In May 2021, the median list price of properties in Key West was $ 877,500. This is 9.5% more compared to May 2020. In Key West, as in many places in Florida and the United States, there is an increasing demand for housing and a shortage of inventories, which has created a strong market. …
To understand just how expensive Key West homes have become, look no further than the 768-square-foot cottage that just sold for $ 615,000 – even though the home was partially gutted.
Start your path to financial success with a bang
Get free access to select products we use to help us meet our financial goals. These fully proven options can be the solution to help boost your credit score, invest more profitably, create an emergency fund, and more.
By submitting your email address, you agree that we will send you monetary tips along with products and services that we believe may be of interest to you. You can unsubscribe at any time. Please read our Privacy statement as well as Terms and Conditions…
House under construction is expensive
The Key West cottage, which sold for $ 615,000, was first built in 1943. It is a one-story, two-bedroom space and has not seen any major renovations since 1995. Regardless, the price per square foot surpassed $ 800, which is a shocking amount when you consider the fact that the owner will have to spend a fortune to decorate the house.
This old town cottage on Olivia Street was being renovated at the time of the sale and the house was completely torn apart. The images show a number of issues, including:
- No household appliances
- Missing cabinets
- Open walls with wires hanging from them in many rooms
- Missing walls
- Lack of plumbing
- External steps need repair
Unsurprisingly, this property is referred to as a “fixing top” with infinite potential. But to take advantage of this potential and make the property their own, buyers had to pay a whopping $ 615,000. With so much work to be done, this is likely to be just the beginning of the costs they are incurring to make the property their new home home.
However, the cottage has some amenities, including off-street parking. And its location may have played a big role in attracting buyers to buy on June 7, 2021, after it went up for sale in March this year.
With the price of a renovated cottage this high, Florida homebuyers should be aware that the cost per square foot of properties in high-demand areas are likely to be very high right now. There are a limited number of homes for sale and many people are looking to buy properties to take advantage of the fact that mortgage rates remain competitive, even after a slight increase from record lows we saw last year.
Buyers should avoid overstretching their budgets just to purchase property, even if home prices are very high. Just as important as ever look for a mortgage to get the best possible price and do thorough research before proposing to make sure you are paying a fair price.
It’s easy to get bogged down in a crazy marketplace and offer more for real estate than you need to, but this is a decision you may regret. So rest easy when looking for homes in Key West or elsewhere in Florida or the USA.