Rick Evans - Sandpoint Idaho Real Estate Waterfront, Ski, and Resort Property

An incredible amount of market analysis went into the development plans for Dover Bay Waterfront Resort & Marina. Distinctive real estate products were developed with specific customer segments in mind, and even within each neighborhood there have been variances in design to appeal to subsets within these demographic groups.

The beauty of the Dover Bay Community concept is that there are 11 distinct neighborhoods

appealing to people from all walks of life. Obviously, the resort is geared toward the water and

snow‐loving crowd, but the diversity of the product offerings appeal to everyone from

young first‐time homebuyers to well‐to‐do executives or retirees looking for a luxury

custom second home on the water.

A young couple in their twenties can purchase one of the bungalow properties (starting

at $198,500) and build future wealth through ownership of a rare and finite

commodity...waterfront property. This allows families to invest in their recreational

time and create memories that last a lifetime.

The Cottages in The Meadow are perfect for first time homebuyers. More established

buyers have been impressed by the quality of Dover's higher end properties, and the fact

that we help protect their million dollar‐plus home purchases by limiting the release of

new Dover Bay offerings.

The developer has strategically created new home styles to meet the growing and

changing needs of our clientele, as well as maintaining home inventories that meet

current demand, rather than building large inventories and "betting on the come".

Dover Bay Development's goal is to communicate, cooperate and coordinate with both our existing

residents and potential buyers. Confidence comes from proven financial stability of a

development, keeping people informed, and offering a variety of options to fit their

needs. Dover Bay also embraces the traditional sales and marketing in selling of re‐sales

within the community.

Continuing with the discussion of the unique features that make Dover Bay Resort a solid investment, here are some key differentiators from other resort real estate communities in and around Sandpoint Idaho.

A. Concept of Independent Commercial Entities

In today's market, one of the biggest sales challenges a second home development has

is the love/hate relationship between real estate and the club. Many communities

require homeowner's to be club members, using and paying for both the amenities

and homeowner's association services.

This is what sets Dover Bay apart from the rest. The commercial aspects of the Marina

Village, the Lake Club Fitness Center, Café and Market, Marina and future amenities are

"stand alone" facilities. The homeowner makes the choice to have a boat slip or belong

to the health club facility. This "a la carte" philosophy will continue as additional

amenities are added to the resort.

B. Irreplaceable natural amenities create an irreplaceable opportunity ‐ Location, Location,

Location

Market share will be especially problematic for the remote, destination‐oriented

communities that are time consuming and expensive to get to and offering only a

private golf club, swimming, tennis, parks and trails.

Dover Bay is also different in that it features "irreplaceable natural amenities" which

creates an irreplaceable opportunity to be part of a waterfront community. One of

Dover Bay's strengths is the amount of water frontage access and views it features.

Where else can you find a 285 acre community directly on the shores of a fantastic

Lake? The location of having the second largest freshwater lake west of the Mississippi

out your front door, a world renowned ski mountain out your back and the quaint

friendly town of Sandpoint nearby is distinctive.

Dover Bay is unique in that it's nestled in a dramatic natural setting. Its location on

Lake Pend Oreille, its proximity to Sandpoint and the many activities of a four season

lifestyle are extremely rare. The community includes over 9 acres of parks and beaches,

9 miles of walking and biking trails which connect to the North Idaho Pathways and is

only 3 miles from downtown Sandpoint which features many art galleries, restaurants

and retail outlets.

Dover Bay is an easy weekend getaway for the second home buyer, 90 minute drive

from Spokane, 45 minutes to Coeur d'Alene and 30 minutes to the Canadian border.

D. Completion of Amenities

All the essential amenities are completed. Dover Bay Development is in discussions to

create additional amenities that will improve the community.

E. Strength of the developer and lenders

The strongest developments begin with having financially and ethically strong

developers. It's that solid foundation that ensures long‐term security success for Dover

Bay homeowners as well as for the Resort itself.

D. Operations

1. Waterfront Property Management, the largest marina operator on Lake Pend Oreille,

manages the commercial facilities within the community.

2. Tom Curtiss, a seasoned property manager with Panhandle Management manages

the neighborhood's HOAs and overall community association's maintenance.

E. Price Points

Unlike many other communities, Dover Bay has something for everyone. Home

sites start at $145,000 for interior lots with a lake view and range up to

$1,500,000 for estate sized lakefront home sites. We also have Parkside Bungalows

starting at $198,500 or if you would prefer luxurious waterfront custom homes that

have no price limitations. Dover Bay truly has something for everyone whether you're a

first time home buyer, the second home getaway buyer or an investor.

In addition, Dover Bay has a "buy now, build later" option for home site purchasers.

Because our buyers tend to be buying to create a long‐term family legacy, and because

Dover understands the nature of this new economy, they can take their time, choose their

own‐builder and create their dream home when their finances allow.

F. A Variety of Home Styles

Dover Bay Waterfront Community features 11 different unique neighborhoods which

offer a limited selection of waterfront home sites, waterfront condominiums,

Cabin in the Woods, Cottages in Dover Meadows and Parkside Bungalows each

neighborhood unique and offers a variety of prices ranges.

F. Waterfront

Dover Bay features 23, 000 feet of waterfront with 9,000 of that on Lake Pend

Oreille. All the paths (trails) lead to the waterfront.

For more information on any of Dover Bay's real estate or other matters, please contact Rick Evans at 208-304-5665 or visit http://www.SandpointResortRealty.com/resort.html.

