Rizzotti JH Real Estate Blog

What makes the price of real estate in Jackson Hole (Teton County, Wyoming) high compared to other areas of the country, and nearby commuter markets. A few things come to mind, location in a state which has no income tax, amazing natural scenery, and most importanly the limited quantity of available land for development in Teton County, Wyoming, which is approx. 97% public land.

Jackson Hole has always been an expensive real estate market, and there are true fundemantel reasons for this.

Ken

Pay attention to what markets are in favor. Look at the pending sales activity to see any noticeable changes in the market. I have noticed that some bigger, high end homes have recently gone under contract in Melody Ranch. Is this a trend? Do your homework!

Ken

Often asked question, whats the value of my Teton View. Look at the land sales and tryto find sales with and without to isolate the difference. Also, search for improved sales with and without this amenity, and see if you can isolate the amenity. Call other agents and get their opinion. If your subject has a good Teton Range view and all your comps, it is already factored in. But if your subject has a good Teton Range view, and none of your comps do, and you cant seem to isolate the value of the view based on historical sales data (comps), start askign the question, how much more would i pay for a view versus the views of the comps. Maybe trying to use a percentage of sale price may be realistic. These are only examples, do your homework.

The other important consideration is marketability. My property with direct Teton View, will likely enhance its marketability, compared to the competition which lacks this amenity, assuming all other items being equal. Focus on the key factors that the participants in the market consider significant. A property that lacks a Teton View, in an area where this view is common, may be tougher to sell.

Ken

I always recommend owning the best located real estate. Certaintly, the starting point in Teton County, Wyoming is a start. But next, properties which are located adjacent to public land, conservation easement land, rivers and creeks, ski slope frontage are highly desired, and these properties will often command premiums in the market place.

Other desirable locations are: quiet dead end streets, hill top locations providing panoramic views, properties within close walking distance to the town of Jackson or Wilson.

Remember, location, location, location. Own the best and you wont have to make excuses.

Ken

Both Wyoming and Idaho are non-disclpsure states. Sales prices of real estate are not recorded in the County Records. So, MLS serves as the primary verification of sales prices. Verification of For Sale By Owner Transactions are also critical for non-MLS sales.

Ken

Remember, cost does not always equal value. Cost of improvements, renovation or addition may be higher or lower than value. Look at comps with similar attributes to determine what the market is paying for cetain amenities. A good example of an amenity in the Jackson area that will probably not recapture its full cost is a swimming pool. This is due to the limited seasonal use and the fact that the participants in the market do not demand this amenity. Certaintly, it is possible that a indoor swimming pool in a high end luxury home may be one of numerous amenities, where the value is difficult to isolate. But this amenity may provide lots of enjoyment and the owner could care less about the cost.

If you really want an upgrade or amenity and dont care about re-sale, do it. But if your looking at a return on your investment, look to the market and call other agents to find out if your upgrade is demanded in the market place. The granite counter tops, stainless steel appliances and kitchen updates may be critical in renovating an older condo in an area where these.

Ken

I am often asked, what is an arms length transaction. This is where parties to a transaction are independent and on equal footing. There is no direct relationship, interest or connection between the parties.

Sale of a property from a parent to one og their children would not be considered an arms length transaction. Also, sale of a property from an LLC to a member of the LLC woudl typically not be considered an arms length transaction.

When selecting comps for a subject property, interviewing parties involved in the transaction is critical in determining if a transaction was "arms length" and a true, open market trasaction.

Ken

In the Jackson and surrounding areas, there are certain types of properties that are not common in other areas of the country. A-frame homes, log homes, and cabins are some of the properties that may appear typical in this market, but may be viewed by outsiders as atypical.

When valuing these types of properties, search for comps with similar design or construction type. You may have to expand your search back in time for these types of properties. Lender's considering loanign on these types of properties will want to see comps that are similar to the subject.

Ken

Pay particular note of the supply of properties listed for sale in MLS, and FSBO's compared to the prior 12 month sales. Is there a shortage, balance or over-supply of properties available for sale in the subject's market segment. This will likely affect listing price and eventual sale price.

Is the market a sellers's market or buyers market or neutral. Look at the inventory to determine this.

Ken

Read the plat, warranty deed and ccr's to see that property type the subject is. Condo ownership is interior airspace, while a indivisual PUD unit is ownership of the site and improvements.

Compare like kinds, ie: condo to condo and PUD to PUD. However, there may be times where there is no difference in marketability/value. But do your homework first.

Ken

Regardless if your showing a client property to a prospective buyer, or the owner wants to have the property appraised in connection for a sale, the curb appeal and condition can be important factors, which may affect the value.

Encourage the seller to tidy and spruce things up. Paint, elbow grease, and landscape maintenance can all improve the appearance of a property.

Eliminate foul odors, clutter or other elements which may affect a buyer or appraiser's opinion about the condition of the property.

First impressions can be lasting. When someone drives up to the property, does it look well maintained and inviting. Pay attention to possible perceptions, as this may affect a buyer or appraiser, or both.

Remember, make things as turn key as possible.

Ken

In new subdivisions where new spec homes are being constructed, pay attention to the inventory in MLS, but also drive all the streets in the subdivision and note the FSBO signs. Call the sellers and find out their price.

Weigh the options of buying an existing home, vs. buying a vacant site and having a  home built. You know what you will pay for an existing home, but there are usually cost over-runs, in addition to financing costs for new construction. Compare the differences.

Ken

Yes, the 3 most important things in real estate. First things mentioned in real estate 101. You can change the improvements, alter the site (landscaping) but you cant change the location.

When searching for comps, pay attention to location. Know your market. Will the typical participant in your market consider other markets? Make sure you are familiar with the different MLS areas, ways to search for different communities and subdivisions.

Ken