Sellers Archives - Page 17 of 21

The Teton Valley Market: Where it’s been, Where it’s going

September 3, 2016 By Tayson Rockefeller Leave a Comment

The Teton Valley Market: Where it’s been, Where it’s going: September 2016

I’m not going to say that nobody saw the downturn coming in 2008. We were all going crazy. Most of us that thought it might happen? We were ignoring it. We were too busy. It did though, and like our grandparents before us, many of us think about it today. To me, it was yesterday. Sure, recovery is still a commonly used term, even though (by all appearances) our market is recovered. Sort of.

I’ve read a few recent articles. One was a few months back by a group in Jackson and Jonathan Schechter, “Our mess will fuel suburban growth”. Jonathan was referring to his expectation for Teton Valley’s continual growth as the housing market, and frankly the available land on the other side of the hill tightens it’s grip. This article, and a few like it sparked several rhetorical articles and comments from those all too concerned with our sudden growth spurt. This group was concerned with the amount of growth we saw leading up to the recession, and the possible ramifications of too much growth all at once.

Personally, I don’t think things are growing too fast. We’re not seeing a large amount of construction, virtually no development, just market recovery and prices continuing to rise. By all appearances, home prices are on par with years leading up to the recession, if not close to pre-recession levels. However, this is not taking into account inflation or construction costs. Believe it or not, the recession began nearly a decade ago. Times were different. Construction costs were less expensive than they are now, and the housing situation in Jackson is worse than ever before.

The relief comes in land prices. Pre-recession, some developers made out like Bandits. They got in while things were hot, and got out before they were not. Some lost their hide. Lest we forget many locals who’s lives will never be the same after risk, and no reward. Bankruptcy, short sales, foreclosures, it was a mess. I mentioned relief. Though these terrible things happened to good people, and bad people, it is all behind us. We now have a huge inventory of available, developed land ready to be put to good use in the coming years, and possibly, decades. No, it’s not going to be a thousand years like some predicted throughout the recession. I remember 3 acre parcels selling at $200 to 300,000 – it’s where the big money was. Now that those same lots are under $100,000, it makes inflated building prices manageable, and the whole situation more affordable. With the huge inventory, supply and demand is not as much a factor (unless you get into supply and demand of niche locations) and Teton Virew lots a-plenty.

Where’s it going?

With the above said related to current building costs, it is my prediction that I can make an educated guess on where the market is, in relation to where it’s going in the near term. I believe that residential is nearly fully recovered, though we can expect annual growth with regards to real estate and it’s investment properties related to inflation and growing populations. Land, unless in areas of high demand where those with disposable income can comfortably spend more such as resort areas or River front properties will continue to grow, though only slowly until supply is diminished and there is renewed demand. I believe an indicator where we will need to recognize a market approaching dangerous levels will be an explosive jump in land prices. Am I saying we should prepare for another major housing collapse at that time? Not necessarily, but remember Real Estate is cyclical, and even more so in resort areas. Cycles, or slight market adjustments over time are actually healthy in some ways.

Where it’s been:

Since I tried to depict scenarios for both the short and long term foreseeable future, here’s a bit of information as to where the market has been. I selected two quality subdivisions, and found a home that sold pre-recession, during the recession, and recently. The first, Brookside Hollow – a popular, quality development in Victor, ID an area in Teton Valley reliant on recreation markets including our own, and Jackson Hole. The second, Comore Loma – a quality, scenic development along the foothills overlooking Ammon, ID (Idaho Falls) an area with low unemployment reliant on local commerce, business, regional hospitals, and the INL technology site.

Comore Loma, Ammon ID

April, 2005: $181,000
February, 2008: $208,500
February, 2014: $185,573
January, 2016: $210,000

Brookside Hollow, Victor ID

January, 2006: $396,000
July, 2012: $198,000
December, 2015: $350,000

Looking at the information above, it becomes obvious that recreation markets obviously see a larger depression in housing crunches and times of economic distress. If I gave you the numbers of the sales prices and the years sold for the home in Ammon, you probably wouldn’t be able to match them up. The market, though they saw a depression, was far less volatile. The Victor market (remember these homes are somewhat comparable) is much more lucrative, however.

