Dock included in value?

[huntercharlie]

I could be wrong but I vaguely recall reading that Fannie doesn't allow docks to be included in value. I was not able to find anything in the selling guide regarding this so perhaps I'm crazy.

Scenario; Development is sited near a river. Some of the properties are adjacent to the water with private or shared docks while other properties are not adjacent to the water and have deeded docks in the common area.

Thanks

 

[CANative]

Is it a floating dock?

If the market pays extra then it doesn't matter what Fannie Mae says.

 

[Ken B]

Assuming the right of use runs with the land, a deeded dock in a common area (probably) adds value to the lot which has the use of that dock. While one may not own the dock anymore than one might own a view, the amenity adds value to the property which enjoys the amenity.

 

[CANative]

Just use comps that have the same kind of dock and they won't know you "gave it value."

lol

 

[Mr Rex]

2010-09

Treatment of Personal Property

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 1-4 Family Rider (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.

 

[Joe Flacco]

Docks, piers, boat lifts, bulkhead. In my area all these features associated with waterfront property contribute to value. Especially ever since the county has become more restrictive with the rights to build docks and piers.

 

[CANative]

Treatment of Personal Property

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 1-4 Family Rider (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.

What about the rights to have a dock if not the physical dock itself?

 

[huntercharlie]

Is it a floating dock?

If the market pays extra then it doesn't matter what Fannie Mae says.

Yes, it's a floating dock that is attached to the site via a concrete footing.

I understand what you mean as far as value but if the Client engages me to perform a Fannie compliant appraisal (assuming no violation of USPAP,etc) then I am obligated to do so, no?

 

[huntercharlie]

Treatment of Personal Property

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 1-4 Family Rider (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.

Thanks for the reference (now I know I'm not totally crazy). In my case the dock is floating but is attached to the site via a concrete footing.

 

[CANative]

Read the Fannie cite that Rex posted, except change the highlighted text:

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 1-4 Family Rider (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.

IMO the thing to do is value the property to the market and estimate the contributory value of the floating dock (break it out narratively.) The lender then can make the appropriate decisions based on what they intend to do.