Legal Matters

The state of Montana is known as Big Sky Country, the Treasure State and “The Last Best Place” To many, it’s also the last vestige of America’s wild frontier. The distinctive qualities of this state are not limited to its physical landscape, however. Stuart and Sally are well aware that Montana real estate laws are, many times, unique to Montana. Just because one of our clients from Georgia or Texas happens to be a real estate maven in their own state, they may not be prepared for the particular and sometimes complicated nuances of Montana Real Estate law. This is why we always recommend that our clients obtain local legal counsel to insure there are no unexpected surprises in any real estate transaction.

Gallatin County and the Bozeman are undergoing dramatic growth. This new expansion in the community is accompanied by continual changes in zoning and land use laws. Many areas are without zoning regulations, while other areas have highly restrictive covenants in place. For property buyers, there may be utility issues, density matters, and a myriad of other details that could throw the proverbial monkey wrench into a new property owner’s desire to utilize his or her land.

Caveat emptor – Buyers Beware – is a phrase most new property owners dread hearing, particularly when discovering that dividing large tracts of land can be problematic, and in some cases, impossible. Water rights, floodplains, and even mineral rights are all considerations and an important part of the due diligence prior to purchasing a property in Montana

Stuart and Sally’s knowledge and familiarity with the Bozeman and Gallatin Valley community will help us guide our clients through a number of these processes, answering questions, resolving issues before they become problems, and alleviating the stress of maneuvering through the laws and restrictions of a new region.

We are well-versed on local real estate and land-use issues and literally know the lay of the land. Our expertise will help insure that you are fully aware of any potential problems prior to making any offer on a property. With the full backing of the ERA Landmark office - Stuart and Sally have a fine-tuned awareness of the evolving landscape of Gallatin Valley regulations and potential pitfalls for land owners.

However, it is both wise and prudent to consult with a local real estate lawyer. We will provide you with a list of Bozeman-based lawyers who can explain and clarify the procedures in dealing with the city or county on a variety of issues that can impact a property transaction, ranging from altering zoning to understanding covenants and regulations. Legal counsel may also bring up other areas for new property owners to consider prior to purchase.

Stuart and Sally are committed to see that every legal detail of your transaction is addressed in a thorough and profession manner and with your best interests in mind.

Let’s Connect!

Call us at: 406-556-5013
e-mail: contact@stuartandsally.com

Meet Stuart Tilt & Sally Uhlmann!

Meet Stuart Tilt…

Since graduating from Duke in 1978, Stuart’s career has focused on communications, sales and marketing, beginning with her work at New York City’s Wells Rich and Greene Advertising. This led to many years in advertising sales for several publishing companies including Cahners Publishing. As an account executive for the noted Ketchum Advertising Agency, Stuart’s clients included the AT&T Bell Companies.

Stuart’s career took a different path while raising her two children in Washington D.C. As the owner of her own interior decorating firm, she successfully facilitated both residential and commercial clients to find their own distinctive visual styles.

In 2001, Stuart moved to Bozeman and turned her skills in sales, marketing and interior design in a different direction – real estate. Her background has been instrumental in her success as real estate agent specializing in the high end market.

Always involved in her community, Stuart is currently a member of the board of directors for the Gallatin Valley Land Trust and has served on the Museum Ball Committee for two years and the Heart of the Valley Humane Society Board. She looks forward to continued community service in the area she now calls home. Stuart loves to entertain, fly fish, ski and move to a new “project” house every three years or so all with the help of her husband Whitney.

 

 

Stuart fishing on the Big Horn River

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Meet Sally Uhlmann…

While still a teenager, Sally began designing and creating clothing for performers and major recording artists in her home town of San Francisco. She attended Antioch College before moving to Ibiza, Spain. By the age of 24, Sally had built her own fashion business as the founder and president of Salaminder, a designer clothing company. When she sold Salaminder in 1990, the firm had over 1,200 active retail accounts including the prestigious Neiman Marcus and Saks Fifth Avenue stores as well as Harrods’s in London.

During this time, newspapers from around the world did stories on this dynamic young entrepreneur who would roller skate from one end of her factory to the other.

Sally “retired” to raise and train 3-Day event horses on her ranch in Kansas. Her interest in this field led directly to her role as one of the three founders of Ariat International, now the leading equestrian boot company in the world. Utilizing her own sales and public relations background as the CEO of a clothing design firm, Sally concentrated on setting up the marketing and product introduction for the Ariat line.

