Teton Realty Blog

Loan Tips – How to Prepare

August 13, 2016 By Tayson Rockefeller Leave a Comment

***Tayson is not a lender. confirm the below “good practices” with your lender.
As our local market becomes more and more competitive with multiple offers and properties moving quickly, it’s becoming ever-important to be prepared to provide a pre-qualification letter along with your offer, and to be prepared to close on time. We’re seeing a number of sellers continue to market their home for sale for backup offers during the contract process with the buyer. If the seller receives a backup offer they usually can’t terminate your contract (unless the contract specifically states they can) without the buyer failing to meet a deadline, or failing to close on time. In most cases the important deadlines are timely earnest money delivery, and proof of funds or loan approval subject to appraisal and underwriting on or before the dates specified in the contract. Work with your realtor to ensure all timelines are met, and work with your lender to ensure you close on time. Some tips, below;

How to Prepare:

The best practice if you are thinking of buying in the near future would be to begin preparing well in advance, though this isn’t always possible. Follow these steps to the best of your ability.

Save your pay stubs. If you foresee a new loan in your future, become extra diligent about keeping record of large purchases *<—avoid if possible* , keeping pay stubs, bonus check stubs, and keeping track of any expenses or income that is out of the ordinary.
Start collecting your tax returns for the last 2 years. If it’s 2016, you will need your complete 2014 and 2015 returns. Organize them, separate your w-2’s and any 1099’s. If you need to collect these items from your employer or accountant it could take valuable time during a contract – sometimes too much time.
Get in the habit of “digitizing” all of your records, or stop in to an office center periodically to scan, label and organize all of the documentation needed. In addition, keep the originals in a safe place that is easy to access until after closing.
If you are depositing money gifted from someone that is not immediate family (or traceable funds), in some cases it cannot be used unless the cash has been in your account longer than the lender will look back in your records. Always consult with your lender, but this tip could be helpful, and you would need to obviously deposit the funds well in advance.
In keeping with the above, if you do plan on using gifted funds, speak with your lender early on in the process about properly going about this. It is extremely important to follow the proper procedures and collect documentation that your lender requires such as proof of where the funds came from, or a gift letter. Also, remember to keep documentation of deposits. If you are selling a car to come up with a down payment, remember that you will need proof of ownership, bill of sale, etc. Consult with your lender if you are selling an item to increase cash for closing.
If you are selling a home to relocate, obtain a complete record from the title company or real estate professional that helped you. Your lender WILL need this.
Think about speaking with a lender early on – very early on in the process. In some events home buyers find they have an outstanding balance they were unaware of, or a fraud issue that is affecting their credit. This can take months to clear up, and it’s best to find out about this prior to finding your dream home that needs to close in 1 month.
Try not to close any investments accounts, or open new accounts based on credit, including obtaining new credit cards.
When saving $$ for your down payment, remember also to save for closing costs, which can be several thousand dollars. Don’t let this come as a surprise after writing your offer.
Continue life as normal. PAY ALL BILLS on time, including credit cards, auto payments, etc.
CONSULT WITH YOUR LENDER on all items! If you are considering a job change, a large purchase, anything, consult with your lender. Remember that your real estate agent and/or the seller are not lenders.

Just like with your Realtor, most lenders can help you with any property as long as they can work in your state. However, like your Realtor, it can pay off to work with a lender that understands the nuances of our local Teton market such as long appraisal times, or any specific loan requirements related to the location of the property, proximity to wetland, etc. I have been in several circumstances where an out-of-state lender will contact me after reviewing a settlement statement and say “Tayson! There is no reference to the transfer tax!” Yes, yes – that is because we do not have a transfer tax… In addition, most buyers will find that unless working with a “big box” brokerage, they probably won’t have to pay their real estate firm any fees related to the services, even if they do not buy a home. However, interest rates and closing costs can vary from lender to lender. It’s a good idea to shop for a lender that is not only a local market expert, but one that has good rates and reasonable close costs.

July ’16 Market Stats

August 8, 2016 By Tayson Rockefeller Leave a Comment

We are seeing continued growth in the Teton Valley and surrounding areas. The average sales price for a single-family residence in Teton County Idaho during the month of July was over $365,000. This is a stark contrast to the average sale price throughout the recession.

Another surprising statistic is the number of building sites under contract and sold throughout the month of July 2016 in Teton County Idaho alone. With 21 building site sales last month, and 21 pending sale, that’s nearly what we saw sold throughout the entire year in 2011 at only 52 sales. 2010 produced exactly the same number of sales as 2011, just 52 land sales. Past 12 months sales are currently at 204 sales.

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

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