Rack O Miniums???

[JRS at OBX]

It is my understanding that I am in the clear doing a boat slip. It is not a commercial enterprise, it is bought and sold much like a vacant lot. It is a parking spot in a marina. Does a campground ownership require a CG? (can you even borrow money on those?) Appraising a campground does.

How about the condos that have a boat slip included?

 

[JRS at OBX]

I deleted the post anyway. I'm going to call the board to be sure. If they say I'm in the wrong, I'll have to call a few of the local residential guys and let them know too!!

 

[Steve Owen]

Wow, I came here for advice,....

I will be looking for a state cert general to work with me on this as a narrative for commercial condo.

There you go. Looks like the advice you got worked.

I would like to editorialize just a little bit about this situation, though. I will not pass judgement on whether the services of a CG are required because I am not an expert on the regs of the state in question.

However, I will say that this doesn't appear to be a particularly complex deal. They sell a boat slip that goes together with some other amenities and has some common ownership.

It's not residential and it's not unimproved land; but it also is not commercial so far as the individual owner it concerned. Calling it commercial would be similar to calling a time share ownership commercial. You are not appraising the entire property (that would be commercial) but rather a single owner's interest.

We often throw stones at banks and other client groups for asking us to do things we should not do. Well, you definitely should not appraise this boat-o-minium on a land form with a condo addendum (at least not without substantial modification). The way to go seems to clearly be summary narrative.

That being said, it's not that hard. If the CG's that had been doing it have been stiffing the bankers for large fees, then it's no wonder that they tried to find some gullible appraiser to do it some easier (and cheaper) way.

 

[hal380]

This is a commercial assignment!!!

Every single propety could be appraised as vacant land and then a comment addendum to talk about whatever is built on the land.

It is up to you to decide the classification of assignment - Resid. vs comm
It is your responsibility to decide what it will take in the way of report format to allow a clear and not misleading report.

By the way Jeffrey, you need to lighten up a bit.

Regards
Hal

 

[Don Clark]

Advice given in good faith

JRS @ OBX,

I gave the advice in good faith. Apparently you took it that way. I have a second home in Kitty Hawk. I might need your services some day. Heck, I might just decide to make it my primary residence and hit you up for a place to work I would hate to see a good appraiser taken down.

 

[Don Clark]

This is a commercial assignment!!!

Every single propety could be appraised as vacant land and then a comment addendum to talk about whatever is built on the land.

It is up to you to decide the classification of assignment - Resid. vs comm
It is your responsibility to decide what it will take in the way of report format to allow a clear and not misleading report.

By the way Jeffrey, you need to lighten up a bit.

Regards
Hal

Hal,

I have to agree with you. Now, if the boat slip was part of a residential development such as a Condominium and could be sold seperately, then I would consider it as residential. We have several such condo arrangements here locally.

 

[JRS at OBX]

Ok, I'm going back to my original statement. I appraised a boat slip. If you want to say that is a commercial request or not, it is typical in my area for certified resdiential appraiser to appraise this type of property. In NC we are allowed to perform this type of service as long as it does not exceed the $250,000 limit.

Thanks for making me nervous last night!! :new_all_coholic:

Don, I did take your advice in good faith. Come on down, I'll put you to work!! (Then I'll take the day off and go fishing!)

 

[Robert Hronek]

Jeff

Feed us a little more information about this project. What was the approximate sales price. How big are the boats tey are storing. How much on the on going HOA fees etc. Who is lending the money, a bank, private investors, etc. Do they really even need an appraisal.

If they are seeling these things for $10,000 to $50,000 ( just throwing numbers) spending a couple of grand for an appraisal would be costly. I don't know banking reulations as to what is required when a loan is made on a deeded property, are appraisals required? Then there is the $250,000 deminimus rule for banks. If it is a non bank they can make their own rules as to requiring an appraisal.