The Settings at Black Mountain

[il66pony]

Originally Posted by EvanstonGirl

Six trips?? You are really doing your homework. What are your favorites so far? And do you have a way of checking financial health? We just found out this morning on Morningstar that a developer that's a joint venture with Duke Power is now in bankrupcty. That doesn't mean they won't come out of it, but it makes you wonder what will happen with the nice amenties they're trying to build.

It is hard to pick a favorite unless price is not any kind of an issue. I am not sure what your price range is and whether or not you plan this to be for a second home leading to a retirement home or a retirement home to be built in the future.

Having said that, the two Asheville area front runners are Avalon in Waynesville west of Asheville. Waynesville is a beautiful small town like Hendersonville. Outstanding views from the higher lots and some also look down on lake Junaluska. The problem here is that there is only one house built and occupied and one other being built. Utilities are 90% in but no gate, clubhouse or paved roads yet. If I do not see any activity in those three infrastructure items, I will be real leery.

The other is The Homestead at Mills River. Again, very nice views especially at the higher elevations. Definetley more established than Avalon or the 13 homes that are built at The Settings of Black Mountain. We will look at The Settings while we are there this weekend but we want an acre and lots of that size just too expensive there.

I looked at Lake Lure area on the first visit in the fall of 2006. Very expensive on the lake as well as for a view of the lake and/or mountains. Other places in the vicinity less expensive such as Bill's Mountain have very steep lots. You could pay up to $300k for all the foundational work to keep a house from sliding down the side of the Mountain. I never looked at the lake Adger area.

We are also looking in the area of Boone and West Jefferson in Ashe county in the Northwest corner of the state. You get as good and normally better views than the Asheville area at half the price. Specifically, we are looking at a development in West Jefferson called Big Tree. We have a specific two acre lot that is quite level in mind with an asking price of $120k. All lots are wooded and most have beautiful views and some with drop dead views. Utilities are in and roads paved except at the very top. There is not a gate or clubhouse planned but there are a fair number of homes there although most at this time are second homes. So, if we wind up there, we will need to make West Jefferson our "neighborhood." From the lot we like you can be at a super Walmart and Lowes in 12 minutes. West Jefferson is the shopping meca for the whole county. Boone is 30 minutes away with all the shopping you would ever need except for some of the high-end stores. Both towns offer a lot to do. Charlotte is 2 hours and 15 minutes away.

There is nothing that bothers us about the Boone and West Jefferson areas. However, Asheville (according to this Website) has a crime rate 50% above the national average. I have witnessed more than a few homeless folks in Asheville. But, we would not be living in Asheville so I guess that is okay. If you look at crime in some of the towns around Asheville, the crime is almost non-existent.

There a several things you can and should do to address the financial stability of a developer.
1) Google the heck out of the developer name and development name. This you can do early on.
2) You can request a Dun and Bradstreet report at www.dnb.com. They have several levels of reports ranging from $40 to over $200. While I have not requested one yet, I think the $40 one would be sufficient. Obviously, you won't do this until you have narrowed the search to one or two places.
3) Make sure the developer has completion bonds that provide the necessary cash to build out remaining infrastructure should they go under.
4) The last thing you must do when you make an offer is to make sure the contract is contingent on a lawyer of your choice's approval. To be safe, I would already have a lawyer lined up and give yourself a 30 day timeframe for this approval in the contact. I believe a lawyer can pull a D&B for you. Make sure the lawyer looks at covenants and restrictions.

So, that is where we are at. The six trips we have made have provided us with a lot of stuff to think about beyond just the lot, the view and the price.

Dave

[lovesMountains]

Originally Posted by il66pony

It is hard to pick a favorite unless price is not any kind of an issue. I am not sure what your price range is and whether or not you plan this to be for a second home leading to a retirement home or a retirement home to be built in the future.

Having said that, the two Asheville area front runners are Avalon in Waynesville west of Asheville. Waynesville is a beautiful small town like Hendersonville. Outstanding views from the higher lots and some also look down on lake Junaluska. The problem here is that there is only one house built and occupied and one other being built. Utilities are 90% in but no gate, clubhouse or paved roads yet. If I do not see any activity in those three infrastructure items, I will be real leery.

