Teton Realty Blog

Teton Region Real Estate Market Stats, Articles & News

Buying Land and What to Inspect

By 2 Comments

***NOTE: This article is intended primarily for Teton County Idaho and Teton COunty Wyoming. If you are purchasing land in surrounding counties, contact me for assistance.

Yes, inspect not expect. Before I dive into this, note that I cannot outline or detail every aspect or potential problem that may come with a particular piece of property. Below is general information which can be applied to any lot, but special inspections or considerations may need to be explored.

Oftentimes I get comments or questions from potential buyers with respect to buying land. It’s usually one extreme or another. For example, some buyers live in areas with soils that are not very permeable or along the coastlines. They have major concern about the viability of septic systems. The other extreme usually comes from buyers to haven’t had a bad experience and question whether they even need an inspection at all.
When buying land it’s important to remember that you probably aren’t going to be working with someone like a home inspector that you might contact when buying a home. Likely, YOU will be the inspector – or more accurately, the investigator.
With that said, where do you begin? The best place to look for recommendations for contact information is your real estate agent. Your agent should have a clear understanding of the Teton Valley Market and the nuances that come with buying land. They may not have run into every potential problem or experience that may come with buying land, but they’ve likely been through more transactions than you have, each one is a different experience. That being said, there are a certain number of key points, and the Idaho Real Estate Association tries to help you by outlining some of the potential areas to investigate. As of this date, the Idaho Purchase and Real Estate agreement states that a buyer can inspect any element of the property including size, boundaries, zoning, utilities, hazardous waste, and taxes. I might add building feasibility or eligibility to this list as well.
Before I dive into this list, it’s important to remember one last item that you may need to be aware of prior to even writing your offer. There is an increasing number of real estate agents who believed that the seller must grant permission to allow certain types of inspections. Primarily, I have run into test holes for septic site analyses. As a courtesy, I usually send a note to a seller’s agent and inform them that we will be performing this inspection. More than half of the time, the seller’s agent is up in arms with concerns about not asking permission and liability. I believe that the Idaho agreement covers this, but you may ask your agent to include language that they will allow these types of inspections.
With that said, let’s get started. As you read through these suggestions, remember what I outlined at the preface of this article, this may or may not be a complete list. There’s going to be special considerations with any property that potentially need to be explored.
***Please see the resources below if you would like to skip the summaries.
Recorded Documents: Usually when I write an offer, I will make sure that the review period expiration for the title report comes first and the actual due diligence (inspection) period expiration comes last. The title report will expose documents that are in the record such as subdivision covenants (CC&Rs) and plat maps.
Site Location, Boundaries and Size: MOST parcels are in a subdivision of sorts which means they will have an accompanying plat map. It’s important to remember plat maps can be amended. If you follow the order of operations, you should have the latest iteration of plat maps and CC&Rs from the title report mentioned above. If the parcel is not in a subdivision, a survey of record is still usually available. If it’s not, and you did not ask for a survey or at least corner flagging as a part of your offer, you can hire an engineer to complete these tasks. Corner flagging is usually under $500, where a survey can cost much more.
Zoning: If you are in Teton County, the County has prepared a one-stop-shop for zoning at tetonvalleycode.org. It’s a bit tough to navigate, but has all of the information you need. See the resources section, below, or visit tetonvalleycode.org.
Utilities (Well & Septic): In Idaho (and similar in Wyoming) you must have at least 1 acre to have both a well and a septic. That said, if you have a half acre, you can usually have a well or a septic. Oftentimes we see some creative thinking with developments that may be one half acre lots with wells, then the septic systems are in the open space of the development, or perhaps there is a community water system but each lot has it’s own septic. Packsaddle Creek Estates in Tetonia and Grove Creek in Victor are examples where the community has a water system, but each home has a septic. Wells vary in depth throughout the area, but the Idaho Department of Water Resources does track well depths and I am proficient with the tools they have available for research – so don’t hesitate. At the