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Comparing Double Wides To Single Wides For FHA Appraisal

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Nick1985

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Freshman Member
Joined
Oct 9, 2016
Professional Status
Appraiser Trainee
State
Kentucky
I have the first order I have ever dealt with for a single wide manufactured home in my area. There is incredibly limited market activity for single wides, only 10 in the entire 5 county area MLS for the last year. Only 2 of those single wides are comparable as this subject is in good condition, well kept and on the higher end of the value range. However, I can't provide high side value bracketing with just single wides. I have done several double wides and typically always manage to just use double wides for the comparables, but as I said this is the first single wide for me and there is hardly any activity. There are a couple of potential comparables that are double wides, are actually smaller in square footage than the single wide, and similar in condition/location. There are double wides of similar size and condition that have sold for both slightly less and slightly more than the subject, but there is such a lack of market activity I can't really support any kind of adjustment for value differences that might exist between single wides and double wides of similar size and condition.

I can say I feel kind of uncomfortable with the appraisal not being able to find any single wides that provide high side bracketing, but at the same time I can't provide any evidence of there being significant value differences between single and double wides in the area when they are the same size, same quality and same condition.

I know FHA is big about market representation and if there isn't enough support it will not qualify. So what are everyone's thoughts about comparing single wides to similar sized double wides?
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I have the first order I have ever dealt with for a single wide manufactured home in my area. There is incredibly limited market activity for single wides, only 10 in the entire 5 county area MLS for the last year. Only 2 of those single wides are comparable as this subject is in good condition, well kept and on the higher end of the value range. However, I can't provide high side value bracketing with just single wides. I have done several double wides and typically always manage to just use double wides for the comparables, but as I said this is the first single wide for me and there is hardly any activity. There are a couple of potential comparables that are double wides, are actually smaller in square footage than the single wide, and similar in condition/location. There are double wides of similar size and condition that have sold for both slightly less and slightly more than the subject, but there is such a lack of market activity I can't really support any kind of adjustment for value differences that might exist between single wides and double wides of similar size and condition.

I can say I feel kind of uncomfortable with the appraisal not being able to find any single wides that provide high side bracketing, but at the same time I can't provide any evidence of there being significant value differences between single and double wides in the area when they are the same size, same quality and same condition.

I know FHA is big about market representation and if there isn't enough support it will not qualify. So what are everyone's thoughts about comparing single wides to similar sized double wides?

It is what it is. You cannot create single wide comps. in my opinion you have to use what is available and make appropriate adjustments. That is also true when you are appraising any type property.

A few years ago i was asked to appraise a new double wide on 25 acres in the Independent City of Chesapeake, VA. (We have 40+ Independent Cities. They are not part of any county). Since any manufactured home in the market at that time was as rare as hen's teeth, and the nearest was in another independent city(Virginia Beach) over 40 miles away, i used stick built residential properties similar in age, style, and amenities as subject, most on less than an acre(with adjustments). Got a call from the lender somwhere deep inside North Carolina where MH's are prevelant that said they wanted at least 3 MH's as comparables(I ad explained the above in my report). I gave them a call and said "when are you coming down here?". Theay answered what do you mean, we are not coming down theere. I said to them that i expected them to come down and show me where the MH's were located that they wanted me to use. They accepted my report as written.:rof:
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
If it's FHA you have to include at least 2 MH comps. I would use the DW's that are similar in GLA. Maybe throw in a SW as a forth, even it it's distant.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
"Nick" are you certified yet?

I don't call this type of construction "double wides" or similar. I refer to them as one section, two section, etc. More professional, less pejorative.

The first concern you should address (both in developing your appraisal. and then reporting the appraisal) is the issue of limited marketability. The handbook discusses this and, without tying for the next hour, basically implies if you can't find 3 comps in less than 12 months then there may not be a market for the subject. It's not just finding comps. There may not be much demand for high end single section manufactured homes. In that case you must discuss this in the report.

You can use a two section home as a comparable or even a site built home as a comparable. It's always been like that. I would say use as many sales, within 12 months, as comps one through three. If you only have two, then use a site built house or a two section MH as the third comp. Put another sale of a single section as comp 4, 5 or 6.

I'm not a big fan of sprinkling lots of sales in a report. Three (or maybe four) sales and a listing or two.

But be careful. Adding a different style just to get an upper range bracket is going to look bad without A LOT of narrative and some exhibits, etc. It might even trigger a review by your HOC somewhere down the line. It might really be a case of the market not liking single section MH's. And you as much as publicly stated that your goal was to get a high bracket (presumably to reconcile above the lower end single section sales.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I have the first order I have ever dealt with for a single wide manufactured home in my area. There is incredibly limited market activity for single wides, only 10 in the entire 5 county area MLS for the last year. Only 2 of those single wides are comparable as this subject is in good condition, well kept and on the higher end of the value range. However, I can't provide high side value bracketing with just single wides. I have done several double wides and typically always manage to just use double wides for the comparables, but as I said this is the first single wide for me and there is hardly any activity. There are a couple of potential comparables that are double wides, are actually smaller in square footage than the single wide, and similar in condition/location. There are double wides of similar size and condition that have sold for both slightly less and slightly more than the subject, but there is such a lack of market activity I can't really support any kind of adjustment for value differences that might exist between single wides and double wides of similar size and condition.

I can say I feel kind of uncomfortable with the appraisal not being able to find any single wides that provide high side bracketing, but at the same time I can't provide any evidence of there being significant value differences between single and double wides in the area when they are the same size, same quality and same condition.

I know FHA is big about market representation and if there isn't enough support it will not qualify. So what are everyone's thoughts about comparing single wides to similar sized double wides?

What makes you determine it is on the on the higher end of the value range before doing the appraisal? Does it have a high price sale contract ( is it a purchase).? Then having trouble finding single wides to provide high side bracketing-l maybe the problem is not so much lack of SW comps ( though that is a problem) as it is you are trying to bring subject in "high"...which may or may not have support for that in the market

I
mo you need to speak to a number of experienced in area RE agents who sell and list these . Ask them if most buyers prefer the DW and will typical buyer even look at a SW -You see very few SW, that is most likely due to them not being a popular choice for the typically motivated borrower, agree?. RE agent surveys is a legit way to support an adjustment,.

You can also compare marketing times and prices of the few SW avail vs DW comps for them of similar quality or sf , to extract an adjustment (if there is one) Throw a few on the grid, compare to each other make adjustments for other features, the lot etx, see what is left for a SW vs DW possible extraction of adjustment/market reaction
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Go back 2 years, apply a time factor if necessary, use best SWs, add DWs for additional support, and provide a LOT of market data analysis to support why you are doing this. Sometimes all you have got is not much.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Is KY a disclosure state? I bet there are private sales somewhere. SWs are hard to finance and Realtors loath to list them so perhaps the dearth of sales is reflecting their lack of MLS exposure rather than fewer sales. I would expand my market area search outside your neighborhood boundary.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
high end single section manufactured homes.

There is a phrase that never entered my mind. I am kind of surprised there is such a thing.
But I have never done a house that was not stick built.
Hmm. High end trailer park. No, can't imagine it. :leeann2:

So, maybe I should google that thought.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
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