Deeded Waterfront Property

Thirty-five percent of the waterfront properties on Priest Lake are on privately owned, deeded land. Due to the limited supply, the market value of deeded property is significantly higher than leasehold property. The value of waterfront property is generally determined by the amount of lake frontage, and the unit value is by lineal footage. As a rule, deeded waterfront parcels are smaller than leasehold parcels, typically 50 to 100 linear feet of shoreline. Deeded property is subject to property tax; the average mil rate in Bonner County is .0085.

Leased Waterfront Property

The State of Idaho Department of Lands manages leasehold properties located on the eastern shoreline of Priest Lake. Leasehold parcels typically range from 100 to 150 linear feet of shoreline. The US Forest Service manages western shoreline permit (leasehold) properties. Improvements to leasehold property must be approved by the managing agency. Past management policies have encouraged the protection of the natural setting and cabin scale. When a lease is sold, the buyer assumes the remainder of term of the lease. Buyers considering the purchase of leasehold property are encouraged to discuss the terms with the leasing agency, and to research past and current policies which could affect market values. Neither the State of Idaho nor the USFS will warrant that the leaseholders have the right to renew in perpetuity... non-renewals, however, are extremely rare. In the event that a lease is not renewed, agency policy provides for compensation for improvements. Lease rights are transferred to family heirs. 

State Lease

There are approximately 350 state leasehold cabins. State leaseholders maintain a strong and effective association. Leases are 10 years long; the existing leaseholder has the first option to renew. Revenues from state leasehold property are dedicated by law to the Idaho School Endowment fund. Annual lease payments are due in January. Current lease rates range from $4,000-8,000 per year. Personal property associated with a leasehold property is subject to Bonner County property tax. Improvements to State leasehold properties are limited to 1 dwelling unit and 2 outbuildings. Exterior finishes are subject to approval of the agency.

The State of Idaho charges a 10% transfer fee to the seller when the ownership of a state leasehold property is transferred. This 10% fee is based on the difference between the sales price and the value of improvements. The value of improvements can be established using the current assessed value or an appraised value issued by a state certified appraiser. A typical appraisal fee is approximately $500. Contact the State of Idaho Department of Lands for detailed information: (208) 443-2516.

Federal Permit (lease)

There are approximately 100 federal permit cabins. The term of the permit are 20 years, with a 10 year notice of non-renewal. All permits are subject to renewal in 2008, and potential non-renewals would not be exercised prior to 2028. Federal leasehold properties are characterized as more heavily treed than state leases. Current lease rates range from $4,000-5,000 per year. The overall size of a cabin on federal permit land is restricted to a maximum of 1,200 sf per level, including decks and patios; guesthouses are no longer allowed. (Existing conditions may be grandfathered).  Modifications to the land or vegetation are subject to approval by the agency.

The USFS requires an inspection of a permit property prior to approving a transfer. Forest Service policy stipulates that the property meet certain minimum standards. The seller is typically responsible for making necessary improvements. Contact Debbie Butler at the USFS for detailed information: (208) 443-2512.

 

The State of Idaho holds most of the land on the east side of Priest Lake, and a very limited number of secondary deeded properties are available. Most secondary properties are located on the west side. The topography surrounding Priest Lake is relatively level, with few lake view sites.

Since there is so little privately owned land, it is common for acreage to be bordered on at least one side by Forest Service land. Acreage will vary in price from $3,000-$10,000 per acre.

Purchase Process/Closing Costs

It is customary at Priest Lake for closing expenses
to be born as follows:

Buyers:

Loan Fees
Inspection Reports
Appraisal

Sellers:

Title Insurance
State Transaction Fee
Federal Lease Improvements
Property Taxes Due
Real Estate Fee

Share Equally:

Closing Agent Fee (title co. or atty.)

Liability for repairs recommended by inspectors, or required by lenders or agencies, are subject to negotiation.

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