The other is The Homestead at Mills River. Again, very nice views especially at the higher elevations. Definetley more established than Avalon or the 13 homes that are built at The Settings of Black Mountain. We will look at The Settings while we are there this weekend but we want an acre and lots of that size just too expensive there.

I looked at Lake Lure area on the first visit in the fall of 2006. Very expensive on the lake as well as for a view of the lake and/or mountains. Other places in the vicinity less expensive such as Bill's Mountain have very steep lots. You could pay up to $300k for all the foundational work to keep a house from sliding down the side of the Mountain. I never looked at the lake Adger area.

We are also looking in the area of Boone and West Jefferson in Ashe county in the Northwest corner of the state. You get as good and normally better views than the Asheville area at half the price. Specifically, we are looking at a development in West Jefferson called Big Tree. We have a specific two acre lot that is quite level in mind with an asking price of $120k. All lots are wooded and most have beautiful views and some with drop dead views. Utilities are in and roads paved except at the very top. There is not a gate or clubhouse planned but there are a fair number of homes there although most at this time are second homes. So, if we wind up there, we will need to make West Jefferson our "neighborhood." From the lot we like you can be at a super Walmart and Lowes in 12 minutes. West Jefferson is the shopping meca for the whole county. Boone is 30 minutes away with all the shopping you would ever need except for some of the high-end stores. Both towns offer a lot to do. Charlotte is 2 hours and 15 minutes away.

There is nothing that bothers us about the Boone and West Jefferson areas. However, Asheville (according to this Website) has a crime rate 50% above the national average. I have witnessed more than a few homeless folks in Asheville. But, we would not be living in Asheville so I guess that is okay. If you look at crime in some of the towns around Asheville, the crime is almost non-existent.

There a several things you can and should do to address the financial stability of a developer.
1) Google the heck out of the developer name and development name. This you can do early on.
2) You can request a Dun and Bradstreet report at www.dnb.com. They have several levels of reports ranging from $40 to over $200. While I have not requested one yet, I think the $40 one would be sufficient. Obviously, you won't do this until you have narrowed the search to one or two places.
3) Make sure the developer has completion bonds that provide the necessary cash to build out remaining infrastructure should they go under.
4) The last thing you must do when you make an offer is to make sure the contract is contingent on a lawyer of your choice's approval. To be safe, I would already have a lawyer lined up and give yourself a 30 day timeframe for this approval in the contact. I believe a lawyer can pull a D&B for you. Make sure the lawyer looks at covenants and restrictions.

So, that is where we are at. The six trips we have made have provided us with a lot of stuff to think about beyond just the lot, the view and the price.

Dave

WHEW, you tired me out with all that - GREAT job Love the way you are doing your homework.

[EvanstonGirl]

Thanks so much for your thoughts. I looked at some of the links, stumbled across some others, and am feeling overwhelmed. I'm going to send some links to my husband, then we can narrow down what he needs to see when he goes out there next month. I don't think I would go as far north as Boone, just because we want to be a little closer to Asheville. You make a very good point about steep lake lots, though I didn't realized it could cost as much as $300K to shore up the foundation. We have a lot to learn about real estate and builders, but luckily have awhile to look around and talk to people. We were looking at this as eventual retirement home, after the kids are in college. For now, we would just own the land and plan our "dream house." Really appreciate your input!

[EvanstonGirl]

I forgot to ask...has anyone visited the Creston Community near Black Mountain?

[BigSteve46]

No, we did not go to Creston as it was 7-8 miles or so from Black Mtn. We did visit Southcliff between Asheville and Fairview, but did not feel it was right for us. Too much like a typical subdivision, and custom lot prices were no big deal. Nice development though, and very close to Asheville.

[BigSteve46]

We had a great visit the weekend of June 6th and now have a contract on a lot in The Settings. The development from our perspective is spectacular. We found all of the development work, amenities, etc. to be very high quality with very nice finishing touchs. For example they have curbs on all roads, and many sidewalks throughout. Pretty much all lots have some portion of a "view", some minimal, others amazing.

