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Teton County Land Development Code – Wildfire Hazard Areas

September 11, 2024 By Tayson Rockefeller Leave a Comment

As a continuation of the review of the Teton County Land Development Code, a short, but potentially impactful section of the code may affect a property of potential interest, or perhaps your own. This section is 5-4-3, Wildfire Hazard Overlays. Like many sections of the 2022 Land Development Code (LDC), the code does cross reference a “layer” or map overlay. Below is a high level overview of the areas affected by the Wildfire Hazard Areas. The areas affected by the Wildlife Hazard Areas are mostly limited to the perimeter foothills of the Teton Valley, but do include some areas of the valley floor.

As stated in the LDC, the intent of this area is “to protect the health and safety of structures in high-risk wildfire areas”. The greatest impacts of development is the requirement that principal structures shall be located within 200 feet of the primary public roadway to provide safe and efficient access for wildfire protection. In addition, a plan for management of vegetation and defensible space is required to be submitted with site plans, and fuel breaks are to be implemented along access roads, driveways and subdivision boundaries, as well as defensible space provided around principal structures for the International Wildlife-Urban Interface Code (WUI Code). The website for the WUI code can be found here. As a side note, it is expected that ALL of Teton County may be required to conform to the WUI Code.

As with many aspects of our relatively “young” LDC (first established August 2022) these limitations can create challenges for certain properties. At the time of this writing, a few concerns might include (but may not be limited to);

Properties where the designated building envelope is further than 200 feet from the public roadway
Properties where the most suitable building site (for reasons other than fire hazard) is further than the public roadway
Large acreages within 200 feet of a public roadway
New subdivision along public roadways

As a final note, the LDC does specifically state “public roadway” when referencing the 200′ distance requirement. As a result, I do expect further discussion at the county level to better define roadways and mitigation requirements for properties that are further than 200′ from public roadways in and of themselves.

Similar to other overlays and code requirements, it is recommended that potential Buyers and Land Owners review ALL aspects of the local codes and ordinances. In the instance of the Wildfire Hazard Overlays, it is recommended that contact is made to a Teton County, Idaho Planning or Building representative to understand current requirements, interpretations and future amendments.

*Wildfire Hazard Overlays as of September 11th, 2024.

Summer 2024 Market Update

July 13, 2024 By Tayson Rockefeller Leave a Comment

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.

But… That Lot is Smaller!

November 27, 2023 By Tayson Rockefeller Leave a Comment

I know I have written about this before, and I’m sure there is an article buried in the archives harping on the same issues here, but I think it’s an important topic.

Whether you are a Seller looking to value your own land, or a Buyer looking to acquire land of your own in the Tetons, understanding what impacts value is extremely important. This comes up time and again, particularly when it comes to the size of a parcel when compared with another. While the size of a parcel can obviously have an impact on value, it may not always be as much as you think. As an example, the difference in value of a 2.5 acre parcel compared with a 3.2 acre parcel (despite a 20%+ difference) will often be negligible. To further elaborate the example, the value of a 1 acre parcel adjacent to a 2.5 acre parcel in the same development may not only be negligible, but in many cases the smaller parcel could carry significantly more value. With that being said, let’s go through my list of value considerations when comparing parcels or lots that are otherwise “like in kind”, such as those in the same development, or in nearby developments.

In particular order, and of most significance to least in terms of my opinion of value, take a look, below.

1: View. While I wouldn’t necessarily always put this attribute on top, it is often of great consideration, particularly in subdivisions comprising 1-5 acre parcels, which is a typical size throughout the county. A parcel with view protection by way of building envelopes, terrain, roadways or otherwise can have significantly more value than one with some type of obstruction, or potential for obstruction. This can become even more important when it comes to Teton views.

2: Location. I’m not necessarily talking about location inside of a particular area, but location compared with another property sale or listing. A parcel adjacent to a main county or state roadway would often be considered of lesser value when compared with one nearby that might have more privacy. Location considerations can also come in the form of nearby features, which leads me to the next point.

3: Features. As indicated above, features and location often correspond with one another. A row of trees, a fire suppression pond, a berm, canal or any number of property features (which don’t necessarily need to be on the properties themselves) can impact value or bring added value.