The moral of the (my) story for the analysis above is that both markets appear to be sustainable in time, if you can live with the ramifications of a housing collapse in a recreational area.

Why do listing agents always seem to attend showings here?

July 28, 2016 By Tayson Rockefeller Leave a Comment

Notice how I worded the question above, and not “Should listing agents attend showings”. The reason is that I often hear this question from prospective buyer customers, or, customers working with another broker while I am attending a showing for one of my listings. If you only have had experience with real estate in the Jackson & Teton region (including Alpine & Star Valley) you are probably used to the fact that there will very likely be 2 agents at a home showing. The listing agent, and the agent working with the buyer. It’s a way of life out here, whether it’s a 100,000 dollar home or a 1 million dollar home.

If you are not from the area, you may have had a different experience. In the Snake River area (Idaho Falls etc.) all of the agents pay a monthly or annual fee to have “infrared key access” in the form of a card, or even a smart phone application. There might even be instructions on the listing that provides contact information to the occupant in which case the agent can call the occupant directly, whether it’s a tenant or the home owner. In areas like Malibu, it is expected that listing brokers attend showings only for higher dollar listings, but not all showings.

This can go both ways I suppose, what about buyer’s agents not attending showings, for instance – ahem – buyer’s working with an agent in another state (maybe a state just East of Idaho?) that can’t attend a showing for a home their customer wants to see on the Idaho side? Would it be acceptable to just send them over and let the list agent take care of it?

OK, so maybe the last example is clearly not the right thing to do, but there are very different ways of doing business throughout the united states, and Canada for that matter. Here, some feel that we are held to a higher standard as we are members of the same MLS as the high end Jackson listings. So… to attend, or not to attend, the pros and cons weighed below;

To attend! (pros):

From a seller representative standpoint, there are some definite pros here IF the agent is timely, knowledgeable, and helpful with important facts about the house without being overwhelming. Also,it may be that the Seller hired the list agent specifically from a trust standpoint – someone to look after the home, lock all doors, keep an eye on personal belongings, and so on. After all, a buyer’s agent on a home tour of 8 homes might have a hard time keeping track of everything.

To not attend… (cons):

Some buyers (specifically from areas where they are not used to 2 creepy real estate agents following them around) feel that it’s strange to have the listing agent present at every showing. Admittedly, it can get a bit overwhelming. “OK all, our next home we will be meeting John with ABC realty” (long introductions etc.). John goes about explaining everything I explained in the car – or here’s a good one; My customers walk in HATE the place, would prefer to walk back out but John sucks us into a long description of the home, the sellers, the neighbors, the area, where he was raised, his favorite local restaurant, 15 reasons to move to Teton Valley… you get the idea.

Summary

In the opinion of most her locally, the pros outweigh the cons, attend all showings. At the end of the day, however, it is up to the listing agent, and the seller. This is a discussion that needs to be had with the seller and the list agent. My advise? First, ask the seller what they prefer. Maybe the seller remembers the time when they were once buyers and John from ABC Realty gave them nightmares for the next 6 months. Or, maybe during their last home sale they discovered personal belongings went missing after a showing. The suggestion I make to my clients? If you would like me to attend showings, that is what I shall do. In the event I cannot (there is only one of me) allow me to put a combination lock box on the door. This has allowed for last minute showings that have produced contracts.

Land Splits in Teton County, What’s Going On?

July 19, 2016 By Tayson Rockefeller Leave a Comment

Alright, so we been hearing about it for months, and there are those of us that have been intimately involved in understanding the issue, and resolving it. For those of us that have not, a simplified understanding, below. ***Do not rely on this post for building eligibility matters, refer to Teton County Planning & Zoning for questions and/or accuracy, http://www.tetoncountyidaho.gov/department.php?deptID=18&menuID=1

What’s the issue?

A number of building site owners – okay, let’s not call them building sites anymore… A number of lots, vacant land, acreage (whatever) have been declined a building permit within Teton County.

Why?

