Boat Slip Question

[Mike Boyd]

Thanks for the response Mike, Randolph and Terrel.

Yes, the boat slip contibutes to value. I have a model match, closed sale matched pair within the past 12 months - 2 model match properties in the same project that closed on the exact same day. One with a boat slip sold for $275,000 and the one without sold for $260,000. These boat slips are in a great location for boating- they are in fact the very reason some (but not all) people buy in that condo project. The project has some other very desirable features also. I was suprised a higher value for the slip was not indicated by the matched pair. Of course, that is just one pair of sales...

It would seem you can support a value of $15,000 for the boat slip. I would use the garage line (and explain.)

I.E. 1 gar, 1 B.S.

That slip adds to the appeal and marketability. You should make sure that ownership of the slip is included in the transfer and to the security of the note and deed of trust. (or mortgage)

 

[Charlie]

Can someone who does not own a condo or live there purchase just a boat slip?

Thanks again for all the questions and insights. I have gotten a variety of different answers publicly and privately.

No. A non-unit owner may not purchase just a boat slip. Boat slips can only be sold and rented to other unit owners within the condominium project. The owner of the subject unit would not be allowed to sell the unit and retain ownership of the slip. Only unit owners can own boat slips. However, the subject owner could sell or rent her slip to another unit owner.

 

[Charlie]

If it can be transferred independently it is a seperate property. Have you been retained to appraise one or two pieces of property?

Therein lies your answer.

One piece of property. zzz Street Name #YYY. No mention of the boat slip.

 

[John Hassler]

If it can be transferred independently it is a seperate property. Have you been retained to appraise one or two pieces of property?

Therein lies your answer.

Ditto


I would contact the client. The lender may or may not allow the inclusion of the boat slip property as loan security. Even if they do, the borrower may not want or need to encumber both.

 

[Charlie]

Be careful, touch base with someone familar with appraising properties with boat slips in this area. Sometimes small differences in location relative to access to open water and water depth within the slip and slip regulations can have a big effect on value. Two slips that appear similar may not actually be so similar.

Noted. I have talked with a lot of appraisers and I am familiar with slips in the area. They can be tricky here. The condo project I am looking at has 67 boat slips that come in about 4 different sizes. Regs allowing for larger boats can have a significant effect on value. However, the water access is about the same for each slip. In addition to the layer of complexity added by the boat slips, the project wraps around the water with buildings turned in different directions. The result is that almost every view is unique- but you can kind of group the views into 1)no water view, 2)limited water view, 3)good water view or 4)top ranked water views. Then you have to try to research and filter through MLS BS to determine what group each unit falls in.

 

[Rlong]

Those that would "ignore" or not meantion it would likley be doing a misleading report in my opinion. You get access to that amenity others are not provided. I would discuss the access to, and ability to lease or buy slips. If you use all comps in the condo property all are equal, if you go outside you have to weigh the access that comp has.

just my opinion.

Bob in CO

 

[Roger Kinnard]

I just did one like this a few weeks ago.

Is the boat slip included in the legal description of the property you are appraising? Must it transfer with the property? If not, it's personal property.

Looking at it from your clients perspective, will the mortgage encumber the slip? Doesn't sound like it to me. Does it have value? No doubt, but it's probably no different than the value added if they included the boat that was parked in the slip.

How is ownership transferred? The one I did, they got a stock certificate for ownership of the slip. It's been that way for 15 years and no one ever bothered to check and see if the slips were real property.

PM me if you want details on the one I did and good luck

Roger

 

[jay trotta]

Charlie,
contact your Client and advise what your looking at; check the Deed first and see what's included in it; When you contact the Client for "clarity" as to how they want you to approach it. Be sure to mention the increased Fee for additional Liability (extra work)and don't forget to read up on your riparian rights. You may need to allocate a value for the "slip" within the report separately (like the Cost Approach) (income approach) to support that value.
Because of the limited # of slips, it offers a premium use/income to the Unit Itself, just make sure your compensated upfront for the extra curicular activity and keep your file updated.

cheers

 

[Mike Garrett RAA]

Geeez Guys...

Ask yourself this. Would a buyer pay more for a unit that has the use of a slip? If so, then it affects the value. It would be like having a view of Pikes Peak here. You don't own the mountain, you just get to look at it. If a property sells for more because of the view, the appraiser needs to account for it.

If the slip isn't owned (deeded) then it becomes an amenity. Ideally, you would use all comps that have slips but if you don't have those ... then adjust accordingly.

 

[SANDY]

Unless you have a broken arm try calling the client to answer your question as to whether to include it or not.