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Reviewing the Code – A Summary of Considerations when Buying Land in Teton County

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As a quick note prior to diving in, this article applies to the unincorporated areas of Teton County. The City limits of Driggs, Victor and Tetonia have their own Land Use/Development Code. Much of this was covered in Part III of my review of Teton County’s newest (2022) Land Development Code article, but I wanted to take some time to quickly highlight some of the things to watch out for when looking at undeveloped land as an investment and for future development – keeping in mind that these code requirements are obviously subject to change. We seem to be through a good portion of code revisions, and there also seems to be some more solid direction from Teton County with respect to these processes.

Zoning
There are several zoning types in Teton County, Idaho, and it is important to understand that each have their own special requirements for development or splitting property, and each have specific uses. While residential use (building a home) is generally permitted on all parcels and zoning types, it is also important to know that properties that were split illegally such as deed splits without a subdivision process after June 14th, 1999 may not have building rights. Similarly, properties that were split by way of an agricultural split may not have property rights. Much of this information can be verified with Teton County via a “Zoning Verification Request” which does come with a cost (currently $150) but this would generally be less of a concern with any property that is in a platted development. You can read my article on the different zoning types, here.

Flood Hazard
This one is still a bit tricky as FEMA has not completed the draft floodplain Maps. In either case, if a property, be it under the existing floodplain map or the future implemented map, Falls within these areas, the county will require elevation certificates before, during and after the build to make sure that the floor system of the home is above the base flood elevation requirements. Additionally, it should be considered whether flood insurance will be required, regardless of the project elevation upon completion even if the county is satisfied.

Wetland
I just wrote an article on wetland, it can be found, here. For parcels that require a wetland delineation (despite my disagreement with this) the county would prefer that the entire parcel be delineated to provide a holistic overview of the parcel, and to better tie in with Wildlife Analyses, if required.

Natural Resource Overlay (NRO)
Teton County is working on a new draft overlay of Teton County’s natural resources which expands most of the historic wildlife overlays. This one was enough for me to wrap my head around, but basically, if a parcel has an overlay where the site is intended to be improved, a shorthand wildlife analysis is required. This includes maps that show the existing boundaries of the applicable overlay, and some reasonable expertise for a development plan. At the time of this writing, I was told by Teton County that no specific qualifications were needed for this shorthand version of a wildlife analysis, otherwise known as an Abbreviated Wildlife Habitat Analysis (A-WHA). For more in-depth projects such as Land Development, subdividing and so forth, far more extensive analyses may be required which would constitute a full Wildlife Habitat Analysis (WHA). I am linking the policy here, but keep in mind that this is subject to change. Properties that have designated building in the lowest may not require Wildlife Habitat Analyses, even if the NRO layer encompasses all or a portion of the predetermined building envelope.

Hillside Overlay
Certain areas of the Teton Valley are encompassed by a “Hillside Overlay”. Obviously, most of these areas are going to be in areas with steeper terrain, and may have special requirements. In extreme cases, development may not be possible under the current code. This should be considered for accessing parcels in these areas as well as site planning for construction.

Scenic Corridor Overlay
The scenic Corridor overlay encompasses approximately 500 ft from State Highway 31, 32 and 33 as well as Ski Hill Road. Areas that fall within this overlay may have specific height limitations. However, the county code has an amendment in the works to allow variances without a public hearing (which is currently required) if a visual site analysis (what the project may look like from the road) is provided and it is concluded that it is not obtrusive. They are also some additional requirements with respect to design, which could include architectural styles, colors, and so forth. Special landscaping requirements may be implemented as well, which could include berms, trees, screening, etc.

There are several other overlays that, while they may not have any specific impact on one’s ability to improve a parcel, may be considered. Examples include the bear conflict Zone which requires bear proof trash cans, wildlife hazards, and even an understanding of roads that may not be maintained in the winter months, or maintained by the county at all. Other layers and restrictions still exist which obviously include subdivision restrictions, County setbacks and other code requirements including driveway lengths and a variety of other Land Development Code policies.

