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  #1  
Old 12-23-2004, 09:51 PM
Pekejake Pekejake is offline
 
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State: Minnesota
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Home is on river front.. No sales found actually on the river and have one sale with lake front but its beyond one year.. There will never be a way to pull paired sales on a commercial dock.. This is a huge dock with two adjoining piers.. Should I give it anything (nominal value) or treat it as personal property?? since you can remove it or I believe you can remove it..
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Old 12-23-2004, 10:25 PM
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CANative CANative is offline
 
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Quote:
Home is on river front.. No sales found actually on the river and have one sale with lake front but its beyond one year..
Either decline the assignment, or

make a bunch of wild guesses and unsupported adjustments, or

spend the time and effort necessary to find old sales on riverfrontage and compare them to old sales not on river frontage, old sales of homes with lake frontage and compare them to old sales of homes without lake frontage. Extract the differences, perhaps as a percentage, apply that to the current comparables. Determine the difference between homes on lake frontage versus homes with river frontage, determine if the difference is the type of frontage or the locational influence. Interview Realtors and brokers who specialize in the property type keeping notes of who you talked to with their contact information. Determine why there are no recent sales of riverfront properties and only one older sale of a lakefront property and determine if it is a lack of inventory, a lack of interest, etc. Determine if this is a recreational residential area or if people live there full time. Since you don't have any sales with riverfrontage you'll need to find some way to determine exposure time for these properties that is reasonably supported.

As to the dock. When you say "commercial" do you mean that it is producing income for the owner. Or that it is just "big and expensive?" Is it a floating dock. If it is, you can probably consider it personal property although most of the time docks are included in the sale of a water front property.

Get my drift? (ha ha) This type of property is not for the ocassional casual appraisal. They're time consuming and complicated and you should make sure you have some help on the first 5 or 10 of them. I know I needed a lot of help at first and thankfully, that help was in the same office.
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  #3  
Old 12-23-2004, 10:29 PM
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JSmith43 JSmith43 is offline
 
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Hi Lori,

I see you upgraded to trickier questions I may only be able to answer some of the questions begged for by this potentially complex situation. No river sales....even site sales?? That's rough.

I assume your client is trying to slam a Fannie/Freddie conforming loan on the property. Mixed use properties are typically OK if the usage doesn't exceed 20% of gross living area. No problem there.

The commercial use must be legal, I.E. no meth labs, and OK use per zoning, etc. Basically, anything that is obnoxious about the commercial use (in the eyes of a typical homeowner) should be disclosed. Per Freddie, you are to appraise the residential real estate with the commercial value not included in the appraiser's market value estimate. Better put that into your scope.

I'm assuming H & B use is as a residence? Maybe H & B use is a bait shop

That's a tough assignment mostly because of the lack of data. I think you should hand it off to someone you'd like to slow down :rofl:
  #4  
Old 12-23-2004, 10:33 PM
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JSmith43 JSmith43 is offline
 
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I see Greg posted a pretty good outline of how to patch together and expand the market data. Maybe he'd take the assignment on a fee split :dance:
  #5  
Old 12-23-2004, 10:40 PM
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No thanks. I've got enough headaches of my own.
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  #6  
Old 12-23-2004, 11:07 PM
Pekejake Pekejake is offline
 
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The area this guy lives in has a population of 3,000. No sales let alone river frontage. I was lucky to find some homes with river bluff and view.. No this dock is big and frozen in the water.. He never removed it.. He just bought this home.. It is a regular residential home. I believe when the owner states its commercial, he means just that its big and useful.
  #7  
Old 12-23-2004, 11:16 PM
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JSmith43 JSmith43 is offline
 
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Quote:
I believe when the owner states its commercial, he means just that its big and useful.
Sure, now you tell me So, it's a commercial duty dock? Commercial, agricultural, investment.......those are loaded words within the context of lending and appraising.

With your clarification at hand, my first post is not applicable.
  #8  
Old 12-24-2004, 10:24 AM
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Tim Hicks (Texas) Tim Hicks (Texas) is offline
 
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Is it a commercial dock for business use or is it just his own private dock that is big? There has to be other homes in the area somewhere with their own private dock. Lake properties, private lakes, something somewhere. You may have to expand your perimeters. But really, how much more can a large dock do than a small dock? Treat it like a garage, two car vs. three car, etc. It utility is its utility no matter what the size. Now, if it is a commercial dock with income stream and business functions, then you have a much larger problem and it does not sound like a Fannie or Freddie conforming loan.

Avoid the word commercial in your reports unless you are discussing business interests.
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  #9  
Old 12-24-2004, 03:52 PM
john snyder john snyder is offline
 
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Present worth of the the income stream, if it can be rented and if rent comps are found for dockage to support it, for say term of +/- 5 years if the physical improvements can last that long. Use 10% discount rate - hey its always ten - right? :lol:

Merry Christmas,

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  #10  
Old 12-24-2004, 03:56 PM
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Otis Key Otis Key is offline
 
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Commercial dock - commercial work, commercial report. That's outside of my area of experience and qualifications. I guess you've upgraded your status with the state, not to mention USPAP. Good luck with it.
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