentist, Dr. Sam. Dr. Sam like the place but was slow to act. Another buyer ponied up with a low ball offer and the executor for the estate accepted the offer. Dr. Sam tried to submit a backup offer that met the original asking price. But it was too late. He lost out and the lower offer prevailed.

That's the story so many times in real estate--especially in a place like Key West. Key West is full of truly unique homes. Key West is not like Miami or Ft. Lauderdale with street after street of similarly styled and sized houses laid out in monotonous blocks. It just happens that in a town full of architecturally unique homes, the house at 1415 Alberta may be one of the most unique of all. And when it gets purchased, and it will, there are sure to be some Sad Sams walking around ruing the day they failed to act quick and tie up an architectural icon.

CLICK HERE to see what the listing agent says about this property. I live in the Casa Marina area and I would love to show you this house. I think this is a most excellent buy for someone who wants a project. What an opportunity this is for a buyer with vision. Want to see this house, please call me, Gary Thomas, 305-766-2642. Don't wait. Don't be a Sad Sam.

707 Washington -- Key West -- Short Sale

Just Listed: 707 Washington Street Key West, Florida. This great two home property is a legal duplex but it is actually two separate houses on the same lot and it is located on one of the best locations in the Casa Marina area.

This property was constructed in 2004. I live a couple of blocks away and I 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 bedrooms on the second floor of each residence soar. This property would be great for a buyer with lots of friends or relatives that you really like. There is plenty of room for lots of people.

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. 707 Washington has 4 bedrooms, 5 baths, two kitchens, two living rooms, a big pool, and a great Casa Marina location. The house has 3257 sq ft of living space and sits on a 5300 sq ft lot. It is offered at the Short Sale price of $2,150,000 or $660 per sq ft.

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.

3533 Flagler Avenue Key West Florida

Bank Owned house at 3533 Flagler Avenue in Key West, Florida is begging for a buyer. This 1950's vintage house has 4 bedrooms, 3 baths, a new kitchen, a separate laundry room, an enclosed backyard with a nifty pool, and balcony off the master bedroom overlooking the pool. The house is 1658 sq ft according to the property assessor, but I suspect it may be a little bigger because of the rear addition to the house. The lot is 5000 sq ft. The current asking price is $470,900 or $282 per sq ft.

Like a lot of bank owned houses this guy needs some tlc. Most of the floor are ceramic tile but the stairway and upstairs bedrooms are carpeted and soiled. The walls need painted and the house needs a bath for sure. And the pool needs cleaned immediately. The previous owners apparently liked bold colors, because all the walls are vibrant. Even the exterior grabs your attention. I'm no builder and what I say doesn't mean squat, but the house looks to be in pretty good shape on the outside and inside.

There are two bedrooms and two baths on the second floor, neither of which is very large. I'd remodel and create one large master suite with a larger bath. The french doors overlooking the pool below is really nice, irrespective how bad the photo to the right may seem.

The backyard could be incredible. It is very forlorn at this time, but the space is there to create a tropical oasis. There is a terrace for outdoor dining as well. The front has a white picket fence and two separate driveways that should make entrance and exit easy for the most challenged driver. CLICK HERE for more detailed info on this house.

PROPERTY IS LENDER OWNED! OFFERED AS-IS Without REPAIR. Countrywide provides free credit report and appraisal when financed through Countrywide.

I did a quick check of comparative sales for 3 plus bedrooms and 3 baths in the New Town area. There have only been 2 in the past 6 months of properties that compare with this one. A bank owned property on Flagler not in as good a condition sold at $132 per sq ft. Another bank owned house on 16th Terrace that was 400 sq ft smaller but had a larger lot sold for $320 per sq ft. Flagler is always a pretty hard sell. I don't think the bank owner will sell at the asking price or anywhere near it. But I do think this house definitely has a lot going for it.

This house is not a major fixer-upper. It sure does need cleaned and painted and there are a few issues a certified home inspector should look at for any buyer. But I think this house might make somebody a good home at a good price. If you want to see 3533 Flagler please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

July Sales in Key West

Some Realtors think we are at or near the bottom of the real estate market. I'm not so sure about that myself. I watch the new foreclosure filings every few days, and they are not stopping. Maybe there are not as many filings nor are they as fast as before. But there are still too many to think the foreclosure crisis is over in Key West.