time of this writing, well costs are about 55/foot, with a pump. There are a few areas in Teton Valley where depths are extreme, usually at the end of 4000 N or on the North end of Teton Valley. Wyoming doesn’t have a tool that I am aware of, so I’m not up to speed on depths in certain areas. As far as septic systems go, they are relatively inexpensive to install, and reliable. The soils in most areas are of a rock or gravel substrate, so drainage is good. There are a few areas where “enhanced” or “raised mound” systems are required by the health department, those areas are usually in watershed areas next to creeks or rivers. This said, basements are relatively common in the area. The soils can be tested before completing a purchase, and the cost is in the range of $500 to $800. They are coordinated with the local health official and an excavator. The excavator digs a hole, the health official records the data, and they fill it back in. The process is usually referred to as a site analysis.
Utilites (Water & Sewer): Most areas rely on a well and septic with the exception of the Driggs, Victor, Tetonia & Jackson City limits and a few subdivisions which have city services but are outside the city limits such as developments like Teton Springs which have City sewer. Other examples would be communities with private water systems such as Rivermeadows in Victor and Targhee Towne in Alta. Each utility or service usually comes with a maintenance fee, or a monthly bill. Note that a failure in a community system would likely result in an assessment. Many see a benefit in a municipal system to avoid the cost of drilling a well or installing a septic – but beware – hookup fees can also be quite expensive, usually around 2/3 the cost of a well and septic.
Utilities (Phone & Internet): There are two main types of internet service in the area, and that is DSL or Fiber and Satellite. DSL is usually provided by the phone company (Silverstar Communications in almost all areas) and there are a handful of satellite providers. In my experience a hard line such as DSL or Fiber is most reliable, but some of the rural areas have old lines that have been dug up by farmers and road crews a few hundred times. The local phone company can easily to a check on the address and provide pretty accurate information. The counties required phone line installation to each subdivision lot in almost all cases, but it’s always good to check. There are a few developments out there that have conduit, but no line.
Utilities (Electricity): Electricity in Teton Valley and Alta is provided by Fall River Electric, Teton County WY (excluding Alta) is provided by Lower Valley Energy. Fall River Electric is a CoOp, so members get a nice check every 15 or 20 years (hey, can’t complain). The other good news is that electricity is very inexpensive, roughly $0.075 per KW Hr at the time of this writing. Just like telephone lines, electricity is to the boundary of almost all subdivided lots. Those without lines may require transformers to boost depending on the distance to the area where power is needed. In rare events, overhead power poles and lines can, or need to be installed.
Soil & Hazardous Waste: Most land buyers go as far as a site analysis for septic (see well & septic section above) but no further. If the parcel in question is in a wetland, it may be a good idea to contact the county mapping director to get an idea on nearby floodplains. Rarely a customer will do additional soil testing for hazardous waste – a good example might be an old junk yard or an area with buried fuel tanks. Usually these tests are performed by environmental engineers, and there are some great local companies.
Taxes: Usually when purchasing property the title company will pro-rate taxes to the date of closing. It may however be a good idea to have the title company (or you) contact the city or county to make sure there are no outstanding assessments for improvements.
Building Eligibility: I added this section as this has been a point of contention, specifically in Teton Valley, Idaho. Historic “illegal” lot splits, or land splits that were done only for agricultural purposes have been surfaced and recent administrations have denied the ability to obtain a building permit. Though these cases are becoming rare, it’s still possible. Other examples would be subdivisions with fire systems that are out of compliance. For these reasons, it is a good idea to check with the applicable City, County OR Fire Department to insure building permits can be issued.
***Resources: Note, I will do my best to keep this INCOMPLETE list up to date and accurate. If you are a contractor or vendor not on this list, contact me! I would be happy to add you.
Zoning
Teton County, Idaho (includes Driggs, Victor, Tetonia)
If you are purchasing land in one of the cities such as Driggs or Victor, they will have their own site and information which you may be directed to, cityofdriggs.org | victorcityidaho.com | tetoniaidaho.com FOR ALTA, it’s best to visit Teton County WYOMING’s website, tetoncountywy.gov.
Otherwise, the BEST resource for zoning information is Teton Valley’s one-stop zoning resource, tetonvalleycode.org.

