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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.

When is the best time to shop for Real Estate in the Teton Valley?

May 2, 2023 By Tayson Rockefeller Leave a Comment

The best time to shop for real estate in the Teton Valley is totally dependent on a number of factors, as well as the context of the question. When do we typically see most new inventory come to the market? When are sellers usually most inclined to negotiate? I’ll do my best to break these questions down by the numbers using historical data, but I have to first clarify; The best time to purchase real estate in the Teton Valley is when the property you are looking for comes available. I can’t stress enough in our small market the lack of inventory and new listings at any given time. Choices are always limited, particularly when it comes to specialty properties like those with property features like creeks, streams or rolling terrain – as well as homes with guest homes, unique features, or special locations. Buyer should always be in the habit of monitoring the market closely, and jumping on opportunities when they meet one’s needs. That does not mean that buyers need to jump on the first thing that they see, however.

Land

Historical data has been fairly consistent. May and June have been the biggest months for new listings every year looking back to 2018 (and beyond) with the exception of 2020, which I’ll toss out as a result of The pandemic. Listings almost always begin to ramp up in April, and numbers for new listings begin falling in September. Here again, it doesn’t mean that one should not pursue a purchase during any given month. If a listing comes available that meets a specific set of criteria that has been difficult to find, it should be pursued if the price is right and you intend to close on a property within a set timeline. When it comes to the listing / sales price ratio, the data isn’t quite as definitive. However, it seems to point to sellers being more negotiable during the off-season months, particularly October, November and December. Usually an increase in supply decreases demand, but Teton Valley’s peak tourism season is the Summer months, effectively increasing the demand along with the new supply.

Homes

Residential trends seem to trail land trends by about 1 month. Most new listings come to market late Spring and early Summer, with June and July historically being the peak months for the greatest number of new listings coming to market. New inventory once again dwindles during the off-season months, particularly late Fall and early Winter. Historic trends have shown that new listings tend to pick up once again through the Winter peak season, though new listings are far fewer than Spring/Summer. Once again, the data is not as conclusive when it comes to the listing price / sales price ratio with residential properties, but there does seem to be a trend that shows more negotiation during the offseason months, like we were able to see with land sales.

Summary
The data points to more options and greater inventory during the Spring and early Summer months, with more opportunity for negotiation during the offseason, particularly late Fall and early Winter in both market sectors. Source: Teton Board of Realtors – Teton Valley, ID & Alta, WY

NEW ZONING AND LAND DEVELOPMENT CODE | PART I, ZONING OVERVIEW (TETON COUNTY, ID)

August 3, 2022 By Tayson Rockefeller Leave a Comment

For those of you that take the time to read my blog (thank you) you know that I try to make the information relevant to the region. I will begin trickling blog posts in with information on the new zoning and land development code impacting the unincorporated areas passed July 6th, 2022. I will include a “2022 Teton County, ID Code” blog category which you can find in “THE BLOG” section, above. I am going to begin with an overview of the zoning changes which I felt I could better explain in a video, below. Enjoy, and stay tuned for articles to follow breaking down the 2022 Land Development Code for Teton County, Idaho.

The Board of County Commissioners adopted a new Land Development Code on Wednesday, July 6, 2022. It will become effective on August 3, 2022, after it has been noticed in the local newspaper for two weeks. Note: New City Area of Impact (AOI) zoning will soon be renegotiated between city and County governments. Victor and Tetonia AOIs remain as County 2.5-acre minimum lot size in the meantime. The Driggs AOI retains its own unique zoning  scheme until the zoning is renegotiated.

TETON COUNTY, IDAHO ZONING ANNOUNCEMENT

TETON COUNTY, IDAHO LAND DEVELOPMENT CODE ANNOUNCEMENT

New Land Development Code in Effect August 3rd, 2022Land Development Code*All complete applications submitted by August 2nd, 2022 will be reviewed under Title 8 and Title 9 current regulations*
Frequently Asked Questions:  

Can the new county code be adopted by the voters of Teton County, Idaho? 

Zoning ordinances are not able to be adopted by initiative. I.C. §34-1801B(22) states that the broadly constructed individual right to petition via initiative and referendum simply, “does not apply to any local zoning legislation including, but not limited to, ordinances required or authorized pursuant to chapter 65, title 67. This was established in 2018 with the passage of House Bill No. 568 which amended the states initiative and referendum procedures to prohibit voter approval of local zoning legislation or any actions authorized by LLUPA. This includes comprehensive plans, zoning ordinances, subdivision ordinances, variances, and conditional use permits. 

“When will the new Code take effect?” 

The new Teton County Land Development Code will take effect when adopted by the Board of County  Commissioners. This is expected to occur in 2022 after the final public hearing and review. 

“Does this Code change development standards for the entire valley?” 

It does not.  

Teton County contains seven different land planning jurisdictions—the three cities of Victor, Driggs and  Tetonia, the three doughnut-shaped areas of impact (AOI’s) that surround each city, and the  unincorporated county beyond the AOI’s. The new Teton County Land Development Code will only govern  development in the seventh jurisdiction—the unincorporated rural parts of the county outside of the  cities’ areas of impact.  