Does that mean prices are going to go down more? I'm not so sure that will be the case across the broad market in Key West. Certain areas of town are just getting pummeled. Four examples include The Key West Golf Club, Solano Village, Las Salinas, and Salt Ponds.

New Town and Mid Town have 143 active single family listings. That is way too much inventory, and it probably means prices will come down even more.

The number of single family homes or condos in the Old Town area is scarce (only 89). The pickings are slim indeed. The prices on the few sales that have occurred have remained relatively stable. There are a few bank owned properties that have sold or that are under contract. I suspect that the sales of those properties may bring down the statistical averages for the Old Town segment of the market but not by much. I think the only properties for sale in Old Town right now are properties that need to be sold. One of the reasons that prices on Old Town homes got so high was their scarcity. That scarcity has not changed. The construction of new condos and town homes and the conversion of existing structures into condominiums in the Old Town area has pretty much dried up. (There are a couple of new properties, but you get the point.) My theory is that single family home owners are holding onto these scarce properties and are not panicking to sell. That could possibly happen in the future, but I doubt it.

The number of condos and town homes in Old Town is also limited. Truman Annex is a distinct market unto itself. I am seeing a deeper discount in the prices of condos and town homes in both areas. They are not maintaining their value as opposed to single family homes in the same areas. But their sales are not as depressed as condos on the east end of the island. The Old Town location wins over the burbs!

For the record there were 9 single family homes sales in Key West during July 2008 for a total sales volume of $12,341,000. The cheapest house sold for $330,000 (bank owned house on Eaton Street) and the most expensive was a historic landmark on William Street that went for $4,650,000. There were 11 condo and town home sales during this time period with the lowest going for $159,000 and the highest at only $1,150,000.

Sales of single family homes in July 2008 was better than July 2007. And July 2007 was better than July 2006. But if we go back to 2005 we see how much the market has declined since then. In July 2005 there were 19 single family home sales totaling $19,840,999. Single family home sales in 2008 are roughly 38% of what they were back then. Condo and town home sales totaled $10,990,100 in 2005 vs $4,730,500 this year for a 57% reduction. There were 8 condo and town home sales in July 2007 totaling $7,536,000 so sales on condos is worse this year over 2007.

There are buyers in Key West looking for bargains. They are looking for cheap. Those words are not synonymous. If you are serious about buying a house or condo you need to be ready to make a real offer that is "attractive" to the seller. The seller could be a distressed homeowner, an investor who needs to sell off some inventory to reduce mortgage payment obligations, or a bank asset manager looking to sell a foreclosed property. Give the seller a reason to look at the offer. Don't insult the seller with a price so low that it is not considered as serious. Make an all cash offer or get pre-qualified so that your offer does not have a huge financing contingency. In short, make your offer as clean and as simple as possible so that the only issue is boils down to how much money is paid and the date the deal is closed.

If you are a buyer and are looking for a deal in Old Town or nearby CLICK HERE and checkout the Key West Association of Realtors mls database. If you see a property you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. We may not be at the bottom of the market, but that doesn't mean you cannot get a good deal before prices go back up. Wouldn't you just hate yourself all over again if you waited too long for a second time and missed the opportunity to buy a piece of Paradise before they become unaffordable again.

8 Passover Lane Old Town Key West, Fl

I have often written about the virtues of living life on one of the slow lanes of Key West. Well, 8 Passover Lane is about the slowest of the slow lanes as possible. It is so slow that it is really just walkway about 6' wide that provides access to the three cottages on the lane. I can see some readers thinking I must be nuts. But read on.

This is how the listing Realtor describes the home: "Absolutely perfect story book cottage in one of the most desirable locations in Old Town. Step onto the rocking chair front porch and open the front door to the main level open floor plan with a large living/dining room and beautiful kitchen with custom cabinetry, granite counter tops and stainless steel appliances. Also on the first floor is the master suite w/vaulted ceiling, master bath and French doors to the rear deck,a cozy study/bedroom with built-in day bed and adjoining full bath with French door to private outdoor shower. Upstairs is a large guest bedroom with sitting area and half bath. Outdoors is a nice sized yard with heated small dipping pool and tropical landscaping. Beautiful turnkey property in absolute pristine condition."

