Tenants Now Paying Association Dues

The story is common all over Key West in the down turn of our economy. An investor owns a condo or townhouse, they owe more on the property then it is worth so they stop making payments. In the following years that it takes to foreclose the property is rented and the owner continues to collect the rent, but not pay the mortgage company or the association. At this point the association falls short of money and has to postpone needed repairs and maintenance or collect more money from the owners who are current. This puts a burden on the association and their members. It also has a negative effect on property values by making it harder for a new buyer to get financing. When their mortgage company sees a high number of owners not paying the association it makes no difference how good their credit is the property won’t qualify.

A new law passed by the Florida legislature makes it easier for condo and homeowner associations to collect back dues owned to them. They now have the right to collect the rent directly from the tenants until the dues are current. If the tenant is ordered to make a payment to the association, it counts as rent credit. The tenant pays the remaining balance to the landlord. For example, if a lease agreement calls for the renter to pay $600 a month including $100 association fees, traditionally they would have paid the whole amount to the landlord. Now, under the law, the tenant would pay the landlord $500 and the association $100.

When a renter is required to pay the association directly, they should keep a copy of the notice from the association seeking payment, as well as cancelled checks and/or receipts. If the landlord demands the entire $600, the tenant should send them copies of the documents and receipts showing their payments to the association.

“If the landlord files an eviction, it’s very important that the tenant doesn’t sit back and assume the payment to the association will protect them; they need to answer the eviction lawsuit,” In this situation the Landlord will not be able to evict the tenant for nonpayment only the condo association can. The law helps the tenant if they are doing what they’re supposed to do while the landlord isn’t.

Gulfview Townhouse Just Reduced!

Just Reduced...$499,900

3 Bedroom, 2.5 Bath Townhouse

Beautiful open water Gulf views in gated community. Out door deck area w/private pool & fountains. 2 upstairs balconies. Hurricane shutters for all windows. Carport with storage. One owner is a real estate licensee. Total annual insurance costs are $3,370. Bank is local and a decission would be made quickley.

MLS Link: http://keywestmls.rapmls.com/scripts/mgrqispi.dll?APPNAME=Keywest&PRGNAME=MLSLogin&ARGUMENT=8Aaav9tRjeIvgJEhSou08sKFOwQm9%2Bn%2BuJYQHXtJPOI%3D&KeyRid=1

Joanne Tarantino - CRS

Prudential Knight & Gardner Realty

(305) 294-5155 x244 ~ (305) 304-2012

(305) 295-0946 Fax

Joanne1kw@gmail.com

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"TALL on Real Estate Service"

REDUCED...Las Salinas Condo W210...$214,900

Just Reduced to $214,900
2 Bedroom, 2 Bath Condo @ Las Salinas, Unit W210
Good condition with ceramic tile throughout. New central A/C. Individual storage area. Beautiful pool.NOT A SHORT SALE. Owners are licensed real estate agents in the State of Florida.

MLS Link: http://keywestmls.rapmls.com/scripts/mgrqispi.dll?APPNAME=Keywest&PRGNAME=MLSLogin&ARGUMENT=NzmSemIBeFaKPHiL6Z0GkmZErtccBEFzKIYRIizIhJQ%3D&KeyRid=1

Joanne Tarantino - CRS
Prudential Knight & Gardner Realty
(305) 294-5155 x244 ~ (305) 304-2012
(305) 295-0946 Fax
Joanne1kw@gmail.com
http://www.kwhomes.net
http://joannetarantino.blogspot.com/
"TALL on Real Estate Service"

Distressed Sale’s Role in the Key West Market

Although the number of distressed sales nation wide are at 29%; there are some areas where the percentages are higher. Certain locations like California, Nevada and South Florida have higher rates. On checking the residential sold properties for the last 6 months in the Key West MLS there were 231 sales, 114 (49%) were distressed sales (short sale or lender owned).

Looking at how those sales break down, the short sales are on the market much longer then the bank owned properties and sell for a lower percentage of list price. Although there is legislation to make the short sales go faster they are still taking quite long. The Key West MLS currently has 193 pending sales; 139 of them are short sales. In these cases the seller has found a buyer and is waiting for the bank’s decision to approve the sale. It is not uncommon for this to take over a year.

The bank owned properties are usually listed very low to get a quick sale. Often there are multiple offers in a short period of time. Of these multiple offers a strong preference is given to cash offers or buyers putting down large down payments. These type of sales close faster and have a lower risk of failing thus further reducing the amount of time on the market. Because the bank owned properties are listed so low to start with many bids come in substantially over the asking price. Overall residential sales in Key West sell for 92.66% of list price for lender owned properties that percentage jumps to 96.77%.