As one of Kansas City’s best-known home chefs, Sally’s passion for cooking established her credentials as a writer and editor; Sally was the food editor of Kansas City Magazine and the entertaining editor for Home Design Magazine for five years.

Sally’s wide range of interests has led her to travel all over the world. It was a conference for one of her international projects that first brought her to Bozeman in 2002 and she immediately fell in love with the region and permanently moved her family to Montana the following year.

Sally has served on many civic boards and as an enthusiastic Bozeman resident, she has chaired the Museum of the Rockies Wine Classic for 2006 and 2007. The 2006 Wine Classic was the most financially successful gala in the history of Montana.

State of the Market – Bozeman, Montana

As we reflect on last year from a real estate perspective, the general consensus from those in the building, lending, real estate and related industries is relief that 2007 has come to an end. The local market in general saw lower numbers of sales, and yet several segments of the market experienced higher than average sale prices from the previous year. Marketing conditions and industry sentiments, so far through January 2008, seem guardedly optimistic, with many real estate firms and title companies showing an increase in the number of closings and pending transactions from 2007. Property showing activity has increased dramatically since the holidays, and more importantly buyers are writing offers, and sellers are accepting those offers. Though some buyers are still waiting for prices to go lower, market timing is very tricky, if not impossible, to execute perfectly in the real estate business. Many buyers are finding that lower interest rates coupled with seller incentives to discount prices, offer upgrades or participate with interest rate buy-downs, make this a very attractive time to buy. This renewed market activity is a “key indicator” to the return of a more stable and balanced market. Of special note, the Big Sky market has experienced increased showings and a renewed buyer interest after having a very flat 2007. I have always thought that good snow conditions can cure a lot of economic woes. And the simple fact is the more foot traffic we have in Big Sky, the stronger business activity we will have across our region.

Let’s take a look at a few of the numbers from 2007. Also, please see the companion piece by Nicole Ritter in this issue of BTB which further explores and analyzes the numbers. All information is compiled from the Southwest Montana Multiple Listing Service (SWMLS).

Within the Bozeman city limits, the condo and townhome dominance trend continues to grow. For the third straight year, attached housing sales have surpassed single family detached housing. Both affordability and availability drive this ever increasing market segment. There were 425 condos and townhouses sold in 2007 which compares to 433 in 2006. Average price for in-town condos and townhouses was $234,936, up slightly from 2006’s average of $228,269. There were 331 single family homes sold with the average price reported at $337,683. For 2006, this same category included 379 sales units with an average price of $348,766. Even though average prices are down year over year, 2007’s average of $337,683 is up by 8% from 2005’s average of $312,723. It is important to stress that average sales prices are impacted by many factors, including land prices, building costs, design trends, square footage, etc. and have no direct correlation to appreciation or depreciation rates.

Statistics from the City of Bozeman ’s Building Division website show a noticeable increase in the new construction trend. The city issued 758 housing unit permits in 2007 compared to 670 in 2006. Furthermore, the total valuation of all building permits for 2007 increased to $243,751,248 from $192,676,993 in 2006.

The Belgrade market area is one of the more stable in our region. Belgrade ’s available residential inventory has actually decreased in the past year. As of January 1, 2008, there were only 147 single family homes available for sale in comparison to 153 at the beginning of 2007. Condo and townhome inventories are down as well from 54 units to 37. Lower supply is another “key indicator” to market stabilization. Belgrade serves many first time buyers, with an average sales price $50,000 lower than within the Bozeman city limits. The number of single family homes sold in 2007 decreased slightly to 268 from 284 in 2006. There was also a small decrease in the average price from $295,397 to $284,834. The Belgrade condo and townhouse market has slowed also in the number of units sold from 163 in 2006 to 114 in 2007, but it shows an almost 5% increase with the average sales price rising from $149,375 in 2006 to $156,499 in 2007.

The Livingston/ Park County market is also worth noting. Although the in-town single family home sales decreased in the number of units, the average sales price rose again last year to $212,773 from $203,772 in 2006, an increase of 4%. The in-town condo and townhouse market, an emerging trend in Livingston , experienced substantial growth in the number of units sold with an increase from 19 units in 2006 to 37 in 2007. The average price also increased to $171,686 in 2007 from $141,134 in 2006. The rural areas of the Park County market showed slight decreases with the total number of residential transactions declining from 74 to 68 last year. However, the average price in this segment did increase from $349,368 to $357,731.

