Jim Valentine on Real Estate
Real estate has a lot of components that add or subtract to its value. Some are easy to see such as the improvements, views, etc., but there are things that contribute to value that aren’t so readily apparent. Real estate is the land and improvements thereon plus any other amenities such as natural resources, crops, etc.
Mineral rights are a component of land ownership, but most owners have no idea if they have any mineral rights, or not unless they own a mine. Mineral rights can be sold separately from the land itself or withheld when the land is sold. Sometimes mineral rights are sold or withheld in a fractional interest, i.e., half the mineral rights. The mineral rights themselves can also be divided and transferred, i.e., oil and petroleum rights vs. gold, silver, copper, etc.
Most residential subdivisions reserve the mineral rights when they sell lots, or at the very least, they have established a restriction that prohibits mining activity within the subdivision. That prevents the possibility of creating unstable soils under the homes from mining activity.
If you do have mineral rights, they may, or may not, have significant value. You first need the ore to harvest and it needs to be of sufficient quantity and location to make the extraction economically feasible. Most times the idea of having mineral rights in Nevada is the most valuable aspect of owning them due to the rich mining history and reputation that Nevada has.
Air space and views are often taken for granted but they can be limited in what you can do with them which can have an impact on your value. If you have trees blocking your view of Lake Tahoe, you likely can’t drop them due to the TRPA regulating body. We know of at least one subdivision in the valley that limits helicopter flying over the properties. Hard to limit non-property owners we would think, but if you are an owner, you would be prevented from owning a helicopter should you be so inclined.
These days a drone would be more likely to be owned and utilized for vertical flying and sightseeing, and it isn’t a helicopter so maybe you could use it. We don’t know for sure, but this information is only advisory to make sure you look into the details when you buy property to make sure that it will serve your purposes.
Things you can’t see that impact value can also be the neighbor’s dog that misses them when they leave and lets the neighborhood know it, odor from something nearby, or noise from something nearby, i.e., access point to public lands for ATVs and motorbikes. If you are near a flight path there can be airplane noise that wakes you from your nap. The neighbor’s hot rod can rattle your windows when he sparks it. His kid may have aspirations of being in a band and is practicing many hours a day.
There are a lot of things that contribute to real estate that aren’t readily apparent when you look at the home. Some require viewing the property at a different time of day while others require detailed reading of the documentation pertaining to the property. Take the time to do both if you can. Your seller should disclose things to you that can adversely affect your intended use, but it doesn’t always happen as you would like it to.
What is the history of your property and neighborhood? Some of your research requires looking back while much of it involves what the future will hold for you as an occupant of the property. Will you be happy there? If not, your value has been impacted. If so, be sure to think about your successor in interest. Will they like it and buy it when it’s their turn to own it?
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley. Contact him at 775-781-3704 or dpwtigers@hotmail.com.