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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.

Condo and Townhouse HOA Dues Increasing

July 6, 2023 By Tayson Rockefeller Leave a Comment

Most condo and townhouse associations in Teton Valley share the same set of responsibilities which are collectively paid by owners in the community. Usually these include exterior maintenance, exterior insurance, snow removal, lawn care, open space taxes and maintenance and in some events, trash, water and sewer. Not very many communities have additional amenities but those would be included here as well. Another important item includes reserve funds for future repairs. While this line item isn’t generally ignored, it is often overlooked. New communities usually don’t require much maintenance with new siding, new roofs, new parking lot surfaces and so on. However, all of these items (and many others) eventually require maintenance.

It was common with most of these early developments for the developer to have some level of input with respect to establishing the dues. For obvious reasons, it was in the developer’s best interest to keep the dues low. This might be influenced by the developers desire to keep the dues low during their ownership (though this can be structured a number of different ways) but also to keep the dues low to attract new owners in the development. This isn’t necessarily bad practice as these developments simply didn’t require much in the way of maintenance early on.

As units sell in a development there is usually a transition where a board of owners is formed. This process is normally outlined in the subdivision’s documents. Developers often work with management companies or accountants to oversee the process, but admittedly, it can oftentimes be difficult to gain participation. Historically, Idaho has not had a clear guideline with respect to these processes, but the state is beginning to publish some basic requirements. Based on my experience, the dues are often kept at the same developer rate for many years with many new owners resisting an increase, particularly when there is no need for immediate maintenance. The problem is that this mentality perpetuates which ultimately leads to two choices;

1) A drastic increase in dues when it is apparent that the community will lack funds for major maintenance items

2) A “one time” special assessment

Obviously the best path would be a proactive approach considering future maintenance and building reserves. While it is too late for this process in many instances, my personal preference is a combination of the two – a reasonable increase to consider future maintenance items and beginning to build reserves coupled with a special assessment to address immediate concerns. This keeps the dues within reason for resale values, but also addresses all issues.

Today, we are beginning to see many communities employ these tactics not only for maintenance, but also for inflation. The general cost of maintenance has undoubtedly increased. Even at a 2% per year increase for consideration of inflation would result in a significant increase after 10 to 20 years, which many communities have not accounted for. As we all know, recent inflation has been significantly higher than 2%. Similarly, roofs, siding, parking lot surfaces – all of these major maintenance items have a bookmark sometime in the 20-year range, which is fast approaching for most communities developed in the 2005-2007 real estate boom. My advice for community members and associations is clear, but buyers should also consider these imminent increases. Personally, I would be more concerned with a community with low dues when compared with a community with high dues. HOA meeting minutes, budgets and reserve accounts are always available to buyers, and this is something that should be reviewed or at least discussed with an HOA representative.

Deferred Maintenance and its Impact on Value

June 8, 2023 By Tayson Rockefeller Leave a Comment

Homeownership comes with maintenance. In fact, it can oftentimes be one of the key driving factors for one to consider selling a home, particularly in an area subject to second homes, as well as the high maintenance aspects of Teton Valley. From snow removal to home staining and constant deck refinishing, it isn’t always easy.

In past articles I have identified home upgrades that can help with resale value, but one of my most recent articles on the subject was way back in 2015. The cost of remodeling, additions and even maintenance was significantly lower back then. As a result, my (current) advice is typically to sell as-is without major upgrades because the return on investment can be so hard to achieve. In some events, I provide this same advice even for deferred maintenance, because the availability of contractors can be so limited that one might miss an opportune sale window by waiting for contractors.

Because of this, I can’t stress the importance of ongoing maintenance (and repairs) enough. Throughout my career in real estate I have witnessed so many circumstances where a seller concession was so much more than the collective maintenance would have been. The same goes for repairs. A small shower glass leak that continually pools water eventually finds its way to the subfloor, creates mold, requires tile replacement, etc. While this seems obvious, what we tend to forget about is the additional cost of a sales concession to satisfy a concerned buyer. We usually can’t remedy a bathroom overhaul during a contract period. As a result, buyers look for concessions in excess of the cost of repair, which honestly makes sense. They assume the liability of the repair, the risk of unseen damage, the organization and completion of the task and the inconvenience of it all until completed. There was a time through 2021 where sellers didn’t need to make concessions in order to finalize the sale, but the market has shifted, even if it hasn’t been as much with respect to values.

