SFR is actually a SFT-MFG

[timindp]

Doing an appraisal for a purchase on a home that sits on a corner lot, non HOA/PUD area. The subject is listed on MLS as an SFR. However, title is showing that it is a SFT-MFG.
Looks like an SFR, has attached garage, pool in backyard, raised foundation, all homes in the area are SFR's. Looks like any other house on the street. Nowhere in the purchase agreement is there any indication of the subject being a MFG. Permit history shows the subject being moved on to the current lot in 2001. I didn't check for HUD labels as I found out after its MFG. Now, since the subject is priced like all the other SFR's in the neighborhood and there is absolutely 0 comps that are MFG sitting on a lot like this, would it be adequate to appraise as SFR since it conforms with other dwellings in the area ? Would you make any adjustments for being a MFG? How would the adjustments be justified?
History of the subject on MLS has always sold as a SFR. the subject is legally classified and taxed as real property.

 

[J Grant]

It is a SF home. The construction is a MFG. Disclose that, and that you are aware that it was moved to the site in 2001. I do not appraise MFG, there are so few here I do not feel comfortable doing them and pass on the few assignmetns a year that come up. However, I understand there is a separate form for MFG? You might want to let your client know in case they want it done on a MFG home form, in which case you might need to check for a HUD tag.

Or is it a modular home ? Just asking some questions that might clarify what you are dealing with.

 

[timindp]

It is a SF home. The construction is a MFG. Disclose that, and that you are aware that it was moved to the site in 2001. I do not appraise MFG, there are so few here I do not feel comfortable doing them and pass on the few assignmetns a year that come up. However, I understand there is a separate form for MFG? You might want to let your client know in case they want it done on a MFG home form, in which case you might need to check for a HUD tag.

Or is it a modular home ? Just asking some questions that might clarify what you are dealing with.

Yea I never touch them too. Not 100% sure if its modular. I will disclose what I can. I would assume just to appraise it as an SFR since that's what's in the area. Can't tell the difference if it was a stick or CBS home built on a raised foundation and/or a MFG.

 

[J Grant]

Yea I never touch them too. Not 100% sure if its modular. I will disclose what I can. I would assume just to appraise it as an SFR since that's what's in the area. Can't tell the difference if it was a stick or CBS home built on a raised foundation and/or a MFG.

As I said, I no longer accept assignments to appraise MFG, though I did do several in the past. Typically, a MFG is more narrow unless two were pieced together . A modular home can have any floor plan or width per the design. One way to tell them is that often the windows are more flush with the walls then in stick built. Perahaps ask the agent if they know it was modular construction.

 

[DWiley]

Yea I never touch them too. Not 100% sure if its modular. I will disclose what I can. I would assume just to appraise it as an SFR since that's what's in the area. Can't tell the difference if it was a stick or CBS home built on a raised foundation and/or a MFG.

My advice would be to NOT complete the appraisal until you are sure exactly what you are appraising.

If the property is a MFG, that changes a lot regarding the loan parameters and the requirements for the appraisal report. If you make an inaccurate assumption, you risk that it is a MFG and that fact is discovered later. If a lender is forced to repurchase the loan from an investor because of improper classification, there is a very good chance that will blow back on you in the form of a formal complaint to your state board. Do you really want to stand in front of your state board and admit that you did not know what type of property it was, but you just made an assumption and moved on?

If it were my assignment, my next step would be to inform my client of what I had discovered and then take all necessary steps to identify the construction type.

 

[timindp]

My advice would be to NOT complete the appraisal until you are sure exactly what you are appraising.

If the property is a MFG, that changes a lot regarding the loan parameters and the requirements for the appraisal report. If you make an inaccurate assumption, you risk that it is a MFG and that fact is discovered later. If a lender is forced to repurchase the loan from an investor because of improper classification, there is a very good chance that will blow back on you in the form of a formal complaint to your state board. Do you really want to stand in front of your state board and admit that you did not know what type of property it was, but you just made an assumption and moved on?

If it were my assignment, my next step would be to inform my client of what I had discovered and then take all necessary steps to identify the construction type.

That's what I was going to do. Thanks for the feedback