Every once in a while a listing Realtor will refer to a new listing as a "quintessential Key West cottage" and that is exactly what this property is: the most perfect embodiment of the Key West cottage. I guess I'd describe it this way: you walk down the little lane and spy the mystical mailbox notifying you that you have arrived at 8 Passover Lane. You look to the front porch where you see the sign that you have indeed arrived "Paradise Found". Then you see the rocker on the front porch inviting you to seat yourself. Then you open the front door and enter into another world. A world far from the madness that has become the daily life up north in America. The place is done to a Tee, but not over-done. You just feel at ease. At home. In fact there is a sweet little sign over one of the doors that says it all Home Sweet Home. There isn't anything cookie cutter about this cottage. Everything, every view, every last detail is unique.

This two story dream house can be yours for $799,000. It is 1120 sq ft and sits on a lot that is 2349 sq ft. So the asking price equates to $713 per sq ft. They didn't make a lot of these cottages. In fact this is the only one. That's why it is so special. So desirable.
CLICK HERE for more detailed information on this charming two story cottage and additional photos. But understand you must see this living doll house to appreciate it. There is not another like it in Key West. Not at this price, anyway. There are some equally charming homes, but they are all priced much, much higher.

Want to see this property? Please call me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com. This is the place everybody dreams about. But only one person gets to own it. Maybe that person will be you.

Mad Men and Key West Real Estate

I discovered Mad Men a couple of weeks ago. It is an AMC Cable TV series that is executive produced by Scott Hornbacher (The Sopranos). The first season of Mad Men takes place in the year 1960, and you can watch every episode if you have On Demand on your cable. Spend an afternoon or two and invest in some good TV if you have not watched it.

The sets, the furniture, the lamps and artwork, the cars, the clothes, the hair styles and hair cuts, the incessant chain smoking, the expense account lunches, and the martini drinking transport us back to a kinder, gentler time. Forty-eight years later those of us who lived through that time can look back, not in anger, but with nostalgia, and remember how much easier life was then.

In one of the first episodes Betty was shopping in the grocery store. Vintage products whose brands have disappeared or whose logos have changed remind us of things we have long forgot. In the vegetable aisle we see prices that look like food was almost free by comparison to today's prices.

The interior shots of the characters' homes look so dated. Betty Draper, the wife of Don (Juan) Draper (the male lead) looks like Betty Furness in her 1960's kitchen complete with knotty pine walls. Some of the rooms look like some houses I occasionally show in the New Town area of Key West, except people still live in those houses--houses that were built and furnished in the 1960s and not updated except for maybe a plasma TV or computer. And the Key West version is nowhere nearly as swank.

Later we see the corporate office with the IBM Executive Typewriters and other almost antique office furniture and fixtures. But it is when ad exec Pete Campbell states his salary is $75 per week salary that we are shocked into 21st Century reality. Seventy-five dollars! Per Week! In one of the last episodes Peggy Olsen gets elevated from secretary to junior copywriter and a salary of $35 per week. That is a time when most women were relegated to being either homemakers or the servants to men in the workplace. That is pre-glass ceiling. And pre-civil rights as well. Not a black to be seen in the office except a janitor who gets to spy a sexual romp through the opaque glass of an adman's office.

Later we see Pete Campbell and his wife Trudy go shopping for a Manhattan apartment that was offered at $30,000. Now I realize this is TV and that the apartment is a set, but CLICK HERE this is how much you could buy in 1960's New York for thirty grand. Most cars cost that much these days.

I was 13 in 1960. I remember it quite well in some respects. I remember that you could buy a regular Coke for a nickel and a King Sized Coke for a dime. McDonalds was new to Denver, and you could buy a hamburger for 15 cents, fries and a Coke for a dime each. I could eat a nice lunch for about fifty cents--the original Value Meal. There used to be roadside truck stands where my mom would by fresh farm produce in the summer. I remember Rocky Ford Cantaloupes and ripe watermelons for about a nickel a pound. And gas cost about 20 cents per gallon for as long as I could remember. I have some old black and white movies my uncle took of a Skelly Gas station he owned on Speer Boulevard in Denver in the 1940s. Gas cost 15 cents back then. Twenty years later it cost 20 cents per gallon. Almost 50 years later it costs about $4.35 per gallon.

Everything was cheaper back in the 1960s. As I recall most of the people I knew had one car and one TV. I don't remember any of my friends wearing a designer anything. Haircuts cost a buck and we all looked well fed and well bred.

I seem to recall the first minimum wage job I had paid $1.00 per hour in the mid 1960s. Then the minimum went up to $1.10. Man, I was rich with the stroke of a pen.