Now the fun part (it’s difficult to simplify here). Teton County has zones, areas that are restricted to various types of use. Each of these zones have regulations (rules) associated to protect the development and future development of the county, & cities within. Much of the County is comprised on A (agriculture) 2.5 and A20 zoned areas. According to Teton Valley Code: Title 8 of the Teton Valley code, The purpose of these areas is “to designate and provide opportunity for development of residential land use on marginal agricultural land” or “to control development on the most productive agricultural land in the county” HOWEVER just because development is allowed in these areas (and other zones) does not mean George can split 2.5 acres off the family farm and build his dream house. That is why we have Teton Valley Code: Title 9, subdivision regulations. In the instances where a building permit was not granted, the “site” was not split properly along the way – hence the term we keep hearing, “Illegal Lot Split”.

Give me an example!

Alright.

The greatest and most common example is what is called an Agricultural division” process the County had (and still has) available as a simple way to divide acreage. Agricultural exemption: A bona fide division or partition of agricultural land of agricultural purposes, which is the division of land into lots/parcels, all of which are twenty (20) acres or larger and maintained as agricultural lands. This exemption does not apply to a division for residential purposes. <— NOTE; residential purposes.

So, what’s the problem? Just follow the rules, and you have a buildable parcel, right?

Well, yeah. No. Here’s a few issues that came up:

1. A split or subdivision was applied with the County and the county accepted or “signed off” even though it did not meet underlying zoning requirements. In many of these instances the County argued that it was signed off by someone who may not have had authority to sign, and it did not meet the zone requirements. The consumer/developer argued “but the County signed off”.

2. Many people went through the process for a division (or those years before them) that did not allow a permit, yet the county provided a permit in many cases. Now that the problem exists on a higher level, the County had denied permits – not only to they neighbor with the same problem, but in some events the person who already had a home in place which meant no remodel, no addition, no new garage, etc.

How were these mistakes made?

There’s a few reasons for this, mostly (in my opinion) related to the evolution from a sleepy town of farmers to a growing resort destination. A good example of this is an amendment to the ordinance passed June 14th, 1999. Prior to this date, one could divide no less than 20 acres (through a relatively easy process with the county) and retain building rights. After June 14th, 1999, this could only be done on one occasion, called a “One Time Only Split of One Parcel of Land”. However, many kept on splitting like the good ‘ole days. No one caught on, and kept on splitting and building on. One of the big issues from the eyes of a Real Estate Professional or a Title Expert, in most cases there was no identifying information on a survey map, or more importantly a deed. Much of this information may not exist if an “agriculture only deed” was called… an agriculture deed (or some other form of identifier). If we have no indication something was split improperly 30 years ago, how do we know without an extensive search performed by the County for EVERY example that is outside a platted subdivision?

What’s the fix?

In light of all of this, the County took steps to create a resolution earlier this week (July ’16).

Simplified:

1. Those who went through the process and the County approved (even if it did not meet underlying zone requirements) will in most cases be approved regarTeton Valley News 7-14-16

2. Those who bought property with the expectation of building rights but later learned it was improperly split prior can, in almost every case, apply for the proper process, essentially reversing the prior split and moving forward as it should have been done from the get go. Remember, almost all of these cases are between June 14th 1999, and sometime in 2014 when the County started catching on to all of this. In addition, many of these parcels still have an availabe “One Time Only Split” that can be utilized to help remedy the situation.

You can read more about the problem in a recent amendment to Article 9, Chapter 11, Building Permit Eleigibility of Previously Created Parcels Also, see an article written by the Teton Valley News Article 7-14-16

June ’16 Market Stats

July 6, 2016 By Tayson Rockefeller Leave a Comment

Average sale prices continue to increase when compared to 12 months ago in almost every sector in Teton County Idaho, Wyoming, and Lincoln County Wyoming. Believe it or not, inventory is also up from last year, and up a fair percentage from last month. Number of sales have have increased from 12 months ago, but have decreased from last month. This could be an indication that listing prices have exceeded what buyers are willing to pay, though I feel this is simply a small adjustment in our evolving market, and list prices as well as average sales prices will continue to rise, specifically with lot sales.

June '16 Market Stats

Recent Testimonials