Building Eligibility & Permits

Teton County, Idaho (includes Driggs, Victor, Tetonia)

Planning & Zoning

208-354-2593 (phone)
208-354-8410 (fax)
[email protected]

Teton County Building Department

208-354-2593 (phone)
208-354-8410 (fax)
[email protected]

Teton County, Wyoming (includes Alta, Jackson, Wilson)

Planning, Building & Development

307-733-3959 (phone)
307-733-4451 (fax)
https://www.tetoncountywy.gov/518/Planning-Building

 

Well Research

Water Well Research Idaho Department of Water Resources
http://www.idwr.idaho.gov/Apps/appsWell/WCInfoSearchExternal/
Eastern Regional Office
900 North Skyline Drive, Suite A
Idaho Falls, ID 83402-1718
P: (208) 525-7161
F: (208) 525-7177

 

Septic Research

Teton County, Idaho (includes Driggs, Victor, Tetonia)

East Idaho Public Health Department
http://www.eiph.idaho.gov/
Teton Valley (Savannah Rice)
208-354-2220
[email protected] 

Site Analysis Excavator suggestion:
Action Excavation
208-354-3478

 

Municipal Water & Sewer

Teton County, Idaho (includes Driggs, Victor, Tetonia)

driggsidaho.org
victorcityidaho.com
tetoniaidaho.com

 

Wetland Research

Teton County, Idaho (includes Driggs, Victor, Tetonia)

(Contact Teton County for Wetland Overlay first)

Army Corps of Engineers

208-522-1645
http://www.nww.usace.army.mil/Business-With-Us/Regulatory-Division/Contact-Us/

 

Wetland Specialists & Soil Testing

(For delineation analysis, etc.)
Rocky Mountain Environmental
208-524-2353
http://www.rockymountainenvironmental.com/

Intermountain Aquatics
(208) 354-3690
[email protected]
http://www.intermountainaquatics.com/contact/

 

Fire Marshall

Teton County, Idaho (includes Driggs, Victor, Tetonia)

Fire Marshall: Earle Giles III – [email protected]

 

Well Drillers

Denning Well Drilling:
208-523-4600
http://www.denningwelldrilling.com/

Andrew Well Drilling
208 522-2794
http://www.andrewwelldrill.com/

 

Water Testing

Teton Microbiology Lab
208-932-0215

Teton County, Idaho (includes Driggs, Victor, Tetonia)

Idaho Department of Quality:
DEQ Idaho Falls Regional Office

900 N. Skyline Drive, Suite B
Idaho Falls, ID 83402
(208) 528-2650
toll-free: (800) 232-4635
http://www.deq.idaho.gov/

 

Power

Teton County, Idaho (includes Driggs, Victor, Tetonia)

Fall River Electric
208-652-4731
(Wendy Celino for power line availability questions)
http://www.fallriverelectric.com/

Teton County, Wyoming (includes Alta, Jackson, Wilson)

Lower Valley Energy
307 733-2446

Home

 

Phone & Available Internet Speeds

Silverstar Communications
208-354-3300
http://www.silverstar.com/

Title insurance on new construction?

By Leave a Comment

I won’t go into too much detail on what a title insurance policy is, though you can read the article here: https://tetonrealtyblog.com/what-is-title-insurance/ which might be a good prerequisite to this article.
It dawned on me the other day that while it is common for almost all real estate transactions to be accompanied with some sort of title insurance policy, it’s important to remember that title insurance only covers the initial purchase price of a property. For example, if a claim is made and a defect in the title is found, the claim can only be made for up to the amount of the original purchase price. The next obvious question is, how about when a property is improved or the value of a property is increased?
With all of the new construction we are seeing throughout the area, I figured this was an opportune time to bring this to the attention of home owners and investors. Probably the most common example would be someone building a new home. With low residential home inventory and relatively affordable land costs, it’s becoming increasingly common to see people buying land with savings or home equity lines of credit then preparing to build in the future either with cash or a construction loan. When obtaining a construction loan, the lender will require a lender’s policy for the build (reference previous article), but there usually isn’t a seller involved to pay for a title insurance policy like a regular transaction between a buyer and a seller.
The result of the above scenario would be a home valued at several hundred thousand dollars with a title insurance policy protecting up to the value of the land, in many cases less than $100,000. If a defect is found in the title after the home is constructed, albeit an unlikely worst case scenario, it could be a very expensive proposition for the homeowner with inadequate title insurance.
Being that title insurance is extremely affordable and is only paid one time and is not recurring, this is something that anyone looking to build a home should consider. Fortunately all of our local title companies are experienced with writing these types of policies and can answer any questions that you might have.

