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Manufactured Home / Total Economic Life

Discussion in 'Manufactured Housing' started by Sharon60, Feb 6, 2008.

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  1. Sharon60

    Sharon60 New Member

    0
    Sep 26, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I am looking for documented information for Total Economic Life of a manufactured home and the estimated depreciation per year. Any help would be a great help.
     
  2. stefan olafson

    stefan olafson Senior Member

    0
    Apr 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    North Dakota
    I'd check with the specific builder of the home you are appraising. They can give you their opinion of economic life. Then I'd look at sales of Manuf Homes in the past five or so years and see what you can glean from them. In my area of expertise the market indicates a less than typical life as compared to stick built homes.
     
  3. CANative

    CANative Elite Member

    240
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    There a many different methods of estimating depreciation. % by year is s simple accounting type method (call the age/life or straigh line approach). The linear approach is simple but does not recognize reality.

    If you're going to appraise manufactured housing you really should subscribe to NADA and learn how to use it. For one thing, it is model specific and depreciation is built into the cost tables. There is even a section which you can use to pluck out an REL. HUD/FHA recognizes this data source and requires it's use for Title I appraisals. The only time anyone has ever argued with me (REL of less than 30 years on an FHA deal) I just cited the section and page number from NADA and the argument ended.
     
  4. Sharon60

    Sharon60 New Member

    0
    Sep 26, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Thanks Greg, and yes this is an FHA loan and I am having a battle with the underwriter.
     
  5. CANative

    CANative Elite Member

    240
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    What's the issue? REL?

    What is the name of the manufacturer, model name, location, year of construction and condition of your subject? I'll see if I can look it up in NADA.
     
  6. Mr Rex

    Mr Rex Elite Member

    195
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Marshall and Swift indicates 30 years for low quality multi section up to 55 years for excellent quality. Average quality is 40 years. For single wides, 20 to 45, with 30 for Average Quality.
     
  7. Restrain

    Restrain Elite Member

    29
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Best way. Look at the sales. How old are the homes being sold, excluding the occasional extreme? At what point are they selling for land value with new units being moved on site? It'll take you about 20 minutes, but it will be time well spent.

    For example, I looked at one mfg home development that had homes from the 60's. However, the new sales showed that the homes were being sold for site value and being replaced. Cap of 40 year economic life due to changes in styles, design, appeal and buyer demands.

    Hope this helps.
     
  8. hglenbetts

    hglenbetts Senior Member

    2
    Dec 3, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    I'd give total economic life as 10 years from Ohio north and as long as Mom and Dad live, to the south. No matter how you look at it, depreciation is 50% per year, first four years.:Eyecrazy:
     
  9. CANative

    CANative Elite Member

    240
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Where did you get that?
     
  10. hglenbetts

    hglenbetts Senior Member

    2
    Dec 3, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    Owned one!!:fiddle:
     
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