Modular Home Appraisal

[EddieB]

Update,, the aprraisal came into the bank this morning, when I called to get the news, I was told by my banker she couldn't send me a copy yet because the appraiser used the wrong form, he wrote it up on a manufactured home form!!! They were contacting him to see his reasoning and they would get back to me.. since I first posted my Realator and I did research on the subject, went to planning and zoning it is considered real property and modular not manufactured, found sticker under sink with Texas irc stamp, we sent all this info along with 4 comparable stick built properties with acreage that have sold in the last 6 months. All of this and he still seems set on appraising as a manufactured. The numbers came in 10000 under asking price, 20000 under taxed assessed value, it's assessed at 60$ sq ft, all comparables were 90$and above. So best I can assume is he really low balled on the sq ft appraisal to be 20000 under assessed value, but I don't know because I haven't seen numbers yet, all this being said I told banker if he wasn't going to do his job correctly I wasn't going to pay, she said I couldn't do that, Now just so y'all understand I'm not nieve to construction I've been in it all my life, have remodeled multiple houses, and flipped a couple, I was not familiar with modular so I did research, everything I found said they were solid and comparable to site built, the place on the outside does look like a manufactured but the inside is nice, not your typical double wide, real sinks nice floors, good floor plan, anyone interested MLS# 50007385, I guess my question is if the appraiser doesn't want to appraise as stick built and come up with a realistic aprraisal, do I have any other avenues or am I screwed? Thanks

Thanks for the followup and I wish you well. Don't be too hung up with the assessors value or classification, especially classification, since they do not visit or verify every property. If I have a chance, I will post fannies directives on manuf/modular comparable selection.

But it does boil down to how the market will perceive the appeal and quality of construction. If it looks and feels like a manufactured home, then most buyers will value it as such, maybe more for the higher quality of construction. Regardless, the spec sheet states modular which should be reported on the 1004 form and not the 1004C form (manuf). The comparables chosen and how they are adjusted are the appraisers' decision.

Again, good luck

 

[DWiley]

Well, the appraiser did put it on the wrong form if he used the 1004C manufactured home form. A modular home in my opinion does not automatically neccesarily compare to site built. It may, it depends on the build quality. Ideally, the best comps would be other similar quality modular homes, some similar quality stick built homes, and maybe some similar quality manufactured homes. If i found the correct MLS, it would look to the average market participant like a big old Doublewide. You need to know how your market perceives Modular homes. I did a modular last week, i would have had no idea it was factory built unless the agent told me. But thats the exception, Ive never been in a modular in 16 years that i couldnt tell was factory built.

Agreed. Some modular homes look just like "traditional" construction homes. Some modular homes look like manufactured homes. For a home in the latter category, it would totally inappropriate to use "regular" comps just because of the label "modular." When I worked with the state board I saw more than one value "fluffed" using that technique.

 

[TRESinc]

it's assessed at 60$ sq ft, all comparables were 90$and above. So best I can assume is he really low balled on the sq ft appraisal to be 20000 under assessed value, but I don't know because I haven't seen numbers yet,

i haven't seen the report yet but i've been doing this long enough to know that whomever told you the above info most likely does not know how to read an appraisal correctly. the adjustment on the sales comparison grid for above grade living area is just that - an adjustment for the living area only, not the entire property meaning it does not encompass the lot, outbuildings, decks, porches, patios, basement area, etc. to confuse the issue more on the top of each comparable the form does display a price per sq ft calculation for the comparables used, however that is a true price per square foot, meaning take the value of everything and divided it by the amount of above grade living area. this is a common mistake that many people, and even those in the real estate industry, make on a daily basis.

 

[Weslide]

Well, the appraiser did put it on the wrong form if he used the 1004C manufactured home form. A modular home in my opinion does not automatically neccesarily compare to site built. It may, it depends on the build quality. Ideally, the best comps would be other similar quality modular homes, some similar quality stick built homes, and maybe some similar quality manufactured homes. If i found the correct MLS, it would look to the average market participant like a big old Doublewide. You need to know how your market perceives Modular homes. I did a modular last week, i would have had no idea it was factory built unless the agent told me. But thats the exception, Ive never been in a modular in 16 years that i couldnt tell was factory built.

I understand what you are saying, but you also said in your opinion, so my question is, is that what this boils down to? One person's opinion? I guess I'm confused I was under the understanding that modular homes were to be appraised as stick built? The comparables he showed were older double wides with metal skirting, and the closest was 45 min away the rest were over a hour east,where property values are considerably less, we sent 4 comparables that were sight built because there are no manufactured or modular comparables in the last six months,

 

[TRESinc]

we sent 4 comparables that were sight built because there are no manufactured or modular comparables in the last six months,

i'm curious about what you sent. did any of them sell for less than your contract price? how did they compare to the property you want to buy in terms of living area and age?

 

[TN Pro]

Is this the property? http://www.deloerarealty.com/scripts_rev/rev/popup_additionalphotos.asp?ml_num=50007385&l_id=8067

 

[Weslide]

yes

Is this the property? http://www.deloerarealty.com/scripts_rev/rev/popup_additionalphotos.asp?ml_num=50007385&l_id=8067

Yes that's the property, I guess my biggest question is this, just using tax numbers fur reference purposes! The land and barns asses at 30 thousand which seems fairly realistic, and the house asses at 60$ per sq ft , bringing total to 197000, my appraiser came in at 177000, so if you subtract the 30000 for barns and land he is at 147000 on the house alone, it doesn't add up in my head, please don't get me wrong I'm not trying to argue or be rude just looking for info so I don't make a huge mistake in investing in my families future

 

[TN Pro]

yes

Yes that's the property, I guess my biggest question is this, just using tax numbers fur reference purposes! The land and barns asses at 30 thousand which seems fairly realistic, and the house asses at 60$ per sq ft , bringing total to 197000, my appraiser came in at 177000, so if you subtract the 30000 for barns and land he is at 147000 on the house alone, it doesn't add up in my head, please don't get me wrong I'm not trying to argue or be rude just looking for info so I don't make a huge mistake in investing in my families future

All i can tell you is that in rural Tennessee where i practice, the Tax assessment is usually not an accurate figure of what a property would sell for. Sometimes it is, but usually its not. You may totally have an incompetent appraiser, we havent seen the appraisal so we cant say, but the fact that he used a 1004C manufactured house form isnt a good sign. Some appraisers can appraise for years without coming across a factory built house, let alone a factory built modular. Some appraisers are not up to speed as how they are appraised.

 

[Weslide]

i'm curious about what you sent. did any of them sell for less than your contract price? how did they compare to the property you want to buy in terms of living area and age?

I haven't personally seen the comparables we sent, from what my realator said they were close in size, sq ft and acreage, and within a few years either way of the year built,

 

[Walter Kirk]

Walter, what Town are you putting this in??

It's going to b3e built in Orient, LI. No contracts have been signed yet but customer is eager to start.