“How much does my boat dock add to the value of my Lake Lanier property?”
It sounds like it should have a simple answer, but this is actually a loaded question. There are several factors that go into determining the contributory value of a dock and its permit. 1. Boat docks can vary dramatically in cost
Not all boat docks are created equal.
You can have a basic, uncovered, single-slip or platform wood dock, or you can have a highly customized aluminum double-slip party dock complete with boat lifts, storage, custom lighting, plumbing and other amenities. Manufacturers such as Wahoo and Martin are well known for higher-end dock systems.
We have seen highly customized docks cost more than $100,000.
But here's the important point: The cost of a dock is not necessarily the same as the value it adds to the property. 2. The dock permit is actually more important than the dock itself
Technically, boat docks are personal property rather than real property. However, on Lake Lanier, docks are generally treated as taxable improvements in the counties surrounding the lake.
From an appraisal perspective, the dock permit is an extremely important component of the overall lake property's value.
Since most Lake Lanier transactions include the dock and permit, both are considered when analyzing the overall value of the property. 3. Where the dock is located matters
The location of the dock on the lake can have a significant impact on value.
Is the dock located in:
These characteristics become part of the site value analysis.
Two properties can have similar homes and similar docks, yet their locations on the lake may result in significantly different values. 4. So, what is my dock and permit actually worth?
This is the million-dollar question—and unfortunately, there isn't a set dollar amount we can simply assign to every dock permit.
The market determines the value.
When we compare one Lake Lanier property with another that has similar characteristics, but one has a basic dock and the other has a highly customized dock, we look at the difference in what buyers are actually willing to pay.
That contributory difference is what an Appraiser is trying to measure.
For example, if two otherwise similar lake properties differ primarily in the type of dock they offer, and the market demonstrates that buyers are willing to pay $40,000 more for the property with the superior dock, that difference becomes an important indication of the dock's contributory value. 5. The dock may have its own adjustment in the appraisal
In many cases, we will make a separate line-item adjustment for the dock in an appraisal report. This helps clearly identify how much of the overall difference in value is attributable to the dock and permit.
Depending on the property and what the market data supports, we have seen dock-related adjustments ranging from approximately $10,000 to well over $50,000 or $75,000.
And, as always, the market may support an amount outside of those ranges.
There is no universal “Lake Lanier dock value.” 6. Buyers don't necessarily pay dollar-for-dollar for the cost of a dock
One of the most common misconceptions is that if a homeowner spends $75,000 on a dock, the property automatically increases in value by $75,000.
That isn't necessarily the case.
Our experience is that buyers generally do not pay dollar-for-dollar for the cost of a dock. That doesn't mean it never happens—it certainly can—but the cost to build or upgrade a dock and the amount a buyer is willing to pay for that dock are two different things.
This is why market data is so important when determining contributory value.
Moving from a single-slip configuration to a permitted double-slip dock, for example, can be particularly meaningful to buyers who want greater boating capacity and flexibility.
But ultimately, the value isn't determined by what you paid for the dock. It's determined by what the market demonstrates buyers are willing to pay for the dock, the permit, and the location where that dock sits.
Lakefront valuation requires more than simply comparing square footage and sales prices. Dock permits, dock configuration, water depth, views, shoreline, topography, location on the lake, and the usability of the site can all play an important role in the analysis.
If you're considering selling, refinancing, buying, or simply want to understand the current value of your Lake Lanier property, working with an Appraiser who understands the unique characteristics of Lake Lanier can make a significant difference. Call us when you need a Lake Lanier Expert, we can help.