Country Properties Have their Own Set of Concerns

Many people have always dreamed of having a country estate on a nice big 'spread' of land. This is all fine and well but often these types of properties can have their own issues before and after purchase.

Buyers using FHA financing have to be acutely aware that larger than 5 acres is something FHA gets 'nervous' about. I just closed on a manufactured home sitting on 17 acres and that was a tall order to get done. But we got it done, none-the-less.

Both buyers and sellers need to understand that these types of properties are often more challenging to close. This is not the type of transaction to try out on that brand new loan officer. A seasoned pro is needed to navigate the treacherous waters of government backed loans.

Buyers absolutely should get an inspection on any property, but a rural place on large land is even more critical. Out in the country natural animal pests are a larger concern and often these types of properties have the additional concerns of a well and septic. These can be expensive to fix or replace and buyers need to be certain they understand what they are getting into with a particular property.

After purchase, buyers need to be very pro-active in sealing up any possible entry points for rodents and other wild critters. If the parcel is large enough or covered in forest, vegetation and such, as to not be all visible in one take, walking the property on a regular basis is important. You don't want people dumping on your land, nor do you want to let encroachments or squatting go on as this can lead to expensive and time consuming legal problems.

The bottom line is that the dream of a country estate is very accessible and following good practices can make that dream a lifelong reality.

Land Opportunities Abound

In the local market we are still fortunate to have a large area in which homes can be built on five acre estate parcels. These need not be far away from town, and many in fact are very close in.

I recently showed a five acre parcel ready to build in Hockinson just five minutes out of East Vancouver. It was listed at $179,900. Buyers dreaming about that country estate should consider looking now. Land prices are inching up and rates for now remain low. Building costs however have been rising sharply. Building materials are experiencing price increases that are disproportionate to the economy at large. This could be due to the recent heavy demand added by a major influx of suburban and urban development in the local market.

Here in Clark County five acre building sites abound from areas in close like Camas, Hockinson, or Ridgefield all the way out to places like Yacolt and Amboy. The further out locations will often yield better pricing. The trade off becomes convenience versus value.

Some of the lots that are found for sale are located in subdivisions with a strict set of CCRs or even an HOA that may place restrictions on the size and type of buildings. Other lots are relatively unregulated in that regard. Our office currently has a generous supply of listings for buildable land. I am quite impressed with the variety.

Red area is seeing suburban development pressure,
yellow area remains mostly rural in nature
and is outside of the urban growth boundary

For those who wish to have a five acre estate in close to the city, the time is now. These types of parcels are reacting to the increased pressure from hungry buyers. Soon land pricing couple with building costs may push these completely out of the reach of the middle class.

The future of housing is in cramped quarters with neighborhoods stuffed with homes on tiny lots. The chances to own some space grow thin as increased regulations and the finite nature of land create a market that can only get tighter. In the graphic shown the area in the inside the yellow line is all within 20-25 minutes of PDX and has many opportunities to have a five acre country estate.

We are very fortunate in the metro Portland-Vancouver area to still be able to have a rural country home less than 30 minutes to the city core. Seattle lost that ability long ago. Those wishing to enjoy the country estate are well advised to make their move now.

Long term land prices could get hot.

It has been an amazing half-decade these last five years. After the "crash" it seemed as though Clark County, WA had a lifetime supply of ready to build lots owned by a variety of investment and banking groups. Yet suddenly we find our selves in a bit of a land crunch. Developers are trying to find new build able parcels and are finding that market increasingly tight.

The politics in the area have long been running towards sustainable, non-urban sprawl. It has become necessary for builders to look at urban infill projects and higher densities. The further belabor the issue, the State has created new requirements for storm water mitigation on new subdivisions. All of this leads to higher land prices and greater expense passed on to the buyer of new homes.

Those buyers wishing to take advantage of low interest rates on a brand new home should step up the pace as prices will likely rise faster on new construction than resales. That said, the resale market will benefit long term from increased building costs. The more expensive new homes become the more people will turn to resale property to meet their needs. Furthermore, urban infill on small lots is not for everyone and many families will choose and older home on a big 10,000 foot lot over a newer homes stuffed into a neighborhood like anchovies in a can, on 4,000 foot lots.

The real estate market is in a dynamic flux moment, hey that sounds really cool. What I mean is that we are on the precipice of a shift in they way our community will grow. Clark County has hung on to suburbia and rural development but alas, the time is near that builders will need to move towards a more urban profile in their projects. We have already seen this paradigm shift over the last decade, particularly in Vancouver and that will spill over to much of the county as time marches on.


To the left is the current Urban Growth Boundary map for Clark County. There are still some areas of nice flat build able land, but pickens' are getting slim and that has the building community a little edgy.

In the end build able land will become increasingly expensive and builders will either have to build more dense or more expensive. Any opportunity that a buyer has to acquire property now will likely be money well invested for the future. Interest rates remain low and prices, although on the rise are still below the levels of 2007. This adds up to a great value proposition.