Summer 2024 Market Update

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Since this is technically a blog article and my market updates live in a separate section over at TetonValleyRealty.com, I’m going to treat this market update more like a blog post, just to convey my general feelings and sentiment of the market.

Residential

The residential sector of the market in Teton Valley and surrounding counties (Teton County, Wyoming and Lincoln County, Wyoming) all share similar attributes and challenges, though at different price points.

Dare I call any sector of the residential market “starter homes” (considering the average residential sales price in the Teton regional MLS is well over a million bucks) this sector of the market seems to be accumulating the most days on market and is faced with the greatest challenges. Why? Back to that average sales price. While the average sales price in communities like Teton Valley and Alpine are under 1m, they are still big numbers. Combined with interest rates which remain stubbornly high, we are beginning to see Summer price reductions. In other words, residential listings priced under 1.2m in the bedroom communities or maybe 2m in the Jackson area (which generally excludes the luxury/second home market), are faced with the most difficult sector of the market today. Despite this seemingly grim data for Sellers, inventory is still extremely limited, and opportunities that fit the bill for most consumers are still few and far between.

The luxury market in all sectors (once again, at different price points depending on the micro market) seems to still be churning along, if impacted by nothing other than increasing inventory, primarily due to more builders jumping into the game, or at least focusing on projects of this caliber. Many similar models I have sold for builders have crept up ever so slightly in terms of price, but the market seems to be fairly stable. Summer inventory does seem to be further increasing, which could have a slight impact as the market stabilizes from the short-term yet jarring effects of the Teton pass closing, and the speculation of long-term closure, now behind us. 

Condos and townhouses are certainly plentiful, but inventory is slowly being absorbed. While I felt we were at a high point in terms of supply towards the end of last year and into the Spring, it does seem that that market is stabilizing. 

Predictions; to summarize, it’s obviously still difficult to see where the general economy takes us with inflation seeming to cool but interest rates remaining stubborn. For those that have been waiting to jump in, the message from many of the lenders in the marketplace has been to jump in now while Sellers in the “starter home” price point are vulnerable, taking advantage of lower interest rates when a refinance is realistic. That sentiment may have been a little premature a year ago, but it does seem that inflation is cooling and rates are likely to soon decrease. The “covid craze” seems to be subsiding, and some sellers appear to be faced with, and accepting reality in that regard. I know that many Buyers are waiting for a correction, but from my perspective, I hear fewer that believe this is soon to happen than those that think it won’t happen anytime soon.

Land

I have long said that the land market seemed to have stabilized towards the end of 2021, with the tremendous gains capped by new inventory and market stabilization. I still see small spikes and valleys in those trends in specific areas, the Teton view corridor is a good example. Ample supply (though unusual in these areas) can reduce overall prices, while limited availability can have the opposite effect, but in an even more dramatic way. Other parcels with some form of unusual feature can also benefit from limited supply, such as industrial zoned land, land without covenants and restrictions, land with interesting terrain, water features, trees or otherwise have all seen greater increases. Some areas, however, have seen greater instances of stabilization or even a slowdown, particularly those that lack any unique aspects or reside in communities with strict guidelines that require more expensive builds. 

Construction

As an aside and in line with the last sentence above, construction costs have remained surprisingly resilient to cooling and inflation. While some materials have reduced in cost, others have increased. Subcontractors are showing no signs of slowing down in terms of cost increases, which tells me that there is still plenty of work on the horizon. Many local governments have been inundated with new custom and speculative bills and just like the huge cost increases in terms of construction costs keeping new projects at bay, the difficulty in obtaining building permits, combined with stubborn construction costs has kept new inventory from exploding. It’s frustrating for builders and investors, but it’s probably keeping the market under control at the same time.

Guest Article: Lessons learned buying real estate in Idaho

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Author: Joe Mena – Victor, ID

As someone who moved to Teton Valley from a state where disclosing everything to buyers and home inspectors is mandatory, buying in Idaho was a big change. After a lot of discussions with TVR’s Tayson Rockefeller, I realized I needed to get serious about doing my due diligence, and I’m very glad I did. Eight years later, and countless conversations helping others make the move like I did, I hope that sharing my experiences here can help others for with everything from choosing the right land to the right builder and enjoying life to the fullest here in this wonderful place we call home.