4: Subdivision Attributes. While the property that one might be investigating may not even be in a subdivision, the chances are likely that one in the market for a building site is going to be looking at properties that are. However, not all subdivisions are created equally. Some offer advantages such as paved roads or favorable covenants and restrictions. In many cases, properties with minimal restrictions or no restrictions at all can bring more value than one with firm design criteria or subdivision restrictions. On the flip side, a development with great quality as a result of a well-organized homeowner’s association with robust design guidelines can also create an advantage compared with another nearby development that does not. These considerations can come in many different shapes and sizes. Another great example is rental restrictions.

5: Environmental or Adjacent Property Considerations. Examples can be wide-ranging, but might include high ground water which could prohibit certain construction types or add cost to construction methods, nearby factors such as farm equipment or older homes, and so on. The list can go on from here, but like many of the other considerations above, can also dovetail with some of these other listed items.

6: Size. Last, but not necessarily always least as I prefaced in the beginning of this article, size. I hope this article has made it easier to understand why acreage and its impact on value can be deceiving. Remember that a larger parcel often carries the same benefits with respect to flexibility and rights that a smaller property may have. If you’ve read many of my other articles, you’ll know that typically when it comes to subdivision parcels, most properties can accommodate a single family home and guest quarters, whether it’s 1 acre or 100 acres. Further, splitting land can challenging and oftentimes impossible. Teton County’s land development code does not provide opportunities for additional dwelling units without specific and rare zoning considerations. While size can definitely have an impact on value, it needs to be significant enough to the point that it may no longer be comparable with another property. These limitations on smaller parcels could include room for livestock, limitations on building a barn, or providing ample space for a detached guest house.

My Property Isn’t Selling, What Should I Do?

October 13, 2023 By Tayson Rockefeller Leave a Comment

It’s funny how quickly markets change. Just yesterday (as I write this in October of 2023), properties were selling so quickly that buyers were all but waving inspections to get their foot in the door. I am also reminded of the changing landscape of the rental market, though I won’t rub it in with the “I told you so” comments for now. Regardless, and interestingly, prices haven’t budged much. This is mostly a product of supply and demand, but it’s also a different topic.

Speaking of prices, let’s get back to the issue at hand. Many property owners and Sellers haven’t adjusted to the market conditions today. Things are taking more time to sell. There is actually a way to calculate how long something should take to sell, and I have written several past articles relating to absorption. In addition, prices have adjusted. In some sectors of the market the prices have continued to rise, but most have stabilized, if not fallen as a result of affordability issues related to increasing interest rates. If you’re asking the subject question and you haven’t been educated on the average amount of time it takes to sell a property (or realistic valuations), then the answer is probably simple. Ideally, we set expectations before listing a property and take a realistic data based approach to valuation and where to begin marketing in terms of a listing price. The mentality of “we can always come down” can be more damaging to the prospect of selling a property than one might think.

This article, however, is aimed more at those considering not “what should I have done”, but “what should I do now”?

First; I would suggest evaluating absorption to make sure that you don’t have an unreasonable expectation. If the market data suggests that it’s going to take 6 months to sell a property, and you’re asking this question 3 months after listing, patience may be the answer.

Second; let’s take a look at pricing. If you made a decision to list at a higher number with the mentality that you can always reduce the price, it may be time to do just that. This being said, you may need to reduce more than you otherwise would have needed to. I would suggest taking a look at the original valuation, as well as market conditions that may have changed. Are we now outside of peak months? *Yes, I have an article on this as well* Have the interest rates now changed market conditions? The bottom line is that market absorption calculations only work with properties that are listed at actual market values. If you are provided with data that suggests that there is 6 months’ worth of inventory and a suggested listing price of $850,000, yet choose to list the property for $975,000, you can bet you are going to be outside of the absorption window. Additionally, those that provide this data, whether it’s an appraiser or a real estate agent, can’t control the market and they don’t always hit the nail on the head. It’s important to have follow-up discussions and plan your next move ahead of time.

Finally; let’s talk about seasonality. We talked about the seasons and how they can impact marketing time, but the seasons also come with… seasons. If you listed a property in July, and you’re making adjustments in December, it might be time to discuss updating the photography to something that doesn’t scream: “I have been on the market for 7 months!” This is usually most important in reverse, Winter photos should always be updated in the when things green up in the Spring or early Summer months.

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