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All of your nightmares rolled into one...

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Indiana Jones

Member
Joined
Oct 16, 2002
Professional Status
Licensed Appraiser
State
Indiana
I AM NOT MAKING THIS UP... Subject property: rural, 1.61 acres, orignially a 700 sf mobile home built in '68, it had 1000 sf added onto in '96, now has stone facade and vinyl siding. It does not look like a mobile, manuf., etc. from the street. Inside, (the part that is mobile), the floors are buckling BADLY, water damage around the roof line, around the windows etc. smells very musty. The half that is stick built is in okay condition, (replace the carpeting, a little paint and it would be average). This half consists of FR, BR, LR, & Bath. BUT, the family room was built on the slab that used to be the patio, so the FR has a slight grade! 8O :?: Did I mention that this is REO? Did I mention this USED to be a purchase? The LO wants me to go ahead with the report because if it comes in lower than the purchase price then the buyer gets his earnest money back. Oh did I also mention that it has another 700 sf mobile behind it? The 2nd mobile has shifted on the foundation and looked so unsafe that I refused to inspect it. So, I've written a LONG addendum describing everything that I saw, but I would very much appreciate any input you all could give me. I especially need some verbage to explain, that basicly the house is in such poor condition that I suggest getting it inspected by an Engineer. Should I go ahead & put a $ amount on it with all the disclaimers? Subject to? I've got a few REOs on similar lots, some manufactured, some stick buit, all in fair to poor condition.
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Hi, Mike. Welcome to the Forum!

First, go to the "Manufactured" section of this forum and scan the posts for topics about combination factory built and stick built properties. There has been a lot of discussion about this animal and you can find some really good information and suggestions there.

Secondly, it sounds like you have a problem coming up with a cost to cure or perhaps even assigning any value to the improvements. Voice your concerns again to your client.

Does the subject's market require a permit for additions such as those you've encountered? If so, were permits granted? Does the property meet minimum property requirements? If you feel it's beyond your expertise to determine that, tell your client a professional will be needed to determine if the property is safe to live in and provide an estimate of repairs. Most REO assignments want an "as is", "as repaired" and "quick sale" value. Are you able to determine these (if the client has requested them)?

I think I'd have a heart to heart chat with the client (someone up the chain from the LO if possible) to give them a clear picture of the problem and see how they want to proceed.

Hope your charging enough for this one. Good luck!
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I can only add this "A picture is worth a thousand words."

Lots of pictures are worth lots of thousands of words too.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
You can't make chicken soup out of chicken poop! It is what it is. Your job is to report what you see and value it to the best of your ability!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I would back up and look at this beast and say" Would I pay ANYTHING for the home?" The problems involved to cure may well exceed any value of the improvements.

I say this having looked at the twin of this property today. A single-wide with a second half added, pipe frame holding the roof on, foundation of concrete blocks and 2x6 "stiff legs". I'm going for land value with cost to remove.

Roger
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Rog -

There, over the years, have been a number of properties that i wished I had done that way. I can think of two. One a barn that after I looked at it, I gave it 5 yr Remaining life...if fell the following year. Another was a poultry barn, one side was 'blown out" - a foundation problem for about 40' of the side. I gave it 7 years after the owner said the poultry company field inspector said it would last 7 more years. I called for an inspect. Found out the inspector has said it would last 7 years IF the foundation was fixed...it wasn't and was condemned under contract within 18 months. First good 6" snow would have been its end anyway.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I'm going for land value with cost to remove.
Gotta agree with the two above. I just did one this past week with a similar situation. REO no doubt. The lender was not happy to find out what was really there.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Mike;

You have my sympathies.

Built in 68 so it is a mobile and not a HUD Code manufactured single sectional home......remember that once a mobile, always a mobile. Regardless of what they’ve done to it, it is a pre-HUD Code mobile.

Mike Garrett has it right. Report what you see and value as best you can. That’s why they pay us the big bucks.

As to the additional old mobile on site, I've generally found that the cost to remove these is equal to or exceeds any value of the mobile and so I just state that there is no contributory value given to the old mobile. If it is real bad, then there could be a negative value contribution.

I would be careful doing this as both a REO and a purchase unless the definition of value is exactly the same. None of this 90-120 day sales price valuation etc.

Given what you said, my experience is that there usually are not good comps for these monstrosities and the Cost Approach becomes significant in estimating value.
 
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