Credit For Boat Slip

[FMV]

Hey AF-
Completed an appraisal for a manufactured home with no covered parking-the home is very small-measured 874 sqft.
This is an FHA appraisal-(so much fun)-they live up next to a large lake, but it is not lake front although they do have "partial" lake views-you still have to walk a short walking distance down to the lake where they own a boat slip.. Here is where things get interesting and wanted to see if anyone has any good commentary..
According to the homeowner-to own one of those slips-you have to get on a "wait list" and it is very obvious they are soaking all the value into this slip. They are very, very, very proud of a small boat slip that looks like a simple small metal covered carport for one boat and I understand the importance-but have no sales to "bracket this slip"-plus since the subject is so small and sits on a 7,400 sqft lot.
Did I mention they are very, very, very proud of the small boat slip..

 

[FMV]

My only thought is to give the slip considerable credit-but wanted to see what commentary someone would have.. any thoughts?

 

[hastalavista]

Do the rights of the boat slip run with the land?
Can the rights to the boat slip be sold off separately?

 

[FMV]

The lake is owned by the U. S Army Corp of Engineers and according to their office-YES, it can be sold off separately..

 

[FMV]

I have good comments if I need to use a "site built" home that may own a boat slip-but really hate to include that in the report.. since it is FHA

 

[hastalavista]

Hey AF-
Completed an appraisal for a manufactured home with no covered parking-the home is very small-measured 874 sqft.
This is an FHA appraisal-(so much fun)-they live up next to a large lake, but it is not lake front although they do have "partial" lake views-you still have to walk a short walking distance down to the lake where they own a boat slip.. Here is where things get interesting and wanted to see if anyone has any good commentary..
According to the homeowner-to own one of those slips-you have to get on a "wait list" and it is very obvious they are soaking all the value into this slip. They are very, very, very proud of a small boat slip that looks like a simple small metal covered carport for one boat and I understand the importance-but have no sales to "bracket this slip"-plus since the subject is so small and sits on a 7,400 sqft lot.
Did I mention they are very, very, very proud of the small boat slip...
The lake is owned by the U. S Army Corp of Engineers and according to their office-YES, it can be sold off separately..

I bolded what I think are the issues. They are more of a lender/FHA issue, but that will drive how you complete the report (which, obviously, is why you are asking your questions).

Is it FHA's intention to make loans on boat slips? I don't think so. But if they are fine with it (and you are going to include it in your valuation) I think I'd make a clear statement of (a) what the contributory value of the boat slip is, (b) that unless covered by the mortgage lien, the boat slip can be sold off separately at-will of the borrower. Like excess land, you don't necessarily need a similar comp (one with a boat slip); you do need to get data on how much the boat slips sell for on their own and analyze that transaction market to determine a value (if there is a waiting list, presumably there are potential buyers to interview). It will create an across the board adjustment, but that shouldn't be a problem with FHA (as long as you support the adjustment).
If you are not going to include it (and assuming this is the right FHA protocol) then no need to explain the reasoning; it is similar to excess land; identified but not included in the valuation analysis.

Good luck!

 

[FMV]

Thanks Denis

 

[FMV]

I'll definitely include the data on what they sell for.. good tip..

 

[FMV]

Hey Denis-
Do you have any good comments-possibly "general commentary" that I can get an state further?

 

[hastalavista]

Hey Denis-
Do you have any good comments-possibly "general commentary" that I can get an state further?

I don't- for what you are describing, I'd write the commentary based on the specifics of that assignment (If I had a general statement, I'd happily share it).