With the distressed sales come much lower prices. Because of this, the number of sales are up with investors and first time home buyers jumping at the chances to take advantage of this opportunity.

Bank Becomes T Shirt Shop

The Wachovia Bank building is an architecturally beautiful land mark sitting majestically at the corner of Duval and Front St. Built in 1891 it has weathered hurricanes and dodged fires that periodically engulf other historic Key West buildings. Originally and for years it was Florida First National Bank. Wachovia bought the building in 1992 for $2,520,000. Wachovia closed that branch about the same time it merged with Wells Fargo in 2008 and consolidated its operations on Northside Dr. It took me a while to realize Wachovia had closed it's down town branch (I am not a Wachovia customer) and don't frequent Front and Duval too often, the ground central for cruise ship visitors.

Was I surprised when I did walk past that corner? It is a T shirt shop now! Wow, do things change. It is a decent enough shop and they carry more then just T shirts. There are men's, woman's and children's clothes. Why is it that all the shops on lower Duval carry clothes that look exactly the same, like the gauzy women's dresses and short shorts that say "Key West" across the butt? This must be what sells. When these shoppers get back on board are they all wearing the same dresses, shirts and beach cover ups?

I walked past the mannequin of a woman standing in the door. There were a lot of customers in there; the sales people were busy. I found that the clothing section was divided off from the knick knack section by what was once the teller's counter. In the glassed in office in the back where the bank manager sat now sits the store manager. In the knick knack section behind the shot glasses and key chains is still the bank vault. I wonder what's in it.

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No this is Not My Listing - 3814 Flagler Avenue, Key West, FL

This however is a great buy on this bank owned property (3814 Flagler Avenue, Key West, FL)! Can you believe it, a 5 bedroom 3 bath waterfront house on a huge lot (1/3 of an acre) just reduced to $699,000! In addition to the 3106 sq ft of living area there is also a two car garage. At this asking price that calculates to only $255/square foot. Remember the old days when waterfront property would go for around $800/sq ft? This has to currently be the best buy in Key West.

This property was purchased by an owner of a local real estate company (who has since left town) in 2004 for $1,050,000. It was originally listed for sale in June of 2009 for $1,250,000 and has just had its fifth price reduction down to $699,000. For any one who needs a lot of space and would enjoy living on a canal this is a great opportunity. Oh did I mention that it also has a pool, not just a little dipping pool but a hotel size pool. The seawall is 105' long with a step down. You could dock a couple of boats here.

Has anyone noticed how cold it has been in Key West? Worry not; this house has a real cool looking elongated stylish fireplace in the great room. Ok, something has to be wrong. Well, the former owner's wife had some unique taste in wall colors. That is easy to fix just try imagining off white as you walk through. Yes, she had probably been bugging her husband for some updating in the kitchen and the baths before the economy turned bad. He was right when he said they are perfectly fine the way they are. He was right, but in her defense they are really dated.

Ok folks, here it is a great chance for a waterfront "steal". Call me if you know of anyone who would like to see it. It is easy to show.

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No Word...

The other day I was thinking about this past decade and trying to think about what characterized it when I realize that we do not have a name for it. There is a gap in the English language as to what to call it. Yes we are in the 21st century, but that is for the whole century, not just the first 10 years of it. You could say the early 2000’s but that is pretty vague and does not precisely define the decade.

It has been a pretty bad decade with 9/11 and the financial melt down, but it at least deserves a name. What could it be, the zeros? Or better yet the zippy zeros, but that would be a lie. There has been nothing too zippy about it unless you called the sky rocketing real estate prices zipping up between 2000 and 2006 but finally crashing and burning as the decade slides to a close.

It could be the double 0’s, but that sound more like a cup size. How about the 00's? “Back in the 00’s when I was selling real estate in Key West….” How about the preteens? Well it just sounds like the whole population advancing on puberty together.

Now that we're confused enough about what to call this decade we are quickly advancing on the next decade. The “teens”?????

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Short Sales...Grrrr

Why is it that I am asked daily is my short sale not yet approved after months and months of waiting. This is the all too common question from buyers who have made offers on short sales. Buyers are pre-approved, brought in offers that are at the current value and then just wait. Banks seem to be in no hurry to approve these while taxes, condo fees, code violations fines and maintenance issues mount. We have all seen the murky green pool that now has fish living in it. In the Key West Association of Realtors MLS as in other communities there is a glut of short sales awaiting approval. Currently we have 149 residential short sales under contract as compared to 46 normal sales. A whole new cottage industry of short sale negotiators is flourishing but nothing has sped up.

What is wrong with this picture? I think a lot; only 1 in 3 short sales ever close primarily because the buyer eventually drops out. A short sale that never closes can only end up as a foreclosure and most times is resold for a price much less then the actual short sale offer. The banks end up losing money and when they do the US government seems to be there to help.