Fire Ponds and subdivision compliance

By Leave a Comment

While it may not seem like a big topic to someone in the community not involved with real estate, fire suppression compliance, (or the lack thereof) has recently been a big topic for those in the real estate community.
If you’re familiar with many of the communities in Teton County, you might have noticed that most of the newer communities have beautiful ponds. While these ponds are aesthetically pleasing to most, it wasn’t because the developer was looking to improve the quality of the subdivision, it was usually a result of the requirement for a fire water storage system. Most developers installed these systems, sold out the lots in the community, and moved on. These communities formed homeowners associations for road maintenance and other aspects of neighborhood duties, but many were not privy on the requirement to have these systems tested annually.
The fact that they systems weren’t tested went largely unnoticed for several years due to the slow period of construction. Now that construction is picking up, those filing for building permits are in some cases being told that these systems must be tested for compliance prior to issuance of a permit. Overzealous real estate agents also have a tend to research issues on behalf of customers which sheds some light on these issues now that we are seeing more and more building sites selling per year.
I communicated with Teton County Fire Chief Earle Giles who reports that about 20% of Teton Valley’s subdivisions are out of compliance. Fortunately, it’s a relatively easy process for most homeowners associations to have their systems tested. These ponds are usually accompanied by a nearby hydrant which an engineer or a pump technician can connect to and test the flow which is measured in gallons per minute, or GPM. Earle was also kind enough to provide a couple of contacts for testing, and most of these contractors will be happy to put you on an annual test program to keep things in accordance. It’s affordable, and helps retain values when it’s time to sell!

-Grant Durtstchi – 208-705-7200

-AW Engineering – 208-787-2952

-Wilder System Solutions – 208-456-2287

Is the rental market changing in Teton Valley, Idaho?

By Leave a Comment

Those of you with a pulse on Teton Valley long-term rental market have probably noticed a bit of a lull in terms of occupancy and a small increase in availability. This tends to happen every year after the ski season begins and before the holidays. Those looking for something to rent for seasonal work have already found something in most cases, and long-term residents are generally settled in for the winter.

This year, most property managers have noticed things are a bit slower than the last couple of years, at least with existing inventory, specifically in Driggs and the North end of the valley. This is caused mostly by a supply spike in Victor, where people prefer for the Jackson commute. Several modulars along Highway 31, though lacking amenities, have filled quickly because of their location. Several more units are soon coming available on Dogwood St, and it is yet to be seen how many will be reserved for long-term renters. The new Clinic on Main Street will likely have long term rental availability. These newly completed, or soon-to-be completed projects in addition to a few others seem to have mostly satisfied the shortage, at least in the short-term interim.

I don’t believe this influx of availability will have any long-term effect on the market based on how deep the rental shortage actually is. Once the holidays are behind us, we will begin to better understand inventory levels compared to recent history. It’s been a long time since we’ve seen an oversupply (and I’m not suggesting at all that we are back to anywhere near an oversupply, or even sufficient supply) and even when we did, it was an oversupply of rentals that were not originally meant to be rentals. Throughout the downturn of 2008 we saw a number of vacancies, but these vacancies were second homes converted to long-term rentals, or even vacation rentals which weren’t performing well enough to satisfy debt service. In fact, there haven’t been too many private back-to-back projects built specifically for long-term rentals in a long time. We saw some housing projects near the Sage Hen condos, and of course the Fox Creek Apartments, but all told, not too many dedicated rental properties.

With the headlines being rental shortage you will call me crazy, but we will have to monitor the number of dedicated long term rental projects, apartment buildings and so forth in order to sustain a healthy environment with a good mix of tenants and available rentals to keep vacancies at a minimum and our rental market healthy. It will be interesting to see new major projects and how well they absorb into the marketplace in the near future.

Recent Testimonials

Teton Valley Realty