Boat Slip Question

[Charlie]

Hello everyone.

If an appraisal is to be completed on a condominium unit, should the appraiser include a boat slip that can be transferred independently of the property in the valuation? The client has provided no specific instruction on the situation and there is no mention of the slip on the order form or instructions. The condo units are owned seperately from the boat slips, but the docks and slips are part of the condo project and dues are used to maintain and repair the waterfront amenities. Unit owners can sell and rent the boat slips, but only to other unit owners. The boat slip was transferred along with the unit when the subject property was purchased a few years ago.

Thanks in advance for any assistance.

 

[Mike Garrett RAA]

Does it contribute to value? Not a common thing IN MY MARKET; however, I would suspect it might be the very reason someone would want to buy in that complex.

 

[Randolph Kinney]

Does it contribute to value? Not a common thing IN MY MARKET; however, I would suspect it might be the very reason someone would want to buy in that complex.

Not to mention you can only sell the boat slip to someone in the complex.

It sound like there are fewer boat slips than condo units.

I wonder what the price over time looks like for a boat slip? With and with out a condo unit?

 

[Terrel L. Shields]

It is personal property that is included in the transfer in my home state and so you don't see it on the tax cards in some local jurisdictions. Further, when searching the comps you have to determine if the boat slip transferred in that sale. I hate Grand Lake, OK properties for just that reason. Very tricky sometimes.

 

[Mike Garrett RAA]

Especially on Monkey Island, LOL. I would suspect the contributory value is pretty good. What amazes me is the number of houses built so close to the water and subject to flooding. Looks like we won't be going to Grand Lake this year. The federation boys want to go west.

 

[Charlie]

Does it contribute to value? Not a common thing IN MY MARKET; however, I would suspect it might be the very reason someone would want to buy in that complex.

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 also has some other very desirable features. 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...

There are significantly fewer boat slips than condo units. Price over time for a boat slip is unable to really be determined due to a lack of info. It certainly appears to have gone down over the past few years just like the condo unit prices. The boat slip info is not included on the tax cards which makes it even harder to research.

Although I appreciate the responses, I am still a little confused about the correct way to handle the situation. I would think that the slip, since it can be sold seperately from the unit, should not be included in the appraised value unless specific client instructions are provided to include it.

 

[Frederick]

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.

 

[Mike Garrett RAA]

Check some other complexes for paired sales. I would use one of the blank lines on the appraisal form and title it...Boat Slip. Make an appropriate adjustment and then in the comments section explain what you did and why you did it. Shouldn't be a problem at that point.

 

[Dennis J. Black ASA IFAS]

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.

 

[Wm. Hattaway]

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