lots Archives - Teton Realty Blog

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.

How many vacant building sites are there? (Really)

November 14, 2019 By Tayson Rockefeller Leave a Comment

I’ve been reading a number of articles lately referencing the impact all of the development in the late 2000s had on Teton Valley. Many of these articles compare today’s potential problems with those of the subdivision development era. Glampgrounds, RV parks, and certainly any further land development have been targets, often for good reason. While I agree that the amount of development that occurred in the late 2000s was extreme, I believe that the perceived impact and comparison to some of these other projects is also extreme, and in many cases exaggerated. I’ve heard numbers from 7000 to 16000 undeveloped building lots in Teton Valley which off the cuff, sounded high to me. So, I decided to investigate.

My first thought was that I would have to find a list of the available subdivisions, add up the number of lots in each, and subtract lots with improvements. This seemed like a daunting task. Fortunately, I learned that Rob Marin, the county’s extremely talented GIS coordinator had already done the heavy lifting. He based his analysis on subdivision lots, which is exactly what I would have done. After all, the purpose of the comparison and root of the problem is indeed subdivision lots. He determined (with a small margin of error) that there are 8,454 subdivision lots in the county, and that 3106 had improvements as of the date of Rob’s study, leaving 5,348 vacant subdivision lots in the county.

***Now might be a great time to read one of my past articles, With so many available building sites, why is it so hard to find what I am looking for?

Admittedly, this sounds like a lot. It is a lot. The question is, and point of my article; is the number of vacant building sites really as detrimental and overwhelming as it appears and is made to sound? Here are a few points from the devil’s advocate, speaking in generalities.

1) Some subdivisions really do, in my opinion, exist in a vacuum. What happens in or with them really doesn’t have very much impact on the rest of the real estate market. Example: Tributary, FKA Huntsman Springs. There are roughly 500 vacant building sites in Tributary. This is almost 10% of the 5,000 vacant building sites mentioned. The same goes for many other large-scale developments such as River Rim Ranch. Could it be construed that these developments are problems in and of themselves? Sure. However, if real estate prices plummeted, or skyrocketed in Tributary, I don’t feel it would have a major impact on the rest of the real estate in Teton Valley.

2) We know that roughly 65% of the available building sites are vacant, or at least have no improvements. There are approximately 300 subdivisions in Teton County. For the sake of making a point, imagine that each of them has roughly 25 lots. Each of those have 8 or 9 houses. A few of those own the neighboring lots. This isn’t the case, but it puts things in perspective.

3) Teton Valley is big. If you start breaking this down by quadrant, for example, the southeast corner of the valley (better known as Victor) doesn’t really have a problem as there are relatively few subdivisions with little to no improvements. Things are much closer to the scenario I outlined in point 2 above, if not better. Yes, I know there’s a counterpoint to every point I’ve made here. Some of the big subdivisions that are mostly vacant are considered to be the biggest part of the problem. The issue isn’t necessarily consistent across the board as mentioned in point 2, and while things are looking pretty good in Driggs and Victor, Tetonia has a huge ratio of some of these subdivisions with very few, or no homes at all. In any case, it is what it is. They are what they are, and they’ll sell when they sell. We can’t take away land from those who invested in a piece of Teton Valley just because we now recognize that things got carried away a decade ago. As a final point, throughout the course of my career, there have always been approximately 500 building sites on the market at any given time. I suspect that isn’t going to change anytime soon, so I’m not particularly worried about extreme changes with respect to value. The key takeaway is that there are a few (several) problem subdivisions out there. However, in most cases they are being farmed, waiting for their moment to become a neighborhood. I believe in responsible growth, and hope we can learn from mistakes relative to oversupply and over-development, but I hope past mistakes don’t prevent Teton Valley from growing responsibly.

Buying Land and What to Inspect

June 1, 2018 By Tayson Rockefeller 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/