I remember my parents looked at buying a new house in the Applewood area 10 miles west of Denver in the early 1960s. I recall it cost about $15,000. I just looked at some similar houses online and they are now being offered in the $400,000s to $500,000s.

The cost of everything has gone up since the "Mad" 1960s. I don't have any idea what a Madison Avenue ad executive makes today, but I'll wager it is a lot more than the $75 per week Pete Campbell ad exec made. I know that today an apartment in Manhattan costs way more than $30,000. I would guesstimate that most shop clerk type jobs pay about $10 - $16 per hour in Key West. Most hard labor jobs pay between $17 to $25. Carpenters get paid $45 to $65 per hour in Key West. A studio apartment in Key West costs about $1100 per month. A one bedroom apartment in Key West would cost $1200 per month or more. And a buyer can probably pick up a nice two story town house at the Key West Golf Club for under $300,000.

The simple life of the 1960s is gone. Today many families have a car for every person of driving age, a TV in every room, and a cell phone for each family member capable of using one. Many families own at least one vacation home in addition to the family residence. We have so many things that have made our lives less simple.

Inflation has made the cost of many things seem terribly high, but the cost of some things we use daily have become so cheap that they are now considered disposable instead of repairable: TVs, cellphones, computers, major appliances, gas blowers, etc. You get the idea. I know that there are some people who read my little blog that think the cost of houses in Key West is still too high. I think that prices have moderated quite a bit. There are still some mis-guided missiles in the Key West real estate market who continue to over-price their listings. But there are probably as many bottom-feeder buyers trying to suck the smell off of every zero in a real estate contract.

Invest some of your time and watch Mad Men on AMC. See how much better (or worse) our lives are nearly a half century later. If you think the next half century will bring us equally good fortune, you might be interested in buying a house in Key West at some of the best prices in a long time. CLICK HERE to checkout the Key West Association of Realtors mls database of residential and commercial listings. If you see something you like please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Sink or Swim -- Key West Real Estate

Two sales went through the mls yesterday that give us some insight into how the Key West real estate market is fairing these days.

Sale No. 1 was a bank foreclosure of a single family home at 1116 Eaton Street in Old Town. I showed the house about 5 weeks ago and it was pretty much the same as it was several years ago when it sold for a much higher price. The house has 2 bedrooms, one bath, a newer kitchen and a small pool. It is located on Eaton Street near the corner of White--one of the busiest intersections in town. It sits across the street from the entrance to Manley de Boer Lumber, Ace Hardware, and The Restaurant Store. CLICK HERE for more details on the house. It was listed originally for $379,900 and sold for $330,000 or $491 per sq ft.

Sale No. 2 is a Key West Landmark located at 1101 Casa Marina Court. It is the former estate of noted author Philip Caputo. It is one of the few Key West homes with a true ocean view. The home underwent some costly renovation and the gardens were extensively updated. It was originally listed for $5,750,000 and sold this week for $4,650,000 or $1,055 per sq ft. CLICK HERE for more info on this home.

For those that think the market price is Key West has totally tanked (or hope that it will), maybe your perception of the current market is a little skewed. I'm not trying to pick a fight with anyone. I think there are individual properties that are way over-priced based on condition, location, or the fuzzy logic of owners or their Realtors.

I am a pragmatist and I think the only sellers in Key West today are sellers who need to sell for some reason. Not all sales are distress sales. Some properties are "estate sales" where property is offered to help settle the estate of a recently departed. There are some divorce sales to be sure. This economic environment has cause a lot of marital stress. There are some developers or investors who have several properties that they purchased during the good times that they need to sell to reduce their mortgage payments. Those sellers may not be facing foreclosure, but they need to reduce the monthly outflow. The majority of listed properties are short sales and the offerings priced like short sales. And finally, there are the bank owned properties. They are typically, but not always, the houses that could not be sold because of legal issues, locational issues, or structural issues that made a regular sale nearly impossible.

Small houses usually sell at a higher price per square foot than a large home. Poorly located properties typically sell at a discounted price per square foot over those with a good location.
Houses on the market for a long period of time usually reflect some problem with the properties and that usually means a lower price per square foot. I don't pretend to understand how the appraisal process works, but these general rules seem to work quite consistently.

I see the sale of 1116 Eaton as being a reaffirmation of the value of Old Town as the place to buy. I remember showing similar properties to a New Yorker a few years ago. He said he didn't mind the street noise. He was used to it. He was looking for value and an Old Town location.

