"The Home" is worth what it is worth, regardless of what "the lender" thinks. That's why we working with various types of values and various types of property right. A manufactured home set up on fee land with connections to power, water and sewer is not designed to be moved from that site. Foundations and paperwork do not physically prevent removal. The paperwork "legally" prevents removal without notification to parties with an interest (such as a lender.) Conversion to "real property" is tantamount to converting sticks and bricks to real property.
The same is true when the dwelling (the coach) is located in a rental park. It's physically difficult to move the coach away and it would damage it if you tried. Not to mention that mobile home parks have contracts or agreements written into their CC&Rs or rules that, as long as rents are paid and rules followed, a unit cannot be forced to move. This gives the location site a "permanency" where the value can be measured. The MH and it's site go together. That's why a coach that sells for $50k in WI can sell in Laguna Beach for $450k. It's the location and the fact that the rights to the site can pass between owners of the house as long as the rent is paid and rules are followed.
If one needs to value just the house portion or just the house on a fee property, for that matter, a different type of value is needed and different procedures are used.