The cities of Driggs, Tetonia and Victor will remain as high-density areas of development under their  respective individual development ordinances. The three areas of impact surrounding each city will  remain under the control of individual AOI agreements negotiated between each city and the county.  They are intended to contain transitional zoning with densities that are lower than the cities but higher  than the rural county. 

“Will the Code make existing landowners comply with new standards?” Existing buildings and development will not be affected by the new draft Code. They will be allowed to  continue as “nonconforming uses.” Existing lots that don’t comply with new density assignments will be  allowed to be developed per their original entitlements. The new LDC only regulates new land division  proposals and establishes minimal regulation of short-term rentals. 

Nonconforming structures: If structures become non-conforming, it only means they are not up to code.  Most old structures of any age fall into this category each year, as the International Building Code gets  updated every three years or a land development code gets changed over time. 

Teton County Land Development Code Update | Executive Summary of Changes 4 

With any new Land Development Code that gets adopted, it applies only to new construction projects and  new developments. What is already built, subdivided and existing now is not affected by new density  requirements, fencing requirements, height limits or view corridor requirements. No one will ever be  asked to tear down or replace existing structures by a governing body. 

“I heard the Scenic View Corridor set back was 1000 feet!”

Regarding scenic view corridors, the set back is not 1000 feet along the highway. The initial sentence in  the draft pertains to the definition of a view. The draft ordinance originates from state law.  

The LDC draft has two types of scenic corridor protections: type 1 and type 2. Both have design review  provisions for development that occurs within 500 feet. There are options for new applicants within that  500’ distance for graduated increases in height limits as the home location steps back from the right of  way.  

“How will the new Code affect my home business?” 

Small home businesses in residential zones have become less restricted in the draft LDC. What was a four page section of restrictions in the old code, is now just one page. A business sign is now allowed with a  permit for starters.  

The restrictions, for example, on deliveries of ten per day, sets a limit of what neighbors could be impacted  by from small businesses in their residential zone. The use standards for home business are listed in 3-9- 6 of the proposed LDC.  

Any home business with traffic and high levels of activity in one form or another that has outgrown a  home business may be classed as light home industrial. If at any point the home business or home industry  exceeds the standards for a residential zone, it needs to relocate to a commercially zoned parcel. 

“How will the new Code affect my short-term rental?” 

Because of the rapid unregulated spread of short-term rentals throughout the county, and since Idaho  Statute allows for a county or city to implement “reasonable regulations….to safeguard the public health,  safety and general welfare,” the new Teton County code does establish standards for parking, limits the  ensures that the allowed numbers of occupants are appropriate for the septic size, establishes quiet  hours, and sets other basic civil standards. The new draft Code additionally establishes requirements for  trash storage, smoke detectors, etc. 

Short-term rentals will be required to obtain a Short-Term Rental Registration (Permit) with the Planning  Department to verify that use standards have been met prior to the use being approved. A building  inspection may be performed prior to permit issuance. A permit will identify the owner of the property  and their contact information. Property management contact information, if applicable, will also be listed.  

The permit requires notification of the neighbors in each direction that may be impacted by the new rental  activity. Having proof of emails or letters that notify neighbors 30 days prior to the start of rental activity  is the new requirement in the LDC. 

Property owners and managers that follow these guidelines will reduce the number of problems for  neighborhoods throughout the valley.

Teton County Land Development Code Update | Executive Summary of Changes 5 

“Why change the zoning districts?” 

Teton County’s existing Zoning Map identifies basically two zone densities in the unincorporated parts of  the valley—A-20 and A/R-2.5. These zones were established in the early 1990’s, were largely self-assigned  by property owners, were not based on a comprehensive plan, and only vaguely reflect the valley’s actual  land use patterns and landforms. In contrast, the Comprehensive Plan’s Framework Map identifies six  zones which have been delineated according to actual topography and existing settlement patterns. These  include Rural Agriculture, Rural Neighborhood, Foothills, Mixed Ag/Rural Neighborhood, Mixed  Ag/Wetland, and Industrial/Research. 

“Why change density assignments?” 

The Comprehensive Plan calls for changes in how lands may be divided in each zone, including revised  densities. In response, the Steering Committee, the Planning and Zoning Commissioners, and the Board  of County Commissioners have worked out a new set of densities to better reflect the needs of the Coutny  and the Comprehensive Plan: Rural Agriculture- 35-acre, Mixed Ag/Wetland-35-acre, Mixed Ag/Rural  Neighborhood-20 acre, Foothills-10-acre, Foothills- 20-acre, Rural Neighborhood-7.5 acre, and  Industrial/Research.  

Update: In subsequent editing by the P&Z Commission, Rural Agriculture zoning was revised to 35-acre zoning and Mixed Ag/Rural Neighborhood was revised to 7.5-acre zoning. 

The current valley-wide basic densities of 2.5 acres and 20 acres offer little choice and are relatively small  in size for a rural community. 20-acre zoning is simply too small for most agricultural purposes and does  little to protect meaningful open space. Other comparable mountain communities around the Rockies  offer both a wider range of assigned densities, and far lower density limits (with corresponding higher  acreage numbers). 