Get to know Teton Valley

Home isn’t just the house you live in. It’s the community surrounding you, the history of those who lived here for generations, the culture they built, and the unique mix of people and personalities that makes every place so unique.

Before I started looking for land, my wife and I immersed ourselves in learning about Teton Valley. We vacationed here, rented homes for longer stretches of time, read about the history, subscribed to newspapers and magazines, and soaked up everything we could about life here. We developed a respect for the history and culture of this valley and moved here with a determination to become a part of it – not change it.

Choose the right Realtor

You don’t have to work with the first realtor you meet. Experience, personality, enthusiasm, honesty, and taking the time to understand what I really wanted were the factors that helped me decide who to work with. If you’re out of state, don’t be afraid to ask your Realtor to do boots-on-the-ground footwork for you. When I worked with Tayson and couldn’t be here in person, he walked different land/lots, shot video, and talked through the pros and cons to help me really “see” the land, even though I wasn’t there. It took a while to find exactly what I was looking for but having patience and persistence on the part of my Realtor won in the end, as we found exactly what I wanted.

Buying land

Land isn’t just about the acreage or the views. Before you buy anything in the valley, here’s the best advice I have: Make lots of calls. Research, research, research and don’t be afraid to do the work and ask lots of questions. Call county agencies, public health offices, and even local insurance agents for insights into the area. Talk to builders, well diggers, and excavators. Learn about water – yes, water – and how it affects the land. It’s like learning a new language: riparian wetlands, water tables, aquifers, irrigation channels, snowmelt, water rights, engineered septic, perc tests, etc.

In a valley that’s experiencing tremendous growth, realize that open space is gold and HOAs aren’t always a bad thing. If you’re looking at a subdivision with CC&Rs, ask for copies and read them thoroughly to understand what you’re getting into. Other things on our list that were important to us were high-speed fiber optic and paved or chipseal roads.  

Building a home

Take your time choosing a builder. Finding the right one might take a bit, but it’s worth it. Making sure you are working with someone who understands your vision, respects your budget, and has the experience and expertise to get the job done is non-negotiable.

Teton Valley is holding strong as one of the most stable and high value real estate markets in the country. This doesn’t mean you have to blow your budget or get into serious debt to build your dream home. I might get in trouble for saying this, but in my case I feel like you don’t always need the most expensive architect or surveyor for your project either. We found plans online and worked with a local architectural draft and design firm to customize those plans and get what we wanted. Much less expensive that way!

Another tip when building your home is to listen to the experts. Yes, your builder knows what he’s talking about, but so do the subcontractors who each have their own expertise. One sentence I found myself repeating over and over was “If this was your home, what would you do?” I’m smart enough to admit that I don’t know everything and was happy to listen to their advice and ideas. In the end, pick what’s right for you, of course. A few times we actually had to talk our GC into doing something more expensive, but in the end we had the house we loved and had incorporated ideas we were so glad we did.

Speaking of subcontractors, treat everyone who works on your house well. While our house was under construction, we traveled to Teton Valley once a month to check on the build and make purchases and decisions. Every time we made an on-site visit we made it a habit to treat whoever was working that day with pizza, donuts, coffee, cupcakes, etc. Those times sitting around enjoying food together were filled with invaluable local insights that helped us be more involved with the building of our home, and feel more at home here in Teton Valley.

The last lesson I will share from my own experience is don’t skimp and think to yourself “I’ll do that later.” Most builders will tell you that adding features during the initial construction of the home will end up being much less expensive, easier, and less invasive than putting it off down the line. Pay extra to have things done right at the beginning: get the whole-house generator, add on the bonus room, add A/C now. You won’t regret it.   I’m not an expert, but I am someone who successfully purchased the perfect land in an area I love, built the home of my dreams, and created a life that my family and I love more each day. When Tayson asked me to share what I learned during that process, I was happy to do, and I hope some of these tips help others like me.