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Just Sold

JUST SOLD: 1606 Flagler Avenue, Key West, FL Cute Key West hideaway. Completely remodeled in 2006. New kitchen and appliances, new bathrooms. Tile throughout. Potential mother-in-law apartment or lock out room. Shaded yard with outdoor living space. A short walk to the beach.

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Strategic Foreclosure

A new term has emerged in the ever changing real estate world. Just as none of us knew what a "short sale" was 4 years ago or a "flipper" 9 years ago, we now have chance to expand our vocabulary and incorporate "strategic foreclosure". A strategic foreclosure is when a property owner has the ability to pay their mortgage but chooses not to. This group now accounts for about one in every four foreclosures. This has created an ethical discussion for those involved.

You borrowed the money, you owe the money. Why should you not pay it back? Yes the property you own dropped below what you borrowed. The same house in your neighborhood can be bought for a fraction of what you owe. You think, just walk away from it and let the bank take the loss, but if the property had gone up in value would you be trying to give money back to the bank? I don't think so, that was not the deal. The loan was not contingent on property values staying up. If you loaned money to a friend and he lost it wouldn't you still expect him to pay it back?

On the other hand weren't the banks greedy making all the loans they could, encouraging you to lie about your income, the "no documentation liar loan"? Any one with a pulse could borrow half a million dollars. The bankers were receiving huge bonuses and the federal government was encouraging it all. You have a little savings for retirement or the kid's college fund. Now, throw it all away to support Wall Street? Didn't the banks know that they were taking a gamble making all these high risk loans? It was a calculated business decision based on the value of your real estate. They calculated wrong. You don't pay, they foreclose. It is all spelled out plain and simple in the mortgage documents.

Interesting question let me know what you think.

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How the 2009 Key West Real Estate Market Did

When ever I talk to people they always ask “how is the real estate market?” So many people have invested in or own homes and other real estate in the Key West area that it is a constant question. So here we go. At the beginning of 2009 in January we had 854 properties on the market in Key West. At the end of the year in the month of December we had 584 that is a 31% reduction. The inventory has been moving down through out 2009. This is good because a real estate market flooded with inventory is going to do nothing but decline in value. What is more encouraging is that in the month of January only 2% of the active listings sold and at the end of the year in December 5.6% had sold. The average sales price in 2009 ($458,280) was down from 2008 ($639,940) by 28.4%. Days on the market (DOM) has stayed about the same since 2007 about 171 days.

As for the upper end market there were 193 active listings over $1,000,000. 32 of them sold which is 16.5% of the total and days on the market were less then the over all, only 135.

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New lease on life

Just read about a guy that got a new lease on life. For the longest time I thought that saying was a new "leash" on life. The new leash idea evokes a picture of lassoing life with a leash and reeling it back in. I like the lease thing better. It reinforces the idea that we are tenants on the planet for a temporary term. Our lease will end at a certain time, but then occasionally we get an unexpected windfall, an option to extend. Let's all enjoy our current leases to the fullest!

REDUCED!!! Charming Key West Apartment Building

Charming Key West apartment building at the foot of Margaret St only one block from the waterfront of the Historic Seaport District.Four legal units generates aproximately $4,900 in gross rent. 4 electic meters and 1 water meter.


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Golfing and Real Estate

Not really sure this is the right title for this blog, but I find dry titles make what I have to say less interesting to a prospective reader then what it really is. Golfing is fun and a sport. You wear oxford type shoes with little nails on the bottom to play. What does golf have to do with real estate? You ask yourself that question and want to read on to see just how it does. A local developer named Pritam Singh, Aka Paul Labombard developed the property surrounding the Key West Golf Course in 1995 and appropriately named it The Key West Golf Club. The new owners did not really belong to a club that golfed together they just had their new homes located around the greens and fairways of those who did and shared in common that having a golf ball hit your house or land in your yard was "par for the course", pun intended.

Once again I am going to look at a local community to extrapolate what could be a trend for the Lower Keys. We have a flipper! Remember in about 2003 we all learned the new word as it applied to real estate, "flipping" and one that did that was a "flipper"? Well when the market was going up soooo fast it was lucrative to buy a residential property totally on speculation with the intention of selling it very quickly at a higher price after closing or even selling the contract before closing and then you had "flipped" it. Flipping is back at the Key West Golf Club. 66 Merganser, bought on December 14, 2009 for $170,000 as a short sale came back on the market on December 23, 2009 for $217,400, according to the information in the Key West Board of Realtors. It has not gone under contract yet, but it has a good chance to. There is very little for sale in this price range. As a matter of fact there is only one other unit under $345,000 that is actively on the market for sale and it is a short sale with extensive water damage and an accompanying expensive mold problem to cure all at the buyer's expense. This property is being offered at $192,500 and has been on the market for 433 days. I suspect that in the time it takes for the bank to approve a short sale (maybe 6 months) there could be quite a bit more green/black fuzzy growth.

