Can I Appraise this ?

[centerline]

I have been asked to appraise a 1988 Manufactured Home located in a agriculture/farm zone. My client recently foreclosed on the property and then sold it. This is an in-house loan so the lender/client/seller is the same party. According to the County, there were no permits taken out for the MH. This is not uncommon in this area and the County indicated the MH was legally grandfathered in on the property. The problem is, it is unknown if the existing MH can be replaced with a newer one or if it can be replaced or rebuilt if destroyed. The county says you have to come in person and apply for the change (bring your checkbook) for them to determine if it is possible. They indicated if there were no unusual circumstances more than likely it could be replaced. The existing MH appeared to have been installed professionally and nothing unusual stood out. I believe I have found 2 comps which have similar characteristics. If I can appraise this, would I base my appraisal on the extraordinary assumption the property can be rebuilt if destroyed or do I just disclose what I have said here. Or, do I have to do a land only appraisal which will fall short on value ? The credit union is aware of the circumstances but what about the buyer ? I realize they are not my client , but is there some kind of recourse if the property burns down and cannot be replaced ? Thanks in advance for your replies. I don't know what I would do without this site. Thanks again

 

[Don Clark]

I would simply state in the report what you have stated here. I would indicate that it is unknown as to what effect, if any, fire, storms, or other hazards that destroyed the property in whole or in part would have on the ability to rebuild. You have found out all you can "In the normal course of business". Read AO-24 for examples of what that means. We are not required to go beyond what we can discover by ordinary means. We also cannot address any legal issues. I believe you have enough to complete the assignment. If it is a HUD Code MH complete it on the 1004C. If there are not enough MH's as comps, you can use similar stick built homes.

Give it your best.

 

[Mztk1]

Just like Don says, you can do it. If you have similar, non-permitted comps, then you can read a market reaction and adjust for the situation. There would be is no need for an extraordinary assumption that it can be rebuilt.

 

[Webbed Feet]

Centerline,

This is an in-house loan so the lender/client/seller is the same party.

This part sent my red lights and sirens off. What version appraisal form and certifications are you going to be using and signing on this one? If it's the 03/2005 ones I think you have a big stinking problem. Certification number 10 sets you up for a very serious fall on this. Your client is in fact not only the current owner / seller, but the lender, AND your client! How do you intend to come up with a disinterested source regarding ALL the information that might end up in the report that they provide to you?

Next, it's a total no-brainer that this is in-house because most likely no conventional lender will touch this one due to the lack of verification of the ability to replace the improvements. And you can bet your *** some prior appraisal before that foreclosure failed to research and disclose it. Worse, if this credit union is federally insured an in-house loan instantly makes this a FRT. That means an "as-is" value is required even if you CAN use an EA or HC as part of your SOW. As far as showing market acceptance because you found two similar comps, Sir... did you personally speak to the buyers of those comps and did they understand what they were buying may not qualify for a whole lot of loans out there that require the improvements be rebuildable? Did you verify for sure those comp sales met our definition of MV by making sure you had informed buyers?

I am concerned you are not asking for things to watch out for, but IF you can appraise it. It has me wanting to ask you what the transaction value on this deal is????? You have elements of complexity, your licensed, not certified.

The ACLB phone number is on the web if you don't have it or private message me and I'll be glad to give it to you. Calling Mr. Keith for advice on such stuff in Oregon beats this forum any day of the week when it comes to preserving your license status. I recommend you consider making the call.

Webbed.

 

[centerline]

Big Thanks

I would like to say I took Webbed feets advice and called my state board regarding this issue. This appraisal is considered complex and the loan amount must be under 250k for my license. I should have done this from the start. It could have saved me alot of time. I believe I have a better understanding what is considered a complex appraisal. Thanks again Webbed Feet.

 

[EVAUSA]

Will your client accept a GP form? I'd go that rout with the EA you have stated.

 

[Mike Boyd]

YOUR problem is solved unless you are going to get a certified appraiser to work with you......you will not do the report.

One thing to note if you are going to do many MH home appraisals. There will NEVER be any records of building permits with a city or county as they do not inspect them. You might get a permit for the foundation, septic system, well, barns or garages...but not of the house itself. Your record of the legality of the construction of the house is with the HUD plates and tags.