“Why switch to average density zoning?” 

For the most part, the LDC Steering Committee proposed to get rid of minimum lot size requirements in  favor of using average density as the guiding principle in how many lots can be created in a subdivision (a  1-acre minimum lot size is planned to remain in all zones to accommodate fundamental well-septic  separation requirements). By definition, this would allow clustering by right. This change represents a  major shift in land development policy for the county. It is absolutely intended to help families get the  additional lots they desire and keep quality farmland and families together. It is a win for everyone. 

Average density zoning provides greater flexibility for property owners and developers, while allowing the  community to reach many of its most important goals from the Comp Plan. An enormous advantage of  average density zoning is that rather than having all the land in the parcel incorporated into lots, any land  leftover could either be put into a conservation easement, deeded to a homeowners’ association, left as  a working farm or otherwise utilized in a similar manner. 

“Can I split off a small piece of land to give/sell to one of my family members? How?” Two methods are available to larger landowners to achieve this goal. The first is to simply utilize the  average density zoning method just described in the previous answer. The second is to utilize a short plat land division to divide acreage into up to four parcels.

Teton County Land Development Code Update | Executive Summary of Changes 6 

“How does the new Code help protect wildlife and natural resources as highlighted in the  Comp Plan?” 

All development proposed within wildlife habitat as identified on the Teton County Natural Resource  Overlay Map will be subject to Site Plan review to ensure that the location of proposed development or  use avoids or mitigates impacts to indicator species and indicator habitats to the extent practical. The  location of proposed development will reduce fragmentation of habitat, avoid locations that affect  landscape elements such as unique rock formations, sheltered draws, drainage ways, or other features,  maintain connectivity among habitats, and protect sensitive fish and wildlife breeding areas and winter  ranges. 

If impacts cannot be avoided, the lost habitat will be required to be mitigated by replacing it with similar  vegetation communities at a one to one (1:1) ratio. The replacement ratio must be higher within a half  mile of riparian areas and equal a two-to-one (2:1) ratio. Perimeter fencing will need to be wildlife  friendly—this requirement does not apply to privacy fencing used to enclose the living space immediately  adjacent to a Dwelling Unit. 

If a subdivision proposal falls within the natural resource overlays, the Administrator, Planning  Commissioners or BoCC may ask for a more detailed Natural Resource Analysis.  

“How is the Code different from the Comprehensive Plan?” 

Both a Comprehensive Plan and a Land Development Code are required by state statutes contained in  Idaho’s Local Land Use Planning Act. The Comprehensive Plan is a conceptual document outlining the  community’s vision and goals. In Teton County’s case, our Comprehensive Plan was adopted by a BoCC  resolution in 2012. The Code is then supposed to be built from the Comprehensive Plan’s outline into a  working set of ordinances.

Property Assessments, Are Taxes Going Through the Roof?

June 14, 2022 By Tayson Rockefeller Leave a Comment

Unless you were living under a rock for the past 2 years (which might have been nice) you probably know that property values are up significantly. Until now, we haven’t seen County assessed values follow suit. With the recent release of 2022 assessed values, many are concerned that property tax increases are soon to follow. However, this doesn’t necessarily mean that your tax bill is going to go up proportionately.


In Idaho, each county is allowed to increase its property tax budget by up to 3% of the highest property tax budget of the past 3 years. The county can also increase their budget to account for new growth.


In order to calculate the tax rate, each taxing district within the county (Teton County has 18 taxing districts that each have slightly different budgets and needs) determines a levy, or the rate of which the county will multiply the assessed value to determine each property’s annual tax bill.


As an example, let’s say that district 1 has a total budget of $900k. In 2021, the total market value of every property in district 1 is $70m. To determine the levy, we would simply divide 900k by 70m, or 1.287%. If your assessed value is $300k, we simply multiply that by 1.287% to arrive at your 2021 tax amount of $3,861.


Now, let’s run a hypothetical based on what we are seeing today. We know that the total budget is going to increase with the new growth and the state’s allowance to increase the budget by up to 3% (ahem, inflation). Let’s assume that the new budget is $990k, and the collective value of all properties has risen to a whopping $110m. Using the same math, we divide $990k by $110m and arrive at 0.9%. Your value went from $300k to $450 this year. The math puts your 2022 tax bill at $4,050. While your tax bill has risen, it hasn’t risen 150% like your assessed value has.

The good news? Property values are up, and I know an agent that would love to sell your house.

Key Dates:

  • Mid-November – Current year tax bills mailed
  • December 20th – FIRST HALF TAX PAYMENT DUE
  • March 15th – Agricultural Exemption Applications Due
  • April 15th – Application deadline for Hardship Tax Relief or Circuit Breaker Program
  • April 15th – Application deadline for Homeowner’s Exemption
  • June 20th – SECOND HALF TAX PAYMENT DUE
  • First Monday in June – Assessment notices sent out
  • Last Monday in June – Last day to appeal current year’s property values
  • Summer – County begins planning budget for following year
  • Second Monday in September – County certifies budget

Application for Agricultural Exemption

Agricultural Lease Agreement

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