In addition to the concession needed to satisfy a buyer that is so often in excess of the cost of maintenance repair, the other obvious benefit of regular home maintenance and repair is how well a home shows during its time as a real estate listing. It’s amazing how much sooner offers are received, how much more buyers are willing to negotiate, and how fewer days on market accumulate with well-maintained homes in good order. While feng shui and declutter is important, the feeling of a well-maintained home is hard to beat.

With the above said, below is a list of home maintenance items I often see overlooked.

Staining!
Nearly every home inspection report comes back with siding maintenance either desperately needed, or recommended. It’s easy to put this one off, year by year – particularly when you contact the local staining company of your choice each Spring, just to learn that they are booked through Fall. Make your appointments in the Winter, and get on the schedule early. The frequency of home staining can vary dramatically. I stain my full wraparound deck every other year, but only need to stain the exterior of my home about every 10 years. My home is mostly shaded, but receives heavy snow load on the decks that I clear after every storm with a snow blower. The lack of direct sunlight and wind-driven moisture provide shelter for my house, but most homes in Teton Valley are subject to high UV sunlight (something we sometimes miss) and wind that both drives moisture and dries siding. Stains with high transparency tend to need more frequent maintenance whereas opaque stains or paints usually don’t need refinishing quite as often. There’s a big argument between oil and water-based stains, but I’m not getting into that with this article. At any rate, once siding loses its protection layer, it doesn’t take long for warping, cupping, cracking and the loosening of fasteners to occur, only adding to the cost of the deferred maintenance.

Decks and Deck Railings
Same comments, above.

Roofs/Ice Dams
There’s no better time to take care of ice dams than in the Summer months when you can stand on your roof! You can read a recent article HERE.

Stone, Metal, Flashing
Stone or brick falling away from chimneys and homes are usually doing so for a reason. Finding the source of a water leak, bad flashing, etc. can save a major overhaul down the line.

Windows
Window seals often fail, and getting glass replaced can take months to find contractors, order glass and install. Waiting until you have a contract on your home puts you in the precarious position I described at the outset of the article. On a related side note, removing window screens during the Winter months is a great way to add longevity to them.

Driveway Sealing and Sidewalks
Sealing concrete is becoming ever more important with Idaho salting roads for Winter safety. This chemical compound rides with your car in the wheel wells and undercarriage, and melts away on your concrete drive creating “spalling”. Simply sealing concrete can help you avoid costly repairs. While asphalt tends to be more resilient in this area, it also requires sealing. Settling concrete walks are also relatively common in the area. Many foam injection companies have moved into the region, offering concrete leveling without the jackhammer. Leveling and sealing sidewalks so that you aren’t worrying about concessions (and trip hazards) down the line is an easy repair and offers great peace of mind.

Hardwood Floors
Hardwood floor refinishing is another one of those services that can vastly improve value, but it requires scheduling far in advance of listing your home for sale.

Lawn & Sprinkler Maintenance
If you’ve ever noticed those hard water deposits on a few of your windows or the white “arcs” on the side of your house, a simple sprinkler adjustment can easily remedy the problem and save thousands in repairs. Similarly, weeding and grounds maintenance is a whole lot easier before it gets out of control.

Rodent and Pest Control
I’ve touched on this and past articles, but rodents and pests can wreak havoc on homes. Field mice can cause significant issues relative to home systems, particularly insulation in crawl spaces. Carpenter ants can do nearly as much damage as termites (which we generally don’t have) in this area, particularly with timber or log homes. Getting a handle on pest control at the outset is a must.

HVAC / Plumbing
Other overlooked maintenance items include furnace filters, house ventilation filters, dryer vent cleaning, electric heater register cleaning, water filtration replacement, HRV filter cleaning and more. If you aren’t capable or interested in maintaining these items, have it noted every time these home systems are serviced by a professional. If you are, a dry erase marker on your HVAC duct is a great indicator as to the last time all of these home systems were serviced. Buyers asking for concessions for these types of services (if they are not obviously maintained) is common.

Tile, Stone and Grout Sealing
Most tile does not require sealing, but stone and granite countertops as well as grout lines usually do. Most stone fabricators will tell you that the initial sealant on granite countertops is good for anywhere from 5 to 10 years, and grout can be sealed more frequently, even as much as annually depending on traffic patterns and use. This isn’t a fun task, but it’s something to consider.

