Boat docks

[Peter LeQuire]

A couple of years ago there were two threads about docks - floating and permanent. Is there a distinction between these in how FNMA/Freddie allow value to be attributed to them? The question came up over beverages, with someone saying that Fannie won't allow value to be given floating docks but will for permanently installed (as with pilings) docks. Does anybody know?

 

[Mr Rex]

Per FNMA:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1009.pdf

Treatment of Personal Property
[FONT=Arial,Arial][FONT=Arial,Arial]Lenders are reminded that personal property, including (but not limited to) furniture, vehicles, boats, floating boat docks, and art work, may not be included as additional security for any mortgage on a one-unit property unless otherwise specified by Fannie Mae. Personal property is permitted as part of the security for a loan on a two- to four-unit property to the extent it is pledged by the [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]1-4 Family Rider [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial](Form 3170). Whether an item is real or personal property is generally determined by the law of the jurisdiction where the property is located. A professional appraiser who has the knowledge, experience, and geographical competence to complete the appraisal assignment must also possess the expertise to identify personal property items in the appraisal.
[/FONT][/FONT]

 

[CANative]

The Fannie stuff is on the lender, not the appraiser. If floating docks result in higher pricing then that has to be recognized/accounted for in the appraisal. What the lender does with this is their business.

 

[Peter LeQuire]

Thanks for the link, and the information.

 

[The Warrior Monk]

One thing to keep in mind is that regardless of whether or not the dock is considered personal property, that fact that a property can have a floating dock may have different value from a property that can't have a floating dock.

 

[CANative]

There is a perfectly sound concept about non-realty items contributing to the value of the real estate.

 

[The Warrior Monk]

It's actually related to utility. The value of properties with various permits may be worth more, and sometimes substantially more, than properties without those permits.

 

[CANative]

I'm talking about properties where a permit is not required to have a floating dock. Some properties have no dock, some have old rickety docks while still others have very expensive, elaborate floating docks.

 

[The Warrior Monk]

I thought CA was like NY...permits are needed for everything.

Nobody puts in a floating dock here without the proper approvals.

 

[stangtime]

A floating dock can be dismantled and removed in a matter of hours. In fact I've often thought that if I wanted to expand our deck I could just get a bunch of friends over, pick the thing up, carry it up the hill and place it on a foundation.

Around here, when I built our floating dock, I didn't need county permits - it was personal property. (I did need to clear it with the HOA though)

Floating docks can also range from flimsy thin aluminum pole contraptions to pressure treated lumber on large floats.

Dan