Stay tuned we will see what happens.

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The William Pope Crawl

In our small town of Key West, one street remains the most popular tourist destination on the island. Packed with bars, restaurants and shops, the mile long stretch is a must see for the millions of tourist who continuously stroll down its sun covered sidewalks. Sure, many can say they’ve thrown back Margaritas and beers in some of the most famous bars in the world, but how many can say they know who the street is named after?

That man was William Pope Duval, adventurer, lawyer, cavalry man and former state governor. He was born in 1784, a boy who seemed to get in a lot of trouble ran away from home in Virginia at 14 to the frontier of Kentucky. He carved a successful life and was admitted to the bar when he was only 20. In the following years, he rode as a cavalry officer and served as a congressional representative for Kentucky. In 1822 he became Florida’s first territorial governor, appointed by President James Monroe. At that time Florida had no seat in which he could govern. Until the new capital was constructed in the small Indian town of Tallahassee, Duval governed from a boat docked at St. Marks. He was a popular governor, serving for 12 years and known for his peaceful dealing with the Native Americans.

So the next time you’re throwing back some drinks at Sloppy Joes or doing the Duval crawl, remember William Pope, a man’s name eternalized in down town Key West.

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Key West Real Estate Moves Back in Time with the Smurfs

We all know that our real estate market has been a roller coaster ride this decade. I find it interesting to go back and look at how prices have changed dramatically over the years in one Key West neighborhood.

Any one who has spent much time in Key West off Duval Street probably has heard of Key West Estates nick named "Smurf Village". Why the Smurf moniker? Some say that the mansard style roofs make them look like mushrooms where the cartoon Smurfs makes their homes. These homes, in New Town on Duck, Eagle and Harriet Ave, four to a building have been popular entry level homes for Key Westers since built in the late 80's.

When built they were all the same size 1040 square feet, 2 bedrooms and 1.5 baths. Over the years there have been many transformations. The owner has a yard, owns the land and can make many improvements, adding a pool, an addition, enclosing a porch, etc., but it is always a "Smurf".

In the 90's I remember being in discussions with other Realtors, while on caravan if we thought a Smurf House would ever sell for more the $100,000. The collective answer was "no way” shows how savvy real estate agents are. In 2004 one of these town homes sold for $519,000. That was the last sale in 2004. The first sale of that year was $345,000. That is a 50% increase in one year! Where are we now? With a scourge of foreclosures and short sales the average Smurf sales price in 2009 is $166,106. How many years ago was that the average price? The closest that I can tell is 2001, the year of the attack on the World Trade Center. We have stepped into the time machine of real estate travel and gone back 8 years. The good news is that you cannot buy a Smurf house today. They have all been bought. The last several that came on the market had multiple offers within days (a bidding war). This tells me that we will see an increase in prices to satisfy demand. Yes in Smurf Village they have hit bottom and the upward movement of prices is now here.

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Tax Credit Not Just For First Timers

As expected the $8,000 first time buy tax credit has been extended by the federal government. The tax credit will apply for all home sales closed January 1 through April 30, 2010 and will also apply to sales that close by June 30, 2010 as long as they are under contract by April 30, 2010. The $8,000 tax credit is only for buyers who have not owned a principal residence for the last three years, but now there is a $6,500 tax credit for a buyer that has owned their own home. The maximum allowable income is the same, $125,000 for a single person and $225,000 for a married couple. Just as for first timers there is a maximum purchase price of $800,000. The move-up/repeat program requires that you have lived in your home for 5 consecutive years of the last 8 and are buying and moving into your new principal residence. There are no requirements that you must buy a home of equal or greater value, just no transactions between family members allowed. Hopefully many home owners will find this tax credit to be the extra motivation they need to move into the house or neighborhood they always wanted or maybe just downsize.

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Open Water Gulfview Home For Sale

REDUCED AGAIN!!! $554,900

One of the newest gated communities in Key West, Roosevelt Annex is located off of North Roosevelt Boulevard offering waterfront homes and townhomes with beautiful open water views to the Gulf of Mexico.

Just a short walk, bike ride or drive to Old Town Key West and nearby shopping centers, restaurants, post office, drug stores, movie theater and many more establishments.

Invite some friends over and relax in the backyard of this well maintained townhome with a cocktail in hand, barbeque a juicy hamburger, take a dip in your very own private pool and enjoy the amazing sunsets over the bay that leads to the Gulf of Mexico.

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