Given the economic environment of late and the troubles that many resort developments are having, a common concern with many of my clients relates to the underlying strength of the resort community in which they are considering buying. Dover Bay Resort is one community that is certainly in a very solid position even in today's market.

Developer/Developments Credibility/Communities Financial Health

Dover Bay has been involved in successful residential,

commercial and property management projects such as Warren Island, Holiday Shores

Condominiums, East Hope Marina, Holiday Shores Resort, Sandpoint Marina and the Old

Powerhouse Building. Those successes have allowed Dover Bay Development to forge close financial

relationships with a number of very stable local banks. These strong financial partners

have allowed the developer to pursue and pay for the Dover Bay P.U.D. improvements as well as

municipal and commercial improvements. Dover Bay has made substantial investments

in the city of Dover, Dover Bay P.U.D, and the Marina Village commercial area.

1. Dover Bay development has funded and completed over $10 million

in improvements within the Dover Bay P.U.D. consisting of all the

infrastructure, roadways, the creation of an expansive trail system

including a biking trail system, a number of water features and parks

throughout the Community.

2. Municipal - Dover Bay Development has built and donated to the City of Dover

$4 million in new facilities including the City Hall and beautiful city

beach. It has also built and turned over to the city over $9 million in other

improvement such as a new fire station, 110' ladder fire truck with lift

and a state‐of‐the‐art wastewater treatment station, with the capacity

for a regional solution and a new water storage tank increasing the

city's potable water storage and improving the line flow capacity from

75,000 gallons to 353,000. The development has also paved the streets

in old Dover along with connecting the bike trails to the North Idaho

Pathways leading into Sandpoint.

The Dover Urban Renewal District is the most successful urban renewal

districts in the State of Idaho and has already reimbursed Dover Bay for

$7 million of the municipal improvements of the city.

3. Commercial / Dover Bay Resort

The first phase of the marina is completed. It is the only new marina

to be built on Lake Pend Oreille in recent memory. The Resort features

the Café and Market, Lake Club Fitness Center, Beach Bungalow

Vacation Rentals and is in ongoing negotiations for additional amenities

from Tennis Clubs, events center and additional commercial

opportunities that present themselves on a regular and continuing

basis.

Its interesting to see how the values that the county tax assessor gives to properties can be so different from the actual market value or sale prices. In an appreciating real estate market, assessed values are often low relative to market price. Whereas in today's market, the assessed values are often high compared to the actual market value. The main reason for this is that new assessments are always lagging in time, often 3-5 years behind (at least in North Idaho).

Bonner County is supposed to reassess 1/3 of all properties every year, however this goal is rarely met in actuality. So today we've got people buying at 2004 values and being surprised to see their tax assessment based more on values at the height of the market in 2006.

It should also be noted that the actual tax rate is not tied directly to home values, despite what most people think. Taxes are actually based on the budgets of city and county taxing districts. Therefore if the city or county budget is the same from one year to the next, but assessed values have decreased, then the levy (or percentage) will increase to account for the loss.

Also values are set as of January 1 of each year, so whatever happens in the real estate market later in the year will not show up until at least the beginning of next year.

It is certainly in everyone's right to appeal their tax bill. The process in Bonner County is that assessment notices are sent out the first Monday of June each year, and you have until the last Monday of June to appeal the assessed value. Go to the Assessor office and bring the supporting documentation showing why you think the assessed value should be lower, and you should get a response fairly quickly. This is a service that I often do for my own clients, and certainly any good agent would be willing to help in this area.

The following blog post is contributed by John Hendricks, one of the premier architects in Sandpoint, Idaho. A picture of one of his homes and the article follow...

Construction prices are at historic lows, as described by Tom Russell, LEED AP, of Hendricks Architecture in Sandpoint.

Something unusual happened to me the other day. I walked out of the local lumber store and was shocked when I looked at the invoice for my purchase. Being shocked by the lumber invoice was not at all unusual, what was unusual is that I was shocked at how much it didn't cost. My home is a perpetual remodel project, and because I have been buying a lot of material, I watch building material prices closely. I can't remember when lumber prices have been this low, though it makes sense when you think about it - lumber suppliers have a large surplus due to the lack of demand this past year. Apparently the law of supply and demand is still being enforced.

Local builders that John Hendricks and I have been talking to are finding the same thing. Many of them report that they have been bidding projects 20%-30% lower than they were just a year ago. While lumber prices are a big part of the savings, many builders and their subcontractors are anxious to stay busy and are willing to forego some profits to do so. Keeping good, valued employees working and maintaining momentum are oft cited rationale for reduced contractor fees. Increased completion is a factor as well. Most of the contractors I know in this area are staying busy preparing bids for clients, many of whom are shopping for the best value for their construction dollar.

RMR Group is a builder in Big Sky, Montana that we maintain contact with. They recently had a client come back to re-bid a home that was not built in 2007 because the price was too high. Due to subcontractor, material, and fuel price reductions, RMR group's 2009 price for the exact same house was an amazing 33% lower than it was in 2007.

I'm not an economist, but my sense is that the pendulum of home prices and construction costs has shifted from a historical high point to a new relative low point. I would expect that prices will end up somewhere between the construction boom we were seeing 2 years ago and the bargains we are seeing today. For anyone sitting on the fence waiting to start a big construction project, it would seem that this is as good a time as any we will see in the foreseeable future. I intend to seize the opportunity and build that barn that I have been waiting so long for!

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