Community Moorage Rights and Private Docks

Putting a value on Community Moorage Rights. How much are Private Docks and Moorage Rights worth?

Do you own or want to buy a home in one of Puget Sound’s boating communities? Do you wonder how to value moorage rights or a private dock in your backyard? If so, this article might be of help.

To start, if you own a boat you basically have the following moorage options:

1) Moor your boat in a public or privately owned marina
2) Buy a condominiumized (condo) boat slip
3) Buy a home or building lot with a private or shared dock
4) Buy a home or building lot with moorage rights in a community marina

Each option has its pluses and minuses, benefits and costs. If you moor in a public or private marina, one good thing is that you can cancel your moorage at any time. But since you are renting, you don’t enjoy the benefits of ownership like appreciation in value and stopping the constant moorage rate increases. This assumes that you are lucky enough to find an available slip and not just on a waiting list that might last for years. Over the long haul, this option could be the most expensive. Current monthly rental examples for a 40’ slip are $480 at Salmon Bay in Seattle, $305 at La Conner, and $345 at Cap Sante in Anacortes. Again, that’s if you can get in!

The second option is to buy a condo boat slip when or if available. Since a condo boat slip is deeded fee simple real estate, the current value and demand for a condo boat slip is important input data in determining both moorage rights value in boating communities that offer moorage rights in a community-owned marina; and the value of a private dock. Current condo boat slip values provide an excellent frame of reference. One of the best barometers for condo boat slip values in the Puget Sound area is Skyline Marina in Anacortes. The community of Skyline does not have moorage rights or a community marina for its residents. All moorage is privately owned, mostly as condominiumized boat slips. Richard Sands of Richard L. Sands, Inc. (tel. 360 293 1255, http://www.richardlsands.com/ ) is the originator of the condominium boat moorage concept, and has 40 years experience serving the slip owners in Skyline Marina. Richard and Steve currently have a backlog of more than 150 qualified buyers interested in buying slips from 28 to 100+ feet! Richard sold the first condo boat slip in 1969 when the first slips at Skyline Marina were condominiumized and offered for sale. Have the moorages appreciated the same way other real estate has? The answer is yes. In 1969 the first slips in Division 17 sold for $100 per foot, that's $3,800 for a 38' slip. Recently, a 38' slip in division 17 sold for $115,000—$3,026 per foot. And a 48' foot slip in Division 22 sold for $155,000—$3,229 per foot! Current asking is $3,500 per foot for a 40’ slip. So purchasing a moorage rather than renting has been a profitable decision over the years. The past is no predictor of the future but the scarcity of new moorage has demand always outstripping supply. In addition to the purchase price, condo boat slip owners pay taxes and maintenance costs. A 40’ slip in Skyline will cost about $200 a month for taxes and maintenance.

Skyline Condo Boat Slip Sales have been brisk: 43 slips sold in 2006, over 20 slips sold or pending so far in 2007

Condominium slips are a valuable asset, but more importantly for the boater, they provide a permanent moorage for your boat. No risk of losing your spot – you own it! And if your needs change, the slip can be sold. Because the slips in Skyline Marina are deeded fee-simple real estate, you can also keep them in the family, passing them on via inheritance or family trusts. This has proven to be a good option and investment.

The third option is to buy a home or lot with a year-round protected private or shared “dock in your backyard”. This is almost every boat owner’s dream. The biggest benefit is you walk out your back door and there is your yacht! No monthly moorage fees, no rate increases… for just a million dollars or two or three and this dream can come true! Right? Truth is that there are still a few communities in the Puget Sound area where you can buy that “boat dock in your backyard” for under a million dollars. But not for much longer. I have been specializing in boating communities for over five years and the prices have been going up dramatically and all indicators say they will continue to go up. In determining an estimated total market value for a home or lot that has a private dock , the “moorage value” should be added to the property value (the land and improvements). Based on the convenience of having your “boat in your backyard” instead of at a condo marina somewhere, a conservative estimate of the moorage value would be at least one & one-half times the current value of a condo boat slip that can handle a similar size boat. You could go to 2 times depending on other conditions including quality of dock, ease of navigation, depth, width, etc. Although the size of the boat slip or dock is important, more important in estimating moorage value is what size boat the slip or dock can handle. Some 30’ private docks can handle a 50’ boat comfortably while some have trouble handling a 30’ boat. At a conservative 1 & ½ times a condo boat slip, a protected private dock that can moor a 45’ boat should have a current value of about $236,000. Add this to the land and improvements value to estimate total market value. (See current condo boat slip prices above). Example: 60’ canal waterfront lot value $250k, improvements (1500sf house at $150 per sf) $225k, and moorage value (private dock capable of 45’ boat) $236k = $711,000. Change the 45’ to 30’ capability and the moorage value drops to $98K and the total market value drops $138k to $573k! Yes, big boat moorage is scarce and expensive.

The fourth option, buying a home or lot with moorage rights in a community-owned marina has a lot of pluses. You get most of the advantages of the first three options with the only minus being “you don’t have your boat in your backyard”, but it might only be a block or two away. There are not many boating communities that have community moorage and/or private docks and they are not developing any more because of shoreline acts and regulations. One such community on Whidbey Island is Mariners Cove. A boating community developed in the early 1970’s, it consists of 170 homes and lots, some with private docks, others with beachfront, and all property owners have moorage rights in their community marina. And, moorage is available for only $2 a foot per month! No taxes or maintenance expense. Just $2 a month per foot. So what is the value of the moorage rights in a community like Mariners Cove? At least as much as a condo boat slip in Skyline? I would think so. Or more because your taxes and maintenance are nil. If you own property in Mariners Cove, a 40’ boat will cost you only $80 a month, less than half the cost of the taxes and maintenance for the condo boat slip! Let’s just go with the same value as the condo boat slip. 40’ x $3500 per foot = $140,000. Add this to the land and improvements value to estimate the total value. Example: view lot value $175k, improvements (2500sf house at $125 per sf) $312k, and moorage rights $140k = $627,000. With this option you get a beautiful home probably with a sound view and very inexpensive boat moorage.

I hope this helped. It is pretty straight forward once you understand the value of moorage. Finally, since most properties are somewhat unique, the only true market value is what someone is willing to pay…

Any questions or comments, give me a call. Regards, Joe Marvin

Joseph Michael Marvin is a Boat Community Specialist with Windermere Real Estate on Whidbey Island, Washington. He can be reached at 206.605.1436. His website is http://www.boatcommunities.com/