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Cost Approach For Mh
- Thread starter FMV
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Tom Woolford
Elite Member
- Joined
- Nov 20, 2005
- Professional Status
- Certified Residential Appraiser
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- Florida
FHA does not require CA for any residential structure unless it is P&S, or less than a year old.
CANative
Elite Member
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- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
From the Delivery Guide, Page 73
The appraiser is only required to complete the cost approach if the manufactured home is new construction (initial sale from manufacturer). If the manufactured home is over one year old and the retailer’s invoice, stating the retail purchase price of the home, is available, a copy of the invoice must be appended to the appraisal report. If the manufactured home is New Construction Less than One Year Old but the title has been re-conveyed after the initial sale, or if the manufactured home is over a year old, the cost approach is not required. For cost estimates, the appraiser must rely upon a nationally published cost service such as the National Automobile Dealers Association (N.A.D.A.) Manufactured Housing Appraisal Guide, the Marshall & Swift Residential Cost Handbook or other published data.
The appraiser is only required to complete the cost approach if the manufactured home is new construction (initial sale from manufacturer). If the manufactured home is over one year old and the retailer’s invoice, stating the retail purchase price of the home, is available, a copy of the invoice must be appended to the appraisal report. If the manufactured home is New Construction Less than One Year Old but the title has been re-conveyed after the initial sale, or if the manufactured home is over a year old, the cost approach is not required. For cost estimates, the appraiser must rely upon a nationally published cost service such as the National Automobile Dealers Association (N.A.D.A.) Manufactured Housing Appraisal Guide, the Marshall & Swift Residential Cost Handbook or other published data.
FMV
Member
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- Jul 18, 2013
- Professional Status
- Certified Residential Appraiser
- State
- Texas
The home is built in 1995.. why could it be potentially bad if it is not completed? I have disclosed not using it.. just curious.. I had an appraiser/attorney advise in a "staying out of trouble" class not to complete it if we absolutely don't have to.. but I was under the impression it was different for MH FHA work.. let me know?
CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
The HOC's are in love with the cost approach and I assume other HUD players (one who monitors the forum and the other who used to be very active on the forum) would likely agree. The cost approach is difficult and takes practice and training but done correctly (and this takes discipline in doing it all the time whether or not it is "not requred.) will yield a lot of information other than a MV indication.
IMO there is no good rationale for not completing this approach except in rare situations. Standard gibberish about not doing it because blah, blah, blah sounds like excuses and makes the appraiser look like they don't know what they're talking about.
IMO of course.
IMO there is no good rationale for not completing this approach except in rare situations. Standard gibberish about not doing it because blah, blah, blah sounds like excuses and makes the appraiser look like they don't know what they're talking about.
IMO of course.
JTip
Elite Member
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- Oct 12, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
I'm not a fan of the cost approach, but when it comes to manufactured improvements, you just gotta do it.
I bet buried somewhere in the assignment conditions they have verbiage saying you must do it. Open your book to page Mfg-1 and begin.
I bet buried somewhere in the assignment conditions they have verbiage saying you must do it. Open your book to page Mfg-1 and begin.
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