General Cleaning
Easy to forget surfaces such as the tops of cabinets and window tracks are much easier to keep clean if they are cleaned frequently. No, I don’t clean my window tracks every year, but I try to do it every other year if I can.

Each home is different, and each home requires a unique maintenance procedure. Keeping a notepad along with your other house service manuals and getting a feel for your investment can not only save costly repairs down the line, but also pay back in dividends when it comes time to sell.

NEW ZONING AND LAND DEVELOPMENT CODE | PART III, WHAT CAN I DO WITH MY PROPERTY? (LAND USE – TETON COUNTY, ID)

November 23, 2022 By Tayson Rockefeller Leave a Comment

As a reminder, this is the third part in a multi-part blog article describing Teton Valley’s new zoning map and land use code. Always refer to the actual and most recent revision of the code, and keep in mind that this is for the unincorporated areas of Teton County and does not include the city limits of Driggs, Victor, or Tetonia. This does not include Alta Wyoming, refer to Teton County, Wyoming for land use regulations there. This article does not account for subdivision covenants, conditions and restrictions, which would be an additional layer above the county regulations. In the event that the county regulations provide for a use, setback or otherwise, you can generally expect that the county restrictions will supersede those outlined in any subdivision documents.

RESIDENTIAL ZONE USES

As described in the first two parts of this article, there are essentially two types of zones with varying density requirements. While it’s a bit more complex, there is essentially an agricultural/residential zone and an industrial zone. You can find an overview of the zone types in Part I, here.

What can I build?
Agriculture or residential zones (which account for almost all zones aside from the industrial zone) allow for a primary dwelling unit or a single-family home. Keeping in mind any subdivision restrictions, they would also allow for an agricultural building or operation, and an attached accessory unit. We will go into that in a little more detail, below.

*Height limitation: 30 ft
*Agricultural Building height limitation: 60 ft
***Maximum Height Limitations vary with development located within 500′ of right-of-ways along Ski Hill Road, State HWY 31, 32 & 33.

*Setbacks: Refer to Part II, here for each zone. In addition, any physical development near the Teton River must be setback 100’ from the ordinary high water mark, and 50’ from any other stream, creek or pond, see below tables:

*Ridgeline Construction: Physical development shall not breach ridgelines as viewed from State highways. If this is unavoidable, a “visual resource analysis” is required.

*** Other factors can impact setbacks (including but not limited to), development and building allowances, including irregular shaped lots, roads, site features, utilities and overlays such as wildlife and fire overlays.

Accessory Buildings (sheds, etc)
Accessory buildings such as a tool shed or storage shed are allowed in all county zones. They must adhere to the dimensional standards required by each zone district, primarily height and setback requirements.

Building Permits
Building permits are required for any structure over 200 SqFt unless it is a dwelling, in which case a permit will be required for any size.

Manufactured & Modular Homes
Manufactured homes, except those built prior to 1976 are allowed as long as they are constructed to satisfy the uniform building code (UBC). Modular homes are also subject to the building codes.

Guest Houses
Also known as accessory dwelling units, these standards vary based on the zoning type. ONE guest house is allowed per parcel where appropriate parking and wastewater treatment provisions are installed, with maximum square footage requirements as follows;
*Attached Guest Houses: must not exceed 1500 SqFt.
*Detached Guest Houses:
Parcel Size | Maximum Sq Ft
7.5 acres+ | 1500 SqFt
2.5 – 7.5 acres | 1200 SqFt
<2.5 acre | 900 SqFt

Short-Term Rentals
Short-term rentals are loosely defined as lodging for terms of 30 consecutive days or less. We’ve talked about Idaho’s legislature in past articles, so it is difficult for any municipality or land use code to restrict short term rentals. However, there are some limitations on use. It’s important to also keep in mind that homeowners associations can restrict short-term rentals, but most do not. Aside from some basic guidelines that would seem obvious, here are some highlights:
1) You must obtain a short-term rental business permit (which does carry a fee), and it must be determined that the wastewater treatment system is sufficient for the size of home.
2) There are county-wide quiet hours from 8:00 p.m. to 8:00 a.m.
3) Special events (weddings are a good example) with guests beyond those allowed on the property must obtain a temporary use permit.
4) Smoke detectors, carbon monoxide detectors and fire extinguishers must be installed.
5) All Property owners within 200 ft of the short-term rental property shall send written notice, including contact information.
6) The address and access directions must be posted on the inside front door.