Only about 15 houses are completed or close to completion. Feedback from several sources indicate that speculators and those purchasing for future building are the sole reasons. Those planning to wait in building have been caught either with financial difficulties, or not wanting to attempt selling their present residence in this poor real estate market, especially those from Fla. See add'l comments below:


Pricing of lots - flexibility, or lack thereof.

• The developer has 40 or so lots remaining, many in phase 3 that is not complete with roads & infrastructure. Others scattered. The developer's lot we are purchasing was a better lot than the resales we looked at, plus the asking price was much, much better. Our lot price was signficantly better than the lots previously sold in 2006-07 adjacent to ours and the same size (.59 acres). The lot is fully wooded and will have some summer mountain view, more so in the winter. If you find a lot from the developer, and can pay cash with a fairly quick closing, they will "make a deal".

Locations within The Settings that are desireable, or to avoid

• The cottage lots are mostly without trees, but are very close to clubhouse / pool. Some areas within the development have steep slopes and will require $'s for drive and/or foundation. Some are reasonably flat. Ours has a moderate slope.

Resale of lots - I have not found any

• There are 60+ Resales listed, most by a Beverly-Hanks agent. Most prices were around original purchase price, a couple indicated "desparate" or "short sale".

Financial Stability of Developer

• Every developer in the country is hurting, however, my diligence indicates The Settings is in OK shape, not great, but OK. A lawyer I contacted in Asheville did talk with someone familiar with them and the feedback was positive. According my conversations with their Sales Director and CFO they have about $3M in remaining development costs to complete, but $9M-$11M in value of remaining lots to sell. They have only minimal debt at present. They plan on completing all remaining work in the next couple of months, except the pool, which they will have in place by next summer.

Slope Ordinance - impact on The Settings

• I did not check as our lot is not that steep.

Amenities - Delays in completing. Why hasn't pool area, exercise facility, etc been compled.

• Club house is complete and beautiful. They need to pave the parking lot around it, and the pool. Did not complete due to economic realities.

Builders - Experience with the "preferred" builders and cost per ft range

• We spent several hours with two of the builders and spoke with a couple of others. Costs for good quality will easily hit $200+ per ft of heated living space. There are less expensive options available. We were caught by surprise on costs and the fact that one must count unheated space as part of overall costs. Construction of foundation / basement is not free, neither is garage, nor a roof area over a porch.

[Zooropa]

Originally Posted by il66pony

There is nothing that bothers us about the Boone and West Jefferson areas. However, Asheville (according to this Website) has a crime rate 50% above the national average. I have witnessed more than a few homeless folks in Asheville. But, we would not be living in Asheville so I guess that is okay. If you look at crime in some of the towns around Asheville, the crime is almost non-existent.

I think people worry way too much about the crime levels in Asheville. It's not like we are in Compton, or wherever. I walk downtown from my home on a regular basis and I don't feel any less safe than I have anywhere else I've lived. People just need to use common sense and be aware of their suroundings.

[EvanstonGirl]

Steve, thanks so much for you detailed posting, and congratulations! We will definitely check out The Settings this summer, especially if we can't find an affordable lake lot. Are you planning to live there year round, or part time?

[gottogetfishing]

Big Steve - congratulations on the lot purchase. We'll be neighbors. Glad you could find something that appealed to you.

As for the Creston development, I visited this before purchasing my lot in the Settings. It's strikingly beautiful, the lots are nice sizes and reasonably priced. However, you almost need a compass (it seems) to get there. You travel a fair distance south out of Black Mountain on Rt9 - a very slow, curvy road - to reach it. It's my preference to get someting closer to town. But, it's definitely worth looking at. I'm not sure about their financial stability, or the developer's future plans. By contrast to the Settings, it's more rustic and this also has some very nice appeal.

Good luck Evanston Grirl. And, thanks to those who posted such excellent detailed information.

[a.curvin]

Originally Posted by Asheville Native

And maintaining the roads in the years to come and other infrastructure?

The mountains and Asheville area is supposed to be where everyone wants to move to, and they want to dump these lots cheap so they can focus on another development not in the mountains? Think about it

They are probably trying to dump the remaining lots because this development has been underway for at least 3 years. It was also not very well received by the Blk Mtn community at first. Let's just say that that area of Hwy 9 did not have city water and sewer until the Settings came.