For those who think no house in Key West is worth a $1,000 per square foot, maybe you are mistaken. Maybe the Casa Marina sale will cause you to rethink the value of that location. I was showing a home last week to a couple who already own several homes in different locations including an apartment they purchased in the Belgravia section of London several years ago during a downturn there. They told me that the price per square foot is approaching $80,000 and that there is a line of buyers (Middle East, Russia, India and China)waiting to buy. Wish they were here!

If you are interested in buying a home or investment property in Key West CLICK HERE to checkout the Key West mls database. It is maintained in real time and you don't need any passwords to see what is available. If you would like to see a property please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. There are some deals to be had out there. Many properties are priced far below the Eaton Street house.

Shipyard Units -- Key West

The Shipyard Condominiums in Truman Annex have become favorite entry level properties for second home purchasers in Key West.
Although the units were almost identical when constructed in the early 1990s, many have been remodeled or updated to accommodate usage as vacation rentals.

I created a list of the units available CLICK HERE. The list shows the size, amenities, price, and price per sq ft so that prospective buyers can make a quick comparison between the different properties.

Some of the units have a transient rental license that permits the rental of the unit on a daily basis as permitted by a newly adopted City Ordinance. But other units do not have that license. So if you are looking to purchase a unit that can be legally rented on a daily basis, pay careful attention to the details on each unit.

Several of the units are offered as possible short sales. A short sale occurs when a lender (bank or mortgage company) allows the property to be sold for less than the remaining balance on the mortgage loan. The asking price may be subject to negotiation and there is no assurance the lender will agree to accept any sum less than the total owed on the mortgage. But since there are so many properties in foreclosure across the nation, prospective buyers may want to consider purchasing such a property on the chance that they may buy the property at a somewhat discounted value. (Not all properties are shown to the public as short sales. So it may be necessary to consult with a Realtor to determine whether any particular unit is offered as a short sale.)

One particular condo you might want to consider is unit no. 194 which is located in the southeast corner of the development near the corner of Thomas and Petronia Streets. This unit was just reduced in price from $539,000 to $499,000 and it is offered fully furnished. The furnishings are especially nice. According to the listing agent, this ground floor unit has a good rental history. It does have the valuable transient rental license. CLICK HERE for additional info on unit no. 194.

I would caution any buyer of a condominium or town home in Key West or anywhere else to review the condo docs and the home owner association budget to make sure the association is well capitalized and able to carry out business functions in the future without the imposition of any special assessments. I am not suggesting that Shipyard or any other association is in financial danger. But I am saying buyers need to investigate the fiscal stability of any project in which they may become an owner.

If you want to see any of the units listed here, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

623 Grinnell St. Old Town Key West, Fl

Just Listed: 623 Grinnell Street, Old Town, Key West, Florida. Absolutely charming historic home on a quiet street in the heart of old town. Original details throughout. High ceilings, 3 generous bedrooms including downstairs master. Off Street parking for 2 vehicles in tandem, wonderful porches and covered outside living area. An adorable home on one of the finest streets in Old Town Key West. CLICK HERE for more detailed information.

This 1646 sq ft home sits on a 3140 sq ft lot and is priced at $895,000 or $544 per sq ft. The home is now offered as a short sale. Just three months ago it was originally priced at $1,179,000 or $716 per sq ft. That is the reality of our current market. This property has always been a favorite of mine. It just oozes charm.

The house is located in one of the great Old Town neighborhoods. Five Brothers Grocery is just a hop-skip-and-a-jump away at the corner of Southard. You can go there every morning for your con leche and catch up with all the latest Key West gossip. Everybody famous goes there. You foodies know that Michael's is a two minute walk and Mangia Mangia takes the same time to reach if you got a craving for pasta. The Historic Key West Seaport is about a five minute walk to the north. Duval Street is a five or six minute stroll. It takes longer if you stop to smell the flowering trees.

If you are looking for a classic home, this one may be what you have been waiting for . It is a short sale, so there may other potential buyers who have their offers in the mix along with yours. That is just a fact of trying to buy a short sale property. But the wait and price break may be worth the trouble.

Want to see this house? Please call me, Gary Thomas, 305-766-2642 or e-mail me a kw1101v@aol.com. It is not my listing, but don't let that stop you from calling me. I work with buyers all the time.