Pitfalls of buying a “down-to-the-studs” remodel

Your Guide to Jackson Hole Real Estate — Wed, 13 Mar 2019 22:14:34 +0000

You’ve heard the term “down to the studs”, but what does that mean? This term is used more and more often to describe properties for sale and the number of properties available for purchase advertised as such has proliferated. The listing agent may say “though the house was built in 1963, the seller took it down to the studs; it’s like new, new sheetrock, new roof, new windows & doors. Hmm… were the new shingles laid over the old roof or was it taken down to the deck? New wiring, they say, was the electrical panel upgraded, new breakers? And these questions are just the tip of the iceberg. Additional questions to ask: Can the seller or listing agent provide a report detailing the scope of the work? Were the appropriate building permits obtained from the town or county? If the electrical, heating and air conditioning systems, plumbing and/or roof were redone, upgraded, replaced were the contractors licensed? Are there contractor and manufacturer warranties that transfer at the time of sale? What is the condition of the sewer line? Most jurisdictions I work in the property owner is responsible for the sewer line between the house and the sewer main. In the event of a loss due to unpermitted work may void insurance coverage. Your purchase contract should allow for inspections to be completed, but remodels may require inspections beyond the capabilities of a general building inspector. The cost of additional inspections is money well spent and worth every nickel.

I’m not saying avoid “down to the studs” remodels, but go in with a good agent and your eyes open wide and ask lots of questions.

Tips for Buying Bare Land & Recreational Properties in Beautiful Western Wyoming–

Your Guide to Jackson Hole Real Estate — Fri, 30 Mar 2012 21:06:42 +0000

Are you thinking about buying a piece of bare land in Western Wyoming? Maybe a recreational property or a future homesite? If so, you will want to do your research. Here a few things for you to consider before you buy:

1. Property Boundaries – are the property boundaries clearly marked, corners monumented? If not, you may want to require that they be marked by the seller during your due diligence period so you are clear on where they are. Remember fences don’t always follow property lines.

2. Survey – is there a formal survey for the property? Believe it or not, there are still many properties in Wyoming that do not have a formal survey and that use a “Metes and Bounds” approach. It is important to know what you are getting for your money.

3. Easements or Right of Ways – determine if there are any easements on the property. Are there any unrecorded easements or prescriptive easements? This should be available through the initial title report for the property.

4. Water & Mineral Rights – do all of the water and mineral rights transfer with the property? If there is a creek running through the land, are you able to use that water? Sellers in Wyoming are required to disclose if sub-surface mineral rights are included with the purchase.

5. Access – how is the access to the property? Is the property accessible all year? Are the roads maintained? If so, who maintains them? Also, is the access road a County Road or a Forest Service Road? If the road is a forest service road, there may be a concern from your lender.

6. Power – how close is power to the property? The cost to bring power to a property can be prohibitive in many areas. There are still a lot of mountain properties that are “off the grid” so don’t assume that power is available.

7. Wells – how deep are wells in the area? Are there existing wells on the property? Many loans require that the well has at least 5 gallons per minute. In our area, it costs approximately $46 per linear foot to drill a well and approximately $2,500 for the pump and installation. When you could be talking about 100’s of feet for a well, this can get expensive.

8. Septic System – has the land been approved for a septic system? What types of systems are required for the area? Systems in our area run between approx. $4,000 and $25,000 and the cost varies by the type of system that is required.

9. Covenants – Not all properties have covenants but a fair number of even rural properties have covenants now. Make sure you read the details as to what is allowed and what is not to ensure that you can use the property as you intend at the time of purchase.

10. Flood Plain – Is the property in a flood plain, even a 100-year flood plain? Many riverfront properties are categorized as being in a flood plain, even if they are on a mountain. Find out for sure if your property is categorized this way. Properties on a flood plain may have a higher insurance premium and may have difficulty getting septic system approval.

11. Invasive & Noxious Weeds – ask if the seller has knowledge of any noxious weeds on the property. It is the responsibility of the property owner to control &/or eradicate invasive noxious weeds on their property at the owner’s sole expense. Go online to http://plants.usda.gov for more information.
Lastly, work with a good local Buyer’s Agent who knows the area and understands and has experience in bare land. If you are looking for Land in Western Wyoming or southeastern Idaho, contact Ray Elser @ Contour Investment Properties. I’ll help you find the property of your dreams! Call us at 307-690-4313 or visit me online at http://www.RayElser.com.

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Your Guide to Jackson Hole Real Estate — Mon, 31 Aug 2009 17:24:08 +0000

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Ray Elser's Jackson Hole Blog

Pitfalls of buying a “down-to-the-studs” remodel

Tips for Buying Bare Land & Recreational Properties in Beautiful Western Wyoming–

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