Appraisal Matters

As part of our rental studies, we frequently run across the term “full service”, which is used selectively and with different meanings. Some marina owners/managers use the term to describe their range of utility services. Some go beyond this definition to include boat repairs. Let’s explore these variances.
Utility services can vary significantly at a [...]

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It’s common practice for an appraiser to include a slip rental survey of competitive marinas in a report.  The goal is to show that the subject’s slip rental rates are above, below or equal to market.  In the dozens of marina appraisals I’ve reviewed, I can say that I haven’t seen one done correctly.  [...]

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I get calls every day from commercial property owners, especially marinas, who are in trouble.  They are close to foreclosure or very near a balloon payment that they will not be able to pay or refinance.  They are upside down.
There are things that can be done to minimize loses and even save a property.  It [...]

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On occasion, I’ll review a marina appraisal where the appraiser has adjusted for dock services such as the presence or absence of sewer pump out or differences in the electrical output of docks.  There two potential difficulties associated with adjusting for dock electric:

It is only rarely that a marina has one type of dock electric.  [...]

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It is common for appraisers to count parking spaces and to calculate a parking ratio.  Unlike common commercial property types, calculating this for marinas produces no results more often than not.  Here’s why:

To count the number of parking spaces, you need a marker.  That can be striped asphalt parking spaces or concrete bumpers on gravel.  [...]

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So, how do we work our magic and reconstruct a marina’s operating statement?  Assuming we get the Quick Books file, we start by copying/renaming the file.  Working with the copied version, we pour over each line item and see how it’s categorized (never overwrite the original).  We categorize according to a preset list we use [...]

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One of the “hidden” costs or difficulties in appraising marinas is the lack of application of uniform accounting standards.  It’s not that it’s not been proposed - the International Marina Institute did a great job in publishing “Uniform System of Accounts for Marinas & Boatyards“.  Yet, I am hard pressed to recall even one instance [...]

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Over the last few weeks, our posts have been about what is going wrong in the industry.  There are segments and marinas that are doing just fine.  They may not have the same net income as last year, but smart planning and their position in the market have helped them survive and sometimes thrive in [...]

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According to the U.S. Census Bureau, in 1999 there were 8,200 U.S. marinas. The National Marine Manufacturers Association (NMMA) estimated that in 2002 there were 12,000 marinas, boatyards, yacht clubs, dockominiums, parks, and related facilities (note that this higher number includes properties that are technically not marinas, although they are maritime related).  No new studies [...]

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I am inundated with foreclosure calls, from both sides of the fence.  Owners are calling asking us for advice when the notice of default comes and lenders are calling just as they send these notices out.  After years of very easy lending practices, many marinas are in trouble.  This is especially true for marinas that [...]

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Taking everything from the prior five posts of this series, we see that there can be a huge difference in perception between what can and cannot be built on marina land.  The problem comes when assessors view a marina site as highly buildable when in reality the marina owner knows it is not due to [...]

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Other government regulations come into play when examining the land yield (i.e. number of lots) that can be generated at a marina site.  They include zoning, zoning overlays, flood zone classification, state laws, local laws and local governmental attitude toward development.
Zoning ordinances affect marina land in two principal ways.  First, they limit certain types of [...]

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The first thing that probably comes to mind about things that limit or stifle development of a marina site is government regulation.  So why make it the fourth thing I’ve considered, not the first?  That’s because many of the government regulations kick-in and branch based on what type of soils are there and whether wetlands [...]

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I have been amazed by the FNC company since I sat, many years ago, in a “session” where they were selling their ideas of a totally linked appraisal world.  They were assuring us that their goal was to protect the appraiser and make us all a lot of money.  Since the lenders have the money, [...]

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This is the question of the day.  I speak to people every day and they are all asking this question.  Do we know the answer?  Probably not, but we can guess as good as you can.
If I could answer that question, I certainly would not be working anymore.  No one really can, nor can any [...]

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A poor appraiser in Oregon had to put up with a “person” stealing their identity and doing appraisals in THEIR NAME.  I cannot do this article justice.  Read the original article here: http://www.columbian.com/article/20080830/NEWS02/308309014
Eileen Simpson

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The prior post addressed soils, which is one of several important components for determining if wetlands are present.  In the absence of a wetlands delineation (which can cost upwards of $30,000), we appraisers are left with having to determine wetlands and development potential ourselves -  otherwise we risk a substantially erroneous value conclusion!  As any [...]

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Of all the factors that affect the building potential of a marina site, what one factor is the most critical?  In my opinion, it’s the soil characteristics.  The soil classifications for a marina are frequently a mystery to marina owners and they are frequently overlooked by assessors.  Fortunately, thanks to our friends at the USDA [...]

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Having taken off the past two weeks from blogging to prepare for a big Court Case involving marina land, I’ve some observations I’d like to share.  With the exception of certain select areas of the country (Florida in particular), there is a very large disconnect between marina owners, tax assessors and appraisers when it comes [...]

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