Bed and Breakfast
A bed and breakfast can be allowed on a limited use basis for up to three units. 4 to 8 units may be allowed with a special use permit approved by the Planning and Zoning Commission and Board of County Commissioners. In addition to the short-term rental regulations, the B&B must maintain the residential character of the neighborhood with no business-related storage warehouses or supplies allowed outside. One sign is allowed that is no larger than 3 SqFt, there must be central dining facilities and any food service must be reviewed and approved by the Teton County Fire Marshall. In addition, a food license or proven exemption must be obtained from East Idaho Public Health.

Campgrounds
Campgrounds are considered with a special use permit in all zones except for the RN-5 Rural Neighborhood zone and the areas of impact. In addition, here are some basic requirements that must be met before a proposal will be considered by the Planning and Zoning Commission and Board of County Commissioners:
Minimum Lot Size | Maximum Camp Sites
40 acres | 20 campsites
60 acres | 30 campsites
80 acres | 40 campsites
100 acres | 20 campsites
40 acres | 50 campsites
120 acres | 60 campsites

Additional guidelines include:
1) 80% of the sites must remain as undeveloped open space Parks or recreational amenities.
2) tent sites must include a level pad at least 150 SqFt and parking at least 200 ft in size. RV sites must be at least 1,350 SqFt to accommodate an RV and parking in addition to hook ups that meet state and local requirements.
3) 200 ft property setbacks.
4) Wastewater systems must be approved by East Idaho public health.
5) All interior roads must meet Teton County fire department requirements.
6) Screening on property sides.
7) Stays shall be limited to 14 consecutive days (or less).

Note that there is also a long-term rental campground with similar restrictions and a minimum stay of 31 consecutive days. It’s important to keep in mind that the same property cannot offer both long-term and short-term camping.

Glamping (Resort Style Campgrounds)
Similar to campgrounds, resort style campgrounds can be allowed with a special use permit in all zones (again, this will require Planning and Zoning and Board of County Commissioners approval) with the exception of the RN-5 Rural Neighborhood zone and the areas of impact.

The regulations for resort campgrounds (aka glamping with tipi’s, yurts, cabins or tiny homes) you have similar restrictions to campgrounds with these highlights:
1) “Units” to be 500 ft or smaller.
2) Minimum lot size to be 40 acres.
3) A maximum of 10 units or less.
4) All facilities, platforms, structures and wastewater treatment shall be provided and comply with state and local building code requirements and East Idaho Public Health requirements.

Daycares
Daycares are allowed in all zones except the industrial zones with a special use permit which again requires Planning & Zoning and Board of County Commissioners approval. They do have obvious regulations for health and safety. Home daycares are allowed on a limited use basis which would not require the aforementioned approvals, but do have some regulation.

INDUSTRIAL/RESEARCH ZONE USES

The industrial zone is suitable for business oriented uses with uses such as outdoor storage, vehicle service and repair, distribution, warehouse and other similar uses permitted, and a variety of other uses (usually not otherwise permitted) allowed on a limited or special use basis.

Dwellings
While standalone dwellings are not permitted in the industrial zones, attached accessory dwelling units are allowed with limitations, and short-term rentals are not allowed.

USE TABLE SUMMARY

Below is a “Use Table” with various categories and specified uses. You can refer to the zoning map overview in Part I, here.
The use table establishes allowed uses by zone district. No building or lot may be used except for
a purpose allowed in the district in which it is located.
3-2-1 Use Table Key
A. Permitted Use (P)
Indicates a use that is allowed or permitted by right in the respective district. The use is also
subject to all other applicable requirements of the LDC.
B. Limited Use (L)
Indicates a use that is allowed in the respective district, by Planning Administrator approval per
Section 4-1-3 herein, subject to specific use and dimensional standards. The locations of the
relevant use standards are found in the definitions in Sections 3-3 to 3-8-10. The use is also
subject to all other applicable requirements of the LDC.
C. Special Use (S)
Indicates a use that may be allowed in the respective district only after recommendation by the
PZC and approval by the BoCC as set forth in Chapter 4. Special uses are subject to all other
applicable requirements of the LDC, including any applicable use standards, except where the
use standards are expressly modified as part of the approval process.
D. Uses Not Permitted (–)
Indicates that a use that is not allowed in the respective district.

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