Appraising A Deeded Boat Slip

[Ray Miller]

Mr. Smith are you here

This boat slip bring up a question for one of our Great Lakes Appraisers. Mr Smith.

Because the lakes are drying up/dropping lake levels and the docks and boat slips are being moved out to deeper water, who then owns the land under the slips or docks. Dose it go from ownership to leasing? Dose this affect the value?

 

[Carnivore]

So if I got called back to appraise the horse operation in YellowStone National Park that I did in the 70's, no doubt I would not appraise it the same way today. I don't think so.

You would use the very contempoary 2055 3/05 version.

Keep up with the times Ray, or you will have to calf rope or bull dog for day money.

 

[Harve Bean]

If you have to ask what form!!! - You don't have enough experience to do an appraisal of this type. Say narrative, narrative, narrative and probably a before and after style appraisal (property with a boat slip vs the same property without a boat slip). Or, if there is a market for boat slips with sales of boat slips available, then it is a narrative using the market approach. In any case, you need to work with an appraiser that has some experience doing this type of assignment.

 

[Ray Miller]

You would use the very contempoary 2055 3/05 version.

Keep up with the times Ray, or you will have to calf rope or bull dog for day money.

Sounding better every day.

 

[Fred]

Very true! Now, all Ric has to do is figure out if the deeded boat slip is actually real estate that belongs to the BORROWER or is it a leased fee with certain and definable rights of use. Something like that.

Actually what I meant is that land is land (space), whether the points where it contacts the earth's surface are dry or wet.

 

[Carnivore]

Steve, I knew that. I just know you are a stickler about terms. Land covered with water(a liguid) or air(gaseous state of a liguid) is still land.

I was thinking outloud on the other stuff.

 

[Fred]

Steve, I knew that. I just know you are a stickler about terms. Land covered with water(a liguid) or air(gaseous state of a liguid) is still land.

I am as stickly as property law and no sticklier.

 

[Ms. Janet]

Actually what I meant is that land is land (space), whether the points where it contacts the earth's surface are dry or wet.

Ok, I admit it.........I'm not so bright.....................

Seriously, I don't understand that. Doesn't it make a difference if the rights conveyed are related to the water or the land beneath the water?

 

[robert higgins]

Hmm does the deed have, ownership rights, land dimensions for the slip? Is it in a marina? Can the docks be removed, if so what do you have 4+ poles to hold them, who owns the poles? if the water raises does your "land" get bigger, or does it get smaller when the tides goes out? Who owns the water that the boat floats on? What riparian rights does the owner have?

This would be on the same grounds as if your appraising minerals rights. Someone with a Certified General with experience in water rights and/or boat slips would be qualified. I would pass on it and tell the bank you not qualified/competent for this and would be happy to do something in a residential for them.

 

[Richard Carlsen]

My God.......it's a dockominium that is being appraised. Not the Empire State Building.

What does the assignment say? What are the clients needs. Forget the sub-surface oil drilling rights below the mean high water mark. Forget the question of moving the dock to a new location. The ownership most likely just involves the shared ownership of the dock with the space next to it and the space the boat is tied up in. Value only what will be and can be transferred.

Do we ask all of these questions and worry about all of this crap when you do a single family condo? No. Do we worry about the mineral rights or the riparian rights under the fish pond? No.

Do we sometimes try and make things hard just to impress ourselves with our superior knowledge? I sometimes think that is the case.

If you don't know how to report value, ask the client what they need. It may be the a Restricted Use Report will work just fine. If they have never loaned on one before, then learn with them. The assignment needs be only as complicated as is necessary to fulfill the clients needs. So far, nobody has addressed that.