Building Envelopes: How Protected is Your View?

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I had previously written an article about different ways one can achieve view preservation when it comes to a home site, particularly when adjacent properties have yet to be constructed. You can reference that article here, but I wanted to take a deeper dive into the nuance of building envelopes in this article.

Unfortunately, there are very few things in real estate that are absolute. As an example, one might build with an expectation that the Teton County is height limitation is 30 ft. While this is unlikely to change, there are provisions in the land development code that provide for agricultural buildings up to 60 ft. To be fair, however, it’s extremely unlikely that a subdivision might allow an agricultural building to be erected, and I haven’t seen a new grain elevator in Teton Valley in many decades. My point is that each of these different aspects of consideration have unlikely scenarios where they may be subject to change. Obviously, the best way to preserve a view is on your own property, but that’s not always attainable or realistic.

So, what is a building envelope? Building envelopes are areas on subdivision plat maps or even written into deeds (typically in the form of a deed restriction) designating an area where a home is designed to be built. These envelopes are typically strategically placed within the confines of subdivision boundaries so that everyone in that particular community is able to maintain a view. This makes perfect sense, has very few downsides, and provided original developers a way to add value to all of their lots without taking away from others based on the view corridor.

Over the years, I have considered building envelopes to be one of the gold standards in preserving views, right up there with platted community open space or even elbow room on your own building site. However, a few instances over the years have caused me to “downgrade” my outlook on building envelopes as a near ironclad way of preserving views. Before I move into a few examples, I would like to admit that these circumstances have been incredibly rare, but they have raised my level of concern as to how they were handled by both local government and their respective homeowners associations. Interestingly, I discovered that in almost all of these circumstances, the local government’s outlook on insignificant plat map changes (in this case moving internal building envelopes as opposed to shifting actual boundary lines) was that only a representative of the homeowners association was required to sign off as opposed to others in the community, and particularly, those impacted by the change from a view perspective. I have brought this to the attention of our local planning departments, so who knows, maybe we’ll see some consideration on the topic in the future. Back to those examples where I have seen building envelopes moved…

1) Wetland: I have seen two circumstances where a building envelope was moved as it was originally placed in a problematic wetland area. Essentially the developer identified a building envelope that was conducive to view preservation, but not necessarily taking wetland or terrain features into consideration. Additionally, it is possible that regulations around setbacks from wetland or other terrain features could (or have) change(d). When purchasing property in an area with significant slope, wetland, topographical features that might prevent construction, floodplain, waterways or otherwise, it might be a good idea not only to look at your own property in terms of the viability of constructing in a desired area or building envelope, but the adjacent properties in your view shed. 

2) Ignorance: Another circumstance included a landowner that either did not understand the building envelopes, or deliberately chose to build outside of their designated building envelope. While this did involve a fine, a slap on the wrist, and the requirement to retroactively move the building permit, the workaround to move the building envelope did not take into consideration the neighbor’s view. In subdivisions where associations aren’t established, activity is not monitored, or very few homes (or no homes) have been constructed, it might be worth considering staying involved with your association to protect your own interests, or at least keeping a close eye on activity.

3) HOA: Other circumstances I have witnessed over the years included homeowners associations removing, or modifying building envelopes at the discretion of some, but without consideration for others. While these decisions may have had reasonable intentions, they also had implications, whether those were considered or not. Here again, homeowners associations currently only require administrative authorization, and the local planning departments often do not require public notice for these “insignificant” changes. Once again, community involvement (as challenging as volunteer HOA work can be) can go a long ways, particularly in circumstances where these types of changes could have a significant impact on you, or your neighbor’s values.  To conclude, I’ll reiterate that these instances are rare, and obviously, there could be other examples that could have an impact on the need, or desire to move these envelopes. They could be unforeseen soil conditions, land development code changes with respect to setbacks which may have originally had more liberal requirements, or other unforeseen situations. While it’s unlikely to impact more than a handful of sites throughout the entire valley with these types of building envelope changes, it’s at least worth considering how it might affect you if things were to change.

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