Sales of vacant land and subdivision lots slowed substantially in 2007, caused in part by record numbers of existing homes for sale. Within the Bozeman city limits, the average price increased from $114,637 to $137,691 (a jump of 20%). Please note: this statistic also includes a number of multi-family lots and does not reflect an average sales price for a single family lot. The average sales price of land in the surrounding Bozeman area increased by 43%, and Park County experienced a 21% increase in average price. There is still an abundance of inventory in this market segment from subdivision lots to large acreages in all price points. In the city of Bozeman as of year-end there were 654 available lots for sale and in the area immediately surrounding Bozeman , 618 available lots. Belgrade had 174 lots for sale, and the Manhattan/Three Forks area had 661 lots in inventory. The good news for buyers is ample availability and choices.

In conclusion, it is important to always keep in mind that the numbers reported are somewhat inconclusive when telling the whole story. There are many “pockets” of price ranges that are faring better than others or even certain neighborhoods that go against the norm of the market as a whole. Luxury and specialty properties are bucking the national trends with water amenities and larger acreages in high demand. Positive market signs include our growing employment base coupled with extremely low unemployment and continued national attention for the region as a prime retirement and second home location.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Visit us at http://www.eralandmark.com/ and http://www.StuartandSally.com/

Latest Real Estate Trends 2008

As another year winds down, it is nice to look back fondly on what has transpired in the last twelve months and also take some time to look towards the coming year with anticipation and an eagerness for what is to come. The real estate market certainly experienced an interesting year and has made more headlines than it would like to in some instances. However, in the spirit of starting a fresh year, this article will highlight some of the trends that are driving today’s real estate market into 2008.

Condo hotel sales are anticipated to be on the rise again in 2008 as financing is expected to loosen up for buyers willing to put 30% or more down. They are most appealing to those looking for a second-home option versus solely as investment properties.

Property auctions for residential homes are currently the fastest-growing segment of the auction industry. They can prove to be a win-win situation in that the sellers can often find a qualified buyer fast, and the buyers can aptly negotiate with very motivated sellers.

Housing communities are experiencing both growth and change. In the past, golf communities reigned supreme, but the emergence of many other types, including cycling, equestrian, and educational focused, among others, are seeing a surge in interest especially from baby boomers that do not have the same needs and interests as their predecessors.

Location, location, location has always been real estate’s most notable catch phrase, and that shows no signs of changing. There has been a rise in “micro markets” where a small neighborhood within a larger community is experiencing stable and/or rising prices whereas the area at large is seeing decline. Some characteristics of the well-performing micro markets include quality schools, more affluent homeowners, and higher owner-occupied rates.

Expect to continue to see a large selection of real estate “reality” shows on television. There is a natural curiosity for people to see other people’s homes and what goes on behind the front door. The only differences may be that some of the shows will become more reflective of national market changes.

Mainstream mortgage practices including sound underwriting and pricing are back in the forefront of lending. Stated-income loans and 100 percent loan-to-value financing are no longer commonplace. However, help should be on the way for buyers who were relying on subprime and Alt-A financing through Fannie Mae, Freddie Mac, and FHA financing.

“Sweetening of the deal” is on the rise in many places by sellers – both builders and owners of existing homes. Builders can use incentives such as fireplaces or other upgrade items, and all sellers can offer to pay some or all of the closing costs in order to help buyers out.

Green homes have been steadily rising with no end in sight. Anything from nontoxic construction materials to energy-conserving heating systems can help homes to sell faster to those who are seeking environmentally friendly housing. The National Association of Home Builders offers classes on building green, and private companies have begun to offer basic courses for real estate agents, home inspectors, appraisers and those in the mortgage industry.

Technology will be continually changing the feel of the real estate industry in the ways that information is collected and disseminated as well as to how property is marketed. Serving clients from all areas of the map drives these advances on a regular basis.

I hope that 2008 brings you peace, health and prosperity. Thank you for your readership and comments.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Special Thanks to Robyn for letting us publish her article!

Published in the Bozeman Chronicle, December, 2007.

Visit us at http://www.eralandmark.com/ & http://www.StuartandSally.com